Royalty Pharma plc RPRX
Biotechnology: Pharmaceutical Preparations · IPO 2020 · data as of November 13, 2026
Royalty Pharma plc (RPRX) is a healthcare company listed in the US with a market value of about $39.8B. In the twelve months to September 30, 2026 it had revenue of $2.6B and net income of $672M, a net margin of 25.7%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is financial health (4/5); the weakest is future growth (1/5).
Key numbers: a P/E of 45.3, a price to free cash flow of 13.4, 5-year revenue growth of 2% a year, a 5-year average ROIC of 7%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 20% above the current price.
Score: 2.2 / 5
Checks passed
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Strong R&D investment or growth above 20%
- Profitable 5 years in a row
- Positive free cash flow
- Interest covered more than 5 times
- Debt below 3 years of free cash flow
- Liabilities below 60% of assets
Checks not passed
- P/E below 25
- P/E below the industry median
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
Valuation
Growth and quality
Financials, last 8 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.6B | $2.4B | $2.3B | $2.4B | $2.2B | $2.3B | $2.1B | $1.8B | $1.8B |
| Net income | $672M | $771M | $859M | $1.1B | $43M | $620M | $975M | $2.3B | $1.4B |
| Free cash flow | $3.0B | — | — | — | — | — | — | — | — |
| EPS (diluted) | $1.53 | $1.78 | $1.91 | $2.53 | $0.10 | $1.49 | $1.32 | — | — |
| Net margin | 25.7% | 32.4% | 38.0% | 48.2% | 1.9% | 27.1% | 45.9% | 129.4% | 76.8% |
| ROIC | — | 8.3% | 7.2% | 9.2% | 1.8% | 8.2% | 10.2% | 21.2% | 30.0% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 8 analysts is $72.00, 4% above the current price; targets range from $66.00 to $78.00; the consensus rating is “Buy”; expected EPS is $5.39 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Royalty Pharma’s P/E ratio?
About 45.3, based on the last twelve months of diluted earnings per share (forward P/E about 11.6).
Is Royalty Pharma stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 20% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Royalty Pharma pay a dividend?
Yes. The dividend yield is about 1.34%, and it has paid dividends for 6 years in our data.
Is Royalty Pharma a good stock to buy?
We do not give buy or sell advice. Royalty Pharma scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.