ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
USA - NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
36.24 USD
+0.51 (+1.43%)
36.24 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RPRX. RPRX was compared to 196 industry peers in the Pharmaceuticals industry. While RPRX belongs to the best of the industry regarding profitability, there are 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.
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
The Return On Assets of RPRX (5.57%) is better than 89.29% of its industry peers.
RPRX has a Return On Equity of 16.08%. This is amongst the best in the industry. RPRX outperforms 89.80% of its industry peers.
The Return On Invested Capital of RPRX (8.50%) is better than 85.20% 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 15.28%.
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's Profit Margin of 44.28% is amongst the best of the industry. RPRX outperforms 97.96% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
RPRX's Operating Margin of 79.84% is amongst the best of the industry. RPRX outperforms 100.00% of its industry peers.
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
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 1.69. 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 (1.69) is better than 63.27% of its industry peers.
RPRX has a debt to FCF ratio of 11.22. This is a negative value and a sign of low solvency as RPRX would need 11.22 years to pay back of all of its debts.
RPRX has a Debt to FCF ratio of 11.22. This is in the better half of the industry: RPRX outperforms 79.08% 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.
RPRX has a Debt to Equity ratio of 1.10. This is in the lower half of the industry: RPRX underperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.94
WACC9%
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.
RPRX's Current ratio of 1.26 is on the low side compared to the rest of the industry. RPRX is outperformed by 75.51% of its industry peers.
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.
With a Quick ratio value of 1.26, RPRX is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| 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
The Revenue has been growing slightly by 3.02% in the past 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)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 16.10% yearly.
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 Y11.99%
EPS Next 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue Next Year13.99%
Revenue Next 2Y8.43%
Revenue Next 3Y8.25%
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.
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 9.17, the valuation of RPRX can be described as very reasonable.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 90.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. RPRX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.94 indicates a rather cheap valuation of RPRX.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 93.37% of the companies in the same industry.
RPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 80.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.64 | ||
| 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.
The decent profitability rating of RPRX may justify a higher PE ratio.
A more expensive valuation may be justified as RPRX's earnings are expected to grow with 12.58% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y12.89%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.40%.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 5.04. RPRX pays more dividend than 92.86% of the companies in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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 2Y12.89%
EPS Next 3Y12.58%
36.24
+0.51 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change6.37%
Ins Owners1.82%
Ins Owner Change52.55%
Market Cap21.13B
Analysts81.54
Price Target44.14 (21.8%)
Short Float %4.23%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)3.59%
PT rev (3m)5.7%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-3.87%
EPS NY rev (1m)5.08%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)4.98%
Revenue NY rev (3m)4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.94 | ||
| P/S | 9.17 | ||
| P/FCF | 29.64 | ||
| P/OCF | 8.78 | ||
| P/B | 3.33 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY10.9%
EPS(NY)5.23
Fwd EY14.42%
FCF(TTM)1.22
FCFY3.37%
OCF(TTM)4.13
OCFY11.39%
SpS3.95
BVpS10.89
TBVpS9.3
PEG (NY)0.77
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 | 1.69 |
F-Score7
WACC9%
ROIC/WACC0.94
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 2Y12.89%
EPS Next 3Y12.58%
EPS Next 5Y16.1%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%19.57%
Revenue Next Year13.99%
Revenue Next 2Y8.43%
Revenue Next 3Y8.25%
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%