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 198 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are concerns on its financial health. RPRX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
RPRX had positive earnings in the past year.
RPRX had a positive operating cash flow in the past year.
Each year in the past 5 years RPRX has been profitable.
Each year in the past 5 years RPRX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.20%, RPRX belongs to the best of the industry, outperforming 89.90% of the companies in the same industry.
RPRX's Return On Equity of 16.33% is amongst the best of the industry. RPRX outperforms 89.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.14%, RPRX belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
RPRX had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 42.34%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(9.14%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
RPRX has a Profit Margin of 48.26%. This is amongst the best in the industry. RPRX outperforms 98.48% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
RPRX has a Operating Margin of 83.95%. This is amongst the best in the industry. RPRX outperforms 98.99% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
RPRX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RPRX has been reduced compared to 1 year ago.
Compared to 5 years ago, RPRX has more shares outstanding
Compared to 1 year ago, RPRX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
RPRX's Altman-Z score of 1.77 is fine compared to the rest of the industry. RPRX outperforms 66.67% of its industry peers.
RPRX has a debt to FCF ratio of 27.23. This is a negative value and a sign of low solvency as RPRX would need 27.23 years to pay back of 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 76.77% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that RPRX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, RPRX is not doing good in the industry: 70.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 27.23 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.03
WACC8.86%
2.3 Liquidity
RPRX has a Current Ratio of 1.56. 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 Current ratio of 1.56. This is in the lower half of the industry: RPRX underperforms 69.19% of its industry peers.
A Quick Ratio of 1.56 indicates that RPRX should not have too much problems paying its short term obligations.
The Quick ratio of RPRX (1.56) is worse than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
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.
Looking at the last year, RPRX shows a small growth in Revenue. The Revenue has grown by 1.13% in the last year.
The Revenue has been growing slightly by 4.52% on average over the past years.
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%0%
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 15.83% yearly.
The Revenue is expected to grow by 3.07% on average over the next years.
EPS Next Y11.56%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
EPS Next 5Y15.83%
Revenue Next Year10.74%
Revenue Next 2Y8.53%
Revenue Next 3Y8.2%
Revenue Next 5Y3.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RPRX is valuated reasonably with a Price/Earnings ratio of 8.71.
Based on the Price/Earnings ratio, RPRX is valued cheaply inside the industry as 91.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. RPRX is valued rather cheaply when compared to this.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 6.28.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 94.95% of the companies in the same industry.
RPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.4 | ||
| 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.
RPRX's earnings are expected to grow with 12.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y12.92%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.66%. 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 4.24. RPRX pays more dividend than 93.43% of the companies 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 | 2.66% |
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
34.60% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP34.6%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
32.83
-0.26 (-0.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change0.22%
Ins Owners1.42%
Ins Owner Change27.96%
Market Cap18.85B
Analysts81.67
Price Target39.1 (19.1%)
Short Float %4.78%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP34.6%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)0
Avg Revenue beat(2)-17.64%
Min Revenue beat(2)-21.05%
Max Revenue beat(2)-14.22%
Revenue beat(4)0
Avg Revenue beat(4)-15.21%
Min Revenue beat(4)-21.05%
Max Revenue beat(4)-5.16%
Revenue beat(8)0
Avg Revenue beat(8)-13.63%
Revenue beat(12)0
Avg Revenue beat(12)-14.95%
Revenue beat(16)3
Avg Revenue beat(16)-11.3%
PT rev (1m)1%
PT rev (3m)0.1%
EPS NQ rev (1m)4.58%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-5.81%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 6.28 | ||
| P/S | 8.33 | ||
| P/FCF | 67.4 | ||
| P/OCF | 6.98 | ||
| P/B | 2.82 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.77
EY11.48%
EPS(NY)5.23
Fwd EY15.92%
FCF(TTM)0.49
FCFY1.48%
OCF(TTM)4.7
OCFY14.32%
SpS3.94
BVpS11.65
TBVpS11.65
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.77 |
F-Score6
WACC8.86%
ROIC/WACC1.03
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 Y11.56%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
EPS Next 5Y15.83%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%0%
Revenue Next Year10.74%
Revenue Next 2Y8.53%
Revenue Next 3Y8.2%
Revenue Next 5Y3.07%
EBIT growth 1Y102.32%
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-25.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.63%
OCF growth 3Y11.13%
OCF growth 5Y10.68%