Royalty Pharma (RPRX) Fundamental Analysis: Revenue, Earnings & Valuation

5.59 / 10

Netural

Fundamental analysis rates the stock neutral (5.6/10). Strengths include a solid interest coverage ratio (5.83) and positive PB‑ROE, while inventory turnover is decent. Concerns arise from modest YoY revenue growth (~5%), high cost‑of‑sales (64%), and a weak long‑term debt‑to‑working‑capital ratio, suggesting a balanced but cautious view.

Analysis Checks(5/10)

Revenue-MV

Value-1.16

Score1/3

Weight24.81%

1M Return4.09%

Total operating revenue (YoY growth rate %)

Value5.06

Score1/3

Weight-1.96%

1M Return-0.38%

Inventory turnover ratio

Value103.94

Score2/3

Weight-5.70%

1M Return-1.18%

Current liabilities / Total liabilities (%)

Value6.42

Score3/3

Weight9.28%

1M Return1.67%

PB-ROE

Value0.07

Score3/3

Weight62.93%

1M Return9.18%

Long-term debt to working capital ratio (%)

Value10.39

Score0/3

Weight-21.70%

1M Return-4.75%

Interest coverage ratio (EBIT / Interest expense) (%)

Value5.83

Score2/3

Weight-5.79%

1M Return-1.17%

Operating revenue (YoY growth rate %)

Value5.20

Score1/3

Weight-1.54%

1M Return-0.30%

Cost of sales ratio (%)

Value64.41

Score2/3

Weight-5.47%

1M Return-1.13%

Asset-MV

Value-0.55

Score1/3

Weight45.14%

1M Return6.31%

Is RPRX fundamentally strong?

RPRX scores 5.59/10 on fundamentals and holds a Fair valuation at present. Backed by its 7.69% ROE, 55.68% net margin, 34.68 P/E ratio, 2.75 P/B ratio, and -6.77% earnings growth, these metrics solidify its Netural investment rating.