Is Royalty Pharma plc (RPRX) Halal?

NASDAQ Healthcare United States $26.8B
✗ NOT HALAL
Confidence: 90/100
Royalty Pharma plc (RPRX) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 34.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Royalty Pharma plc operates in the Healthcare sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 34.1%
/ 30%
5.7%
/ 30%
0.1%
/ 30%
1.41%
/ 5%
✗ NOT HALAL
DJIM 34.1%
/ 33%
5.7%
/ 33%
0.1%
/ 33%
1.41%
/ 5%
✗ NOT HALAL
MSCI 45.6%
/ 33%
7.6%
/ 33%
0.1%
/ 33%
1.41%
/ 5%
✗ NOT HALAL
S&P 34.1%
/ 33%
5.7%
/ 33%
0.1%
/ 33%
1.41%
/ 5%
✗ NOT HALAL
FTSE 45.6%
/ 33%
7.6%
/ 33%
0.1%
/ 50%
1.41%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
26.0
Forward: 8.5
EPS
$1.78
Dividend Yield
203.0%
Payout: 49.4%
P/B Ratio
3.1
EV/EBITDA
20.1
EV: $31.4B
Revenue
$2.4B
Growth: 4.8%
Beta
0.4
Low volatility
Current Ratio
2.4

Profitability

Gross Margin 112.4%
Operating Margin 57.7%
Net Margin 32.4%
Return on Equity (ROE) 13.2%
Return on Assets (ROA) 5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$2.5B
Free Cash Flow$2.5B
Total Debt$9.0B
Debt-to-Equity92.3
Current Ratio2.4
Total Assets$19.6B

Price & Trading

Last Close$46.94
50-Day MA$44.31
200-Day MA$38.96
Avg Volume3.6M
Beta0.4
52-Week Range
$29.66
$47.86

About Royalty Pharma plc (RPRX)

CEO
Mr. Pablo Legorreta
Employees
100
Sector
Healthcare
Industry
Biotechnology
Country
United States
Exchange
NASDAQ
Market Cap
$26.8B
Currency
USD

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company was founded in 1996 and is based in New York, New York.

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Frequently Asked Questions

Is Royalty Pharma plc (RPRX) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Royalty Pharma plc is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Royalty Pharma plc's debt ratio?

Royalty Pharma plc's debt ratio is 34.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 45.6%.

What are Royalty Pharma plc's key financial metrics?

Royalty Pharma plc has a market capitalization of $26.8B, trailing P/E ratio of 26.0, and revenue of $2.4B. The company maintains a gross margin of 112.4% and a net margin of 32.4%. Return on equity stands at 13.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.