NasdaqGS:RPRX

Stock Analysis Report

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Executive Summary

Royalty Pharma plc operates in the biopharmaceutical industry.


Snowflake Analysis

Proven track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

RPRX

-0.006%

US Pharmaceuticals

1.3%

US Market


1 Year Return

n/a

RPRX

11.4%

US Pharmaceuticals

14.9%

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 Day-0.4%-0.006%1.3%
30 Day-5.9%2.5%4.7%
90 Dayn/a0.8%17.1%
1 Yearn/a14.4%11.4%17.3%14.9%
3 Yearn/a28.3%18.9%38.9%29.9%
5 Yearn/a29.4%14.7%71.3%52.8%

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

No news available

Valuation

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

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPRX ($43.05) is trading below our estimate of fair value ($45.07)

Significantly Below Fair Value: RPRX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate RPRX's PE Ratio to determine if it is good value compared to the US Pharmaceuticals industry average.

PE vs Market: Insufficient data to calculate RPRX's PE Ratio to determine if it is good value compared to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RPRX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate RPRX's PB Ratio to determine if it is good value.


Next Steps

Future Growth

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

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPRX's forecast earnings growth (2.8% per year) is above the savings rate (2.2%).

Earnings vs Market: RPRX's earnings (2.8% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: RPRX's revenue (7.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: RPRX's revenue (7.7% 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 (26.4%)


Next Steps

Past Performance

How has Royalty Pharma performed over the past 5 years?

26.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RPRX has high quality earnings.

Growing Profit Margin: RPRX's current net profit margins are higher than last year (90%).


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: Insufficient data to compare RPRX's past year earnings growth to its 5-year average.

Earnings vs Industry: RPRX earnings growth over the past year (26.7%) exceeded the Pharmaceuticals industry 12.1%.


Return on Equity

High ROE: RPRX's Return on Equity (30.4%) 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 ($1.7B) exceed its short term liabilities ($434.0M).

Long Term Liabilities: RPRX's short term assets ($1.7B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: RPRX's debt to equity ratio (83.2%) 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 (28.6%).

Interest Coverage: RPRX's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.60%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RPRX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RPRX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RPRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RPRX's dividend payments have been increasing.


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: No need to calculate the sustainability of RPRX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.2yrs

Average board tenure


CEO

Pablo Legorreta (56 yo)

24.58yrs

Tenure

Mr. Pablo G. Legorreta serves as Chairman of the Board at Royalty Pharma plc and has been its Chief Executive Officer and Director since 1996. Mr. Legorreta co-founded RP Management LLC (also known as Roya ...


Board Members

NamePositionTenureCompensationOwnership
Pablo Legorreta
Chairman of the Board & CEO24.58yrsno data3.87%
$ 1.0b
Christopher Hite
Vice Chairman & Executive VP0.58yrno data0.11%
$ 29.9m
William Ford
Independent Director0.17yrno data0.25%
$ 64.6m
Rory Riggs
Director0.17yrno data1.11%
$ 290.5m
Errol B. De Souza
Independent Director0.17yrno data0.089%
$ 23.2m
Gregory Norden
Independent Director0.17yrno data0.026%
$ 6.7m
Bonnie Bassler
Independent Director0.17yrno datano data
Mario Giuliani
Director0.17yrno data10.42%
$ 2.7b
Catherine Engelbert
Independent Director0.17yrno datano data

0.2yrs

Average Tenure

58yo

Average Age

Experienced Board: RPRX's board of directors are not considered experienced ( 0.2 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: RPRX 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$26.133b
  • Shares outstanding: 607.04m
  • 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

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 Analysis2020/08/03 00:18
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
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.