How to buy Royalty Pharma (RPRX) stock

Royalty Pharma plc is a biotechnology business based in the US. Royalty Pharma shares (RPRX) are listed on the NASDAQ and all prices are listed in US Dollars.

Royalty Pharma stock price (NASDAQ: RPRX)

Use our graph to track the performance of RPRX stocks over time.

Royalty Pharma shares at a glance

• Key figures

Information last updated 2021-07-23.

Latest market close	$40.12
52-week range	$34.41 - $52.82
50-day moving average	$42.75
200-day moving average	$44.52
Wall St. target price	$52.71
PE ratio	33.2481
Dividend yield	$0.47 (1.16%)
Earnings per share (TTM)	$1.21

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Is it a good time to buy Royalty Pharma stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Royalty Pharma plc by TradingView

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Royalty Pharma price performance over time

Historical closes compared with the close of $40.12 from 2021-05-28

1 week (2021-07-17)	N/A
1 month (2021-06-28)	-4.25%
3 months (2021-04-28)	-11.02%
6 months (2021-01-24)	N/A

1 year (2020-07-24)	N/A
2 years (2019-07-24)	N/A
3 years (2018-07-24)	N/A
5 years (2016-07-24)	N/A

Is Royalty Pharma under- or over-valued?

Valuing Royalty Pharma stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Royalty Pharma's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Royalty Pharma's P/E ratio

Royalty Pharma's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 33x. In other words, Royalty Pharma shares trade at around 33x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

However, Royalty Pharma's P/E ratio is best considered in relation to those of others within the biotechnology industry or those of similar companies.

• Alexion Pharmaceuticals (ALXN.US): 59.23
• Cigna Corporation (CI.US): 9.98
• Gilead Sciences (GILD.US): 286.04
• Novartis (NVS.US): 26.00

Royalty Pharma's EBITDA

Royalty Pharma's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.6 billion.

The EBITDA is a measure of a Royalty Pharma's overall financial performance and is widely used to measure a its profitability.

To put Royalty Pharma's EBITDA into context you can compare it against that of similar companies.

• Alexion Pharmaceuticals (ALXN.US): USD$3.3 billion
• Cigna Corporation (CI.US): USD$10.6 billion
• Gilead Sciences (GILD.US): USD$13.3 billion
• Novartis (NVS.US): USD$17.3 billion

Royalty Pharma financials

Revenue TTM	$2.2 billion
Operating margin TTM	69.64%
Gross profit TTM	$1.9 billion
Return on assets TTM	6.52%
Return on equity TTM	20.61%
Profit margin	44.33%
Book value	$12.43
Market capitalisation	$24.5 billion

TTM: trailing 12 months

Shorting Royalty Pharma shares

There are currently 9.4 million Royalty Pharma shares held short by investors – that's known as Royalty Pharma's "short interest". This figure is 30.2% down from 13.4 million last month.

There are a few different ways that this level of interest in shorting Royalty Pharma shares can be evaluated.

Royalty Pharma's "short interest ratio" (SIR)

Royalty Pharma's "short interest ratio" (SIR) is the quantity of Royalty Pharma shares currently shorted divided by the average quantity of Royalty Pharma shares traded daily (recently around 2.4 million). Royalty Pharma's SIR currently stands at 3.9. In other words for every 100,000 Royalty Pharma shares traded daily on the market, roughly 3900 shares are currently held short.

To gain some more context, you can compare Royalty Pharma's short interest ratio against those of similar companies.

• Alexion Pharmaceuticals (ALXN.US): 5.36
• Cigna Corporation (CI.US): 2.25
• Gilead Sciences (GILD.US): 3.52
• Novartis (NVS.US): 3.95

However Royalty Pharma's short interest can also be evaluated against the total number of Royalty Pharma shares, or, against the total number of tradable Royalty Pharma shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Royalty Pharma's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Royalty Pharma shares in existence, roughly 20 shares are currently held short) or 0.0306% of the tradable shares (for every 100,000 tradable Royalty Pharma shares, roughly 31 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Royalty Pharma.

Find out more about how you can short Royalty Pharma stock.

Royalty Pharma share dividends

Dividend payout ratio: 25.1% of net profits

Recently Royalty Pharma has paid out, on average, around 25.1% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.68% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Royalty Pharma shareholders could enjoy a 1.68% return on their shares, in the form of dividend payments. In Royalty Pharma's case, that would currently equate to about $0.47 per share.

While Royalty Pharma's payout ratio might seem fairly standard, it's worth remembering that Royalty Pharma may be investing much of the rest of its net profits in future growth.

Royalty Pharma's most recent dividend payout was on 14 September 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 August 2021 (the "ex-dividend date").

Royalty Pharma's dividend payout ratio is perhaps best considered in relation to those of similar companies.

• Alexion Pharmaceuticals (ALXN.US): 0.00% (does not pay dividend)
• Cigna Corporation (CI.US): 10.83%
• Gilead Sciences (GILD.US): 37.12%
• Novartis (NVS.US): 58.85%

Royalty Pharma overview

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies. Its portfolio includes royalties on approximately 45 commercial products and 5 development-stage product candidates in various therapeutic areas, such as rare disease, oncology, neurology, infectious disease, cardiology, and diabetes. The company has royalties on various product, such as Cystic fibrosis franchise, including Kalydeco, Orkambi, Symdeko/Symkevi, and Trikafta/Kaftrio; HIV franchise comprising Atripla, Truvada, Emtriva, Complera, Stribild, Genvoya, Descovy, Odefsey, Symtuza, and Biktarvy; Tradjenta, Onglyza, Kombiglyze, Galvus, Eucreas, and Nesina; Tysabri, Imbruvica, Xtandi, Promacta, Farxiga/Onglyza, Prevymis, Emgality, Crysvita, Erleada, IDHIFA, Trodelvy, Nurtec ODT, Tazverik, and Evrysdi; and other products, such as Bosulif, Cimzia, Conbriza/Fablyn/Viviant, Entyvio, Lexiscan, Mircera, Myozyme, Nesina, Priligy, and Soliqua, as well as Tecfidera, Letairis, Lyrica, Remicade, Humira, Prezista, Rotateq, and Thalomid. Royalty Pharma plc was founded in 1996 and is based in New York, New York. .

Frequently asked questions

What percentage of Royalty Pharma is owned by insiders or institutions?
Currently 16.41% of Royalty Pharma shares are held by insiders and 62.806% by institutions. When does the fiscal year end for Royalty Pharma?
Royalty Pharma's fiscal year ends in December. Where is Royalty Pharma based?
Royalty Pharma's address is: 110 East 59th Street, New York, NY, United States, 10022 What is Royalty Pharma's ISIN number?
Royalty Pharma's international securities identification number is: GB00BMVP7Y09 What is Royalty Pharma's CUSIP number?
Royalty Pharma's Committee on Uniform Securities Identification Procedures number is: 76028H100