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RPRX

Royalty Pharma NasdaqGS:RPRX Stock Report

Last Price

US$39.74

Market Cap

US$24.2b

7D

-3.9%

1Y

-1.2%

Updated

24 May, 2022

Data

Company Financials +
RPRX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends2/6

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

Summary of all time highs, changes and price drops for Royalty Pharma
Historical stock prices
Current Share PriceUS$39.74
52 Week HighUS$47.10
52 Week LowUS$34.86
Beta0
1 Month Change-6.89%
3 Month Change6.09%
1 Year Change-1.19%
3 Year Changen/a
5 Year Changen/a
Change since IPO-10.70%

Recent News & Updates

Apr 25
The Price Is Right For Royalty Pharma plc (NASDAQ:RPRX)

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...

Shareholder Returns

RPRXUS PharmaceuticalsUS Market
7D-3.9%-0.02%-4.0%
1Y-1.2%13.5%-13.2%

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.

Price Volatility

Is RPRX's price volatile compared to industry and market?
RPRX volatility
RPRX Average Weekly Movement3.9%
Pharmaceuticals Industry Average Movement11.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
1996n/aPablo Legorretahttps://www.royaltypharma.com

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

How do Royalty Pharma's earnings and revenue compare to its market cap?
RPRX fundamental statistics
Market CapUS$24.18b
Earnings (TTM)US$602.37m
Revenue (TTM)US$2.28b

28.7x

P/E Ratio

7.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RPRX income statement (TTM)
RevenueUS$2.28b
Cost of RevenueUS$345.20m
Gross ProfitUS$1.93b
Other ExpensesUS$1.33b
EarningsUS$602.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.38
Gross Margin84.85%
Net Profit Margin26.44%
Debt/Equity Ratio70.0%

How did RPRX perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

49%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

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).


Future Growth

How is Royalty Pharma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


46.0%

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%)


Past Performance

How has Royalty Pharma performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.4%

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.


Financial Health

How is Royalty Pharma's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.91%

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

Management

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

1.4yrs

Average management tenure


CEO

Pablo Legorreta (56 yo)

26.33yrs

Tenure

US$49,513,461

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...


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.


Leadership Team

Experienced Management: RPRX's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: RPRX's board of directors are not considered experienced ( 1.9 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 only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • 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

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.