Royalty PharmaSTU:RPD +0.52%72 Net Margin % is 46.73% as of Mar. 2026, which is 2% above its 10-year median of 45.94. GuruFocus rates STU:RPD with a GF Score™ of 72/100 and a GF Value™ of €32.95 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 946 Biotechnology companies, Royalty Pharma ranks better than 91.97% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Royalty Pharma's Net Income for the
three
months ended in Mar. 2026 was €255 Mil. Royalty Pharma's Revenue for the
three
months ended in Mar. 2026 was €545 Mil. Therefore, Royalty Pharma's net margin for the quarter that ended in Mar. 2026 was 46.73%.
The historical rank and industry rank for Royalty Pharma's Net Margin % or its related term are showing as below:
STU:RPD'
s Net Margin % Range Over the Past 10 Years
Min: 1.91 Med: 45.94 Max: 129.45
Current: 33.9
STU:RPD's Net Margin % is ranked better than 91.97% of 946
companies
in the Biotechnology industry
Industry Median: -88.815
vs STU:RPD: 33.90
Royalty Pharma (STU:RPD) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Royalty Pharma Net Margin % Related Terms
Royalty Pharma Net Margin % Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Net Margin % 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.
STU:RPD vs BNTX, INSM, ROIV: Net Margin % Comparison
For the Biotechnology subindustry, Royalty Pharma's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Net Margin % distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Net Margin % falls into.
* 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 (STU:RPD) has a Net Margin % of 46.73% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Royalty Pharma and its competitors. This is near median its historical median of 45.94. Over the past decade, Royalty Pharma's Net Margin % has ranged from 1.91 to 129.45. According to the industry distribution chart, Royalty Pharma ranks #76 out of 946 companies in the Biotechnology industry, placing it in the top 8%.
Is Royalty Pharma's Net Margin % too high?
Royalty Pharma's current Net Margin % of 46.73% is near median its 10-year median of 45.94. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 129.45. Based on the distribution chart, Royalty Pharma ranks #76 out of 946 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Royalty Pharma has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's Net Margin % compare to BNTX and INSM?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #76 out of 946 companies for Net Margin %. This places Royalty Pharma in the top 8% of its industry — outperforming the majority of peers. Historically, Royalty Pharma's own Net Margin % has ranged from 1.91 to 129.45 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Biotechnology company?
A good Net Margin % depends on the Biotechnology industry context. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Royalty Pharma and its competitors. Royalty Pharma's current Net Margin % is 46.73%, which is near median its own 10-year median of 45.94. 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?
Based on GuruFocus' analysis, Royalty Pharma (STU:RPD) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.95, compared to a current price of €48.03 — trading 45.8% above its estimated fair value. The current Net Margin % is 46.73%, which is near median its 10-year median of 45.94. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Royalty Pharma (STU:RPD), the current Net Margin % is 46.73% 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 (STU:RPD) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of €48.03 is trading 45.8% above its estimated GF Value™ of €32.95.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for STU:RPD:
Net Margin %: 46.73% (near median its 10-year median of 45.94)
GF Value™: €32.95 vs. price of €48.03 (45.8% above fair value)
No single metric tells the full story. See the STU:RPD 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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