Royalty Pharma plc
Find Ratings ReportsROYALTY PHARMA PLC's gross profit margin for the third quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ROYALTY PHARMA PLC is extremely liquid. Currently, the Quick Ratio is 13.46 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 536.31 | 573.46 |
EBITDA ($mil) | 151.44 | 192.21 |
EBIT ($mil) | 151.44 | 192.21 |
Net Income ($mil) | 72.11 | 142.65 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 941.75 | 1540.9 |
Total Assets ($mil) | 15855.52 | 17672.61 |
Total Debt ($mil) | 6131.19 | 7111.26 |
Equity ($mil) | 6138.92 | 6152.1 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 28.24 | 33.52 |
EBITDA Margin | 28.23 | 33.51 |
Operating Margin | 28.24 | 33.52 |
Sales Turnover | 0.15 | 0.13 |
Return on Assets | 1.16 | 2.86 |
Return on Equity | 3.0 | 8.24 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 13.51 | 2.07 |
Debt/Capital | 0.5 | 0.54 |
Interest Expense | 46.03 | 46.98 |
Interest Coverage | 3.29 | 4.09 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 445.84 | 441.1 |
Div / share | 0.2 | 0.19 |
EPS | 0.16 | 0.32 |
Book value / share | 13.77 | 13.95 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2389278.0 | 2223595.0 |
SELL. The current P/E ratio indicates a significant discount compared to an average of 94.35 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.13. For additional comparison, its price-to-book ratio of 2.08 indicates a significant discount versus the S&P 500 average of 4.54 and a significant discount versus the subsector average of 16.42. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ROYALTY PHARMA PLC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RPRX 75.53 | Peers 94.35 | RPRX 4.60 | Peers 53.83 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RPRX is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RPRX is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RPRX 7.65 | Peers 18.17 | RPRX 0.02 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RPRX is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RPRX trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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RPRX 2.08 | Peers 16.42 | RPRX -67.25 | Peers -2.59 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RPRX is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RPRX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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RPRX 5.51 | Peers 64.15 | RPRX 3.42 | Peers 30.79 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RPRX is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RPRX significantly trails its peers on the basis of sales growth. |
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