REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
NASDAQ:REGN - Nasdaq - US75886F1075 - Common Stock - Currency: USD
Taking everything into account, REGN scores 7 out of 10 in our fundamental rating. REGN was compared to 571 industry peers in the Biotechnology industry. REGN gets an excellent profitability rating and is at the same time showing great financial health properties. REGN has a decent growth rate and is not valued too expensively. These ratings would make REGN suitable for quality investing!
1. Profitability
1.1 Basic Checks
REGN had positive earnings in the past year.
In the past year REGN had a positive cash flow from operations.
In the past 5 years REGN has always been profitable.
Each year in the past 5 years REGN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.69%, REGN belongs to the best of the industry, outperforming 97.16% of the companies in the same industry.
The Return On Equity of REGN (15.03%) is better than 96.80% of its industry peers.
REGN's Return On Invested Capital of 9.85% is amongst the best of the industry. REGN outperforms 95.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REGN is in line with the industry average of 13.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 15.03% | ||
| ROIC | 9.85% |
ROA(3y)12.83%
ROA(5y)18.14%
ROE(3y)16.47%
ROE(5y)24.86%
ROIC(3y)12.18%
ROIC(5y)17.79%
1.3 Margins
REGN has a Profit Margin of 31.07%. This is amongst the best in the industry. REGN outperforms 98.40% of its industry peers.
In the last couple of years the Profit Margin of REGN has grown nicely.
REGN's Operating Margin of 29.70% is amongst the best of the industry. REGN outperforms 98.22% of its industry peers.
In the last couple of years the Operating Margin of REGN has remained more or less at the same level.
The Gross Margin of REGN (87.01%) is better than 90.41% 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 | 29.7% | ||
| PM (TTM) | 31.07% | ||
| GM | 87.01% |
OM growth 3Y-18.89%
OM growth 5Y1.11%
PM growth 3Y-14.8%
PM growth 5Y2.92%
GM growth 3Y0.85%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REGN is still creating some value.
REGN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, REGN has less shares outstanding
The debt/assets ratio for REGN has been reduced compared to a year ago.
2.2 Solvency
REGN has an Altman-Z score of 7.82. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN's Altman-Z score of 7.82 is amongst the best of the industry. REGN outperforms 84.19% of its industry peers.
The Debt to FCF ratio of REGN is 0.76, which is an excellent value as it means it would take REGN, only 0.76 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.76, REGN belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that REGN is not too dependend on debt financing.
REGN's Debt to Equity ratio of 0.09 is on the low side compared to the rest of the industry. REGN is outperformed by 66.43% of its industry peers.
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 | 0.76 | ||
| Altman-Z | 7.82 |
ROIC/WACC1.05
WACC9.42%
2.3 Liquidity
REGN has a Current Ratio of 4.73. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Current ratio of 4.73. This is comparable to the rest of the industry: REGN outperforms 51.51% of its industry peers.
REGN has a Quick Ratio of 3.95. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Quick ratio (3.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.73 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.25% over the past year.
REGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.12% yearly.
REGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
Measured over the past years, REGN shows a quite strong growth in Revenue. The Revenue has been growing by 12.55% on average per year.
EPS 1Y (TTM)4.25%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%1.77%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%10.34%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% on average over the next years. This is quite good.
REGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.85% yearly.
EPS Next Y-4.81%
EPS Next 2Y1.61%
EPS Next 3Y7.04%
EPS Next 5Y9.78%
Revenue Next Year3.48%
Revenue Next 2Y4.93%
Revenue Next 3Y7.07%
Revenue Next 5Y6.85%
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
Based on the Price/Earnings ratio of 15.40, the valuation of REGN can be described as correct.
Based on the Price/Earnings ratio, REGN is valued cheaper than 96.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.30, REGN is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.17 indicates a correct valuation of REGN.
Based on the Price/Forward Earnings ratio, REGN is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
REGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
97.51% of the companies in the same industry are more expensive than REGN, based on the Enterprise Value to EBITDA ratio.
REGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REGN is cheaper than 96.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.71 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
REGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y1.61%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
REGN has a yearly dividend return of 0.52%, which is pretty low.
