ROYALTY PHARMA PLC- CL A (RPRX) Stock Fundamental Analysis
NASDAQ:RPRX - Nasdaq - GB00BMVP7Y09 - Common Stock - Currency: USD
Taking everything into account, RPRX scores 5 out of 10 in our fundamental rating. RPRX was compared to 195 industry peers in the Pharmaceuticals industry. RPRX has an excellent profitability rating, but there are concerns on its financial health. RPRX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
RPRX had positive earnings in the past year.
In the past year RPRX had a positive cash flow from operations.
In the past 5 years RPRX has always been profitable.
In the past 5 years RPRX always reported a positive cash flow from operatings.
1.2 Ratios
RPRX's Return On Assets of 6.20% is amongst the best of the industry. RPRX outperforms 90.26% of its industry peers.
RPRX has a better Return On Equity (16.33%) than 90.26% of its industry peers.
RPRX has a better Return On Invested Capital (9.14%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RPRX is significantly below the industry average of 14.70%.
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's Profit Margin of 48.26% is amongst the best of the industry. RPRX outperforms 98.97% of its industry peers.
In the last couple of years the Profit Margin of RPRX has declined.
The Operating Margin of RPRX (83.95%) is better than 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.
Compared to 5 years ago, RPRX has more shares outstanding
The debt/assets ratio for RPRX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that RPRX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, RPRX is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
The Debt to FCF ratio of RPRX is 27.23, which is on the high side as it means it would take RPRX, 27.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.23, RPRX is in the better half of the industry, outperforming 76.41% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that RPRX is somewhat dependend on debt financing.
RPRX has a worse Debt to Equity ratio (0.99) than 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 27.23 | ||
| Altman-Z | 1.76 |
ROIC/WACC1
WACC9.11%
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's Quick ratio of 1.56 is on the low side compared to the rest of the industry. RPRX is outperformed by 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.
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 1.13% in the past year.
The Revenue has been growing slightly by 4.52% on average over the past years.
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
Based on estimates for the next years, RPRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.10% on average per year.
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 Y11.56%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
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.
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
Based on the Price/Earnings ratio of 9.03, the valuation of RPRX can be described as reasonable.
RPRX's Price/Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 92.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, RPRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.51, the valuation of RPRX can be described as very cheap.
RPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RPRX is cheaper than 93.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, RPRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RPRX is valued a bit cheaper than the industry average as 77.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.43 | ||
| 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.
RPRX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RPRX's earnings are expected to grow with 12.45% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y12.92%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, RPRX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.16, RPRX pays a better dividend. On top of this RPRX pays more dividend than 93.33% of the companies listed in the same industry.
RPRX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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
34.60% of the earnings are spent on dividend by RPRX. This is a low number and sustainable payout ratio.
DP34.6%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
34.05
+0.47 (+1.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change0.31%
Ins Owners1.42%
Ins Owner Change47.65%
Market Cap19.14B
Analysts81.54
Price Target41.76 (22.64%)
Short Float %5.43%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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)10.8%
PT rev (3m)6%
EPS NQ rev (1m)14.53%
EPS NQ rev (3m)9.63%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 6.51 | ||
| P/S | 8.46 | ||
| P/FCF | 68.43 | ||
| P/OCF | 7.09 | ||
| P/B | 2.86 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.77
EY11.07%
EPS(NY)5.23
Fwd EY15.35%
FCF(TTM)0.5
FCFY1.46%
OCF(TTM)4.8
OCFY14.11%
SpS4.03
BVpS11.9
TBVpS11.9
PEG (NY)0.78
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 | 1.76 |
F-Score6
WACC9.11%
ROIC/WACC1
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 Y11.56%
EPS Next 2Y12.92%
EPS Next 3Y12.45%
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%