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ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis

NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD

36.59  +0.58 (+1.61%)

After market: 36.75 +0.16 (+0.44%)

Fundamental Rating

5

Overall RPRX gets a fundamental rating of 5 out of 10. We evaluated RPRX against 194 industry peers in the Pharmaceuticals industry. RPRX scores excellent on profitability, but there are concerns on its financial health. RPRX has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years RPRX has always been profitable.
Each year in the past 5 years RPRX had a positive operating cash flow.
RPRX Yearly Net Income VS EBIT VS OCF VS FCFRPRX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

RPRX has a better Return On Assets (6.20%) than 90.21% of its industry peers.
With an excellent Return On Equity value of 16.33%, RPRX belongs to the best of the industry, outperforming 90.21% of the companies in the same industry.
The Return On Invested Capital of RPRX (9.14%) is better than 86.60% 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 14.87%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(9.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 16.33%
ROIC 9.14%
ROA(3y)3.97%
ROA(5y)3.7%
ROE(3y)10.17%
ROE(5y)10.3%
ROIC(3y)5.98%
ROIC(5y)6.56%
RPRX Yearly ROA, ROE, ROICRPRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of RPRX (48.26%) is better than 98.97% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
RPRX's Operating Margin of 83.95% is amongst the best of the industry. RPRX outperforms 99.48% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 83.95%
PM (TTM) 48.26%
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
RPRX Yearly Profit, Operating, Gross MarginsRPRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 50 100

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3

2. Health

2.1 Basic Checks

RPRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RPRX has been reduced compared to 1 year ago.
The number of shares outstanding for RPRX has been increased compared to 5 years ago.
RPRX has a worse debt/assets ratio than last year.
RPRX Yearly Shares OutstandingRPRX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RPRX Yearly Total Debt VS Total AssetsRPRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

RPRX has an Altman-Z score of 1.84. This is not the best score and indicates that RPRX is in the grey zone with still only limited risk for bankruptcy at the moment.
RPRX has a Altman-Z score of 1.84. This is in the better half of the industry: RPRX outperforms 63.92% of its industry peers.
The Debt to FCF ratio of RPRX is 27.23, which is on the high side as it means it would take RPRX, 27.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.23, RPRX is in the better half of the industry, outperforming 76.80% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 0.99. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
The Debt to Equity ratio of RPRX (0.99) is worse than 71.13% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF 27.23
Altman-Z 1.84
ROIC/WACC1
WACC9.17%
RPRX Yearly LT Debt VS Equity VS FCFRPRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.56 indicates that RPRX should not have too much problems paying its short term obligations.
The Current ratio of RPRX (1.56) is worse than 68.56% of its industry peers.
A Quick Ratio of 1.56 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX's Quick ratio of 1.56 is on the low side compared to the rest of the industry. RPRX is outperformed by 62.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.56
RPRX Yearly Current Assets VS Current LiabilitesRPRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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5

3. Growth

3.1 Past

RPRX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.27%.
Measured over the past years, RPRX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.23% on average per year.
The Revenue has been growing slightly by 1.13% in the past year.
RPRX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
EPS 1Y (TTM)0.27%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%-33.67%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%47.71%

3.2 Future

Based on estimates for the next years, RPRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.10% on average per year.
RPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.82% yearly.
EPS Next Y6.57%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RPRX Yearly Revenue VS EstimatesRPRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
RPRX Yearly EPS VS EstimatesRPRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.71, the valuation of RPRX can be described as reasonable.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 92.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, RPRX is valued rather cheaply.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 7.16.
91.24% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
RPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.36.
Industry RankSector Rank
PE 9.71
Fwd PE 7.16
RPRX Price Earnings VS Forward Price EarningsRPRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

78.35% of the companies in the same industry are more expensive than RPRX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 73.54
EV/EBITDA N/A
RPRX Per share dataRPRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

RPRX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RPRX may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y11.64%
EPS Next 3Y11.79%

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5

5. Dividend

5.1 Amount

RPRX has a Yearly Dividend Yield of 2.48%.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.08. RPRX pays more dividend than 92.78% of the companies in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.48%

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
RPRX Yearly Dividends per shareRPRX Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

34.60% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP34.6%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
RPRX Yearly Income VS Free CF VS DividendRPRX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B
RPRX Dividend Payout.RPRX Dividend Payout, showing the Payout Ratio.RPRX Dividend Payout.PayoutRetained Earnings

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ROYALTY PHARMA PLC- CL A

NASDAQ:RPRX (7/24/2025, 4:30:02 PM)

After market: 36.75 +0.16 (+0.44%)

36.59

+0.58 (+1.61%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners78.78%
Inst Owner Change0.13%
Ins Owners1.82%
Ins Owner Change47.55%
Market Cap20.57B
Analysts81.54
Price Target42.27 (15.52%)
Short Float %4.42%
Short Ratio3.41
Dividend
Industry RankSector Rank
Dividend Yield 2.48%
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP34.6%
Div Incr Years4
Div Non Decr Years4
Ex-Date05-16 2025-05-16 (0.22)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-26.51%
Min EPS beat(2)-59.9%
Max EPS beat(2)6.88%
EPS beat(4)2
Avg EPS beat(4)-12.21%
Min EPS beat(4)-59.9%
Max EPS beat(4)6.88%
EPS beat(8)5
Avg EPS beat(8)-4.37%
EPS beat(12)7
Avg EPS beat(12)-0.85%
EPS beat(16)9
Avg EPS beat(16)-3.26%
Revenue beat(2)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-14.22%
Max Revenue beat(2)16.62%
Revenue beat(4)1
Avg Revenue beat(4)-5.8%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)16.62%
Revenue beat(8)1
Avg Revenue beat(8)-8.92%
Revenue beat(12)1
Avg Revenue beat(12)-11.81%
Revenue beat(16)4
Avg Revenue beat(16)-8.94%
PT rev (1m)1.22%
PT rev (3m)9.2%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)13.94%
EPS NY rev (1m)-2.54%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.68%
Valuation
Industry RankSector Rank
PE 9.71
Fwd PE 7.16
P/S 9.09
P/FCF 73.54
P/OCF 7.62
P/B 3.08
P/tB 3.08
EV/EBITDA N/A
EPS(TTM)3.77
EY10.3%
EPS(NY)5.11
Fwd EY13.97%
FCF(TTM)0.5
FCFY1.36%
OCF(TTM)4.8
OCFY13.13%
SpS4.03
BVpS11.9
TBVpS11.9
PEG (NY)1.48
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 16.33%
ROCE 11.57%
ROIC 9.14%
ROICexc 10.28%
ROICexgc 10.28%
OM 83.95%
PM (TTM) 48.26%
GM N/A
FCFM 12.36%
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-Score6
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.99
Debt/FCF 27.23
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 106.93%
Interest Coverage -8.66
Cash Conversion N/A
Profit Quality 25.61%
Current Ratio 1.56
Quick Ratio 1.56
Altman-Z 1.84
F-Score6
WACC9.17%
ROIC/WACC1
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)0.27%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%-33.67%
EPS Next Y6.57%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%47.71%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%
EBIT growth 1Y102.32%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year31.02%
EBIT Next 3Y10.82%
EBIT Next 5Y14.19%
FCF growth 1Y-25.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.63%
OCF growth 3Y11.13%
OCF growth 5Y10.68%