NasdaqGS:RPRX

Stock Analysis Report

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Executive Summary

Royalty Pharma plc operates in the biopharmaceutical industry. More Details


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Royalty Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RPRX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: Insufficient data to determine RPRX's volatility change over the past year.


Market Performance


7 Day Return

3.3%

RPRX

2.6%

US Pharmaceuticals

0.9%

US Market


1 Year Return

n/a

RPRX

6.2%

US Pharmaceuticals

22.1%

US Market

Return vs Industry: Insufficient data to determine how RPRX performed against the US Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how RPRX performed against the US Market.


Shareholder returns

RPRXIndustryMarket
7 Day3.3%2.6%0.9%
30 Day6.7%6.6%10.2%
90 Day8.0%2.3%9.7%
1 Yearn/a9.0%6.2%24.8%22.1%
3 Yearn/a24.9%16.0%48.6%38.7%
5 Yearn/a34.5%19.6%99.6%77.6%

Long-Term Price Volatility Vs. Market

How volatile is Royalty Pharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Royalty Pharma undervalued compared to its fair value and its price relative to the market?

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPRX ($42.97) is trading below our estimate of fair value ($68.32)

Significantly Below Fair Value: RPRX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RPRX is good value based on its PE Ratio (9.1x) compared to the US Pharmaceuticals industry average (21.1x).

PE vs Market: RPRX is good value based on its PE Ratio (9.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: RPRX is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: RPRX is good value based on its PB Ratio (3.6x) compared to the US Pharmaceuticals industry average (3.7x).


Next Steps

Future Growth

How is Royalty Pharma forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPRX's forecast earnings growth (8.6% per year) is above the savings rate (2.2%).

Earnings vs Market: RPRX's earnings (8.6% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: RPRX's earnings are forecast to grow, but not significantly.

Revenue vs Market: RPRX's revenue (7.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RPRX's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RPRX's Return on Equity is forecast to be high in 3 years time (29.8%)


Next Steps

Past Performance

How has Royalty Pharma performed over the past 5 years?

-17.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RPRX has high quality earnings.

Growing Profit Margin: RPRX's current net profit margins (86.9%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RPRX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: RPRX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RPRX had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (16.8%).


Return on Equity

High ROE: RPRX's Return on Equity (28.4%) is considered high.


Next Steps

Financial Health

How is Royalty Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: RPRX's short term assets ($2.8B) exceed its short term liabilities ($270.0M).

Long Term Liabilities: RPRX's short term assets ($2.8B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: RPRX's debt to equity ratio (59.3%) is considered high.

Reducing Debt: Insufficient data to determine if RPRX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RPRX's debt is well covered by operating cash flow (33.5%).

Interest Coverage: RPRX's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Royalty Pharma current dividend yield, its reliability and sustainability?

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RPRX's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: RPRX's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RPRX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RPRX's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RPRX's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average board tenure


CEO

Pablo Legorreta (56 yo)

24.92yrs

Tenure

US$28,545,792

Compensation

Mr. Pablo Gerardo Legorreta serves as the Chief Executive Officer and Co-Founder at RP Management, LLC. He also serves as Chairman of the Board at Royalty Pharma plc and has been its Chief Executive Office...


Board Members

NamePositionTenureCompensationOwnership
Pablo Legorreta
Founder24.92yrsUS$28.55m0.062%
$ 10.4m
Christopher Hite
Vice Chairman & Executive VP0.92yrno data0.018%
$ 3.0m
William Ford
Independent Director0.50yrno data0.39%
$ 64.5m
Rory Riggs
Director0.50yrno data0.0039%
$ 643.8k
Ted Love
Independent Director0.42yrno data0.0026%
$ 430.3k
Errol B. De Souza
Independent Director0.50yrno data0.0092%
$ 1.5m
Henry Fernandez
Independent Director0.42yrno data0%
$ 0
Gregory Norden
Independent Director0.50yrno data0.0092%
$ 1.5m
Bonnie Bassler
Independent Director0.50yrno data0.000040%
$ 6.7k
Mario Giuliani
Director0.50yrno data15.17%
$ 2.5b
Catherine Engelbert
Independent Director0.50yrno data0%
$ 0

0.5yrs

Average Tenure

59yo

Average Age

Experienced Board: RPRX's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: RPRX only recently listed within the past 12 months.


Top Shareholders

Company Information

Royalty Pharma plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royalty Pharma plc
  • Ticker: RPRX
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$16.678b
  • Shares outstanding: 388.13m
  • Website: https://www.royaltypharma.com

Location

  • Royalty Pharma plc
  • 110 East 59th Street
  • Floor 33
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPRXNasdaqGS (Nasdaq Global Select)YesClass A Ordinary SharesUSUSDJun 2020
RPRX NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNJun 2020
RPDMUN (Boerse Muenchen)YesClass A Ordinary SharesDEEURJun 2020

Biography

Royalty Pharma plc operates in the biopharmaceutical industry. The company operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry. It is involved in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:38
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.