REGENERON PHARMACEUTICALS (REGN)
US75886F1075 - Common Stock
Overall REGN gets a fundamental rating of 6 out of 10. We evaluated REGN against 565 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making REGN a very profitable company, without any liquidiy or solvency issues. REGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
REGN had positive earnings in the past year.
REGN had a positive operating cash flow in the past year.
Each year in the past 5 years REGN has been profitable.
In the past 5 years REGN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.43%, REGN belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
REGN has a Return On Equity of 15.87%. This is amongst the best in the industry. REGN outperforms 96.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.81%, REGN belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
REGN had an Average Return On Invested Capital over the past 3 years of 19.85%. This is above the industry average of 15.31%.
The last Return On Invested Capital (9.81%) for REGN is well below the 3 year average (19.85%), which needs to be investigated, but indicates that REGN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.43% | ||
| ROE | 15.87% | ||
| ROIC | 9.81% |
ROA(3y)19.52%
ROA(5y)18.66%
ROE(3y)25.8%
ROE(5y)25.67%
ROIC(3y)19.85%
ROIC(5y)18.57%
1.3 Margins
Looking at the Profit Margin, with a value of 33.61%, REGN belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
REGN's Profit Margin has declined in the last couple of years.
The Operating Margin of REGN (30.28%) is better than 98.57% of its industry peers.
In the last couple of years the Operating Margin of REGN has declined.
REGN's Gross Margin of 86.86% is amongst the best of the industry. REGN outperforms 90.20% of its industry peers.
In the last couple of years the Gross Margin of REGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.28% | ||
| PM (TTM) | 33.61% | ||
| GM | 86.86% |
OM growth 3Y-7.75%
OM growth 5Y-2.63%
PM growth 3Y-10%
PM growth 5Y-3.71%
GM growth 3Y0.05%
GM growth 5Y-1.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REGN is creating value.
Compared to 1 year ago, REGN has less shares outstanding
The number of shares outstanding for REGN has been increased compared to 5 years ago.
The debt/assets ratio for REGN has been reduced compared to a year ago.
2.2 Solvency
REGN has an Altman-Z score of 8.43. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN has a Altman-Z score of 8.43. This is amongst the best in the industry. REGN outperforms 84.67% of its industry peers.
REGN has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.81, REGN belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that REGN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.09, REGN is not doing good in the industry: 64.35% of the companies in the same industry are doing better.
Although REGN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 8.43 |
ROIC/WACC0.95
WACC10.3%
2.3 Liquidity
REGN has a Current Ratio of 5.28. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN's Current ratio of 5.28 is in line compared to the rest of the industry. REGN outperforms 57.58% of its industry peers.
A Quick Ratio of 4.46 indicates that REGN has no problem at all paying its short term obligations.
With a Quick ratio value of 4.46, REGN perfoms like the industry average, outperforming 50.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.28 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.14% over the past year.
Measured over the past years, REGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.91% on average per year.
Looking at the last year, REGN shows a small growth in Revenue. The Revenue has grown by 5.72% in the last year.
REGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.34% yearly.
EPS 1Y (TTM)2.14%
EPS 3Y11.42%
EPS 5Y13.91%
EPS Q2Q%7.51%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y15.57%
Revenue growth 5Y14.34%
Sales Q2Q%10.65%
3.2 Future
Based on estimates for the next years, REGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
The Revenue is expected to grow by 7.52% on average over the next years.
EPS Next Y4.7%
EPS Next 2Y2.64%
EPS Next 3Y5.45%
EPS Next 5Y8.88%
Revenue Next Year9.56%
Revenue Next 2Y6.75%
Revenue Next 3Y6.95%
Revenue Next 5Y7.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.39, REGN is valued correctly.
REGN's Price/Earnings ratio is rather cheap when compared to the industry. REGN is cheaper than 96.43% of the companies in the same industry.
REGN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.14, REGN is valued correctly.
Based on the Price/Forward Earnings ratio, REGN is valued cheaper than 95.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, REGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REGN is valued cheaper than 96.43% of the companies in the same industry.
96.08% of the companies in the same industry are more expensive than REGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.65 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)1.18
EPS Next 2Y2.64%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
REGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
REGENERON PHARMACEUTICALS
NASDAQ:REGN (11/21/2024, 4:35:16 PM)
After market: 744.5 0 (0%)744.5
+1.15 (+0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap81.81B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 16.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.49
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.43% | ||
| ROE | 15.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.28% | ||
| PM (TTM) | 33.61% | ||
| GM | 86.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.28 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.14%
EPS 3Y11.42%
EPS 5Y
EPS Q2Q%
EPS Next Y4.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.72%
Revenue growth 3Y15.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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