Is Royalty Pharma Stock a Good Investment?
Royalty Pharma Investment Advice | RPRX |
- Examine Royalty Pharma's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Royalty Pharma's leadership team and their track record. Good management can help Royalty Pharma navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Royalty Pharma's business and its evolving consumer preferences.
- Compare Royalty Pharma's performance and market position to its competitors. Analyze how Royalty Pharma is positioned in terms of product offerings, innovation, and market share.
- Check if Royalty Pharma pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Royalty Pharma's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Royalty Pharma Plc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Royalty Pharma Plc is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Royalty Pharma Stock
Researching Royalty Pharma's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 13.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.71. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Royalty Pharma Plc last dividend was issued on the 15th of November 2024. The entity had 1:4 split on the 15th of October 2010.
To determine if Royalty Pharma is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Royalty Pharma's research are outlined below:
| Royalty Pharma Plc has a strong financial position based on the latest SEC filings | |
| About 72.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Royalty Pharma PLC Q3 2024 Earnings Call Highlights Strong Growth and Strategic Acquisitions |
Royalty Pharma Quarterly Cash And Short Term Investments |
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Royalty Pharma uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Royalty Pharma Plc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Royalty Pharma's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Royalty Pharma's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Royalty Pharma's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-03-31 | 2017-03-31 | -0.14 | -0.22 | -0.08 | 57 | ||
2020-11-10 | 2020-09-30 | 0.59 | 0.48 | -0.11 | 18 | ||
2020-08-12 | 2020-06-30 | 0.61 | 0.73 | 0.12 | 19 | ||
2022-05-05 | 2022-03-31 | 0.73 | 0.6 | -0.13 | 17 | ||
2024-02-15 | 2023-12-31 | 1.01 | 1.15 | 0.14 | 13 | ||
2017-06-30 | 2017-06-30 | -0.22 | -0.08 | 0.14 | 63 | ||
2017-09-30 | 2017-09-30 | -0.28 | -0.05 | 0.23 | 82 | ||
2023-05-09 | 2023-03-31 | 1.27 | 1.6 | 0.33 | 25 |
Know Royalty Pharma's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Royalty Pharma is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Royalty Pharma Plc backward and forwards among themselves. Royalty Pharma's institutional investor refers to the entity that pools money to purchase Royalty Pharma's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Unisphere Establishment | 2024-06-30 | 5 M | Norges Bank | 2024-06-30 | 4.8 M | Siguler Guff Advisers, Llc | 2024-09-30 | 3.4 M | Northern Trust Corp | 2024-06-30 | 3.3 M | Legal & General Group Plc | 2024-06-30 | 3.1 M | Ubs Asset Mgmt Americas Inc | 2024-06-30 | 2.8 M | Newsouth Capital Management Inc | 2024-09-30 | 2.5 M | Gmt Capital Corp | 2024-06-30 | 2.4 M | Millennium Management Llc | 2024-06-30 | 2.4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 88.3 M | Vanguard Group Inc | 2024-06-30 | 38 M |
Royalty Pharma's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 15.53 B.Market Cap |
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Royalty Pharma's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.09 | |
| Return On Capital Employed | 0.09 | 0.11 | |
| Return On Assets | 0.07 | 0.08 | |
| Return On Equity | 0.17 | 0.19 |
Determining Royalty Pharma's profitability involves analyzing its financial statements and using various financial metrics to determine if Royalty Pharma is a good buy. For example, gross profit margin measures Royalty Pharma's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Royalty Pharma's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Royalty Pharma's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Royalty Pharma Plc. Check Royalty Pharma's Beneish M Score to see the likelihood of Royalty Pharma's management manipulating its earnings.
