Royalty Pharma PLC
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Royalty Pharma PLC AI Insights
Informational only. Not investment advice.Snapshot
- FCF of 2.4B TTM equals 102% of revenue - pure royalty model requires zero capex, converting nearly all cash flow to distributable capital[Free Cash Flow TTM]
- Operating margin 65% TTM vs industry median 0% - royalty structure bypasses R&D/manufacturing costs that burden traditional pharma[Operating Margin TTM]
- Debt/equity 1.39 with 8.9B total debt vs 2.4B FCF - 3.7x leverage ratio manageable but limits acquisition firepower[Debt to Equity]
Watch Triggers
- ROIC TTM: Falls below 4% or rises above 7% — Indicates whether new royalty acquisitions create or destroy value vs debt cost
- Free Cash Flow TTM: Declines >15% YoY — Royalty expirations outpacing new acquisitions would signal portfolio decay
- Total Debt: Exceeds 4x FCF — Leverage beyond 4x constrains deal capacity and dividend sustainability
Bull Case
Royalty model generates 102% FCF conversion with 65% operating margins - no capex, no manufacturing risk, pure cash extraction from diversified pharma portfolio
P/E 21.7x below industry median 26.7x despite superior cash generation - market undervalues predictable royalty streams vs volatile biotech earnings
Bear Case
ROIC 5.1% TTM barely covers debt costs - new royalty acquisitions at current multiples may destroy value as portfolio matures
654M investment losses TTM signal portfolio impairment risk; royalty streams are finite assets requiring constant reinvestment to maintain scale
Bull vs Bear Balance
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Forward Thesis
FCF yield compression as royalty portfolio matures without sufficient reinvestment at current deal multiples
- 959M net investment outflow TTM vs 2.4B FCF capacity
- Debt issuance of 954M signals capital deployment acceleration
- R&D spend of 402M suggests synthetic royalty creation
Valuation Context
Caveats
Public Strategies Rankings
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RPRX Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$27.04B | — | ||
$35.37B | — | ||
27 | — | ||
$2.38B | +5.1% | — | |
$1.78 | +9.1% | — | |
65.6% | +8.5% | — | |
32.4% | -5.5% | — | |
$2.49B | -10.1% | — | |
11.5% | -1.3% | — | |
Beta 5Y (Monthly) | unknown | — |
RPRX Dividend History
2026
$0.23502025
$0.88002024
$0.84002023
$0.80002022
$0.76002021
$0.68002020
$0.3000RPRX Stock Splits
RPRX SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
02/11/26 | 12/31/25 | 10-K | |
11/05/25 | 09/30/25 | 10-Q | |
08/06/25 | 06/30/25 | 10-Q | |
05/08/25 | 03/31/25 | 10-Q | |
02/12/25 | 12/31/24 | Unknown | |
11/06/24 | 09/30/24 | 10-Q | |
08/08/24 | 06/30/24 | 10-Q | |
05/09/24 | 03/31/24 | 10-Q | |
02/15/24 | 12/31/23 | 10-K | |
11/08/23 | 09/30/23 | 10-Q | |
08/08/23 | 06/30/23 | 10-Q | |
05/09/23 | 03/31/23 | 10-Q | |
02/15/23 | 12/31/22 | 10-K | |
11/08/22 | 09/30/22 | 10-Q | |
08/04/22 | 06/30/22 | 10-Q | |
05/05/22 | 03/31/22 | 10-Q | |
02/15/22 | 12/31/21 | 10-K | |
11/10/21 | 09/30/21 | 10-Q | |
08/11/21 | 06/30/21 | 10-Q | |
05/11/21 | 03/31/21 | 10-Q | |
02/24/21 | 12/31/20 | 10-K | |
11/12/20 | 09/30/20 | 10-Q | |
08/12/20 | 06/30/20 | 10-Q | |
06/17/20 | 03/31/20 | 424B4 | |
06/17/20 | 12/31/19 | 424B4 | |
11/12/20 | 09/30/19 | 10-Q | |
08/12/20 | 06/30/19 | 10-Q | |
06/17/20 | 03/31/19 | 424B4 |