ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
USA - NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
36.14 USD
+0.12 (+0.33%)
36.51 USD
+0.37 (+1.02%)
RPRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. 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.
RPRX had positive earnings in each of the past 5 years.
Each year in the past 5 years RPRX had a positive operating cash flow.
1.2 Ratios
RPRX has a better Return On Assets (5.57%) than 89.80% of its industry peers.
RPRX's Return On Equity of 16.08% is amongst the best of 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.
The Average Return On Invested Capital over the past 3 years for RPRX is significantly below the industry average of 15.30%.
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
Looking at the Profit Margin, with a value of 44.28%, RPRX belongs to the top of the industry, outperforming 98.47% of the companies in the same industry.
In the last couple of years the Profit Margin of RPRX has declined.
The Operating Margin of RPRX (79.84%) is better than 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) just above the Cost of Capital (WACC), RPRX is creating some value.
RPRX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RPRX has been increased compared to 5 years ago.
Compared to 1 year ago, RPRX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
RPRX has a better Altman-Z score (1.70) than 62.24% 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 better Debt to FCF ratio (11.22) than 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 worse Debt to Equity ratio (1.10) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 11.22 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.1
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RPRX should not have too much problems paying its short term obligations.
The Current ratio of RPRX (1.26) is worse than 76.02% 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.
The Quick ratio of RPRX (1.26) is worse than 67.86% 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%.
RPRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.23% yearly.
The Revenue has been growing slightly by 3.02% in the past year.
The Revenue has been growing slightly by 4.52% on average over the past years.
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 13.50% on average over the next years. This is quite good.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.15 indicates a reasonable valuation of RPRX.
Compared to the rest of the industry, the Price/Earnings ratio of RPRX indicates a rather cheap valuation: RPRX is cheaper than 91.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.70. RPRX is valued rather cheaply when compared to this.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 7.06.
Based on the Price/Forward Earnings ratio, RPRX is valued cheaper than 91.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.15, RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
RPRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RPRX is cheaper than 80.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.56 | ||
| 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.
The decent profitability rating of RPRX may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y11.77%
EPS Next 3Y11.6%
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 6.27, RPRX pays a better dividend. On top of this RPRX pays more dividend than 92.35% of the companies listed in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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
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%
36.14
+0.12 (+0.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.15%
Inst Owner Change0%
Ins Owners1.79%
Ins Owner Change52.46%
Market Cap21.08B
Analysts81.43
Price Target44.31 (22.61%)
Short Float %5.41%
Short Ratio5.03
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)0.39%
PT rev (3m)6.11%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 7.06 | ||
| P/S | 9.14 | ||
| P/FCF | 29.56 | ||
| P/OCF | 8.76 | ||
| P/B | 3.32 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.95
EY10.93%
EPS(NY)5.12
Fwd EY14.17%
FCF(TTM)1.22
FCFY3.38%
OCF(TTM)4.13
OCFY11.42%
SpS3.95
BVpS10.89
TBVpS9.3
PEG (NY)0.76
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 | 1.7 |
F-Score7
WACC7.72%
ROIC/WACC1.1
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%