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.
It is a $25.4B healthcare company. Revenue grew 10.0% over the last year, it keeps 32¢ of every dollar of sales as profit, and its net debt equals ~2.7 years of free cash flow. It trades at 40.2× earnings.
- Website
- royaltypharma.com
- Location
- New York, NY
- Employees
- 100
- Sector
- Healthcare
- Founded
- 1996
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Valuation, Growth and Moat lag behind.
Valuation47
- P/E vs own history48th pct · 12/25
- FCF yield11.7% · 25/25
- P/S12.9x · 5/25
- EV/EBITDA27.0x · 5/25
Growth43
- Revenue CAGR1.0% · 6/25
- Net income CAGR5.6% · 12/25
- EPS CAGR ~5Y-12.1% · 0/25
- Fwd implied growth286.6% · 25/25
Profitability67
- ROIC4.4% · 5/25
- ROE12.3% · 12/25
- Net margin32.1% · 25/25
- Operating margin59.6% · 25/25
Health66
- Altman Z2.32 · 18/25
- Current ratio2.80 · 25/25
- Interest coverage7.0x · 18/25
- Net cash / debtD/A 40% · 5/25
Quality53
- Piotroski F7/9 · 22/25
- Beneish M-3.15 · 25/25
- FCF conversionn/a · 0/25
- Margin stabilityσ 23.8% · 6/25
Moat37
- ROIC >12% years0/6 yrs · 0/25
- Median gross margin62.9% · 25/25
- FCF-positive yearsn/a · 0/25
- Worst-year net marginworst 1.9% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2023FinancialBest year on record$1.13B net income
- FY2020FinancialProfitable every year on record6 consecutive profitable years in our data
- FY2020FinancialRevenue already above $1B$2.12B in first reported year
- FY2020FinancialPositive free cash flow every year since6-year streak
- 2020IPOThe firm went public in June 2020
- 2014AcquisitionRoyalty purchased the royalty rights to drugs developed with the financial support of the Cystic Fibrosis…
- 2013AcquisitionShareholders of Elan voted against a takeover from Royalty valued Elan at around $7.3 billion
- 1996FoundedRoyalty Pharma is a private equity investor firm founded in 1996
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Strongly profitable — 32.1% net margin
- Revenue growing 10.0% year over year
- Strong cash conversion — FCF is 117.4% of revenue
- Interest covered 7.0× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+10.0% YoY
- Profitable — makes more than it spends$815M TTM
- Profit growing — earnings are higher than last year+140.9% YoY
- Generates cash — cash left after running and investing$2.98B TTM
- Debt under control — could handle its obligations~2.7y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$25.4B market cap
- Not printing shares — share count not ballooning — you keep your slice+50.3% shares over ~5y
- Proven track record — years of profitability behind it6/6 profitable years
- Financially stable — balance sheet not near distressAltman Z 2.3 — grey
- Pays a dividend — returns cash to shareholdersyield 1.22%
- Valuation not extreme — price not wildly above earningsP/E 40.2
Peer comparisonRoyalty Pharma plc vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| RPRX this company | $25.4B | 40.2 | +10.0% | 32.1% | Solid |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: RPRX vs LLY · RPRX vs JNJ · RPRX vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2020–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/RPRX
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of RPRX on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $56.93 · market cap $25.4B.