Evaluate Royalty Pharma's management efficiency
Royalty Pharma Plc has return on total asset (ROA) of 0.0569 % which means that it generated a profit of $0.0569 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1728 %, meaning that it created $0.1728 on every $100 dollars invested by stockholders. Royalty Pharma's management efficiency ratios could be used to measure how well Royalty Pharma manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to rise to 0.09 in 2024. Return On Capital Employed is likely to rise to 0.11 in 2024. At this time, Royalty Pharma's Total Assets are fairly stable compared to the past year. Other Assets is likely to rise to about 16.3 B in 2024, whereas Intangible Assets are likely to drop slightly above 1.7 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 22.53 | 14.78 | |
| Tangible Book Value Per Share | 22.53 | 13.71 | |
| Enterprise Value Over EBITDA | 12.22 | 21.99 | |
| Price Book Value Ratio | 1.93 | 3.83 | |
| Enterprise Value Multiple | 12.22 | 21.99 | |
| Price Fair Value | 1.93 | 3.83 | |
| Enterprise Value | 20 B | 17 B |
The strategic initiatives led by Royalty Pharma's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0319 | Forward Dividend Yield 0.0319 | Forward Dividend Rate 0.84 | Beta 0.466 |
Basic technical analysis of Royalty Stock
As of the 12th of November 2024, Royalty Pharma holds the Risk Adjusted Performance of 0.0192, coefficient of variation of 4665.06, and Semi Deviation of 0.9608. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Royalty Pharma, as well as the relationship between them.Royalty Pharma's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Royalty Pharma insiders, such as employees or executives, is commonly permitted as long as it does not rely on Royalty Pharma's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Royalty Pharma insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Royalty Pharma's Outstanding Corporate Bonds
Royalty Pharma issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Royalty Pharma Plc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Royalty bonds can be classified according to their maturity, which is the date when Royalty Pharma Plc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Royalty Pharma's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Royalty Pharma's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0192 | |||
| Market Risk Adjusted Performance | 0.1008 | |||
| Mean Deviation | 0.8306 | |||
| Semi Deviation | 0.9608 | |||
| Downside Deviation | 1.02 | |||
| Coefficient Of Variation | 4665.06 | |||
| Standard Deviation | 1.07 | |||
| Variance | 1.15 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | (0.15) | |||
| Treynor Ratio | 0.0908 | |||
| Maximum Drawdown | 6.1 | |||
| Value At Risk | (1.61) | |||
| Potential Upside | 1.93 | |||
| Downside Variance | 1.03 | |||
| Semi Variance | 0.9231 | |||
| Expected Short fall | (1.00) | |||
| Skewness | (0.03) | |||
| Kurtosis | 0.6913 |
| Risk Adjusted Performance | 0.0192 | |||
| Market Risk Adjusted Performance | 0.1008 | |||
| Mean Deviation | 0.8306 | |||
| Semi Deviation | 0.9608 | |||
| Downside Deviation | 1.02 | |||
| Coefficient Of Variation | 4665.06 | |||
| Standard Deviation | 1.07 | |||
| Variance | 1.15 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | (0.15) | |||
| Treynor Ratio | 0.0908 | |||
| Maximum Drawdown | 6.1 | |||
| Value At Risk | (1.61) | |||
| Potential Upside | 1.93 | |||
| Downside Variance | 1.03 | |||
| Semi Variance | 0.9231 | |||
| Expected Short fall | (1.00) | |||
| Skewness | (0.03) | |||
| Kurtosis | 0.6913 |
Consider Royalty Pharma's intraday indicators
Royalty Pharma intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Royalty Pharma stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 50248.96 | |||
| Daily Balance Of Power | 0.3125 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 26.36 | |||
| Day Typical Price | 26.36 | |||
| Price Action Indicator | 0.075 | |||
| Period Momentum Indicator | 0.15 |
Royalty Pharma Corporate Filings
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 30th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 29th of July 2024 An amendment to the original Schedule 13D filing | ViewVerify |
Royalty Stock media impact
Far too much social signal, news, headlines, and media speculation about Royalty Pharma that are available to investors today. That information is available publicly through Royalty media outlets and privately through word of mouth or via Royalty internal channels. However, regardless of the origin, that massive amount of Royalty data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Royalty Pharma news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Royalty Pharma relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Royalty Pharma's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Royalty Pharma alpha.
Royalty Pharma Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Royalty Pharma can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Royalty Pharma Plc Historical Investor Sentiment
Investor biases related to Royalty Pharma's public news can be used to forecast risks associated with an investment in Royalty. The trend in average sentiment can be used to explain how an investor holding Royalty can time the market purely based on public headlines and social activities around Royalty Pharma Plc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Royalty Pharma's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Royalty Pharma and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Royalty Pharma news discussions. The higher the estimate score, the more favorable the investor's outlook on Royalty Pharma.
Royalty Pharma Corporate Management
| Eric Schneider | Senior Officer | Profile | |
| George Lloyd | Executive Officer | Profile | |
| Marshall MD | Executive Investments | Profile | |
| Sandy Balkin | Senior Analytics | Profile | |
| Sara Klymkowsky | Senior Investments | Profile | |
| Ashwin MD | Executive Investments | Profile |
Additional Tools for Royalty Stock Analysis
When running Royalty Pharma's price analysis, check to measure Royalty Pharma's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royalty Pharma is operating at the current time. Most of Royalty Pharma's value examination focuses on studying past and present price action to predict the probability of Royalty Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royalty Pharma's price. Additionally, you may evaluate how the addition of Royalty Pharma to your portfolios can decrease your overall portfolio volatility.