Want to see RPRX full AI Analyst Report?
Top Page
Royalty Pharma
(NASDAQ:RPRX)
Select Model
Select Model
Rating:78Outperform
Price Target:
$73.00
▲(17.61% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial performance (high margins and robust cash flow) and a positive earnings-call outlook (raised guidance and continued disciplined deployment). Offsetting factors are balance-sheet leverage risk, only moderate valuation support (P/E ~23.7; ~1.56% yield), and a technical picture that is positive longer-term but neutral in the near term.
Positive Factors
Recurring royalty growth and raised guidance
Growing recurring royalty receipts provide durable visibility because they are tied to commercial drug sales and contractual economics. The raised 2026 guidance also indicates management sees continued portfolio strength, supporting cash generation and investment capacity over coming quarters.
Negative Factors
Meaningful and rising leverage
The rising debt burden reduces financial flexibility if portfolio receipts weaken or acquisition opportunities become less attractive. Although profitability and cash flow currently provide support, higher leverage increases the importance of disciplined capital allocation and sustained royalty collections.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring royalty growth and raised guidance
Growing recurring royalty receipts provide durable visibility because they are tied to commercial drug sales and contractual economics. The raised 2026 guidance also indicates management sees continued portfolio strength, supporting cash generation and investment capacity over coming quarters.
Read all positive factors
Royalty Pharma Key Performance Indicators (KPIs)
Any
Portfolio Receipts
Tracks the income generated from the company's portfolio of royalty interests, highlighting cash flow stability and the effectiveness of its investment strategy in acquiring lucrative royalty streams.
Tracks the income generated from the company's portfolio of royalty interests, highlighting cash flow stability and the effectiveness of its investment strategy in acquiring lucrative royalty streams.
Data provided by:
The Fly
The FlyRoyalty Pharma (RPRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.74B
Dividend Yield1.63%
Average Volume (3M)3.10M
Price to Earnings (P/E)23.6
Beta (1Y)0.18
Revenue Growth9.99%
EPS Growth-18.25%
CountryUS
Employees100
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)2.41
Shares Outstanding445,277,340
10 Day Avg. Volume2,865,674
30 Day Avg. Volume3,095,862
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)2.58
Price to Sales (P/S)7.02
P/FCF Ratio6.70
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue16.68
Enterprise Value/Gross Profit18.66
Enterprise Value/Ebitda24.65
Forecast
1Y Price Target
$66.00Price Target Upside6.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.34
Revenue Forecast (FY)$3.50B
Royalty Pharma Business Overview & Revenue Model
Company Description
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-...
How the Company Makes Money
Royalty Pharma makes money primarily by purchasing rights to receive a portion of the future economics of specific biopharmaceutical assets and then collecting cash flows as those underlying drugs generate sales or achieve contractual events. Key ...
Royalty Pharma Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong positives: double‑digit recurring cash flow growth, raised full‑year guidance, disciplined capital deployment (including a strategic cliramitug purchase), expanded development‑stage pipeline with high historical success rates, robust cash generation, and an investment‑grade credit upgrade. Lowlights were present but largely manageable: a material decline in milestone/contract receipts (one‑time prior period effect), specific product headwinds (Promacta, biosimilar Tysabri, IRA), dependence on future pivotal trial outcomes for some investments, modestly higher expected operating expense rates in H2, and geopolitical/regulatory uncertainty in China. Overall, the positives—strong growth, improved guidance, financial flexibility, and portfolio expansion—substantially outweigh the risks and near‑term headwinds.Positive Updates
Double‑digit recurring cash flow growth
Royalty receipts (recurring cash flows) grew 14% year‑over‑year in Q2 2026; portfolio receipts (top line) grew 6% to $773 million, slightly ahead of expectations.
Negative Updates
Decline in milestones and other contractual receipts
Milestones and other contractual receipts fell substantially versus the prior year due to a one‑time payment in the prior period; management expects these receipts to decrease from $128M in 2025 to about $60M in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Double‑digit recurring cash flow growth
Royalty receipts (recurring cash flows) grew 14% year‑over‑year in Q2 2026; portfolio receipts (top line) grew 6% to $773 million, slightly ahead of expectations.
