ROYALTY PHARMA PLC- CL A (RPRX)
GB00BMVP7Y09 - Common Stock
RPRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of RPRX get a neutral evaluation. Nothing too spectacular is happening here. RPRX is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make RPRX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
RPRX had a positive operating cash flow in the past year.
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
RPRX has a Return On Assets of 1.16%. This is amongst the best in the industry. RPRX outperforms 83.41% of its industry peers.
RPRX's Return On Equity of 3.00% is amongst the best of the industry. RPRX outperforms 85.85% of its industry peers.
RPRX's Return On Invested Capital of 5.08% is amongst the best of the industry. RPRX outperforms 84.39% 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 16.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 3% | ||
| ROIC | 5.08% |
ROA(3y)2.29%
ROA(5y)7.57%
ROE(3y)7.25%
ROE(5y)18.18%
ROIC(3y)6.51%
ROIC(5y)9.32%
1.3 Margins
With an excellent Profit Margin value of 7.93%, RPRX belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Profit Margin of RPRX has declined.
With an excellent Operating Margin value of 43.55%, RPRX belongs to the best of the industry, outperforming 98.54% of the companies in the same industry.
In the last couple of years the Operating Margin of RPRX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.55% | ||
| PM (TTM) | 7.93% | ||
| GM | N/A |
OM growth 3Y-34.17%
OM growth 5Y-6.85%
PM growth 3Y-75.46%
PM growth 5Y-52.08%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPRX is destroying value.
Compared to 1 year ago, RPRX has more shares outstanding
RPRX has a worse debt/assets ratio than last year.
2.2 Solvency
RPRX has an Altman-Z score of 1.67. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
RPRX has a better Altman-Z score (1.67) than 68.29% of its industry peers.
The Debt to FCF ratio of RPRX is 4.31, which is a neutral value as it means it would take RPRX, 4.31 years of fcf income to pay off all of its debts.
RPRX's Debt to FCF ratio of 4.31 is amongst the best of the industry. RPRX outperforms 86.83% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that RPRX is somewhat dependend on debt financing.
RPRX has a worse Debt to Equity ratio (1.00) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.62
WACC8.16%
2.3 Liquidity
RPRX has a Current Ratio of 13.51. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 13.51, RPRX belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
RPRX has a Quick Ratio of 13.51. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 13.51, RPRX belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.51 | ||
| Quick Ratio | 13.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.60% over the past year.
The earnings per share for RPRX have been decreasing by -45.24% on average. This is quite bad
The Revenue has been growing slightly by 3.43% in the past year.
RPRX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)64.6%
EPS 3Y-70.61%
EPS 5Y-45.24%
EPS growth Q2Q9.72%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y7.23%
Revenue growth 5Y6.96%
Revenue growth Q2Q-6.49%
3.2 Future
Based on estimates for the next years, RPRX will show a small growth in Earnings Per Share. The EPS will grow by 5.26% on average per year.
The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y14.92%
EPS Next 2Y4.35%
EPS Next 3Y6.72%
EPS Next 5Y5.26%
Revenue Next Year5.33%
Revenue Next 2Y-0.16%
Revenue Next 3Y4.25%
Revenue Next 5Y5.66%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.66, the valuation of RPRX can be described as very cheap.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.46, RPRX is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.78, the valuation of RPRX can be described as very cheap.
92.68% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 19.59. RPRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaper than 89.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| 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.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y4.35%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, 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 4.65. RPRX pays more dividend than 92.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
RPRX has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
191.54% of the earnings are spent on dividend by RPRX. This is not a sustainable payout ratio.
DP191.54%
EPS Next 2Y4.35%
EPS Next 3Y6.72%
ROYALTY PHARMA PLC- CL A
NASDAQ:RPRX (11/28/2023, 7:26:44 PM)
After market: 27.09 0 (0%)27.09
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-08 2023-11-08/bmo
Earnings (Next)02-13 2024-02-13/amc
Inst Owners49.87%
Inst Owner Change-1.08%
Ins Owners0.18%
Ins Owner Change15.13%
Market Cap16.30B
Analysts84.62
Price Target49.64 (83.24%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Dividend Growth(5Y)N/A
DP191.54%
Div Incr Years2
Div Non Decr Years2
Ex-Date11-16 2023-11-16 (0.2)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.19%
Min EPS beat(2)1.92%
Max EPS beat(2)2.45%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)1.92%
Max EPS beat(4)23.19%
Revenue beat(2)0
Avg Revenue beat(2)-8.29%
Min Revenue beat(2)-14.92%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-19.92%
Min Revenue beat(4)-41.7%
Max Revenue beat(4)-1.67%
PT rev (1m)0.69%
PT rev (3m)-1.2%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)6.07%
Revenue NQ rev (3m)6.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 6.78 | ||
| P/S | 7.01 | ||
| P/FCF | 11.47 | ||
| P/OCF | 5.85 | ||
| P/B | 2.66 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.79
EY17.68%
EPS(NY)4
Fwd EY14.75%
FCF(TTM)2.36
FCFY8.72%
OCF(TTM)4.63
OCFY17.08%
SpS3.86
BVpS10.2
TBVpS10.2
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 3% | ||
| ROCE | 6.44% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 5.69% | ||
| OM | 43.55% | ||
| PM (TTM) | 7.93% | ||
| GM | N/A | ||
| FCFM | 61.17% |
ROA(3y)2.29%
ROA(5y)7.57%
ROE(3y)7.25%
ROE(5y)18.18%
ROIC(3y)6.51%
ROIC(5y)9.32%
ROICexc(3y)7.78%
ROICexc(5y)10.89%
ROICexgc(3y)7.79%
ROICexgc(5y)10.94%
ROCE(3y)8.24%
ROCE(5y)11.8%
ROICexcg growth 3Y-33.06%
ROICexcg growth 5YN/A
ROICexc growth 3Y-32.95%
ROICexc growth 5YN/A
OM growth 3Y-34.17%
OM growth 5Y-6.85%
PM growth 3Y-75.46%
PM growth 5Y-52.08%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.31 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 58.67% | ||
| Interest Coverage | -6.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 770.99% | ||
| Current Ratio | 13.51 | ||
| Quick Ratio | 13.51 | ||
| Altman-Z | 1.67 |
F-Score5
WACC8.16%
ROIC/WACC0.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)92.13%
Cap/Sales(5y)77.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)64.6%
EPS 3Y-70.61%
EPS 5Y-45.24%
EPS growth Q2Q9.72%
EPS Next Y14.92%
EPS Next 2Y4.35%
EPS Next 3Y6.72%
EPS Next 5Y5.26%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y7.23%
Revenue growth 5Y6.96%
Revenue growth Q2Q-6.49%
Revenue Next Year5.33%
Revenue Next 2Y-0.16%
Revenue Next 3Y4.25%
Revenue Next 5Y5.66%
EBIT growth 1Y7.34%
EBIT growth 3Y-29.4%
EBIT growth 5Y-0.36%
EBIT Next Year5.68%
EBIT Next 3Y3.66%
EBIT Next 5Y3.75%
FCF growth 1Y294.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.06%
OCF growth 3Y8.75%
OCF growth 5Y8.62%