RPRX Stock Analysis: Royalty Pharma | NASDAQ
Biotechnology | NASDAQ, USA | Market Cap: 32.379m USD | 12M Return: 62.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 218M
EPS Trend: 13.2%
Qual. Beats: 1
Rev. Trend: 34.0%
Qual. Beats: -3
Warnings
No concerns identified
Tailwinds
Seasonality
Royalty Pharma plc (NASDAQ: RPRX) is a New York-based health care company that purchases biopharmaceutical royalties and provides funding to support innovation across the drug development industry. The companys portfolio includes royalties on approximately 35 marketed therapies and 20 development-stage product candidates spanning therapeutic areas such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. Royalty Pharma also maintains research and development funding collaborations, including a partnership to advance JNJ-4804, an investigational autoimmune disease therapy. Founded in 1996, the company is classified within the GICS Pharmaceuticals sub-industry as a large-cap stock.
The royalty financing model used by Royalty Pharma differs from traditional biotech investment approaches: rather than acquiring equity stakes or providing debt, the company buys rights to a percentage of a drugs future sales revenue. This structure allows biopharmaceutical companies to monetize assets and fund late-stage development or commercialization without diluting shareholders, while Royalty Pharmas returns are tied to the commercial performance of established or promising therapies.
- CF franchise royalties drive core revenue growth
- Higher rates compress royalty portfolio valuations
- New royalty acquisitions expand future income pipeline
| Net Income: 827.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -1.94 > 1.0 |
| NWC/Revenue: 36.47% < 20% (prev 29.17%; Δ 7.30% < -1%) |
| CFO/TA 0.13 > 3% & CFO 2.65b > Net Income 827.6m |
| Net Debt (8.35b) to EBITDA (1.75b): 4.77 < 3 |
| Current Ratio: 2.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (559.6m) vs 12m ago -3.20% < -2% |
| Gross Margin: 91.49% > 18% (prev 76.82%; Δ 14.68% > 0.5%) |
| Asset Turnover: 13.04% > 50% (prev 12.86%; Δ 0.19% > 0%) |
| Interest Coverage Ratio: 5.19 > 6 (EBIT TTM 1.75b / Interest Expense TTM 336.1m) |
| A: 0.04 (Total Current Assets 1.43b - Total Current Liabilities 535.7m) / Total Assets 19.8b |
| B: 0.13 (Retained Earnings 2.51b / Total Assets 19.8b) |
| C: 0.09 (EBIT TTM 1.75b / Avg Total Assets 18.7b) |
| D: 0.70 (Book Value of Equity 6.89b / Total Liabilities 9.88b) |
| Altman-Z'' = 2.07 = BBB |
As of June 30, 2026, the stock is trading at USD 56.23 with a total of 6,973,580 shares traded. Over the past week, the price has changed by +6.17%, over one month by +4.40%, over three months by +20.32% and over the past year by +62.85%.
Current recommended Stop Loss: 54.30 (which is 3.4% or 1.4 ATR below the current price).
Royalty Pharma has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy RPRX.
- StrongBuy: 4
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 59.3 | 5.4% |
P/E Trailing = 29.5947
P/E Forward = 46.5116
P/S = 13.2673
P/B = 3.6203
P/EG = 2.1039
Revenue TTM = 2.44b USD
EBIT TTM = 1.75b USD
EBITDA TTM = 1.75b USD
Long Term Debt = 8.58b USD (from longTermDebt, last quarter)
Short Term Debt = 380.0m USD (from shortTermDebt, last quarter)
Debt = 8.96b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.35b USD (calculated: Debt 8.96b - CCE 608.3m)
Enterprise Value = 40.7b USD (32.4b + Debt 8.96b - CCE 608.3m)
Interest Coverage Ratio = 5.19 (Ebit TTM 1.75b / Interest Expense TTM 336.1m)
EV/FCF = 15.34x (Enterprise Value 40.7b / FCF TTM 2.65b)
FCF Yield = 6.52% (FCF TTM 2.65b / Enterprise Value 40.7b)
FCF Margin = 108.8% (FCF TTM 2.65b / Revenue TTM 2.44b)
Net Margin = 33.91% (Net Income TTM 827.6m / Revenue TTM 2.44b)
Gross Margin = 91.49% ((Revenue TTM 2.44b - Cost of Revenue TTM 207.6m) / Revenue TTM)
Gross Margin QoQ = none% (prev none%)
Tobins Q-Ratio = 2.06 (Enterprise Value 40.7b / Total Assets 19.8b)
Interest Expense / Debt = 3.75% (Interest Expense 336.1m / Debt 8.96b)
Taxrate = 39.11% (531.5m / 1.36b)
NOPAT = 1.06b (EBIT 1.75b * (1 - 39.11%))
Current Ratio = 2.66 (Total Current Assets 1.43b / Total Current Liabilities 535.7m)
Debt / Equity = 1.30 (Debt 8.96b / totalStockholderEquity, last quarter 6.89b)
Debt / EBITDA = 4.77 (Net Debt 8.35b / EBITDA 1.75b)
Debt / FCF = 3.15 (Net Debt 8.35b / FCF TTM 2.65b)
Total Stockholder Equity = 6.53b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.42% (Net Income 827.6m / Total Assets 19.8b)
RoE = 12.67% (Net Income TTM 827.6m / Total Stockholder Equity 6.53b)
RoCE = 11.55% (EBIT 1.75b / Capital Employed (Equity 6.53b + L.T.Debt 8.58b))
RoIC = 5.44% (NOPAT 1.06b / Invested Capital 19.5b)
WACC = 5.11% (E(32.4b)/V(41.3b) * Re(5.89%) + D(8.96b)/V(41.3b) * Rd(3.75%) * (1-Tc(0.39)))
Discount Rate = 5.89% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.40 | Cagr: -3.47%
[DCF] Terminal Value 75.21% ; FCFF base≈2.67b ; Y1≈2.65b ; Y5≈2.72b
[DCF] Fair Price = 77.01 (EV 42.5b - Net Debt 8.35b = Equity 34.1b / Shares 443.3m; r=8.35% [WACC [floored]]; 5y FCF grow -1.71% → 2.50% )
EPS Correlation: 13.22 | EPS CAGR: 1.02% | SUE: 2.16 | # QB: 1
Revenue Correlation: 33.98 | Revenue CAGR: 1.03% | SUE: -0.93 | # QB: -3
EPS current Quarter (2026-06-30): EPS=1.27 | Chg30d=-0.23% | Revisions=+0% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.13 | Chg30d=-5.60% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=5.12 | Chg30d=+0.33% | Revisions=+33% | GrowthEPS=+6.0% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=5.61 | Chg30d=+1.53% | Revisions=+56% | GrowthEPS=+9.7% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +56%