ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
36.07 USD
-0.83 (-2.25%)
36.01 USD
-0.06 (-0.17%)
We assign a fundamental rating of 5 out of 10 to RPRX. RPRX was compared to 195 industry peers in the Pharmaceuticals industry. While RPRX belongs to the best of the industry regarding profitability, there are concerns on its financial health. RPRX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
In the past year RPRX had a positive cash flow from operations.
RPRX had positive earnings in each of the past 5 years.
In the past 5 years RPRX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.57%, RPRX belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
RPRX's Return On Equity of 16.08% is amongst the best of the industry. RPRX outperforms 89.74% of its industry peers.
The Return On Invested Capital of RPRX (8.50%) is better than 85.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RPRX is significantly below the industry average of 15.28%.
The last Return On Invested Capital (8.50%) for RPRX is above the 3 year average (5.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.08% | ||
| ROIC | 8.5% |
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
1.3 Margins
RPRX has a Profit Margin of 44.28%. This is amongst the best in the industry. RPRX outperforms 97.95% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
RPRX has a Operating Margin of 79.84%. This is amongst the best in the industry. RPRX outperforms 100.00% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.84% | ||
| PM (TTM) | 44.28% | ||
| GM | N/A |
OM growth 3Y-2.96%
OM growth 5Y-16.96%
PM growth 3Y11.92%
PM growth 5Y-21.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPRX is destroying value.
The number of shares outstanding for RPRX has been reduced compared to 1 year ago.
RPRX has more shares outstanding than it did 5 years ago.
RPRX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.70, RPRX is doing good in the industry, outperforming 63.59% of the companies in the same industry.
The Debt to FCF ratio of RPRX is 11.22, which is on the high side as it means it would take RPRX, 11.22 years of fcf income to pay off all of its debts.
RPRX has a Debt to FCF ratio of 11.22. This is in the better half of the industry: RPRX outperforms 78.97% of its industry peers.
RPRX has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.10, RPRX is doing worse than 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.94
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX has a Current ratio of 1.26. This is in the lower half of the industry: RPRX underperforms 75.90% of its industry peers.
A Quick Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX has a Quick ratio of 1.26. This is in the lower half of the industry: RPRX underperforms 67.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
RPRX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.80%.
The earnings per share for RPRX have been decreasing by -18.23% on average. This is quite bad
RPRX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
Measured over the past years, RPRX shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
EPS 1Y (TTM)1.8%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%18.75%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
3.2 Future
RPRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.10% yearly.
The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y11.99%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue Next Year12.94%
Revenue Next 2Y8.7%
Revenue Next 3Y8.64%
Revenue Next 5Y11.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RPRX is valuated reasonably with a Price/Earnings ratio of 9.13.
Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.90, which indicates a rather cheap valuation of RPRX.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RPRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RPRX's earnings are expected to grow with 12.58% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y12.89%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, RPRX has a reasonable but not impressive dividend return.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.72. RPRX pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
RPRX has been paying a dividend for over 5 years, so it has already some track record.
RPRX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
36.87% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP36.87%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
36.07
-0.83 (-2.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change6.37%
Ins Owners1.82%
Ins Owner Change52.55%
Market Cap21.03B
Analysts81.54
Price Target44.14 (22.37%)
Short Float %3.58%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP36.87%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.44%
Min EPS beat(2)-59.9%
Max EPS beat(2)3.01%
EPS beat(4)3
Avg EPS beat(4)-10.84%
Min EPS beat(4)-59.9%
Max EPS beat(4)6.88%
EPS beat(8)5
Avg EPS beat(8)-4.24%
EPS beat(12)8
Avg EPS beat(12)-0.53%
EPS beat(16)9
Avg EPS beat(16)-6.35%
Revenue beat(2)2
Avg Revenue beat(2)12.26%
Min Revenue beat(2)7.9%
Max Revenue beat(2)16.62%
Revenue beat(4)2
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)16.62%
Revenue beat(8)2
Avg Revenue beat(8)-7.72%
Revenue beat(12)2
Avg Revenue beat(12)-10.9%
Revenue beat(16)4
Avg Revenue beat(16)-8.77%
PT rev (1m)3.59%
PT rev (3m)5.7%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-19.91%
EPS NY rev (1m)5.08%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-11.51%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 6.9 | ||
| P/S | 9.12 | ||
| P/FCF | 29.5 | ||
| P/OCF | 8.74 | ||
| P/B | 3.31 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY10.95%
EPS(NY)5.23
Fwd EY14.49%
FCF(TTM)1.22
FCFY3.39%
OCF(TTM)4.13
OCFY11.44%
SpS3.95
BVpS10.89
TBVpS9.3
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 16.08% | ||
| ROCE | 10.75% | ||
| ROIC | 8.5% | ||
| ROICexc | 9.3% | ||
| ROICexgc | 9.89% | ||
| OM | 79.84% | ||
| PM (TTM) | 44.28% | ||
| GM | N/A | ||
| FCFM | 30.93% |
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
ROICexc(3y)6.7%
ROICexc(5y)7.58%
ROICexgc(3y)6.7%
ROICexgc(5y)7.59%
ROCE(3y)7.57%
ROCE(5y)8.31%
ROICexcg growth 3Y-4.76%
ROICexcg growth 5Y-18.24%
ROICexc growth 3Y-4.74%
ROICexc growth 5Y-18.16%
OM growth 3Y-2.96%
OM growth 5Y-16.96%
PM growth 3Y11.92%
PM growth 5Y-21.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 73.45% | ||
| Interest Coverage | -8.39 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 69.86% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.7 |
F-Score7
WACC9.08%
ROIC/WACC0.94
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)92.8%
Cap/Sales(5y)95.39%
Profit Quality(3y)349.23%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.8%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%18.75%
EPS Next Y11.99%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
Revenue Next Year12.94%
Revenue Next 2Y8.7%
Revenue Next 3Y8.64%
Revenue Next 5Y11.81%
EBIT growth 1Y91.7%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year26.89%
EBIT Next 3Y14.88%
EBIT Next 5Y14.2%
FCF growth 1Y36.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.52%
OCF growth 3Y11.13%
OCF growth 5Y10.68%