REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
USA - NASDAQ:REGN - US75886F1075 - Common Stock
585.5 USD
+10.44 (+1.82%)
585.5 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to REGN. REGN was compared to 540 industry peers in the Biotechnology industry. REGN gets an excellent profitability rating and is at the same time showing great financial health properties. REGN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes REGN very considerable for value 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 11.67%, REGN belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
REGN's Return On Equity of 14.89% is amongst the best of the industry. REGN outperforms 94.26% of its industry peers.
REGN has a better Return On Invested Capital (9.28%) than 93.89% of its industry peers.
REGN had an Average Return On Invested Capital over the past 3 years of 12.18%. This is below the industry average of 15.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 14.89% | ||
| ROIC | 9.28% |
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
Looking at the Profit Margin, with a value of 31.37%, REGN belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
REGN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.56%, REGN belongs to the best of the industry, outperforming 96.48% of the companies in the same industry.
In the last couple of years the Operating Margin of REGN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 86.46%, REGN belongs to the top of the industry, outperforming 89.07% of the companies in the same industry.
REGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.56% | ||
| PM (TTM) | 31.37% | ||
| GM | 86.46% |
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
Compared to 1 year ago, REGN has an improved debt to assets ratio.
2.2 Solvency
REGN has an Altman-Z score of 6.79. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REGN (6.79) is better than 80.00% of its industry peers.
REGN has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
REGN has a better Debt to FCF ratio (0.76) than 95.56% of its industry peers.
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 63.89% of its industry peers.
Even though the debt/equity ratio score it not favorable for REGN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.79 |
ROIC/WACC0.99
WACC9.41%
2.3 Liquidity
A Current Ratio of 4.60 indicates that REGN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.60, REGN is in line with its industry, outperforming 50.56% of the companies in the same industry.
A Quick Ratio of 3.93 indicates that REGN has no problem at all paying its short term obligations.
With a Quick ratio value of 3.93, REGN perfoms like the industry average, outperforming 47.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.6 | ||
| Quick Ratio | 3.93 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.42% over the past year.
The Earnings Per Share has been growing by 13.12% on average over the past years. This is quite good.
REGN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.38%.
REGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.55% yearly.
EPS 1Y (TTM)2.42%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%11.51%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%3.62%
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 5.60% on average per year.
REGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y-12.44%
EPS Next 2Y-3.76%
EPS Next 3Y2.99%
EPS Next 5Y5.6%
Revenue Next Year-2.11%
Revenue Next 2Y1.32%
Revenue Next 3Y4.29%
Revenue Next 5Y5.08%
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
A Price/Earnings ratio of 12.83 indicates a correct valuation of REGN.
Based on the Price/Earnings ratio, REGN is valued cheaper than 96.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, REGN is valued rather cheaply.
REGN is valuated correctly with a Price/Forward Earnings ratio of 13.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 95.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of REGN to the average of the S&P500 Index (22.70), we can say REGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
REGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REGN is cheaper than 96.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REGN is valued cheaply inside the industry as 95.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.45 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
REGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-3.76%
EPS Next 3Y2.99%
5. Dividend
5.1 Amount
REGN has a yearly dividend return of 0.62%, which is pretty low.
REGN's Dividend Yield is rather good when compared to the industry average which is at 178.49. REGN pays more dividend than 98.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, REGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
REGN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-3.76%
EPS Next 3Y2.99%
585.5
+10.44 (+1.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners91.91%
Inst Owner Change-5.4%
Ins Owners1.86%
Ins Owner Change0%
Market Cap62.06B
Analysts80.57
Price Target744.96 (27.23%)
Short Float %2.77%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)20.56%
Min EPS beat(2)-8.66%
Max EPS beat(2)49.77%
EPS beat(4)3
Avg EPS beat(4)12.63%
Min EPS beat(4)-8.66%
Max EPS beat(4)49.77%
EPS beat(8)6
Avg EPS beat(8)8.06%
EPS beat(12)10
Avg EPS beat(12)9%
EPS beat(16)13
Avg EPS beat(16)9.97%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-9.31%
Max Revenue beat(2)9.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)9.72%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)8
Avg Revenue beat(12)1.29%
Revenue beat(16)12
Avg Revenue beat(16)3.14%
PT rev (1m)0.05%
PT rev (3m)-5.38%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)4.93%
EPS NY rev (1m)10.71%
EPS NY rev (3m)9.87%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)3.5%
Revenue NY rev (1m)3.49%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 13.85 | ||
| P/S | 4.37 | ||
| P/FCF | 17.45 | ||
| P/OCF | 13.08 | ||
| P/B | 2.07 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)45.64
EY7.8%
EPS(NY)42.27
Fwd EY7.22%
FCF(TTM)33.55
FCFY5.73%
OCF(TTM)44.75
OCFY7.64%
SpS134.11
BVpS282.47
TBVpS269.72
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 14.89% | ||
| ROCE | 11.75% | ||
| ROIC | 9.28% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 12.46% | ||
| OM | 28.56% | ||
| PM (TTM) | 31.37% | ||
| GM | 86.46% | ||
| FCFM | 25.02% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 232.74% | ||
| Cap/Sales | 8.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.81% | ||
| Profit Quality | 79.76% | ||
| Current Ratio | 4.6 | ||
| Quick Ratio | 3.93 | ||
| Altman-Z | 6.79 |
F-Score5
WACC9.41%
ROIC/WACC0.99
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)2.42%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%11.51%
EPS Next Y-12.44%
EPS Next 2Y-3.76%
EPS Next 3Y2.99%
EPS Next 5Y5.6%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%3.62%
Revenue Next Year-2.11%
Revenue Next 2Y1.32%
Revenue Next 3Y4.29%
Revenue Next 5Y5.08%
EBIT growth 1Y-2.61%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year-14.3%
EBIT Next 3Y4.69%
EBIT Next 5Y5.9%
FCF growth 1Y18.37%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y0.1%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%