ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
USA - NASDAQ:RPRX - GB00BMVP7Y09 - Common Stock
39.46 USD
+0.3 (+0.77%)
40.24 USD
+0.78 (+1.98%)
RPRX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are some minor concerns on its financial health. RPRX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year RPRX was profitable.
RPRX had a positive operating cash flow in the past year.
Each year in the past 5 years RPRX has been profitable.
RPRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.95%, RPRX belongs to the top of the industry, outperforming 84.90% of the companies in the same industry.
With an excellent Return On Equity value of 11.93%, RPRX belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.43%, RPRX belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RPRX is significantly below the industry average of 13.51%.
The 3 year average ROIC (5.98%) for RPRX is below the current ROIC(6.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 11.93% | ||
| ROIC | 6.43% |
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 32.55%, RPRX belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
RPRX's Profit Margin has declined in the last couple of years.
RPRX's Operating Margin of 65.22% 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 | 65.22% | ||
| PM (TTM) | 32.55% | ||
| 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.
Compared to 1 year ago, RPRX has less shares outstanding
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
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.
RPRX has a Altman-Z score of 1.69. This is in the better half of the industry: RPRX outperforms 62.50% of its industry peers.
RPRX has a debt to FCF ratio of 9.47. This is a negative value and a sign of low solvency as RPRX would need 9.47 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.47, RPRX is doing good in the industry, outperforming 78.13% of the companies in the same industry.
RPRX has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.34, RPRX is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.47 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.8
WACC8.07%
2.3 Liquidity
A Current Ratio of 3.48 indicates that RPRX has no problem at all paying its short term obligations.
With a Current ratio value of 3.48, RPRX perfoms like the industry average, outperforming 56.77% of the companies in the same industry.
RPRX has a Quick Ratio of 3.48. This indicates that RPRX is financially healthy and has no problem in meeting its short term obligations.
RPRX has a Quick ratio (3.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.24% over the past year.
RPRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.23% yearly.
RPRX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.70%.
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)0.24%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%15.84%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%44.07%
3.2 Future
The Earnings Per Share is expected to grow by 12.58% 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 10.36% on average per year.
EPS Next Y11.77%
EPS Next 2Y11.15%
EPS Next 3Y11.71%
EPS Next 5Y12.58%
Revenue Next Year14.96%
Revenue Next 2Y8.31%
Revenue Next 3Y7.87%
Revenue Next 5Y10.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RPRX is valuated reasonably with a Price/Earnings ratio of 9.60.
Based on the Price/Earnings ratio, RPRX is valued cheaper than 90.63% of the companies in the same industry.
RPRX is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.79 indicates a rather cheap valuation of RPRX.
90.63% of the companies in the same industry are more expensive than RPRX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.62. RPRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
82.29% of the companies in the same industry are more expensive than RPRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.36 | ||
| 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)0.82
PEG (5Y)N/A
EPS Next 2Y11.15%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
RPRX has a Yearly Dividend Yield of 2.21%.
Compared to an average industry Dividend Yield of 7.07, RPRX pays a better dividend. On top of this RPRX pays more dividend than 93.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RPRX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
49.36% of the earnings are spent on dividend by RPRX. This is a bit on the high side, but may be sustainable.
DP49.36%
EPS Next 2Y11.15%
EPS Next 3Y11.71%
39.46
+0.3 (+0.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.15%
Inst Owner Change-2.94%
Ins Owners1.79%
Ins Owner Change10.03%
Market Cap23.01B
Revenue(TTM)2.35B
Net Income(TTM)764.96M
Analysts82.67
Price Target44.35 (12.39%)
Short Float %3.61%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.63
Dividend Growth(5Y)N/A
DP49.36%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)3.01%
Max EPS beat(2)9.99%
EPS beat(4)3
Avg EPS beat(4)-10%
Min EPS beat(4)-59.9%
Max EPS beat(4)9.99%
EPS beat(8)5
Avg EPS beat(8)-3.29%
EPS beat(12)9
Avg EPS beat(12)0.42%
EPS beat(16)10
Avg EPS beat(16)-0.98%
Revenue beat(2)2
Avg Revenue beat(2)6.07%
Min Revenue beat(2)4.2%
Max Revenue beat(2)7.95%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-14.22%
Max Revenue beat(4)9.61%
Revenue beat(8)3
Avg Revenue beat(8)-6.2%
Revenue beat(12)3
Avg Revenue beat(12)-10.78%
Revenue beat(16)4
Avg Revenue beat(16)-8.96%
PT rev (1m)0.09%
PT rev (3m)4.09%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)8.06%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)4.88%
Revenue NQ rev (1m)2.7%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)5.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 7.79 | ||
| P/S | 9.79 | ||
| P/FCF | 24.36 | ||
| P/OCF | 9.57 | ||
| P/B | 3.59 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY10.42%
EPS(NY)5.07
Fwd EY12.84%
FCF(TTM)1.62
FCFY4.11%
OCF(TTM)4.12
OCFY10.45%
SpS4.03
BVpS11
TBVpS9.41
PEG (NY)0.82
PEG (5Y)N/A
Graham Number31.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 11.93% | ||
| ROCE | 8.15% | ||
| ROIC | 6.43% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 7.53% | ||
| OM | 65.22% | ||
| PM (TTM) | 32.55% | ||
| GM | N/A | ||
| FCFM | 40.2% |
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 62.15% | ||
| Interest Coverage | -5.67 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 123.5% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 | ||
| Altman-Z | 1.69 |
F-Score5
WACC8.07%
ROIC/WACC0.8
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)0.24%
EPS 3Y22.51%
EPS 5Y-18.23%
EPS Q2Q%15.84%
EPS Next Y11.77%
EPS Next 2Y11.15%
EPS Next 3Y11.71%
EPS Next 5Y12.58%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.52%
Sales Q2Q%44.07%
Revenue Next Year14.96%
Revenue Next 2Y8.31%
Revenue Next 3Y7.87%
Revenue Next 5Y10.36%
EBIT growth 1Y-0.72%
EBIT growth 3Y-3.33%
EBIT growth 5Y-13.2%
EBIT Next Year28.89%
EBIT Next 3Y14.6%
EBIT Next 5Y13.36%
FCF growth 1Y-33.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.64%
OCF growth 3Y11.13%
OCF growth 5Y10.68%
ROYALTY PHARMA PLC- CL A / RPRX FAQ
Can you provide the ChartMill fundamental rating for ROYALTY PHARMA PLC- CL A?
ChartMill assigns a fundamental rating of 6 / 10 to RPRX.
What is the valuation status of ROYALTY PHARMA PLC- CL A (RPRX) stock?
ChartMill assigns a valuation rating of 8 / 10 to ROYALTY PHARMA PLC- CL A (RPRX). This can be considered as Undervalued.
Can you provide the profitability details for ROYALTY PHARMA PLC- CL A?
ROYALTY PHARMA PLC- CL A (RPRX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RPRX stock?
The Price/Earnings (PE) ratio for ROYALTY PHARMA PLC- CL A (RPRX) is 9.6 and the Price/Book (PB) ratio is 3.59.
Is the dividend of ROYALTY PHARMA PLC- CL A sustainable?
The dividend rating of ROYALTY PHARMA PLC- CL A (RPRX) is 4 / 10 and the dividend payout ratio is 49.36%.