Regeneron Pharmaceuticals, Inc. (REGN) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0000872589

P/B 2.47

P/E 16.71

P/S 5.37

Market Cap 76.52 Bn

ROIC (Qtr) 9.21

Div Yield % 0.48

Rev 1y % (Qtr) 0.90

Total Debt (Qtr) 2.71 Bn

Debt/Equity (Qtr) 0.09

About

Regeneron Pharmaceuticals, Inc. (REGN) is a prominent player in the pharmaceutical industry, specializing in the invention, development, manufacturing, and commercialization of medicines for people suffering from serious diseases. The company's operations span across various disease areas, including atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyps, eosinophilic esophagitis, prurigo nodularis, and chronic obstructive pulmonary disease (COPD). Regeneron's main business activities involve researching evidence of type 2 inflammation...

Regeneron Pharmaceuticals, Inc. (REGN) is a prominent player in the pharmaceutical industry, specializing in the invention, development, manufacturing, and commercialization of medicines for people suffering from serious diseases. The company's operations span across various disease areas, including atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyps, eosinophilic esophagitis, prurigo nodularis, and chronic obstructive pulmonary disease (COPD).

Regeneron's main business activities involve researching evidence of type 2 inflammation and developing treatments for various diseases. The company operates in several segments, each targeting specific therapeutic areas. For instance, EYLEA HD is a soluble fusion protein that acts as a vascular endothelial growth factor ("VEGF") inhibitor, designed to treat various retinal diseases, such as wet age-related macular degeneration, diabetic macular edema, and retinal vein occlusion. Another significant segment is Dupixent, a fully human monoclonal antibody that inhibits the signaling of the IL-4 and IL-13 pathways, used to treat atopic dermatitis, asthma, and chronic rhinosinusitis with nasal polyps.

Regeneron generates revenue primarily through the sale of its marketed products, such as Dupixent, Kevzara, and Praluent. These products are the result of the company's robust research and development efforts, showcasing Regeneron's commitment to innovation. The company also earns revenue through collaborations with other companies, further expanding its reach and impact in the industry.

The biotechnology industry is highly competitive, with numerous companies vying for market share. Regeneron's key competitors include Novartis, Pfizer, and Roche, among others. However, the company has several competitive advantages, including its strong pipeline of innovative products, its ability to collaborate with other companies, and its commitment to research and development.

Regeneron's customers include pharmaceutical wholesalers, hospitals, and healthcare providers. The company's products are marketed and distributed through a network of pharmaceutical wholesalers, hospitals, and healthcare providers.

The company's product portfolio includes several brand names and trade names. For instance, Eylea is a vascular endothelial growth factor (VEGF) inhibitor used to treat neovascular age-related macular degeneration (AMD), diabetic macular edema (DME), and macular edema following central retinal vein occlusion (CRVO). Dupixent is a monoclonal antibody used to treat moderate-to-severe atopic dermatitis, asthma, and chronic spontaneous urticaria. Libtayo is a PD-1 inhibitor used to treat advanced non-small cell lung cancer (NSCLC) and basal cell carcinoma. These products are marketed by various partners, including Bayer and Sanofi, and have become widely used treatments in their respective therapeutic areas.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 5.07B provides robust 1.87x coverage of total debt 2.71B, indicating excellent debt servicing capability and financial flexibility.
Operating cash flow of 5.07B provides exceptional 120.45x coverage of interest expenses 42.10M, showing strong debt service capability.
Strong tangible asset base of 38.79B provides 14.34x coverage of total debt 2.71B, indicating robust asset backing and low credit risk.
Tangible assets of 38.79B provide exceptional 50.72x coverage of deferred revenue 764.80M, showing strong service capability backing.
Robust free cash flow of 4.22B exceeds capital expenditure of 849.30M by 4.97x, indicating strong organic growth funding capability.

Cons

Operating cash flow of 5.07B barely covers its investment activities of (498.80M), with a coverage ratio of -10.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 5.07B provides thin coverage of dividend payments of (277.60M) with a -18.27 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Investment activities of (498.80M) provide weak support for R&D spending of 5.64B, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 2.51B provide limited coverage of acquisition spending of (81.90M), which is -30.60x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
The company's operating cash flow of 5.07B shows concerning coverage of stock compensation expenses of 1.05B, with a 4.84 ratio indicating potential earnings quality issues.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,377.82 Bn	-1,495.00	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	442.39 Bn	6,453.60	88.96	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	114.19 Bn	31.07	9.74	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	76.52 Bn	16.71	5.37	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	56.84 Bn	1,304.71	17.71	3.21 Bn
6	ARGX	Argenx Se	53.58 Bn	35.57	27,941.68	-
7	BNTC	Benitec Biopharma Inc.	44.65 Bn	-1,067.50	0.00	0.00 Bn
8	INSM	INSMED Inc	36.43 Bn	-30.77	81.49	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.96	12.31
EV to Cash from Ops.	15.54	23.25
EV to Debt	29.13	738.44
EV to EBIT	15.19	-9.16
EV to EBITDA	18.71	6.95
EV to Free Cash Flow [EV/FCF]	18.67	21.90
EV to Market Cap	1.01	65.67
EV to Revenue	5.53	227.32
Price to Book Value [P/B]	2.52	22.34
Price to Earnings [P/E]	17.06	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	16.49	-11.94
Dividend Payout Ratio %	6.10	0.16
Dividend per Basic Share	2.64	0.01
FCF Dividend Payout Ratio %	6.48	-0.14
Interest Coverage	123.21	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-7.83	-27.13
Cash and Equivalents Growth (1y) %	24.58	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-2.08	-46.93
EBITDA Growth (1y) %	-5.17	-1.68
EBIT Growth (1y) %	3.08	-56.45
EBT Growth (1y) %	3.54	-12.70
EPS Growth (1y) %	0.49	-28.31
FCF Growth (1y) %	22.02	-31.90
Gross Profit Growth (1y) %	2.02	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.35	0.14
Cash Payout Ratio	0.05	0.00
Cash Ratio	0.57	3.85
Current Ratio	4.06	7.27
Debt to Equity Ratio	0.09	0.40
Interest Cover Ratio	123.21	841.00
Times Interest Earned	123.21	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	40.10	-18,234.31
EBIT Margin %	36.41	-18,580.80
EBT Margin %	36.11	-19,488.74
Gross Margin %	85.40	-7.59
Net Profit Margin %	32.10	-19,439.22

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN)