RPRXRoyalty Pharma plc
Is the business good?
A genuinely good business: earnings fully cash-backed (2.0×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RPRX?
Royalty Pharma plc earns 6.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.3 points below what the capital costs: growth destroys value
- Operating margin
- 60%
Operating margin · Biotechnology median −77% · 12 months to Q2 2026
- Cash conversion
- 1.97×
Cash conversion · 1.31× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.96%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 75% |
| FY2021 | 62% |
| FY2022 | 14% |
| FY2023 | 63% |
| FY2024 | 57% |
| FY2025 | 66% |
Details›
- Operating margin12 months to Q2 2026
- 60%
- Net margin12 months to Q2 2026
- 32%
- R&D as % of revenue
- 9.4%
- Revenue, trailing twelve months
- $2.54B
- Net income, trailing twelve months
- $815M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.