Repligen Corp (NASDAQ: RGEN)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000730272
Market Cap 12.36 Bn
P/B 5.93
P/E 7,109.00
P/S 17.45
ROIC (Qtr) -0.36
Div Yield % 0.00
Rev 1y % (Qtr) 21.91
Total Debt (Qtr) 688.87 Mn
Debt/Equity (Qtr) 0.33

About

Repligen Corporation, also known as RGEN, is a prominent player in the life sciences industry, specializing in the development and commercialization of innovative bioprocessing technologies and systems. The company's operations are primarily focused on the biotechnology sector, which is characterized by the development and manufacturing of biological drugs, vaccines, and gene therapies. Repligen's main business activities revolve around the provision of consumable and single-campaign products, including filtration systems, chromatography systems,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 748.75M provide 38.77x coverage of short-term debt 19.31M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 102.23M exceeds capital expenditure of 28.66M by 3.57x, indicating strong organic growth funding capability.
  • Operating cash flow of 130.89M fully covers other non-current liabilities 39.94M by 3.28x, showing strong long-term stability.
  • Cash reserves of 748.75M provide robust 5.71x coverage of current liabilities 131.14M, indicating strong short-term solvency.
  • Tangible assets of 1.42B provide robust 17.18x coverage of other current liabilities 82.40M, indicating strong asset backing.

Bear case

  • Operating cash flow of 130.89M barely covers its investment activities of (154.49M), with a coverage ratio of -0.85, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (154.49M) provide weak support for R&D spending of 52.73M, which is -2.93x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 748.75M provide limited coverage of acquisition spending of (124.72M), which is -6x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 130.89M shows concerning coverage of stock compensation expenses of 30.98M, with a 4.22 ratio indicating potential earnings quality issues.
  • Operating earnings of 26.14M show weak coverage of depreciation charges of 94.87M, with a 0.28 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.22 2.75
EV to Cash from Ops. EV/CFO 94.22 39.87
EV to Debt EV to Debt 17.90 27.09
EV to EBIT EV/EBIT 471.76 32.86
EV to EBITDA EV/EBITDA 147.55 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF 120.64 0.88
EV to Market Cap EV to Market Cap 1.00 -4.26
EV to Revenue EV/Rev 17.42 252.61
Price to Book Value [P/B] P/B 5.93 6.13
Price to Earnings [P/E] P/E 7,109.00 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 1.22 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 12.50 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.49 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 153.96 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -16.36 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.81 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -65.31 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 114.29 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -22.86 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.22 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 5.71 2.51
Current Ratio Curr Ratio (Qtr) 8.36 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.33 0.55
Interest Cover Ratio Int Coverage (Qtr) 1.22 -117.83
Times Interest Earned Times Interest Earned (Qtr) 1.22 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.10 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) 3.69 -2,472.59
EBT Margin % EBT Margin % (Qtr) 0.66 -2,442.52
Gross Margin % Gross Margin % (Qtr) 45.40 30.06
Net Profit Margin % Net Margin % (Qtr) 0.20 -2,438.49