Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN)

Sector: Healthcare Industry: Biotechnology CIK: 0000872589
Market Cap 84.40 Bn
P/B 2.73
P/E 18.44
P/S 5.92
ROIC (Qtr) 9.21
Div Yield % 0.44
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...

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Price action

Investment thesis

Bull case

  • 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.
  • Strong tangible asset base of 38.79B provides 14.34x coverage of total debt 2.71B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 5.07B provides exceptional 120.45x coverage of interest expenses 42.10M, showing strong debt service capability.
  • 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.

Bear case

  • 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.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.12 12.96
EV to Cash from Ops. EV/CFO 16.78 23.73
EV to Debt EV to Debt 31.46 772.65
EV to EBIT EV/EBIT 16.41 -11.30
EV to EBITDA EV/EBITDA 20.20 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 20.16 22.12
EV to Market Cap EV to Market Cap 1.01 68.89
EV to Revenue EV/Rev 5.97 199.70
Price to Book Value [P/B] P/B 2.73 22.62
Price to Earnings [P/E] P/E 18.44 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 16.49 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 6.10 0.17
Dividend per Basic Share Div per Share (Qtr) 2.64 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 6.48 -0.15
Interest Coverage Int. cover (Qtr) 123.21 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -7.83 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 24.58 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.08 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.17 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.08 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 3.54 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 0.49 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 22.02 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.02 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.05 0.00
Cash Ratio Cash Ratio (Qtr) 0.57 3.79
Current Ratio Curr Ratio (Qtr) 4.06 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.42
Interest Cover Ratio Int Coverage (Qtr) 123.21 857.11
Times Interest Earned Times Interest Earned (Qtr) 123.21 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 40.10 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 36.41 -18,862.18
EBT Margin % EBT Margin % (Qtr) 36.11 -19,783.19
Gross Margin % Gross Margin % (Qtr) 85.40 -8.62
Net Profit Margin % Net Margin % (Qtr) 32.10 -19,732.60