REGENERON PHARMACEUTICALS (REGN)
US75886F1075 - Common Stock
Taking everything into account, REGN scores 6 out of 10 in our fundamental rating. REGN was compared to 588 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year REGN was profitable.
REGN had a positive operating cash flow in the past year.
REGN had positive earnings in each of the past 5 years.
REGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of REGN (11.95%) is better than 97.60% of its industry peers.
Looking at the Return On Equity, with a value of 15.22%, REGN belongs to the top of the industry, outperforming 97.09% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.28%, REGN belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
REGN had an Average Return On Invested Capital over the past 3 years of 19.76%. This 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
The Profit Margin of REGN (30.14%) is better than 98.97% of its industry peers.
REGN's Profit Margin has declined in the last couple of years.
REGN has a Operating Margin of 32.27%. This is amongst the best in the industry. REGN outperforms 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 90.58% 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
REGN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, REGN has less shares outstanding
The number of shares outstanding for REGN has been increased compared to 5 years ago.
Compared to 1 year ago, REGN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.96 indicates that REGN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.96, REGN belongs to the best of the industry, outperforming 88.18% of the companies in the same industry.
The Debt to FCF ratio of REGN is 0.74, which is an excellent value as it means it would take REGN, only 0.74 years of fcf income to pay off all of its debts.
REGN has a Debt to FCF ratio of 0.74. This is amongst the best in the industry. REGN outperforms 96.58% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that REGN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.10, REGN is not doing good in the industry: 63.87% 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 | 0.1 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 10.96 |
ROIC/WACC1.24
WACC9.06%
2.3 Liquidity
A Current Ratio of 5.69 indicates that REGN has no problem at all paying its short term obligations.
The Current ratio of REGN (5.69) is better than 60.10% of its industry peers.
REGN has a Quick Ratio of 4.94. This indicates that REGN is financially healthy and has no problem in meeting its short term obligations.
REGN's Quick ratio of 4.94 is in line compared to the rest of the industry. REGN outperforms 54.62% of 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.
REGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.91% yearly.
Looking at the last year, REGN shows a small growth in Revenue. The Revenue has grown by 7.76% in the last year.
Measured over the past years, REGN shows a quite strong growth in Revenue. The Revenue has been growing by 14.34% on average per year.
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
REGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
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
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
REGN is valuated rather expensively with a Price/Earnings ratio of 20.34.
Based on the Price/Earnings ratio, REGN is valued cheaper than 96.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of REGN to the average of the S&P500 Index (25.25), we can say REGN is valued inline with the index average.
The Price/Forward Earnings ratio is 19.47, which indicates a rather expensive current valuation of REGN.
Based on the Price/Forward Earnings ratio, REGN is valued cheaply inside the industry as 96.75% 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 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REGN indicates a rather cheap valuation: REGN is cheaper than 96.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, REGN is valued cheaply inside the industry as 96.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.66 | ||
| EV/EBITDA | 14.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REGN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of REGN may justify a higher PE ratio.
PEG (NY)4.51
PEG (5Y)1.46
EPS Next 2Y5.04%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
REGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
REGENERON PHARMACEUTICALS
NASDAQ:REGN (4/25/2024, 3:15:15 PM)
After market: 890.68 0 (0%)890.68
-15.86 (-1.75%)
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 Cap97.76B
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min 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 | 20.34 | ||
| Fwd PE | 19.47 | ||
| 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)4.51
PEG (5Y)1.46
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