ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
USA - NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
36.85 USD
+0.01 (+0.03%)
36.85 USD
0 (0%)
Taking everything into account, RPRX scores 5 out of 10 in our fundamental rating. RPRX was compared to 191 industry peers in the Pharmaceuticals industry. While RPRX has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RPRX.
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
With an excellent Return On Assets value of 5.57%, RPRX belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
RPRX has a better Return On Equity (16.08%) than 89.53% of its industry peers.
The Return On Invested Capital of RPRX (8.50%) is better than 85.86% of its industry peers.
RPRX had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 15.45%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(8.50%), indicating increased profibility in the last year.
| 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's Profit Margin of 44.28% is amongst the best of the industry. RPRX outperforms 98.43% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
RPRX has a Operating Margin of 79.84%. This is amongst the best in the industry. RPRX outperforms 100.00% of its industry peers.
RPRX's Operating Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RPRX is still creating some value.
Compared to 1 year ago, RPRX has less shares outstanding
RPRX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RPRX is higher compared to a year ago.
2.2 Solvency
RPRX has an Altman-Z score of 1.72. 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 (1.72) than 62.83% 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.
Looking at the Debt to FCF ratio, with a value of 11.22, RPRX is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that RPRX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.10, RPRX is not doing good in the industry: 73.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.72 |
ROIC/WACC1.07
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX has a worse Current ratio (1.26) than 76.44% of its industry peers.
A Quick Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
RPRX's Quick ratio of 1.26 is on the low side compared to the rest of the industry. RPRX is outperformed by 68.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.80% over the past 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 small growth in Revenue. The Revenue has grown by 3.02% in the last 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
RPRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.50% yearly.
Based on estimates for the next years, RPRX will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y11.99%
EPS Next 2Y11.77%
EPS Next 3Y11.6%
EPS Next 5Y13.5%
Revenue Next Year14.1%
Revenue Next 2Y7.48%
Revenue Next 3Y7.67%
Revenue Next 5Y11.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.33, the valuation of RPRX can be described as very reasonable.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 91.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.67, RPRX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.20 indicates a rather cheap valuation of RPRX.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 90.05% 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 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued cheaply inside the industry as 80.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.14 | ||
| 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)0.78
PEG (5Y)N/A
EPS Next 2Y11.77%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, 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 6.88. RPRX pays more dividend than 93.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
36.87% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP36.87%
EPS Next 2Y11.77%
EPS Next 3Y11.6%
36.85
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.15%
Inst Owner Change0.15%
Ins Owners1.79%
Ins Owner Change52.46%
Market Cap21.49B
Revenue(TTM)2.31B
Net Income(TTM)1.02B
Analysts81.43
Price Target44.31 (20.24%)
Short Float %5.41%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)6.9%
Min Revenue beat(2)4.2%
Max Revenue beat(2)9.61%
Revenue beat(4)2
Avg Revenue beat(4)-5.21%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)9.61%
Revenue beat(8)2
Avg Revenue beat(8)-9.06%
Revenue beat(12)2
Avg Revenue beat(12)-11.79%
Revenue beat(16)4
Avg Revenue beat(16)-9.44%
PT rev (1m)0.39%
PT rev (3m)4.83%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)0%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.2 | ||
| P/S | 9.32 | ||
| P/FCF | 30.14 | ||
| P/OCF | 8.93 | ||
| P/B | 3.39 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY10.72%
EPS(NY)5.12
Fwd EY13.9%
FCF(TTM)1.22
FCFY3.32%
OCF(TTM)4.13
OCFY11.2%
SpS3.95
BVpS10.89
TBVpS9.3
PEG (NY)0.78
PEG (5Y)N/A
Graham Number31.1
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%
ROICexgc growth 3Y-4.76%
ROICexgc 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 | 1.72 |
F-Score7
WACC7.94%
ROIC/WACC1.07
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 Y11.99%
EPS Next 2Y11.77%
EPS Next 3Y11.6%
EPS Next 5Y13.5%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
Revenue Next Year14.1%
Revenue Next 2Y7.48%
Revenue Next 3Y7.67%
Revenue Next 5Y11.13%
EBIT growth 1Y91.7%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year28.89%
EBIT Next 3Y14.6%
EBIT Next 5Y13.78%
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%