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Royalty Pharma PLC Class A RPRX

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Stock XNAS Rating as of
$57.63 −0.73 (1.25%)
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As of Delayed Price Closed

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Improved Growth Outlook Prompts Fair Value Estimate Increase for Narrow-Moat Royalty Pharma

Rachel Elfman, Robert Winebrenner

Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. The company makes lump-sum payments in exchange for future cash flows linked to those products’ sales revenue, which differentiates it from other biotech companies that are exposed to high R&D and/or manufacturing costs. Its uniqueness also lies in the diversity of royalties across different therapeutic areas. This stands in contrast to a typical biotech firm’s focus on developing specialized therapies targeting certain diseases.

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Price vs Fair Value

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RPRX is trading at a LOCK|?$N$D$r premium.
Price
$58.36
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Royalty Pharma’s portfolio includes market-leading therapies for a wide range of diseases, enabling stable future royalty streams and high returns on investments over the next decade.

Bears

Underperformance of key portfolio products due to major regulatory changes could put pressure on Royalty Pharma’s cash flows.

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Trading Information

Previous Close Price
$58.36
Day Range
$57.22–58.40
52-Week Range
$35.23–64.38
Bid/Ask
$57.22 / $59.50
Shares Outstanding
445.28M
Market Cap
$25.66B
Volume/Avg
3M / 3M

Key Statistics

Price/Earnings (Normalized)
38.89
Price/Sales
12.68
Dividend Yield (Trailing)
1.61%
Dividend Yield (Forward)
1.63%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
2.86%

Company Profile

Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Mid Value
Total Number of Employees
100
Website
https://www.royaltypharma.com

Competitors

Valuation

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Metric
RPRX
VRTX
PFE
Price/Earnings (Normalized)
 38.8926.639.22
Price/Book Value
 3.766.341.88
Price/Sales
 12.6810.322.53
Price/Cash Flow
 10.8226.1710.46
Price/Earnings
RPRX
VRTX
PFE

Financial Strength

Metric
RPRX
VRTX
PFE
Quick Ratio
 2.792.540.85
Current Ratio
 2.803.191.27
Interest Coverage
 4.67—2.36
Quick Ratio
RPRX
VRTX
PFE

Profitability

Metric
RPRX
VRTX
PFE
Return on Assets (Normalized)
 −3.59%18.99%8.46%
Return on Equity (Normalized)
 −10.56%26.29%19.70%
Return on Invested Capital (Normalized)
 −1.95%21.93%12.66%
Return on Assets
RPRX
VRTX
PFE

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