REGENERON PHARMACEUTICALS (REGN) Stock Fundamental Analysis
USA - NASDAQ:REGN - US75886F1075 - Common Stock
600 USD
0 (0%)
600 USD
0 (0%)
Taking everything into account, REGN scores 7 out of 10 in our fundamental rating. REGN was compared to 536 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, REGN could be worth investigating further for value investing!.
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.
In the past 5 years REGN has always been profitable.
Each year in the past 5 years REGN had a positive operating cash flow.
1.2 Ratios
REGN has a Return On Assets of 11.67%. This is amongst the best in the industry. REGN outperforms 94.59% of its industry peers.
REGN has a Return On Equity of 14.89%. This is amongst the best in the industry. REGN outperforms 94.59% of its industry peers.
REGN's Return On Invested Capital of 9.28% is amongst the best of the industry. REGN outperforms 94.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REGN is below the industry average of 15.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 14.89% | ||
| ROIC | 9.28% |
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
Looking at the Profit Margin, with a value of 31.37%, REGN belongs to the top of the industry, outperforming 96.27% 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 28.56%, REGN belongs to the best of the industry, outperforming 96.46% of the companies in the same industry.
REGN's Operating Margin has been stable in the last couple of years.
REGN has a Gross Margin of 86.46%. This is amongst the best in the industry. REGN outperforms 88.99% of its industry peers.
REGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.56% | ||
| PM (TTM) | 31.37% | ||
| GM | 86.46% |
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.
Compared to 1 year ago, REGN has about the same amount of shares outstanding.
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
REGN has an Altman-Z score of 6.98. This indicates that REGN is financially healthy and has little risk of bankruptcy at the moment.
REGN has a better Altman-Z score (6.98) than 78.54% of its industry peers.
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 95.52% 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 63.43% 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 | 0.76 | ||
| Altman-Z | 6.98 |
ROIC/WACC0.99
WACC9.4%
2.3 Liquidity
REGN has a Current Ratio of 4.60. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.60, REGN is in line with its industry, outperforming 50.37% of the companies in the same industry.
REGN has a Quick Ratio of 3.93. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN has a Quick ratio (3.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.6 | ||
| Quick Ratio | 3.93 |
3. Growth
3.1 Past
REGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.42%.
REGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.12% yearly.
Looking at the last year, REGN shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
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)2.42%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%11.51%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%3.62%
3.2 Future
REGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.81% yearly.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y-12.78%
EPS Next 2Y-4.06%
EPS Next 3Y3.32%
EPS Next 5Y5.81%
Revenue Next Year-2.02%
Revenue Next 2Y1.3%
Revenue Next 3Y4.35%
Revenue Next 5Y5.26%
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
With a Price/Earnings ratio of 13.15, REGN is valued correctly.
96.83% of the companies in the same industry are more expensive than REGN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.86. REGN is valued rather cheaply when compared to this.
REGN is valuated correctly with a Price/Forward Earnings ratio of 14.28.
Based on the Price/Forward Earnings ratio, REGN is valued cheaply inside the industry as 95.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, REGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REGN is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
REGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REGN is cheaper than 95.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.88 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
The excellent profitability rating of REGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-4.06%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, REGN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 164.23, REGN pays a better dividend. On top of this REGN pays more dividend than 98.13% of the companies listed in the same industry.
With a Dividend Yield of 0.59, REGN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
REGN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-4.06%
EPS Next 3Y3.32%
600
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change0%
Ins Owners1.89%
Ins Owner Change0%
Market Cap63.59B
Analysts81.18
Price Target744.96 (24.16%)
Short Float %2.93%
Short Ratio2.98
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)1
Avg EPS beat(2)20.56%
Min EPS beat(2)-8.66%
Max EPS beat(2)49.77%
EPS beat(4)3
Avg EPS beat(4)12.63%
Min EPS beat(4)-8.66%
Max EPS beat(4)49.77%
EPS beat(8)6
Avg EPS beat(8)8.06%
EPS beat(12)10
Avg EPS beat(12)9%
EPS beat(16)13
Avg EPS beat(16)9.97%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-9.31%
Max Revenue beat(2)9.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)9.72%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)8
Avg Revenue beat(12)1.29%
Revenue beat(16)12
Avg Revenue beat(16)3.14%
PT rev (1m)-0.06%
PT rev (3m)-0.71%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)4.95%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)9.7%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.28 | ||
| P/S | 4.47 | ||
| P/FCF | 17.88 | ||
| P/OCF | 13.41 | ||
| P/B | 2.12 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)45.64
EY7.61%
EPS(NY)42.01
Fwd EY7%
FCF(TTM)33.55
FCFY5.59%
OCF(TTM)44.75
OCFY7.46%
SpS134.11
BVpS282.47
TBVpS269.72
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 14.89% | ||
| ROCE | 11.75% | ||
| ROIC | 9.28% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 12.46% | ||
| OM | 28.56% | ||
| PM (TTM) | 31.37% | ||
| GM | 86.46% | ||
| FCFM | 25.02% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 232.74% | ||
| Cap/Sales | 8.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.81% | ||
| Profit Quality | 79.76% | ||
| Current Ratio | 4.6 | ||
| Quick Ratio | 3.93 | ||
| Altman-Z | 6.98 |
F-Score5
WACC9.4%
ROIC/WACC0.99
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)2.42%
EPS 3Y-13.85%
EPS 5Y13.12%
EPS Q2Q%11.51%
EPS Next Y-12.78%
EPS Next 2Y-4.06%
EPS Next 3Y3.32%
EPS Next 5Y5.81%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y-4.04%
Revenue growth 5Y12.55%
Sales Q2Q%3.62%
Revenue Next Year-2.02%
Revenue Next 2Y1.3%
Revenue Next 3Y4.35%
Revenue Next 5Y5.26%
EBIT growth 1Y-2.61%
EBIT growth 3Y-22.17%
EBIT growth 5Y13.8%
EBIT Next Year-14.02%
EBIT Next 3Y4.25%
EBIT Next 5Y7.36%
FCF growth 1Y18.37%
FCF growth 3Y-18.47%
FCF growth 5Y12.09%
OCF growth 1Y0.1%
OCF growth 3Y-14.54%
OCF growth 5Y12.71%