Royalty Pharma plc (RPRX) stock is nearly perfect except the valuation

The price of Royalty Pharma plc (NASDAQ: RPRX) closed at $32.24 in the last session, up 0.06% from day before closing price of $32.22. On the day, 2273916 shares were traded. RPRX stock price reached its highest trading level at $32.39 during the session, while it also had its lowest trading level at $32.02.

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We take a closer look at RPRX’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 7.54 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 566.02. For the most recent quarter (mrq), Quick Ratio is recorded 2.40 and its Current Ratio is at 2.40. In the meantime, Its Debt-to-Equity ratio is 1.20 whereas as Long-Term Debt/Eq ratio is at 1.03.

Upgrades & Downgrades

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on May 24 when Legorreta Pablo G. bought 150,000 shares for $32.25 per share. The transaction valued at 4,837,440 led to the insider holds 380,000 shares of the business.

RIGGS RORY B sold 1,750,000 shares of RPRX for $57,435,000 on May 22. The Director now owns 6,762 shares after completing the transaction at $32.82 per share. On May 17, another insider, Legorreta Pablo G., who serves as the CEO, Chairman of the Board of the company, bought 69,612 shares for $32.94 each. As a result, the insider paid 2,293,096 and bolstered with 230,000 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, RPRX now has a Market Capitalization of 15.54B and an Enterprise Value of 20.07B. As of this moment, Royalty’s Price-to-Earnings (P/E) ratio for their current fiscal year is 42.70, and their Forward P/E ratio for the next fiscal year is 8.20. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 6.78. For the stock, the TTM Price-to-Sale (P/S) ratio is 8.28 while its Price-to-Book (P/B) ratio in mrq is 2.41. Its current Enterprise Value per Revenue stands at 8.51 whereas that against EBITDA is 25.13.

Stock Price History:

Over the past 52 weeks, RPRX has reached a high of $44.66, while it has fallen to a 52-week low of $32.02. The 50-Day Moving Average of the stock is 35.18, while the 200-Day Moving Average is calculated to be 39.15.

Shares Statistics:

According to the various share statistics, RPRX traded on average about 1.92M shares per day over the past 3-months and 2.18M shares per day over the past 10 days. A total of 445.61M shares are outstanding, with a floating share count of 172.08M. Insiders hold about 0.10% of the company’s shares, while institutions hold 68.40% stake in the company. Shares short for RPRX as of Apr 27, 2023 were 7.75M with a Short Ratio of 7.18M, compared to 7.55M on Mar 30, 2023. Therefore, it implies a Short% of Shares Outstanding of 1.73% and a Short% of Float of 1.80%.

Dividends & Splits

The forward annual dividend rate for RPRX is 0.80, which was 0.77 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 2.39%, it implies a Forward Annual Dividend Yield of 2.42%.

Earnings Estimates

The company has 5 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.83 for the current quarter, with a high estimate of $0.89 and a low estimate of $0.78, while EPS last year was $0.79. The consensus estimate for the next quarter is $0.78, with high estimates of $0.89 and low estimates of $0.7.

Analysts are recommending an EPS of between $4.35 and $4 for the fiscal current year, implying an average EPS of $4.12. EPS for the following year is $3.93, with 7 analysts recommending between $4.37 and $3.62.

Revenue Estimates

According to 3 analysts, the current quarter’s revenue is expected to be $550.29M. It ranges from a high estimate of $565.65M to a low estimate of $539M. As of the current estimate, Royalty Pharma plc’s year-ago sales were $536M, an estimated increase of 2.70% from the year-ago figure. For the next quarter, 3 analysts are estimating revenue of $605.2M, an increase of 3.10% over than the figure of $2.70% in the same quarter last year. There is a high estimate of $628M for the next quarter, whereas the lowest estimate is $588.31M.

A total of 6 analysts have provided revenue estimates for RPRX’s current fiscal year. The highest revenue estimate was $2.97B, while the lowest revenue estimate was $2.51B, resulting in an average revenue estimate of $2.86B. In the same quarter a year ago, actual revenue was $2.24B, up 27.70% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $2.74B in the next fiscal year. The high estimate is $3.03B and the low estimate is $2.51B. The average revenue growth estimate for next year is down -4.20% from the average revenue estimate for this year.