Royalty Pharma plc RPRX
Composite 56/100; the shares have moved about 23% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 38/100 — a slight mark against it.
Momentum ranks 84/100 — a strong point in its favour. Balance-sheet strength ranks 58/100 — a slight point in its favour. Quality ranks 57/100 — a slight point in its favour.
Valuation ranks 38/100 — a slight mark against it. Growth ranks 44/100 — a slight mark against it.
What the company does Royalty Pharma plc acquires and manages biopharmaceutical royalties and funds innovation across ~35 marketed therapies and ~20 development-stage candidates, spanning rare disease, oncology, neuroscience, and other therapeutic areas. The company collaborates on R&D funding for JNJ-4804, an investigational autoimmune therapy.
Key financials Royalty Pharma reports strong profitability with gross margins 115.0%, operating margins 100.3%, and net margins 33.9%. ROE is 13.8%, ROA 5.5%, and ROCE 9.1%. Revenue grew 11.0% and EPS grew 23.2%, though FCF yield is -2.9%. The balance sheet shows debt/equity of 0.90 and a current ratio of 2.66.
Stock health Momentum is strong with 3m +19.78%, 6m +47.47%, and 12m +61.76% returns, though -2.35% below the 52-week high. Sideravia scores Quality 65.5 and Momentum 82.6, but Valuation is 42.0. RSI(14) is 58.80, indicating neutral momentum.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target. - Price is at a discount of 95.80% versus the fair-value estimate of 115.56 (Sideravia). - Price is at a discount of 1.47% versus the analyst 12-month target of 59.89 (analyst count 9.0). - Recent headlines suggest undervaluation after dividend decisions and earnings growth expectations (Simply Wall St., Zacks).
Looking forward Forward P/E is 48.54, reflecting high growth expectations. Analysts expect EPS growth to continue, supported by a diversified royalty portfolio and R&D collaborations. Valuation remains rich relative to peers, but strong momentum and quality scores may justify premium pricing.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.