Royalty Pharma Plc (RPRX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Incyte Corp.

Vertex Pharmaceuticals, Inc.

Alnylam Pharmaceuticals, Inc.

Bristol Myers Squibb Co.

Regeneron Pharmaceuticals, Inc.

Zoetis, Inc.

Royalty Pharma Plc

Walgreens Boots Alliance, Inc.

Viatris, Inc.

Horizon Therapeutics Plc

Seagen Inc.

Why is Royalty Pharma Plc ?

Poor long term growth as Operating profit has grown by an annual rate -0.46% of over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 2,594.97 MM
DEBT-EQUITY RATIO (HY) Highest at 128.6 %
INTEREST(Q) Highest at USD 94.17 MM

With ROCE of 13.43%, it has a very attractive valuation with a 2.10 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 38.87%, its profits have risen by 115.6% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Royalty Pharma Plc for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Royalty Pharma Plc

40.37%

2.93

22.99%

S&P 500

20.78%

0.92

19.35%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.30%

EBIT Growth (5y)

-0.46%

EBIT to Interest (avg)

7.51

Debt to EBITDA (avg)

3.87

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.16

Tax Ratio

Dividend Payout Ratio

49.40%

Pledged Shares

Institutional Holding

86.51%

ROCE (avg)

12.61%

ROE (avg)

21.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.37

EV to EBIT

15.61

EV to EBITDA

15.61

EV to Capital Employed

2.10

EV to Sales

12.46

PEG Ratio

0.10

Dividend Yield

2.45%

ROCE (Latest)

13.43%

ROE (Latest)

26.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 2.81

RAW MATERIAL COST(Y)

Fallen by -9,981% (YoY

NET SALES(Q)

Highest at USD 622 MM

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,594.97 MM

DEBT-EQUITY RATIO (HY)

Highest at 128.6 %

INTEREST(Q)

Highest at USD 94.17 MM

NET PROFIT(Q)

At USD 155.2 MM has Fallen at -26%

Here's what is working for Royalty Pharma Plc

Dividend per share

Highest at USD 2.81 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 622 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -9,981% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Royalty Pharma Plc

Operating Cash Flow

Lowest at USD 2,594.97 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 94.17 MM has Grown at 18.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 128.6 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 94.17 MM

in the last five periods and Increased by 18.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 155.2 MM has Fallen at -26%

over average net sales of the previous four periods of USD 209.74 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)