Royalty Pharma (RPRX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Royalty Pharma

NasdaqGS•Healthcare•Biotechnology

$63.96+0.08(<0.01%)Market closed

Market Cap

$26.09B

P/E

32.0x

P/S

10.3x

P/B

2.7x

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.

How this company scores

GoodMetricSide Score: 61/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (9/25).

Profitability12/25

Growth15/25

Balance Sheet & Red Flags9/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 32.0x5y range 10.9x – 286.2x

Currently above its 20-quarter median.

P/S · 10.3x5y range 4.3x – 10.3x

Currently above its 20-quarter median.

P/B · 2.7x5y range 1.1x – 2.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 24.8% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Price & Volume

Market Cap $26.09B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.54B
Q. Revenue: $674.14M
TTM EBITDA: $1.51B
TTM Op. Income: $1.51B
Q. Op. Income: $133.12M
TTM Net Income: $815.00M
Q. Net Income: $17.88M
EPS: $0.04
Shares Out.: $445.06M

$2.54B in TTM revenue grew 10.0% YoY, reaching $674.14M last quarter. TTM EBITDA of $1.51B and TTM operating income of $1.51B show growth is flowing through to the bottom line. TTM net income of $815.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 19.7%
Op. Margin: 19.7%
Net Margin: 2.7%

Op. margin of 19.7% is down 16.5% YoY — costs are rising relative to revenue. Net margin at 2.7% Over the past year, operating margin is down 46% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 32.0x
P/S Ratio: 10.3x
P/B Ratio: 2.7x

At 32.0x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 10.3x and P/B of 2.7x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $19.82B
Cash: $811.99M
Long-Term Debt: $8.58B
Book Value: $9.79B
D/E Ratio: 0.9
Debt/EBITDA: 64.5

With $19.82B in assets and $8.58B in long-term debt, D/E is 0.9and book value is $9.79B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 19% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $728.46M
TTM Free Cash Flow: $2.98B
FCF Margin: 117.4%
FCF / Net Income: 3.7

TTM FCF of $2.98B on $728.46M in operating cash flow. The FCF / Net Income ratio of 3.7x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.