REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
NASDAQ:REGN - Nasdaq - US75886F1075 - Common Stock - Currency: USD
Overall REGN gets a fundamental rating of 7 out of 10. We evaluated REGN against 555 industry peers in the Biotechnology industry. REGN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. REGN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make REGN suitable for value investing!
1. Profitability
1.1 Basic Checks
REGN had positive earnings in the past year.
REGN had a positive operating cash flow in the past year.
In the past 5 years REGN has always been profitable.
In the past 5 years REGN always reported a positive cash flow from operatings.
1.2 Ratios
REGN has a better Return On Assets (11.98%) than 95.32% of its industry peers.
REGN has a better Return On Equity (15.31%) than 95.50% of its industry peers.
REGN's Return On Invested Capital of 9.45% is amongst the best of the industry. REGN outperforms 94.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REGN is below the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 15.31% | ||
| ROIC | 9.45% |
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 better Profit Margin (31.94%) than 97.12% of its industry peers.
REGN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.85%, REGN belongs to the top of the industry, outperforming 97.48% of the companies in the same industry.
REGN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 86.69%, REGN belongs to the best of the industry, outperforming 89.73% 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 | 28.85% | ||
| PM (TTM) | 31.94% | ||
| GM | 86.69% |
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
REGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for REGN remains at a similar level compared to 1 year ago.
REGN has less shares outstanding than it did 5 years ago.
REGN has a better debt/assets ratio than last year.
2.2 Solvency
REGN has an Altman-Z score of 6.52. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN's Altman-Z score of 6.52 is amongst the best of the industry. REGN outperforms 81.08% of its industry peers.
REGN has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
REGN has a better Debt to FCF ratio (0.91) than 95.32% of its industry peers.
REGN has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
REGN has a worse Debt to Equity ratio (0.09) than 64.68% 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 | 0.09 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 6.52 |
ROIC/WACC1.1
WACC8.59%
2.3 Liquidity
REGN has a Current Ratio of 4.93. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Current ratio (4.93) which is in line with its industry peers.
REGN has a Quick Ratio of 4.03. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Quick ratio of 4.03. This is comparable to the rest of the industry: REGN outperforms 47.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.03 |
3. Growth
3.1 Past
REGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.47%.
REGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.12% yearly.
REGN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.52%.
Measured over the past years, REGN shows a quite strong growth in Revenue. The Revenue has been growing by 12.55% on average per year.
EPS 1Y (TTM)2.47%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%-13.93%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%-3.69%
3.2 Future
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-20.5%
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
EPS Next 5Y5.56%
Revenue Next Year-5.35%
Revenue Next 2Y0.53%
Revenue Next 3Y3.82%
Revenue Next 5Y4.44%
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
REGN is valuated reasonably with a Price/Earnings ratio of 11.85.
Compared to the rest of the industry, the Price/Earnings ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 96.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. REGN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.96, the valuation of REGN can be described as correct.
94.59% of the companies in the same industry are more expensive than REGN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. REGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
REGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REGN is cheaper than 97.12% of the companies in the same industry.
94.41% of the companies in the same industry are more expensive than REGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
REGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, REGN is not a good candidate for dividend investing.
REGN's Dividend Yield is rather good when compared to the industry average which is at 96.38. REGN pays more dividend than 98.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, REGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 2Y-5.79%
EPS Next 3Y2.73%
525
+4 (+0.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change0.47%
Ins Owners1.86%
Ins Owner Change0%
Market Cap56.68B
Analysts80.59
Price Target750.26 (42.91%)
Short Float %2.59%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)-1.87%
Min EPS beat(2)-8.66%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-8.66%
Max EPS beat(4)6.79%
EPS beat(8)6
Avg EPS beat(8)2.08%
EPS beat(12)10
Avg EPS beat(12)5.54%
EPS beat(16)13
Avg EPS beat(16)9.63%
Revenue beat(2)0
Avg Revenue beat(2)-5.11%
Min Revenue beat(2)-9.31%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)2.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.63%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)4.32%
PT rev (1m)-8.99%
PT rev (3m)-21.23%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-19.37%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-16.27%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-8.42%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 12.96 | ||
| P/S | 4.02 | ||
| P/FCF | 19.14 | ||
| P/OCF | 14.34 | ||
| P/B | 1.93 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)44.31
EY8.44%
EPS(NY)40.51
Fwd EY7.72%
FCF(TTM)27.43
FCFY5.23%
OCF(TTM)36.61
OCFY6.97%
SpS130.46
BVpS272.18
TBVpS261.37
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 15.31% | ||
| ROCE | 11.96% | ||
| ROIC | 9.45% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 13.12% | ||
| OM | 28.85% | ||
| PM (TTM) | 31.94% | ||
| GM | 86.69% | ||
| FCFM | 21.03% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 199.98% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 65.83% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.03 | ||
| Altman-Z | 6.52 |
F-Score5
WACC8.59%
ROIC/WACC1.1
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)2.47%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%-13.93%
EPS Next Y-20.5%
EPS Next 2Y-5.79%
EPS Next 3Y2.73%
EPS Next 5Y5.56%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%-3.69%
Revenue Next Year-5.35%
Revenue Next 2Y0.53%
Revenue Next 3Y3.82%
Revenue Next 5Y4.44%
EBIT growth 1Y-0.68%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year-16.54%
EBIT Next 3Y6.1%
EBIT Next 5Y6.01%
FCF growth 1Y17.22%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y-7.66%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%