Royalty Pharma (RPRX) Stock Analysis

November 11, 2026

This is a peer-relative look at Royalty Pharma (RPRX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Royalty Pharma (RPRX)
Profile Item	RPRX
Name	Royalty Pharma plc Class A Ordinary Shares
Country/Region	United States
GICS Sector	Health Care
GICS Industry Group	Pharmaceuticals, Biotechnology & Life Sciences
GICS Industry	Pharmaceuticals
GICS Sub-Industry	Pharmaceuticals
Market Capitalization	38.70 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	June 16, 2020
Security Type	Common Stock

Price Performance

Cumulative Growth

RPRX

GSPC

Royalty Pharma (RPRX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Royalty Pharma (RPRX) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Royalty Pharma (RPRX) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Total Return (1Y)	81.08%	24.62%
Total Return (3Y, Annualized)	39.21%	20.37%
Total Return (5Y, Annualized)	14.22%	-4.02%

Risk Profile

Drawdown History

RPRX

GSPC

Royalty Pharma (RPRX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Royalty Pharma (RPRX) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Volatility (1Y, Annualized)	22.05%	66.36%
Beta (5Y)	0.36	0.93
Max Drawdown (5Y)	-41.98%	-80.19%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. RPRX is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Sharpe Ratio (1Y)	3.48	0.36
Sortino Ratio (1Y)	5.72	0.58

Profitability

ROE (TTM)

Royalty Pharma (RPRX) posts ROE of 12.09%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

12.09%

Group distribution

Max: 109.18%
RPRX: 12.09%
Q3: 6.23%
Median: -26.66%
Q1: -64.05%
Min: -167.77%

Largest peers

LLY: 86.02%
NVS: 24.33%
AZN: 22.57%
JNJ: 20.02%
RPRX: 12.09%
MRK: 5.06%
ABBV: --

Where Royalty Pharma (RPRX) stands on ROE within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Royalty Pharma (RPRX) keeps 25.70% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.70%

Group distribution

RPRX: 25.70%
Max: 18.05%
Q3: 4.78%
Median: 0.00%
Q1: -4.14%
Min: -17.05%

Largest peers

LLY: 31.90%
RPRX: 25.70%
AZN: 17.68%
NVS: 17.49%
JNJ: 16.20%
ABBV: 15.67%
MRK: 3.64%

Where Royalty Pharma (RPRX) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Royalty Pharma (RPRX) turns 81.32% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

81.32%

Group distribution

Max: 83.12%
RPRX: 81.32%
Q3: 14.77%
Median: 0.00%
Q1: -78.82%
Min: -207.40%

Largest peers

RPRX: 81.32%
LLY: 53.66%
ABBV: 39.59%
MRK: 35.22%
NVS: 34.27%
AZN: 29.57%
JNJ: 25.74%

Where Royalty Pharma (RPRX) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
ROE (TTM)	12.09%	-26.66%
ROA (TTM)	5.43%	-12.50%
Net Margin (TTM)	25.70%	0.00%
Operating Margin (TTM)	81.32%	0.00%
Gross Margin (TTM)	99.79%	37.87%

Growth

Revenue Growth

Royalty Pharma (RPRX) grew revenue 5.06%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Royalty Pharma (RPRX): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Royalty Pharma (RPRX) grew earnings per share 23.09%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Royalty Pharma (RPRX): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Revenue Growth (YoY)	5.06%	11.45%
Revenue Growth (3Y CAGR)	2.06%	9.94%
EPS Growth (YoY)	23.09%	4.28%
EPS Growth (3Y CAGR)	161.10%	4.17%

Financial Strength

Current Ratio (MRQ)

Royalty Pharma (RPRX) has current ratio of 1.29, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.29

Group distribution

Max: 25.13
Q3: 12.13
Median: 5.52
Q1: 2.47
RPRX: 1.29
Min: 0.10

Largest peers

LLY: 1.39
MRK: 1.35
RPRX: 1.29
JNJ: 1.02
AZN: 1.01
NVS: 0.88
ABBV: 0.87

Where Royalty Pharma (RPRX) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Royalty Pharma (RPRX) has debt-to-equity ratio of 0.88, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.88

Group distribution

Max: 1.42
RPRX: 0.88
Q3: 0.65
Median: 0.15
Q1: 0.02
Min: 0.00

Largest peers

NVS: 1.29
LLY: 1.23
MRK: 1.20
RPRX: 0.88
AZN: 0.66
JNJ: 0.55
ABBV: --

Where Royalty Pharma (RPRX) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Current Ratio (MRQ)	1.29	5.52
Debt / Equity (MRQ)	0.88	0.15
Net Debt / EBITDA	4.76	1.08

Dividends

Dividend Yield (TTM)

Royalty Pharma (RPRX) has dividend yield of 1.37%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.37%

Group distribution

RPRX: 1.37%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

NVS: 2.88%
ABBV: 2.40%
MRK: 2.29%
JNJ: 1.94%
AZN: 1.73%
RPRX: 1.37%
LLY: 0.49%

Where Royalty Pharma (RPRX) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Royalty Pharma (RPRX) has payout ratio of 60.46%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.46%

Group distribution

RPRX: 60.46%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MRK: 343.43%
ABBV: 117.35%
NVS: 90.46%
JNJ: 80.12%
RPRX: 60.46%
AZN: 45.38%
LLY: 21.71%

Where Royalty Pharma (RPRX) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
Dividend Yield (TTM)	1.37%	0.00%
Dividend Payout Ratio (TTM)	60.46%	0.00%

Valuation

P/E Ratio (TTM)

Royalty Pharma (RPRX) trades at P/E ratio of 43.99, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

43.99

Group distribution

Max: 85.34
RPRX: 43.99
Q3: 43.46
Median: 26.69
Q1: 13.30
Min: 0.07

Largest peers

MRK: 148.21
ABBV: 50.05
RPRX: 43.99
LLY: 43.95
JNJ: 41.92
NVS: 31.02
AZN: 26.37

Where Royalty Pharma (RPRX) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Royalty Pharma (RPRX) trades at 14.79 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

14.79

Group distribution

Max: 58.18
Q3: 25.77
RPRX: 14.79
Median: 7.30
Q1: 3.01
Min: 0.01

Largest peers

RPRX: 14.79
LLY: 13.95
ABBV: 7.80
JNJ: 6.69
MRK: 5.37
NVS: 5.35
AZN: 4.63

Where Royalty Pharma (RPRX) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Royalty Pharma (RPRX) trades at 4.39 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.39

Group distribution

Max: 13.53
Q3: 6.54
RPRX: 4.39
Median: 3.25
Q1: 1.69
Min: -5.59

Largest peers

LLY: 29.96
NVS: 8.25
JNJ: 8.16
MRK: 8.06
AZN: 5.59
RPRX: 4.39
ABBV: -112.34

Where Royalty Pharma (RPRX) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Royalty Pharma (RPRX) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: RPRX	Industry group median
P/E Ratio (TTM)	43.99	26.69
P/S Ratio (TTM)	14.79	7.30
P/B Ratio (MRQ)	4.39	3.25
Free Cash Flow Yield (TTM)	-1.16%	-1.66%