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

3.95 / 10

Netural

RPRX's fundamental score is 4.0/10, indicating weak quality. Key concerns include modest revenue growth (Total & Operating YoY ~5%) and a high Days Sales Outstanding of 72.5, both of which detract from balance-sheet strength. Positive aspects are a healthy Interest Coverage Ratio of 6.18 and solid Net Income-to-Revenue, but these are offset by negative historical returns for several metrics, suggesting limited upside in the near term.

Analysis Checks(4/10)

Revenue-MV

Value-1.11

Score1/3

Weight8.57%

1M Return4.24%

Total operating revenue (YoY growth rate %)

Value5.17

Score1/3

Weight-1.25%

1M Return-0.79%

Days sales outstanding

Value72.55

Score1/3

Weight-2.35%

1M Return-1.57%

Profit-MV

Value0.97

Score3/3

Weight20.53%

1M Return9.28%

Net income-Revenue

Value1.75

Score3/3

Weight20.26%

1M Return9.29%

PB-ROE

Value0.01

Score1/3

Weight20.74%

1M Return9.57%

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

Value6.18

Score2/3

Weight-1.70%

1M Return-1.11%

Operating revenue (YoY growth rate %)

Value5.11

Score1/3

Weight-1.20%

1M Return-0.76%

Asset-MV

Value-0.50

Score0/3

Weight12.16%

1M Return5.75%

Cash-MV

Value0.54

Score3/3

Weight24.23%

1M Return9.67%

Is RPRX fundamentally strong?

RPRX scores 3.95/10 on fundamentals and holds a Fair valuation at present. Backed by its 5.58% ROE, 55.43% net margin, 25.51 P/E ratio, 2.71 P/B ratio, and -31.25% earnings growth, these metrics solidify its Netural investment rating.