Read all positive updates
Company Guidance
Royalty Pharma raised its 2026 full‑year guidance, now targeting portfolio receipts of $3.4–$3.5 billion (up from $3.325–$3.45 billion previously), reflecting expected royalty‑receipt growth of ~7%–10% (vs prior 4%–8%); the outlook assumes milestones and other contractual receipts will decline to ≈$60 million in 2026 (from $128 million in 2025) and incorporates Promacta LOE, a U.S. biosimilar Tysabri launch and potential IRA impact. Management guided operating and professional costs to 5.5%–6.5% of portfolio receipts and interest paid to ~$350–$360 million for 2026 (about $175 million in Q3, de minimis in Q4), and emphasized the guidance is based on the portfolio as of today and excludes benefits from any future royalty acquisitions.Royalty Pharma Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
67
Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.54B | 2.38B | 2.26B | 2.35B | 2.24B | 2.29B |
| Gross Profit | 2.27B | 2.38B | 2.26B | 2.35B | 2.24B | 2.29B |
| EBITDA | 1.72B | 1.64B | 1.56B | 1.89B | 423.69M | 1.43B |
| Net Income | 815.30M | 770.95M | 858.98M | 1.13B | 42.83M | 619.73M |
Balance Sheet | ||||||
| Total Assets | 19.82B | 19.62B | 18.22B | 16.38B | 16.81B | 17.52B |
| Cash, Cash Equivalents and Short-Term Investments | 836.99M | 637.50M | 1.77B | 1.23B | 2.43B | 2.80B |
| Total Debt | 8.96B | 8.95B | 7.61B | 6.14B | 7.12B | 7.10B |
| Total Liabilities | 10.03B | 9.91B | 7.88B | 6.30B | 7.29B | 7.27B |
| Stockholders Equity | 6.83B | 6.48B | 6.95B | 6.53B | 5.63B | 5.78B |
Cash Flow | ||||||
| Free Cash Flow | 2.98B | 2.49B | 2.77B | 2.99B | 2.14B | 2.02B |
| Operating Cash Flow | 2.98B | 2.49B | 2.77B | 2.99B | 2.14B | 2.02B |
| Investing Cash Flow | -2.51B | -1.61B | -2.68B | -2.07B | -1.03B | -1.87B |
| Financing Cash Flow | -282.68M | -1.19B | 361.14M | -2.15B | -944.86M | 385.11M |
Royalty Pharma Technical Analysis
Neutral
62.07
Price Trends
59.12
Negative
57.44
Negative
51.23
Positive
Market Momentum
-0.81
Positive
40.44
Neutral
36.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPRX, the sentiment is Neutral. The current price of 62.07 is above the 20-day moving average (MA) of 57.86, above the 50-day MA of 59.12, and above the 200-day MA of 51.23, indicating a neutral trend. The MACD of -0.81 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 36.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RPRX.
Royalty Pharma Risk Analysis
Royalty Pharma disclosed 58 risk factors in its most recent earnings report. Royalty Pharma reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Royalty Pharma Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.22B | 74.56 | 13.65% | ― | 58.85% | 1646.61% | |
78 Outperform | $32.74B | 23.62 | 12.25% | 1.63% | 9.99% | -18.25% | |
78 Outperform | $13.10B | 233.06 | 8.37% | ― | 16.02% | -59.24% | |
77 Outperform | $2.28B | 13.43 | 9.22% | 1.25% | -1.36% | -16.45% | |
64 Neutral | $2.45B | 17.45 | 149.64% | ― | 2233.65% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $460.27M | -7.80 | -0.91% | 0.00% | 8.78% | -227.47% |
* Healthcare Sector Average
RPRX
Royalty Pharma
56.93
22.17
63.76%
CORT
Corcept Therapeutics
121.19
49.66
69.43%
PBH
Prestige Consumer Healthcare
48.23
-13.61
-22.01%
SVA
Sinovac Biotech
6.47
0.00
0.00%
KNSA
Kiniksa Pharmaceuticals
79.78
42.75
115.45%
LQDA
Liquidia Technologies
27.38
3.61
15.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.