ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD
RPRX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. RPRX scores excellent on profitability, but there are some minor 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.
RPRX had positive earnings in each of the past 5 years.
In the past 5 years RPRX always reported a positive cash flow from operatings.
1.2 Ratios
RPRX has a better Return On Assets (6.20%) than 90.26% of its industry peers.
RPRX has a Return On Equity of 16.33%. This is amongst the best in the industry. RPRX outperforms 90.26% of its industry peers.
RPRX's Return On Invested Capital of 9.14% is amongst the best of the industry. RPRX outperforms 86.67% 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 14.87%.
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 98.97% of its industry peers.
RPRX's Profit Margin has declined in the last couple of years.
RPRX has a Operating Margin of 83.95%. This is amongst the best in the industry. RPRX outperforms 99.49% of its industry peers.
In the last couple of years the Operating Margin of RPRX has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RPRX is creating some value.
The number of shares outstanding for RPRX has been reduced compared to 1 year ago.
The number of shares outstanding for RPRX has been increased compared to 5 years ago.
RPRX has a worse debt/assets ratio than last year.
2.2 Solvency
RPRX has an Altman-Z score of 1.84. This is not the best score and indicates that RPRX is in the grey zone with still only limited risk for bankruptcy at the moment.
RPRX has a better Altman-Z score (1.84) than 65.64% 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.
With a decent Debt to FCF ratio value of 27.23, RPRX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 0.99. This is a neutral value indicating RPRX is somewhat dependend on debt financing.
The Debt to Equity ratio of RPRX (0.99) is worse than 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 27.23 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.03
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.56 indicates that RPRX should not have too much problems paying its short term obligations.
The Current ratio of RPRX (1.56) is worse than 68.72% of its industry peers.
RPRX has a Quick 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 Quick ratio of 1.56. This is in the lower half of the industry: RPRX underperforms 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.27% 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 1.13% 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)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%47.71%
3.2 Future
The Earnings Per Share is expected to grow by 16.10% on average over the next years. This is quite good.
RPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.82% yearly.
EPS Next Y9.34%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%
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.
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 9.60 indicates a reasonable valuation of RPRX.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of RPRX to the average of the S&P500 Index (27.28), we can say RPRX is valued rather cheaply.
RPRX is valuated cheaply with a Price/Forward Earnings ratio of 7.04.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 90.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RPRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
RPRX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RPRX is cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y11.99%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.50%.
RPRX's Dividend Yield is rather good when compared to the industry average which is at 4.12. RPRX pays more dividend than 92.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 34.60% of its income as dividend. This is a sustainable payout ratio.
DP34.6%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
36.19
+0.31 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners78.78%
Inst Owner Change0.31%
Ins Owners1.82%
Ins Owner Change47.65%
Market Cap20.35B
Analysts81.54
Price Target41.76 (15.39%)
Short Float %7.59%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-14.22%
Max Revenue beat(2)16.62%
Revenue beat(4)1
Avg Revenue beat(4)-5.8%
Min Revenue beat(4)-20.42%
Max Revenue beat(4)16.62%
Revenue beat(8)1
Avg Revenue beat(8)-8.92%
Revenue beat(12)1
Avg Revenue beat(12)-11.81%
Revenue beat(16)4
Avg Revenue beat(16)-8.94%
PT rev (1m)6.81%
PT rev (3m)6%
EPS NQ rev (1m)9.52%
EPS NQ rev (3m)10.89%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)3.71%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 7.04 | ||
| P/S | 8.99 | ||
| P/FCF | 72.73 | ||
| P/OCF | 7.53 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.77
EY10.42%
EPS(NY)5.14
Fwd EY14.21%
FCF(TTM)0.5
FCFY1.37%
OCF(TTM)4.8
OCFY13.27%
SpS4.03
BVpS11.9
TBVpS11.9
PEG (NY)1.03
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 | 1.84 |
F-Score6
WACC8.84%
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 Y9.34%
EPS Next 2Y11.99%
EPS Next 3Y11.79%
EPS Next 5Y16.1%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%47.71%
Revenue Next Year9.21%
Revenue Next 2Y8.39%
Revenue Next 3Y8.34%
Revenue Next 5Y11.82%
EBIT growth 1Y102.32%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year31.02%
EBIT Next 3Y10.82%
EBIT Next 5Y14.19%
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%