RPRX Stock Overview
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States.
Royalty Pharma Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$39.74|
|52 Week High||US$47.10|
|52 Week Low||US$34.86|
|1 Month Change||-6.89%|
|3 Month Change||6.09%|
|1 Year Change||-1.19%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-10.70%|
Recent News & Updates
The Price Is Right For Royalty Pharma plc (NASDAQ:RPRX)
With a price-to-earnings (or "P/E") ratio of 42x Royalty Pharma plc ( NASDAQ:RPRX ) may be sending very bearish signals...
|RPRX||US Pharmaceuticals||US Market|
Return vs Industry: RPRX underperformed the US Pharmaceuticals industry which returned 11.8% over the past year.
Return vs Market: RPRX exceeded the US Market which returned -12.3% over the past year.
|RPRX Average Weekly Movement||3.9%|
|Pharmaceuticals Industry Average Movement||11.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: RPRX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RPRX's weekly volatility (4%) has been stable over the past year.
About the Company
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies.
Royalty Pharma Fundamentals Summary
|RPRX fundamental statistics|
Is RPRX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RPRX income statement (TTM)|
|Cost of Revenue||US$345.20m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||1.38|
|Net Profit Margin||26.44%|
How did RPRX perform over the long term?See historical performance and comparison
1.9%Current Dividend Yield
Is Royalty Pharma undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RPRX ($39.74) is trading below our estimate of fair value ($130.27)
Significantly Below Fair Value: RPRX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RPRX is poor value based on its Price-To-Earnings Ratio (28.7x) compared to the US Pharmaceuticals industry average (20.3x).
PE vs Market: RPRX is poor value based on its Price-To-Earnings Ratio (28.7x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: RPRX is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: RPRX is overvalued based on its Price-To-Book Ratio (3x) compared to the US Pharmaceuticals industry average (1.8x).
How is Royalty Pharma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RPRX's forecast earnings growth (46% per year) is above the savings rate (1.9%).
Earnings vs Market: RPRX's earnings (46% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RPRX's revenue (7.6% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: RPRX's revenue (7.6% 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%)
How has Royalty Pharma performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RPRX has high quality earnings.
Growing Profit Margin: RPRX's current net profit margins (26.4%) are higher than last year (22.5%).
Past Earnings Growth Analysis
Earnings Trend: RPRX's earnings have declined by 24.4% per year over the past 5 years.
Accelerating Growth: RPRX's earnings growth over the past year (22.2%) exceeds its 5-year average (-24.4% per year).
Earnings vs Industry: RPRX earnings growth over the past year (22.2%) exceeded the Pharmaceuticals industry 16.9%.
Return on Equity
High ROE: RPRX's Return on Equity (11.9%) is considered low.
How is Royalty Pharma's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: RPRX's short term assets ($3.0B) exceed its short term liabilities ($135.9M).
Long Term Liabilities: RPRX's short term assets ($3.0B) do not cover its long term liabilities ($7.1B).
Debt to Equity History and Analysis
Debt Level: RPRX's net debt to equity ratio (46.9%) is considered high.
Reducing Debt: Insufficient data to determine if RPRX's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: RPRX's debt is well covered by operating cash flow (27.5%).
Interest Coverage: RPRX's interest payments on its debt are well covered by EBIT (11x coverage).
What is Royalty Pharma current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RPRX's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: RPRX's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RPRX has been paying a dividend for less than 10 years.
Growing Dividend: RPRX's dividend payments have increased, but the company has only paid a dividend for 2 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (49.5%), RPRX's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (175.3%), RPRX's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pablo Legorreta (56 yo)
Mr. Pablo Gerardo Legorreta serves as the Chief Executive Officer and Co-Founder at RP Management, LLC. He also serves as Chairman of the Board at Royalty Pharma plc and has been its Chief Executive Office...
CEO Compensation Analysis
Compensation vs Market: Pablo's total compensation ($USD49.51M) is above average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Pablo's compensation has been consistent with company performance over the past year.
Experienced Management: RPRX's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Experienced Board: RPRX's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RPRX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Royalty Pharma plc's employee growth, exchange listings and data sources
- Name: Royalty Pharma plc
- Ticker: RPRX
- Exchange: NasdaqGS
- Founded: 1996
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: US$24.183b
- Market Cap: US$17.299b
- Shares outstanding: 607.18m
- Website: https://www.royaltypharma.com
- Royalty Pharma plc
- 110 East 59th Street
- Floor 33
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 00:00|
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.