ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD
RPRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 193 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RPRX had positive earnings in the past year.
In the past year RPRX had a positive cash flow from operations.
In the past 5 years RPRX has always been profitable.
RPRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RPRX has a better Return On Assets (5.57%) than 89.64% of its industry peers.
RPRX has a Return On Equity of 16.08%. This is amongst the best in the industry. RPRX outperforms 90.16% of its industry peers.
RPRX's Return On Invested Capital of 8.50% is amongst the best of the industry. RPRX outperforms 84.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPRX is significantly below the industry average of 15.35%.
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 better Profit Margin (44.28%) than 98.45% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
Looking at the Operating Margin, with a value of 79.84%, RPRX belongs to the top of the industry, outperforming 99.48% 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 | 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
RPRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RPRX has less shares outstanding
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 1.67, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
RPRX has a Altman-Z score of 1.67. This is in the better half of the industry: RPRX outperforms 62.69% of its industry peers.
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.
The Debt to FCF ratio of RPRX (11.22) is better than 78.76% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that RPRX has dependencies on debt financing.
The Debt to Equity ratio of RPRX (1.10) is worse than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.93
WACC9.16%
2.3 Liquidity
RPRX has a Current Ratio of 1.26. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, RPRX is doing worse than 76.68% of the companies in the same industry.
RPRX has a Quick Ratio of 1.26. This is a normal value and indicates that RPRX is financially healthy and should not expect problems in meeting its short term obligations.
RPRX has a Quick ratio of 1.26. This is in the lower half of the industry: RPRX underperforms 66.84% 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
The Revenue has been growing slightly by 3.02% 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)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
The Earnings Per Share is expected to grow by 16.10% on average over the next years. This is quite good.
RPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.81% yearly.
EPS Next Y6.57%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue Next Year8.58%
Revenue Next 2Y8.33%
Revenue Next 3Y8.43%
Revenue Next 5Y11.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RPRX is valuated reasonably with a Price/Earnings ratio of 9.20.
Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 91.19% of the companies are valued more expensively.
RPRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 7.11.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaply inside the industry as 91.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RPRX to the average of the S&P500 Index (35.29), we can say RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
79.79% of the companies in the same industry are more expensive than RPRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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)1.4
PEG (5Y)N/A
EPS Next 2Y11.64%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.04, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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
RPRX pays out 36.87% of its income as dividend. This is a sustainable payout ratio.
DP36.87%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
36.35
-0.15 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change6.38%
Ins Owners1.82%
Ins Owner Change52.55%
Market Cap20.44B
Analysts81.54
Price Target42.61 (17.22%)
Short Float %4.38%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)2.04%
PT rev (3m)8.98%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-19.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-11.51%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.11 | ||
| P/S | 8.87 | ||
| P/FCF | 28.66 | ||
| P/OCF | 8.49 | ||
| P/B | 3.22 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY10.87%
EPS(NY)5.11
Fwd EY14.06%
FCF(TTM)1.27
FCFY3.49%
OCF(TTM)4.28
OCFY11.77%
SpS4.1
BVpS11.29
TBVpS9.65
PEG (NY)1.4
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 | 1.67 |
F-Score7
WACC9.16%
ROIC/WACC0.93
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 Y6.57%
EPS Next 2Y11.64%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
Revenue Next Year8.58%
Revenue Next 2Y8.33%
Revenue Next 3Y8.43%
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%