REGENERON PHARMACEUTICALS (1REGN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1REGN - US75886F1075 - Common Stock
628.2 EUR
+15.6 (+2.55%)
Overall 1REGN gets a fundamental rating of 7 out of 10. We evaluated 1REGN against 85 industry peers in the Biotechnology industry. 1REGN gets an excellent profitability rating and is at the same time showing great financial health properties. 1REGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1REGN was profitable.
- In the past year 1REGN had a positive cash flow from operations.
- Each year in the past 5 years 1REGN has been profitable.
- 1REGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1REGN (11.40%) is better than 86.75% of its industry peers.
- The Return On Equity of 1REGN (14.79%) is better than 85.54% of its industry peers.
- The Return On Invested Capital of 1REGN (8.25%) is better than 84.34% of its industry peers.
- 1REGN had an Average Return On Invested Capital over the past 3 years of 11.81%. This is in line with the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.4% | ||
| ROE | 14.79% | ||
| ROIC | 8.25% |
ROA(3y)12.83%
ROA(5y)18.14%
ROE(3y)16.47%
ROE(5y)24.86%
ROIC(3y)11.81%
ROIC(5y)17.22%
1.3 Margins
- 1REGN's Profit Margin of 32.13% is amongst the best of the industry. 1REGN outperforms 86.75% of its industry peers.
- 1REGN's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 27.61%, 1REGN belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1REGN has declined.
- 1REGN has a Gross Margin of 86.28%. This is in the better half of the industry: 1REGN outperforms 77.11% of its industry peers.
- In the last couple of years the Gross Margin of 1REGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.61% | ||
| PM (TTM) | 32.13% | ||
| GM | 86.28% |
OM growth 3Y-19.71%
OM growth 5Y-2.68%
PM growth 3Y-14.8%
PM growth 5Y2.92%
GM growth 3Y0.28%
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 1REGN is still creating some value.
- Compared to 1 year ago, 1REGN has about the same amount of shares outstanding.
- 1REGN has less shares outstanding than it did 5 years ago.
- 1REGN has a better debt/assets ratio than last year.
2.2 Solvency
- 1REGN has an Altman-Z score of 7.34. This indicates that 1REGN is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.34, 1REGN belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
- 1REGN has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.70, 1REGN belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
- 1REGN has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.09, 1REGN is doing good in the industry, outperforming 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 7.34 |
ROIC/WACC0.97
WACC8.51%
2.3 Liquidity
- A Current Ratio of 4.06 indicates that 1REGN has no problem at all paying its short term obligations.
- With a decent Current ratio value of 4.06, 1REGN is doing good in the industry, outperforming 78.31% of the companies in the same industry.
- 1REGN has a Quick Ratio of 3.51. This indicates that 1REGN is financially healthy and has no problem in meeting its short term obligations.
- 1REGN's Quick ratio of 3.51 is fine compared to the rest of the industry. 1REGN outperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.06 | ||
| Quick Ratio | 3.51 |
3. Growth
3.1 Past
- 1REGN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.92%.
- 1REGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.12% yearly.
- 1REGN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.89%.
- The Revenue has been growing by 12.55% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.92%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%-5.06%
Revenue 1Y (TTM)2.89%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%0.9%
3.2 Future
- Based on estimates for the next years, 1REGN will show a small growth in Earnings Per Share. The EPS will grow by 6.38% on average per year.
- 1REGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.63% yearly.
EPS Next Y-3.81%
EPS Next 2Y0.46%
EPS Next 3Y6.66%
EPS Next 5Y6.38%
Revenue Next Year0.32%
Revenue Next 2Y3.45%
Revenue Next 3Y5.56%
Revenue Next 5Y5.63%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 16.35, the valuation of 1REGN can be described as correct.
- 83.13% of the companies in the same industry are more expensive than 1REGN, based on the Price/Earnings ratio.
- 1REGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- 1REGN is valuated correctly with a Price/Forward Earnings ratio of 15.97.
- Based on the Price/Forward Earnings ratio, 1REGN is valued cheaply inside the industry as 90.36% of the companies are valued more expensively.
- 1REGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1REGN is valued a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1REGN indicates a rather cheap valuation: 1REGN is cheaper than 85.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
- The excellent profitability rating of 1REGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y0.46%
EPS Next 3Y6.66%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.47%, 1REGN is not a good candidate for dividend investing.
- 1REGN's Dividend Yield is rather good when compared to the industry average which is at 0.70. 1REGN pays more dividend than 91.57% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1REGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y0.46%
EPS Next 3Y6.66%
REGENERON PHARMACEUTICALS / 1REGN.MI FAQ
Can you provide the ChartMill fundamental rating for REGENERON PHARMACEUTICALS?
ChartMill assigns a fundamental rating of 7 / 10 to 1REGN.MI.
What is the valuation status of REGENERON PHARMACEUTICALS (1REGN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to REGENERON PHARMACEUTICALS (1REGN.MI). This can be considered as Fairly Valued.
What is the profitability of 1REGN stock?
REGENERON PHARMACEUTICALS (1REGN.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of REGENERON PHARMACEUTICALS (1REGN.MI) stock?
The Price/Earnings (PE) ratio for REGENERON PHARMACEUTICALS (1REGN.MI) is 16.35 and the Price/Book (PB) ratio is 2.5.
What is the expected EPS growth for REGENERON PHARMACEUTICALS (1REGN.MI) stock?
The Earnings per Share (EPS) of REGENERON PHARMACEUTICALS (1REGN.MI) is expected to decline by -3.81% in the next year.