REGENERON PHARMACEUTICALS (REGN)
US75886F1075 - Common Stock
REGN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 588 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years REGN has been profitable.
In the past 5 years REGN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.95%, REGN belongs to the top of the industry, outperforming 97.61% of the companies in the same industry.
The Return On Equity of REGN (15.22%) is better than 97.09% of its industry peers.
REGN's Return On Invested Capital of 11.28% is amongst the best of the industry. REGN outperforms 97.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REGN is significantly above the industry average of 13.58%.
The 3 year average ROIC (19.76%) for REGN is well above the current ROIC(11.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 15.22% | ||
| ROIC | 11.28% |
ROA(3y)19.52%
ROA(5y)18.66%
ROE(3y)25.8%
ROE(5y)25.67%
ROIC(3y)19.76%
ROIC(5y)18.51%
1.3 Margins
REGN has a Profit Margin of 30.14%. This is amongst the best in the industry. REGN outperforms 98.97% of its industry peers.
In the last couple of years the Profit Margin of REGN has declined.
The Operating Margin of REGN (32.27%) is better than 98.63% of its industry peers.
In the last couple of years the Operating Margin of REGN has declined.
REGN's Gross Margin of 86.16% is amongst the best of the industry. REGN outperforms 90.43% of its industry peers.
In the last couple of years the Gross Margin of REGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.27% | ||
| PM (TTM) | 30.14% | ||
| GM | 86.16% |
OM growth 3Y-8.48%
OM growth 5Y-3.09%
PM growth 3Y-10%
PM growth 5Y-3.71%
GM growth 3Y-0.25%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REGN is creating value.
REGN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, REGN has more 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 10.91. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN's Altman-Z score of 10.91 is amongst the best of the industry. REGN outperforms 87.35% of its industry peers.
REGN has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
The Debt to FCF ratio of REGN (0.74) is better than 96.75% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that REGN is not too dependend on debt financing.
The Debt to Equity ratio of REGN (0.10) is worse than 64.10% 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 | 0.1 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 10.91 |
ROIC/WACC1.25
WACC9.04%
2.3 Liquidity
REGN has a Current Ratio of 5.69. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a better Current ratio (5.69) than 60.17% of its industry peers.
A Quick Ratio of 4.94 indicates that REGN has no problem at all paying its short term obligations.
REGN has a Quick ratio (4.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.69 | ||
| Quick Ratio | 4.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.25% over the past year.
The Earnings Per Share has been growing by 13.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.76% in the past year.
REGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.34% yearly.
EPS 1Y (TTM)3.25%
EPS 3Y11.42%
EPS 5Y13.91%
EPS growth Q2Q-5.57%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y15.57%
Revenue growth 5Y14.34%
Revenue growth Q2Q0.58%
3.2 Future
The Earnings Per Share is expected to grow by 6.38% on average over the next years.
Based on estimates for the next years, REGN will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y4.51%
EPS Next 2Y5.04%
EPS Next 3Y6.39%
EPS Next 5Y6.38%
Revenue Next Year7.74%
Revenue Next 2Y7.62%
Revenue Next 3Y7.25%
Revenue Next 5Y5.48%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
REGN is valuated rather expensively with a Price/Earnings ratio of 20.42.
Compared to the rest of the industry, the Price/Earnings ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 96.41% of the companies listed in the same industry.
REGN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.54, which indicates a rather expensive current valuation of REGN.
Based on the Price/Forward Earnings ratio, REGN is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
REGN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REGN is valued cheaply inside the industry as 96.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REGN is valued cheaply inside the industry as 96.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.75 | ||
| EV/EBITDA | 14.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of REGN may justify a higher PE ratio.
PEG (NY)4.53
PEG (5Y)1.47
EPS Next 2Y5.04%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
No dividends for REGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
REGENERON PHARMACEUTICALS
NASDAQ:REGN (4/18/2024, 7:17:10 PM)
After market: 893.99 0 (0%)893.99
-7.2 (-0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap98.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 19.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.53
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 15.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.27% | ||
| PM (TTM) | 30.14% | ||
| GM | 86.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.69 | ||
| Quick Ratio | 4.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.25%
EPS 3Y11.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.76%
Revenue growth 3Y15.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y