| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 40 | 40.0x | 17.8x | Around median | |
Growth | 53 | 10.0% | 7.1% | Around median | |
Quality | 89 | 9.7% | 4.5% | Top tier | |
Safety | 57 | 5.0x | 2.6x | Around median | |
Capital Return | 52 | 1.14% | 2.12% | Around median | |
Momentum | 96 | 60.5% | 2.9% | Top tier | |
Sentiment | 37 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Royalty Pharma plc operates by funding pharmaceutical innovation in exchange for rights to revenue from drugs and biologic products marketed by partner companies, then reinvests recurring cash flows in new pharmaceutical royalties. Working invested capital totaled approximately $22 billion in Q2 fiscal 2026; 84% of it is linked to products that were approved at the time of investment or subsequently received approval, while development-stage therapies represent 12%, and approximately one-third of this portion has already achieved positive pivotal results.
In Q2 fiscal 2026, Portfolio Receipts increased 6% to $773 million, and recurring royalty receipts grew 14%, supported by Tremfya, Voranigo, Imdelltra, and Evrysdi, despite pressure from Promacta and Imbruvica. Portfolio Cash Flow totaled $736 million at a margin of approximately 95%, while operating and professional costs represented 4.8% of Portfolio Receipts. The latest available EDGAR figures for Q1 fiscal 2026 show revenue of $630.6 million, net income of $294.7 million, and earnings per share of $0.67; the data did not include a gross profit figure.
The company’s ability to grow depends on selecting successful pharmaceutical assets, collecting royalties linked to their sales, and redeploying cash at returns above the cost of capital. During the twelve months ended Q2 fiscal 2026, return on invested capital was 14.2% and return on invested equity was 20.1%, while the company returned approximately $367 million to shareholders in the first half of fiscal 2026, including nearly $100 million through share repurchases.
The analyst consensus is “Buy,” with an average price target of $62.67 and a target range of $57 to $66. The average target is slightly above the top of the 52-week range of $62.455, compared with a low of $34.081, meaning the analyst valuation assumes the stock will return to near its annual highs. The data did not provide a valid earnings multiple, so the stock’s valuation here is based on the target range relative to its annual trading history, while weighing the raised guidance and royalty growth against development-asset risks, debt, and exclusivity-expiration pressures.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Royalty Pharma funds pharmaceutical assets in exchange for rights linked to sales or contractual receipts, rather than manufacturing and marketing drugs itself. In Q2 fiscal 2026, Portfolio Receipts totaled $773 million, and recurring royalty receipts increased 14%. Portfolio Cash Flow totaled $736 million at a margin of approximately 95%, illustrating the model’s high cash conversion.
The company raised its Portfolio Receipts forecast to $3.4–$3.5 billion from $3.325–$3.45 billion. It also raised the royalty receipts growth range to 7%–10% from 4%–8%, based on momentum across its diversified portfolio. This followed 14% growth in royalty receipts in Q2 fiscal 2026, led by Tremfya, Voranigo, Imdelltra, and Evrysdi.
The company paid $125 million upfront for a portion of Neurimmune’s royalty interest in cliramitug, with $125 million scheduled for Q1 fiscal 2027 and up to $175 million linked to clinical and regulatory milestones. Royalty Pharma will receive 3.75% of worldwide net sales, and AstraZeneca estimates annual peak sales of between $3 and $5 billion. According to Royalty Pharma’s estimates, this translates into annual peak royalties of approximately $110–$190 million, but Phase 3 study results are not expected before 2028.
Automated analysis for informational purposes only — not investment advice.
The portfolio included 19 potential therapies in Q2 fiscal 2026, compared with only three at the June 2020 IPO, and potential peak royalties from the late-stage portfolio totaled approximately $2 billion. During 2026, developments included approvals for Jideytro, Avlayah, and Trodelvy, alongside completion of the rolling submission for daraxonrasib in pancreatic cancer. Expected readouts during 2026 and 2027 include data for pelacarsen, litifilimab, daraxonrasib, frexalimab, and seltorexant.
Fiscal 2026 guidance accounts for the loss of Promacta exclusivity, the launch of a Tysabri biosimilar in the United States, and the potential impact of the Inflation Reduction Act. The company also expects milestone and other contractual receipts to decline to approximately $60 million from $128 million in fiscal 2025. Debt totaled $9.2 billion at the end of June 2026, with expected interest payments of between $350 and $360 million during fiscal 2026.
Cash and equivalents totaled $812 million at the end of June 2026, and the $1.8 billion credit facility was undrawn. The company deployed $877 million in royalty transactions during the first half of fiscal 2026, while returning approximately $367 million to shareholders, including nearly $100 million through share repurchases. Management estimated its total financial capacity at more than $4 billion through cash, cash flows, and access to debt markets.
