Royalty Pharma PLC (RPRX) Stock Analysis
Verdict: HOLD
Robust 11.4% FCF yield and 89.4% gross margins offset pipeline trial losses, positioning RPRX as a low-beta yield compounder with debt risk.
Investment score: 61/100
Analysis as of
7-factor investment score
- Valuation: 62/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 68/100 (weight 15%)
- Earnings Quality: 50/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
Royalty Pharma PLC opportunities and risks
What speaks for RPRX
- Exceptional Free Cash Flow Generation and Yield
What speaks against RPRX
- Partner Pipeline Development and Phase 3 Failure Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RPRX | 24.4x | 10.3x | 20.0x | 89.4% | 32.1% | 11.4% |
| LLY | 38.5x | 13.6x | 26.1x | 83.4% | 33.5% | 1.9% |
| JNJ | 31.0x | 6.6x | 20.0x | 67.9% | 21.5% | 2.9% |
| MRK | 115.7x | 5.4x | 29.4x | 75.4% | 4.8% | 4.5% |
| PFE | 36.6x | 2.5x | 17.4x | 71.3% | 6.8% | 7.0% |
| BMY | 14.1x | 2.7x | 9.9x | 70.2% | 18.9% | 8.7% |
| Peer median | 36.6x | 5.4x | 20.0x | 71.3% | 18.9% | 4.5% |
Frequently asked questions about Royalty Pharma PLC (RPRX)
Is RPRX stock a good investment?
The TradeMates model rates Royalty Pharma PLC as HOLD with an investment score of 61/100. Robust 11.4% FCF yield and 89.4% gross margins offset pipeline trial losses, positioning RPRX as a low-beta yield compounder with debt risk. This is algorithmic model output, not personal investment advice.
Is RPRX stock a buy?
The TradeMates model verdict for RPRX is HOLD with an investment score of 61/100. Treat this as a model signal to review, not a personal buy recommendation.