REGN's Dividend Yield is rather good when compared to the industry average which is at 9.16. REGN pays more dividend than 98.58% of the companies in the same industry.
With a Dividend Yield of 0.52, REGN pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
REGN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y1.61%
EPS Next 3Y7.04%
NASDAQ:REGN (2/21/2025, 3:41:08 PM)
702.67
+6.65 (+0.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change-2.14%
Ins Owners1.55%
Ins Owner Change0.21%
Market Cap76.82B
Analysts78.24
Price Target1022.63 (45.53%)
Short Float %2.07%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.7%
Min EPS beat(2)4.48%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-7.23%
Max EPS beat(4)6.79%
EPS beat(8)7
Avg EPS beat(8)3.6%
EPS beat(12)10
Avg EPS beat(12)5.42%
EPS beat(16)14
Avg EPS beat(16)10.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)2.93%
Revenue beat(8)5
Avg Revenue beat(8)0.95%
Revenue beat(12)9
Avg Revenue beat(12)1.83%
Revenue beat(16)12
Avg Revenue beat(16)4.72%
PT rev (1m)-6.52%
PT rev (3m)-14.14%
EPS NQ rev (1m)-12.86%
EPS NQ rev (3m)-13.96%
EPS NY rev (1m)-5.43%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)-4.13%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 16.17 | ||
| P/S | 5.41 | ||
| P/FCF | 21.71 | ||
| P/OCF | 17.38 | ||
| P/B | 2.62 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)45.64
EY6.5%
EPS(NY)43.44
Fwd EY6.18%
FCF(TTM)32.37
FCFY4.61%
OCF(TTM)40.44
OCFY5.75%
SpS129.91
BVpS268.51
TBVpS258
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 15.03% | ||
| ROCE | 12.47% | ||
| ROIC | 9.85% | ||
| ROICexc | 35.53% | ||
| ROICexgc | 40.49% | ||
| OM | 29.7% | ||
| PM (TTM) | 31.07% | ||
| GM | 87.01% | ||
| FCFM | 24.92% |
ROA(3y)12.83%
ROA(5y)18.14%
ROE(3y)16.47%
ROE(5y)24.86%
ROIC(3y)12.18%
ROIC(5y)17.79%
ROICexc(3y)40.56%
ROICexc(5y)38.47%
ROICexgc(3y)47.83%
ROICexgc(5y)42.84%
ROCE(3y)15.42%
ROCE(5y)22.52%
ROICexcg growth 3Y-3.25%
ROICexcg growth 5Y17.1%
ROICexc growth 3Y-7.38%
ROICexc growth 5Y14.08%
OM growth 3Y-18.89%
OM growth 5Y1.11%
PM growth 3Y-14.8%
PM growth 5Y2.92%
GM growth 3Y0.85%
GM growth 5Y-0.68%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 182.56% | ||
| Cap/Sales | 6.21% | ||
| Interest Coverage | 80.19 | ||
| Cash Conversion | 94.04% | ||
| Profit Quality | 80.2% | ||
| Current Ratio | 4.73 | ||
| Quick Ratio | 3.95 | ||
| Altman-Z | 7.82 |
F-Score6
WACC9.42%
ROIC/WACC1.05
Cap/Depr(3y)292.07%
Cap/Depr(5y)265.92%
Cap/Sales(3y)8.85%
Cap/Sales(5y)7.44%
Profit Quality(3y)83.77%
Profit Quality(5y)77.84%
High Growth Momentum
Growth
EPS 1Y (TTM)4.25%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%1.77%
EPS Next Y-4.81%
EPS Next 2Y1.61%
EPS Next 3Y7.04%
EPS Next 5Y9.78%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%10.34%
Revenue Next Year3.48%
Revenue Next 2Y4.93%
Revenue Next 3Y7.07%
Revenue Next 5Y6.85%
EBIT growth 1Y-2.71%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year0.3%
EBIT Next 3Y11.92%
EBIT Next 5Y8.61%
FCF growth 1Y-3.51%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y-3.78%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%