Royalty Pharma plc cash flow to debt ratio of 27.82% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Royalty Pharma plc's free cash flow has decreased -10.08% from $2.77G last year to $2.49G, signaling decreasing performance

Royalty Pharma plc's debt to equity ratio is 1.30, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Royalty Pharma plc's debt has increased relative to shareholder equity from 1.10 last year to 1.30 today, signaling weakened financials

Royalty Pharma plc has a net debt to EBITDA ratio of 5.09x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Royalty Pharma plc's interest coverage ratio of 4.93 indicates that earnings with good margin can cover interest payments on company debt

Royalty Pharma plc's profit margin has decreased (-10.64%) in the last year from 37.95% to 33.91%, signaling decreasing performance

Royalty Pharma plc's short-term liabilities of $636.21M exceed its short-term assets of $619.00M, signaling financial risk

Royalty Pharma plc's return on assets of 4.18% is lower than the 5.00% threshold, indicating inefficient asset utilization

Royalty Pharma plc's return on equity of 12.67%, is lower than 15.00%, indicating bad performance

Royalty Pharma plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Royalty Pharma plc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Royalty Pharma plc has positive free cash flow, indicating the company generates cash after capital expenditures

Royalty Pharma plc has a free cash flow yield of 10.29%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Royalty Pharma plc's yearly earnings has decreased -10.25% since last year from $858.98M to $770.95M, signaling decreasing performance

Royalty Pharma plc's yearly revenue has increased 5.06% since last year from $2.26G to $2.38G, signaling increasing performance

ROIC 8.43% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Royalty Pharma plc's 3-year revenue CAGR of 2.06% is positive, indicating growing revenue over the past 3 years

Royalty Pharma plc had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Royalty Pharma plc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Royalty Pharma plc is undervalued relative to its fair value price of 61.58 based on Discounted Cash Flow model

Royalty Pharma plc has an earnings yield of 3.41%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Royalty Pharma plc is overvalued relative to its fair value price of 7.28 based on EBITDA multiple model

Royalty Pharma plc has an EV/EBITDA ratio of 19.16x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Royalty Pharma plc has insufficient data to evaluate this check.

Royalty Pharma plc has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Royalty Pharma plc has a price-to-book ratio of 3.53x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Royalty Pharma plc has a price-to-sales ratio of 9.91x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue