Royalty PharmaMEX:RPRXN 72 ROA % is 5.98% as of Mar. 2026, which is 1% above its 10-year median of 5.90. 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 1,423 Biotechnology companies, Royalty Pharma ranks better than 87.21% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Royalty Pharma's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN21,256 Mil.
Royalty Pharma's average Total Assets over the quarter that ended in Mar. 2026 was MXN355,306 Mil. Therefore, Royalty Pharma's annualized ROA % for the quarter that ended in Mar. 2026 was 5.98%.
The historical rank and industry rank for Royalty Pharma's ROA % or its related term are showing as below:
MEX:RPRXN'
s ROA % Range Over the Past 10 Years
Min: 0.25 Med: 5.9 Max: 19.72
Current: 4.37
During the past 9 years, Royalty Pharma's highest ROA % was 19.72%. The lowest was 0.25%. And the median was 5.90%.
MEX:RPRXN's ROA % is ranked better than 87.21% of 1423
companies
in the Biotechnology industry
Industry Median: -32.9
vs MEX:RPRXN: 4.37
Royalty Pharma (MEX:RPRXN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Royalty Pharma ROA % Related Terms
Royalty Pharma ROA % Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's ROA % 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.
For the Biotechnology subindustry, Royalty Pharma's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's ROA % distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Royalty Pharma (MEX:RPRXN) has a ROA % of 5.98% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Royalty Pharma and its competitors. This is near median its historical median of 5.90. Over the past decade, Royalty Pharma's ROA % has ranged from 0.25 to 19.72. According to the industry distribution chart, Royalty Pharma ranks #182 out of 1423 companies in the Biotechnology industry, placing it in the top 12.8%.
Is Royalty Pharma's ROA % too high?
Royalty Pharma's current ROA % of 5.98% is near median its 10-year median of 5.90. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 19.72. Based on the distribution chart, Royalty Pharma ranks #182 out of 1423 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, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's ROA % compare to BNTX and INSM?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #182 out of 1423 companies for ROA %. This places Royalty Pharma in the top 13% of its industry — outperforming the majority of peers. Historically, Royalty Pharma's own ROA % has ranged from 0.25 to 19.72 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 ROA % for a Biotechnology company?
A good ROA % depends on the Biotechnology industry context. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Royalty Pharma and its competitors. Royalty Pharma's current ROA % is 5.98%, which is near median its own 10-year median of 5.90. 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 ROA % of 5.98%. 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 ROA % is 5.98%, which is near median its 10-year median of 5.90. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Royalty Pharma (MEX:RPRXN), the current ROA % is 5.98% 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:
ROA %: 5.98% (near median its 10-year median of 5.90)
GF Value™: MXN535.17 vs. price of MXN775.06 (44.8% above fair value)
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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