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RPRX

Royalty PharmaNasdaqGS:RPRX Stock Report

Last Price

US$39.31

Market Cap

US$24.0b

7D

-2.2%

1Y

-22.0%

Updated

21 Jan, 2022

Data

Company Financials +
RPRX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends3/6

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.

Price History & Performance

Summary of all time highs, changes and price drops for Royalty Pharma
Historical stock prices
Current Share PriceUS$39.31
52 Week HighUS$53.15
52 Week LowUS$34.86
Beta0
1 Month Change0.23%
3 Month Change4.83%
1 Year Change-22.04%
3 Year Changen/a
5 Year Changen/a
Change since IPO-11.66%

Recent News & Updates

Jan 11
Royalty Pharma (NASDAQ:RPRX) Will Pay A Larger Dividend Than Last Year At US$0.19

Royalty Pharma (NASDAQ:RPRX) Will Pay A Larger Dividend Than Last Year At US$0.19

Royalty Pharma plc's ( NASDAQ:RPRX ) dividend will be increasing to US$0.19 on 15th of March. Despite this raise, the...

Dec 27

Royalty Pharma: A Pharma-Like Company Without The Same Risks

The founder-led business is a profitable, cash flow positive business that is trading at a slight discount now. Six quarters after its IPO, the company has demonstrated a strong record of meeting/beating analysts' revenue and earnings estimates. The company's greatest asset is the management team with their depth and breadth of industry knowledge. The business model of investing into drugs in late-stage clinical trials, already approved therapies, and through M&As bears less risk compared to a traditional pharmaceutical company. The company is committed to rewarding their shareholders through dividends that have grown 13% YoY.

Shareholder Returns

RPRXUS PharmaceuticalsUS Market
7D-2.2%-2.2%-4.0%
1Y-22.0%7.1%6.6%

Return vs Industry: RPRX underperformed the US Pharmaceuticals industry which returned 7.1% over the past year.

Return vs Market: RPRX underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is RPRX's price volatile compared to industry and market?
RPRX volatility
RPRX Average Weekly Movement4.6%
Pharmaceuticals Industry Average Movement10.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: RPRX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RPRX's weekly volatility (5%) 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$23.99b
Earnings (TTM)US$782.92m
Revenue (TTM)US$2.29b

30.5x

P/E Ratio

10.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RPRX income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$315.68m
Gross ProfitUS$1.97b
ExpensesUS$1.19b
EarningsUS$782.92m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 15, 2022

Earnings per share (EPS)1.29
Gross Margin86.19%
Net Profit Margin34.25%
Debt/Equity Ratio68.3%

How did RPRX perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

34%

Payout Ratio

Does RPRX pay a reliable dividends?

See RPRX dividend history and benchmarks
When do you need to buy RPRX by to receive an upcoming dividend?
Royalty Pharma dividend dates
Ex Dividend DateFeb 17 2022
Dividend Pay DateMar 15 2022
Days until Ex dividend26 days
Days until Dividend pay date52 days

Does RPRX pay a reliable dividends?

See RPRX dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPRX ($39.31) is trading below our estimate of fair value ($112.96)

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 PE Ratio (30.5x) compared to the US Pharmaceuticals industry average (23.3x).

PE vs Market: RPRX is poor value based on its PE Ratio (30.5x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: RPRX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: RPRX is overvalued based on its PB Ratio (4.1x) compared to the US Pharmaceuticals industry average (2.2x).


Future Growth

How is Royalty Pharma forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

45.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPRX's forecast earnings growth (45.5% per year) is above the savings rate (2%).

Earnings vs Market: RPRX's earnings (45.5% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RPRX's revenue (5.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: RPRX's revenue (5.5% 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 (24.9%)


Past Performance

How has Royalty Pharma performed over the past 5 years?

-19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPRX has high quality earnings.

Growing Profit Margin: RPRX's current net profit margins (34.2%) are lower than last year (86.9%).


Past Earnings Growth Analysis

Earnings Trend: RPRX's earnings have declined by 19% per year 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 (-55.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (12.2%).


Return on Equity

High ROE: RPRX's Return on Equity (15%) is considered low.


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 ($255.1M).

Long Term Liabilities: RPRX's short term assets ($2.8B) do not cover its long term liabilities ($7.1B).


Debt to Equity History and Analysis

Debt Level: RPRX's net debt to equity ratio (47.9%) 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 (29.5%).

Interest Coverage: RPRX's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


Dividend

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

1.93%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 21 2022Ex Dividend DateFeb 17 2022Dividend Pay DateMar 15 202226 days from Ex DividendBuy in the next 26 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RPRX's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: RPRX's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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: With its reasonably low payout ratio (34.3%), RPRX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RPRX's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Pablo Legorreta (56 yo)

26yrs

Tenure

US$55,674,558

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...


Leadership Team

Experienced Management: RPRX's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: RPRX's board of directors are not considered experienced ( 1.6 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$23.985b
  • Market Cap: US$16.884b
  • Shares outstanding: 607.17m
  • 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 Analysis2022/01/21 00:16
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.