Despite its impressive fundamentals,REGENERON PHARMACEUTICALS (NASDAQ:REGN) remains undervalued.

Discover REGENERON PHARMACEUTICALS (NASDAQ:REGN), an undervalued stock highlighted by our stock screener. REGN showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Analysis for REGN

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. REGN scores a 7 out of 10:

• Based on the Price/Earnings ratio, REGN is valued cheaper than 97.17% of the companies in the same industry.
• REGN is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 96.11% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.20. REGN is valued slightly cheaper when compared to this.
• REGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REGN is cheaper than 98.59% of the companies in the same industry.
• 95.76% of the companies in the same industry are more expensive than REGN, based on the Price/Free Cash Flow ratio.
• REGN has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. REGN was assigned a score of 8 for profitability:

• REGN has a better Return On Assets (11.69%) than 96.11% of its industry peers.
• Looking at the Return On Equity, with a value of 15.03%, REGN belongs to the top of the industry, outperforming 95.23% of the companies in the same industry.
• REGN has a better Return On Invested Capital (9.85%) than 95.58% of its industry peers.
• Looking at the Profit Margin, with a value of 31.07%, REGN belongs to the top of the industry, outperforming 97.88% 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 29.70%, REGN belongs to the best of the industry, outperforming 98.06% of the companies in the same industry.
• REGN's Gross Margin of 87.01% is amongst the best of the industry. REGN outperforms 88.87% of its industry peers.

Evaluating Health: REGN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For REGN, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 6.83 indicates that REGN is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.83, REGN belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
• 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.
• The Debt to FCF ratio of REGN (0.76) is better than 95.41% of its industry peers.
• A Debt/Equity ratio of 0.09 indicates that REGN is not too dependend on debt financing.
• 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.
• A Current Ratio of 4.73 indicates that REGN has no problem at all paying its short term obligations.
• 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.

What does the Growth looks like for REGN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. REGN has received a 5 out of 10:

• 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 grown by 8.27% in the past year. This is quite good.
• The Revenue has been growing by 12.55% on average over the past years. This is quite good.
• Based on estimates for the next years, REGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.68% on average per year.

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For an up to date full fundamental analysis you can check the fundamental report of REGN

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.