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 199 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
RPRX had a positive operating cash flow in the past year.
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's Return On Assets of 4.71% is amongst the best of the industry. RPRX outperforms 89.90% of its industry peers.
RPRX's Return On Equity of 12.37% is amongst the best of the industry. RPRX outperforms 89.39% of its industry peers.
RPRX has a better Return On Invested Capital (6.02%) than 83.33% 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 41.77%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(6.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 12.37% | ||
| ROIC | 6.02% |
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
Looking at the Profit Margin, with a value of 37.95%, RPRX belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
In the last couple of years the Profit Margin of RPRX has declined.
Looking at the Operating Margin, with a value of 57.10%, RPRX belongs to the top of the industry, outperforming 99.49% 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 | 57.1% | ||
| PM (TTM) | 37.95% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
RPRX has an Altman-Z score of 1.59. This is a bad value and indicates that RPRX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RPRX (1.59) is better than 66.16% of its industry peers.
The Debt to FCF ratio of RPRX is 28.91, which is on the high side as it means it would take RPRX, 28.91 years of fcf income to pay off all of its debts.
RPRX's Debt to FCF ratio of 28.91 is fine compared to the rest of the industry. RPRX outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that RPRX is somewhat dependend on debt financing.
RPRX has a worse Debt to Equity ratio (0.95) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 28.91 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.7
WACC8.61%
2.3 Liquidity
RPRX has a Current Ratio of 1.44. 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 1.44, RPRX is doing worse than 72.73% of the companies in the same industry.
RPRX has a Quick Ratio of 1.44. 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 1.44. This is in the lower half of the industry: RPRX underperforms 64.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The earnings per share for RPRX have decreased by -6.39% in the last year.
The earnings per share for RPRX have been decreasing by -18.23% on average. This is quite bad
Looking at the last year, RPRX shows a decrease in Revenue. The Revenue has decreased by -3.86% in the last year.
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)-6.39%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%-0.34%
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 15.83% on average per year.
Based on estimates for the next years, RPRX will show a small growth in Revenue. The Revenue will grow by 3.07% on average per year.
EPS Next Y11.67%
EPS Next 2Y12.49%
EPS Next 3Y12.36%
EPS Next 5Y15.83%
Revenue Next Year11.08%
Revenue Next 2Y8.48%
Revenue Next 3Y8.32%
Revenue Next 5Y3.07%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.85 indicates a rather cheap valuation of RPRX.
92.93% of the companies in the same industry are more expensive than RPRX, based on the Price/Earnings ratio.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.03, which indicates a rather cheap valuation of RPRX.
94.44% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
78.28% 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 | 70.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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.
RPRX's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y12.49%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.75%. Purely for dividend investing, there may be better candidates out there.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.59. RPRX pays more dividend than 91.92% of the companies in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 43.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.83%
EPS Next 2Y12.49%
EPS Next 3Y12.36%
32.2
+0.17 (+0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change0.48%
Ins Owners1.42%
Ins Owner Change0.52%
Market Cap18.49B
Analysts81.54
Price Target37.69 (17.05%)
Short Float %4.65%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP43.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.77%
Min EPS beat(2)6.65%
Max EPS beat(2)6.88%
EPS beat(4)2
Avg EPS beat(4)2.23%
Min EPS beat(4)-2.47%
Max EPS beat(4)6.88%
EPS beat(8)6
Avg EPS beat(8)6.01%
EPS beat(12)7
Avg EPS beat(12)2.5%
EPS beat(16)9
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-17.32%
Min Revenue beat(2)-20.42%
Max Revenue beat(2)-14.22%
Revenue beat(4)0
Avg Revenue beat(4)-13.96%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)-5.16%
Revenue beat(8)0
Avg Revenue beat(8)-13.67%
Revenue beat(12)0
Avg Revenue beat(12)-13.88%
Revenue beat(16)4
Avg Revenue beat(16)-9.34%
PT rev (1m)-1.75%
PT rev (3m)-5.5%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)52.62%
EPS NY rev (1m)-4.42%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)-1.83%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.03 | ||
| P/S | 8.17 | ||
| P/FCF | 70.24 | ||
| P/OCF | 6.68 | ||
| P/B | 2.66 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.1
EY12.73%
EPS(NY)4.58
Fwd EY14.22%
FCF(TTM)0.46
FCFY1.42%
OCF(TTM)4.82
OCFY14.97%
SpS3.94
BVpS12.1
TBVpS12.1
PEG (NY)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 12.37% | ||
| ROCE | 7.62% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 6.72% | ||
| OM | 57.1% | ||
| PM (TTM) | 37.95% | ||
| GM | N/A | ||
| FCFM | 11.63% |
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 28.91 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 110.7% | ||
| Interest Coverage | -8.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 30.65% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.59 |
F-Score5
WACC8.61%
ROIC/WACC0.7
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)-6.39%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%0%
EPS Next Y11.67%
EPS Next 2Y12.49%
EPS Next 3Y12.36%
EPS Next 5Y15.83%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%-0.34%
Revenue Next Year11.08%
Revenue Next 2Y8.48%
Revenue Next 3Y8.32%
Revenue Next 5Y3.07%
EBIT growth 1Y-13.38%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year28.93%
EBIT Next 3Y11.99%
EBIT Next 5Y14.2%
FCF growth 1Y-69.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.32%
OCF growth 3Y11.13%
OCF growth 5Y10.68%