REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
NASDAQ:REGN - Nasdaq - US75886F1075 - Common Stock - Currency: USD
REGN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 567 industry peers in the Biotechnology industry. REGN gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on REGN. These ratings would make REGN suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year REGN was profitable.
REGN had a positive operating cash flow in the past year.
Each year in the past 5 years REGN has been profitable.
REGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REGN has a Return On Assets of 11.69%. This is amongst the best in the industry. REGN outperforms 96.13% 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 95.25% of the companies in the same industry.
REGN has a better Return On Invested Capital (9.85%) than 95.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REGN is below the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 15.03% | ||
| ROIC | 9.85% |
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
REGN has a Profit Margin of 31.07%. This is amongst the best in the industry. REGN outperforms 97.89% of its industry peers.
REGN's Profit Margin has improved in the last couple of years.
REGN has a better Operating Margin (29.70%) than 98.06% of its industry peers.
In the last couple of years the Operating Margin of REGN has remained more or less at the same level.
With an excellent Gross Margin value of 87.01%, REGN belongs to the best of the industry, outperforming 88.91% 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 | 29.7% | ||
| PM (TTM) | 31.07% | ||
| GM | 87.01% |
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.
The debt/assets ratio for REGN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.07 indicates that REGN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.07, REGN belongs to the best of the industry, outperforming 84.15% 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.
REGN has a better Debt to FCF ratio (0.76) than 95.42% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that REGN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.09, REGN is not doing good in the industry: 65.14% of the companies in the same industry are doing better.
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 | 0.76 | ||
| Altman-Z | 7.07 |
ROIC/WACC0.98
WACC10.04%
2.3 Liquidity
A Current Ratio of 4.73 indicates that REGN has no problem at all paying its short term obligations.
With a Current ratio value of 4.73, REGN perfoms like the industry average, outperforming 52.99% of the companies in the same industry.
A Quick Ratio of 3.95 indicates that REGN has no problem at all paying its short term obligations.
REGN's Quick ratio of 3.95 is in line compared to the rest of the industry. REGN outperforms 48.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.73 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.25% over the past year.
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.
Looking at the last year, REGN shows a quite strong growth in Revenue. The Revenue has grown by 8.27% in the last year.
The Revenue has been growing by 12.55% on average over the past years. This is quite good.
EPS 1Y (TTM)4.25%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%1.77%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%10.34%
3.2 Future
The Earnings Per Share is expected to grow by 9.68% on average over the next years. This is quite good.
REGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y-7.85%
EPS Next 2Y1.01%
EPS Next 3Y6.49%
EPS Next 5Y9.68%
Revenue Next Year2.35%
Revenue Next 2Y4.43%
Revenue Next 3Y5.93%
Revenue Next 5Y6.87%
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
The Price/Earnings ratio is 13.20, which indicates a correct valuation of REGN.
Based on the Price/Earnings ratio, REGN is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
REGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 14.33, REGN is valued correctly.
Based on the Price/Forward Earnings ratio, REGN is valued cheaper than 95.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. REGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
REGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REGN is cheaper than 98.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REGN is valued cheaply inside the industry as 95.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.62 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
The excellent profitability rating of REGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y1.01%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
REGN has a yearly dividend return of 0.59%, which is pretty low.
REGN's Dividend Yield is rather good when compared to the industry average which is at 5.94. REGN pays more dividend than 98.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, REGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 2Y1.01%
EPS Next 3Y6.49%
602.64
+2.88 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners91.18%
Inst Owner Change1.31%
Ins Owners1.6%
Ins Owner Change0.28%
Market Cap65.88B
Analysts80
Price Target895.97 (48.67%)
Short Float %2.64%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.7%
Min EPS beat(2)4.48%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-7.23%
Max EPS beat(4)6.79%
EPS beat(8)7
Avg EPS beat(8)3.6%
EPS beat(12)10
Avg EPS beat(12)5.42%
EPS beat(16)14
Avg EPS beat(16)10.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)2.93%
Revenue beat(8)5
Avg Revenue beat(8)0.95%
Revenue beat(12)9
Avg Revenue beat(12)1.83%
Revenue beat(16)12
Avg Revenue beat(16)4.72%
PT rev (1m)0%
PT rev (3m)-12.93%
EPS NQ rev (1m)-3.49%
EPS NQ rev (3m)-16.35%
EPS NY rev (1m)-3.2%
EPS NY rev (3m)-8.45%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)-6.01%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 14.33 | ||
| P/S | 4.64 | ||
| P/FCF | 18.62 | ||
| P/OCF | 14.9 | ||
| P/B | 2.24 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)45.64
EY7.57%
EPS(NY)42.06
Fwd EY6.98%
FCF(TTM)32.37
FCFY5.37%
OCF(TTM)40.44
OCFY6.71%
SpS129.91
BVpS268.51
TBVpS258
PEG (NY)N/A
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 15.03% | ||
| ROCE | 12.47% | ||
| ROIC | 9.85% | ||
| ROICexc | 35.53% | ||
| ROICexgc | 40.49% | ||
| OM | 29.7% | ||
| PM (TTM) | 31.07% | ||
| GM | 87.01% | ||
| FCFM | 24.92% |
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-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 182.56% | ||
| Cap/Sales | 6.21% | ||
| Interest Coverage | 80.19 | ||
| Cash Conversion | 94.04% | ||
| Profit Quality | 80.2% | ||
| Current Ratio | 4.73 | ||
| Quick Ratio | 3.95 | ||
| Altman-Z | 7.07 |
F-Score6
WACC10.04%
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)4.25%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%1.77%
EPS Next Y-7.85%
EPS Next 2Y1.01%
EPS Next 3Y6.49%
EPS Next 5Y9.68%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%10.34%
Revenue Next Year2.35%
Revenue Next 2Y4.43%
Revenue Next 3Y5.93%
Revenue Next 5Y6.87%
EBIT growth 1Y-2.71%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year-2.44%
EBIT Next 3Y9.38%
EBIT Next 5Y8.17%
FCF growth 1Y-3.51%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y-3.78%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%