REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
NASDAQ:REGN - Nasdaq - US75886F1075 - Common Stock - Currency: USD
Overall REGN gets a fundamental rating of 7 out of 10. We evaluated REGN against 560 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make REGN suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year REGN was profitable.
In the past year REGN had a positive cash flow from operations.
REGN had positive earnings in each of the past 5 years.
In the past 5 years REGN always reported a positive cash flow from operatings.
1.2 Ratios
REGN has a Return On Assets of 11.98%. This is amongst the best in the industry. REGN outperforms 95.33% of its industry peers.
REGN has a Return On Equity of 15.31%. This is amongst the best in the industry. REGN outperforms 95.51% of its industry peers.
REGN's Return On Invested Capital of 9.45% is amongst the best of the industry. REGN outperforms 94.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REGN is below the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 15.31% | ||
| ROIC | 9.45% |
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
The Profit Margin of REGN (31.94%) is better than 97.13% of its industry peers.
REGN's Profit Margin has improved in the last couple of years.
REGN has a better Operating Margin (28.85%) than 97.49% of its industry peers.
In the last couple of years the Operating Margin of REGN has remained more or less at the same level.
REGN has a better Gross Margin (86.69%) than 89.77% of its industry peers.
REGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.85% | ||
| PM (TTM) | 31.94% | ||
| GM | 86.69% |
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.
The number of shares outstanding for REGN remains at a similar level compared to 1 year ago.
The number of shares outstanding for REGN has been reduced compared to 5 years ago.
Compared to 1 year ago, REGN has an improved debt to assets ratio.
2.2 Solvency
REGN has an Altman-Z score of 6.83. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN has a Altman-Z score of 6.83. This is amongst the best in the industry. REGN outperforms 80.07% of its industry peers.
The Debt to FCF ratio of REGN is 0.91, which is an excellent value as it means it would take REGN, only 0.91 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.91, REGN belongs to the best of the industry, outperforming 95.33% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that REGN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, REGN is doing worse than 64.27% of the companies in the same industry.
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 | 0.91 | ||
| Altman-Z | 6.83 |
ROIC/WACC0.98
WACC9.62%
2.3 Liquidity
A Current Ratio of 4.93 indicates that REGN has no problem at all paying its short term obligations.
REGN's Current ratio of 4.93 is in line compared to the rest of the industry. REGN outperforms 52.78% of its industry peers.
REGN has a Quick Ratio of 4.03. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Quick ratio (4.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.03 |
3. Growth
3.1 Past
REGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.47%.
Measured over the past years, REGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.12% on average per year.
The Revenue has been growing slightly by 7.52% in the past year.
The Revenue has been growing by 12.55% on average over the past years. This is quite good.
EPS 1Y (TTM)2.47%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%-13.93%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%-3.69%
3.2 Future
Based on estimates for the next years, REGN will show a small growth in Earnings Per Share. The EPS will grow by 5.56% on average per year.
Based on estimates for the next years, REGN will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-20.5%
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
EPS Next 5Y5.56%
Revenue Next Year-5.35%
Revenue Next 2Y0.53%
Revenue Next 3Y3.82%
Revenue Next 5Y4.44%
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
REGN is valuated correctly with a Price/Earnings ratio of 12.81.
Based on the Price/Earnings ratio, REGN is valued cheaper than 96.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, REGN is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.02, REGN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 94.61% of the companies listed in the same industry.
REGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REGN is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REGN is valued cheaper than 94.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.7 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The excellent profitability rating of REGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, REGN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 79.99, REGN pays a better dividend. On top of this REGN pays more dividend than 98.38% of the companies listed in the same industry.
With a Dividend Yield of 0.63, REGN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 2Y-5.79%
EPS Next 3Y2.73%
567.74
+7.98 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change0.05%
Ins Owners1.86%
Ins Owner Change0%
Market Cap61.30B
Analysts79.41
Price Target750.26 (32.15%)
Short Float %1.95%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.87%
Min EPS beat(2)-8.66%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-8.66%
Max EPS beat(4)6.79%
EPS beat(8)6
Avg EPS beat(8)2.08%
EPS beat(12)10
Avg EPS beat(12)5.54%
EPS beat(16)13
Avg EPS beat(16)9.63%
Revenue beat(2)0
Avg Revenue beat(2)-5.11%
Min Revenue beat(2)-9.31%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)2.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.63%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)4.32%
PT rev (1m)-8.99%
PT rev (3m)-21.23%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-19.37%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-16.27%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-8.42%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-8.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 14.02 | ||
| P/S | 4.35 | ||
| P/FCF | 20.7 | ||
| P/OCF | 15.51 | ||
| P/B | 2.09 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)44.31
EY7.8%
EPS(NY)40.51
Fwd EY7.13%
FCF(TTM)27.43
FCFY4.83%
OCF(TTM)36.61
OCFY6.45%
SpS130.46
BVpS272.18
TBVpS261.37
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 15.31% | ||
| ROCE | 11.96% | ||
| ROIC | 9.45% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 13.12% | ||
| OM | 28.85% | ||
| PM (TTM) | 31.94% | ||
| GM | 86.69% | ||
| FCFM | 21.03% |
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-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 199.98% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 65.83% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.03 | ||
| Altman-Z | 6.83 |
F-Score5
WACC9.62%
ROIC/WACC0.98
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)2.47%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%-13.93%
EPS Next Y-20.5%
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
EPS Next 5Y5.56%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%-3.69%
Revenue Next Year-5.35%
Revenue Next 2Y0.53%
Revenue Next 3Y3.82%
Revenue Next 5Y4.44%
EBIT growth 1Y-0.68%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year-16.54%
EBIT Next 3Y6.1%
EBIT Next 5Y6.01%
FCF growth 1Y17.22%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y-7.66%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%