Royalty PharmaMEX:RPRXN 72 Interest Coverage is 6.75 as of Mar. 2026, which is 18% above its 10-year median of 5.73. GuruFocus rates MEX:RPRXN with a GF Score™ of 72/100 and a GF Value™ of MXN535.17. The stock has 10 warning signs investors should review. Among 377 Biotechnology companies, Royalty Pharma ranks worse than 84.88% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Royalty Pharma's
Operating Income
for the
three
months ended in Mar. 2026 was MXN11,405 Mil. Royalty Pharma's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,690 Mil.
Royalty Pharma's interest coverage for the quarter that ended in Mar. 2026 was 6.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Royalty Pharma's Interest Coverage or its related term are showing as below:
MEX:RPRXN'
s Interest Coverage Range Over the Past 10 Years
Min: 3.8 Med: 5.73 Max: 10.57
Current: 4.93
MEX:RPRXN's Interest Coverage is ranked worse than 84.88% of 377
companies
in the Biotechnology industry
Industry Median: 106.07
vs MEX:RPRXN: 4.93
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Royalty Pharma Interest Coverage Related Terms
Royalty Pharma Interest Coverage Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:RPRXN vs BNTX, INSM, ROIV: Interest Coverage Comparison
For the Biotechnology subindustry, Royalty Pharma's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royalty Pharma Interest Coverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royalty Pharma (MEX:RPRXN) has a Interest Coverage of 6.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royalty Pharma and its competitors. This is 18% above median its historical median of 5.73. Over the past decade, Royalty Pharma's Interest Coverage has ranged from 3.80 to 10.57. According to the industry distribution chart, Royalty Pharma ranks #320 out of 377 companies in the Biotechnology industry, placing it in the top 84.9%.
Is Royalty Pharma's Interest Coverage too high?
Royalty Pharma's current Interest Coverage of 6.75 is 18% above median its 10-year median of 5.73. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 10.57. The Biotechnology industry median Interest Coverage is 106.07. Royalty Pharma's value of 6.75 is 93.6% below this industry median. Based on the distribution chart, Royalty Pharma ranks #320 out of 377 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Royalty Pharma has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's Interest Coverage compare to BNTX and INSM?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #320 out of 377 companies for Interest Coverage. This places Royalty Pharma in the lower half of its industry. The industry median Interest Coverage is 106.07. Royalty Pharma's value of 6.75 is 93.6% below this benchmark. Historically, Royalty Pharma's own Interest Coverage has ranged from 3.80 to 10.57 over the past decade. While the company's 10-year median is 5.73 vs. the industry median of 106.07, Royalty Pharma has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Biotechnology company?
The median Interest Coverage among Biotechnology companies is 106.07, based on 377 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current Interest Coverage of 6.75 is 93.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median Interest Coverage is 106.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current Interest Coverage is 6.75, which is 18% above median its own 10-year median of 5.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royalty Pharma stock overvalued right now?
Royalty Pharma (MEX:RPRXN) has a current Interest Coverage of 6.75. The stock's GF Value™ is MXN535.17, compared to a current price of MXN775.06 — trading 44.8% above its estimated fair value. The current Interest Coverage is 6.75, which is 18% above median its 10-year median of 5.73 and 93.6% below the Biotechnology industry median of 106.07. Royalty Pharma's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Royalty Pharma (MEX:RPRXN), the current Interest Coverage is 6.75 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royalty Pharma (MEX:RPRXN) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of MXN775.06 is trading 44.8% above its estimated GF Value™ of MXN535.17.
Key valuation signals for MEX:RPRXN:
Interest Coverage: 6.75 (18% above median its 10-year median of 5.73)
GF Value™: MXN535.17 vs. price of MXN775.06 (44.8% above fair value)
Industry Position: 93.6% below the Biotechnology median (#320 of 377)
No single metric tells the full story. See the MEX:RPRXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
72GF Score
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