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Royalty Pharma plc (RPRX) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Royalty Pharma plc

RPRXMarket cap $25BPrice $56.4

Country🇺🇸United States

SectorHealthcare

IndustryPharmaceuticals

Buys royalty rights to blockbuster drugs instead of inventing them, collecting a cut every time patients fill prescriptions for medicines like Imbruvica or Trikafta. It's basically a hedge fund for pharma innovation, betting on science without the R&D risk.

In Bastion Portfolios?

52W Return+55%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+2%4

Revenue Forecast

Rev CAGR (1y)+47%10

Rev CAGR (3y)+21%9

Rev CAGR (5y)+16%9

Earnings Forecast

EPS Growth Y+1+249%10

EPS Growth Y+2+7%6

EPS Growth Y+3+13%7

Quality

Margins

EBIT Margin61%10

Net Income Margin32%9

Free Cash Flow Margin117%10

Debt

Net Debt/EBITDA5.22

Efficiency

ROE12%5

ROA7%7

Earnings Stability55

GEAR+VERY STRONG99

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)89

P/E Ratio (Forward 3y)79

P/BV4.73

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwd118

Yield

Free Cash Flow Yieldna–

Dividend Yield1.7%5

Momentum

Short term

1 month return-12%2

3 month return-2%6

YTD return+48%9

Mid term

Price vs 52wHigh88%7

1 year return+59%9

Long term

3 year return+126%8

5 year return+79%7

Risk Shield

Price Risk

Beta0.29

Volatility23%9

Free Cash Flow

Free Cash Flow Margin117%10

Free Cash Flow Yieldna–

Quality

ROCE9%5

Earnings Stability55

Net Debt/EBITDA5.22

02Growth

Is it actually growing, and how fast?

RPRXRoyalty Pharma

Revenue FY25$2.3B

GROWTH RATING↗

VERY STRONG87 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y+47%10

Revenue, next 3Y, CAGR+21%9

Revenue, next 5Y, CAGR+16%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+249%10

EPS growth, FY27E+7%6

EPS growth, FY28E+13%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 87% of companies worldwide.

Revenue is set to grow 21%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 2%/yr over the last 3 years and is set to grow 21%/yr from here.

The runway holds up: revenue is set to grow 16%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 13%/yr vs revenue 21%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE65 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-2%6

YTD return+48%9

MID & LONG-TERM▾SCORE

% of 52-week high88%7

1-year return+59%9

3-year return+126%8

5-year return+79%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +126% over three years and +79% over five, ahead of 70% of the market.

It's up 59% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+48%).

WATCH

Returns sit at the market level over three months (-2%).

WEAKNESSES

The stock is underperforming over the past month (-12%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Royalty Pharma. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

RPRXRoyalty Pharma

Revenue FY25$2.3B

GROWTH RATING↗

VERY STRONG87 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y+47%10

Revenue, next 3Y, CAGR+21%9

Revenue, next 5Y, CAGR+16%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+249%10

EPS growth, FY27E+7%6

EPS growth, FY28E+13%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 87% of companies worldwide.

Revenue is set to grow 21%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 2%/yr over the last 3 years and is set to grow 21%/yr from here.

The runway holds up: revenue is set to grow 16%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 13%/yr vs revenue 21%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE65 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-2%6

YTD return+48%9

MID & LONG-TERM▾SCORE

% of 52-week high88%7

1-year return+59%9

3-year return+126%8

5-year return+79%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +126% over three years and +79% over five, ahead of 70% of the market.

It's up 59% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+48%).

WATCH

Returns sit at the market level over three months (-2%).

WEAKNESSES

The stock is underperforming over the past month (-12%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Royalty Pharma. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community