# Royalty Pharma plc Class A Ordinary Shares (RPRX) — Stock CV

Royalty Pharma plc is a $25.4B healthcare company. Revenue grew 10.0% over the last year, it keeps 32¢ of every dollar of sales as profit, and its net debt equals ~2.7 years of free cash flow. It trades at 40.2× earnings.

> Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products.

## Identity

- **Ticker**: RPRX
- **Sector**: Healthcare
- **Industry**: Pharmaceutical Preparations
- **Headquarters**: NEW YORK, NY
- **Employees**: 100
- **Website**: https://www.royaltypharma.com
- **Market cap**: $25.4B
- **Last price**: $56.93
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $2.54B
- **Net income**: $815M
- **Free cash flow**: $2.98B
- **Net debt**: $7.93B
- **P/E**: 40.2
- **Revenue growth (YoY)**: 10.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 47 |
| Growth | 43 |
| Profitability | 67 |
| Health | 66 |
| Quality | 53 |
| Moat | 37 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +10.0% YoY
- [x] Profitable — $815M TTM
- [x] Profit growing — +140.9% YoY
- [x] Generates cash — $2.98B TTM
- [x] Debt under control — ~2.7y of cash flow to repay
- [x] Established company — $25.4B market cap
- [ ] Not printing shares — +50.3% shares over ~5y
- [x] Proven track record — 6/6 profitable years
- [x] Financially stable — Altman Z 2.3 — grey
- [x] Pays a dividend — yield 1.22%
- [x] Valuation not extreme — P/E 40.2

## Experience (career milestones)

- **FY2023** — Best year on record: $1.13B net income
- **FY2020** — Profitable every year on record: 6 consecutive profitable years in our data
- **FY2020** — Revenue already above $1B: $2.12B in first reported year
- **FY2020** — Positive free cash flow every year since: 6-year streak
- **2020** — The firm went public in June 2020
- **2014** — Royalty purchased the royalty rights to drugs developed with the financial support of the Cystic Fibrosis…
- **2013** — Shareholders of Elan voted against a takeover from Royalty valued Elan at around $7.3 billion
- **1996** — Royalty Pharma is a private equity investor firm founded in 1996

## Strengths

- Strongly profitable — 32.1% net margin
- Revenue growing 10.0% year over year
- Strong cash conversion — FCF is 117.4% of revenue
- Interest covered 7.0× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.29B | $620M | $2.02B |
| FY2022 | $2.24B | $42.8M | $2.14B |
| FY2023 | $2.35B | $1.13B | $2.99B |
| FY2024 | $2.26B | $859M | $2.77B |
| FY2025 | $2.38B | $771M | $2.49B |

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Source: https://stockcv.com/RPRX — derived from company filings; may be delayed or incomplete. Information, not investment advice.