Regeneron (REGN) AI Stock Analysis

• Market Cap: $62.06B
• Dividend Yield: 0.45%
• Average Volume (3M): 960.00K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.74
• Revenue Growth: 5.38%
• EPS Growth: 3.58%
• Country: US
• Employees: 15,158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 12.89
• Shares Outstanding: 104,170,296
• 10 Day Avg. Volume: 937,706
• 30 Day Avg. Volume: 959,996
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 3.67
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 9.63
• 1Y Price Target: $739.95
• Price Target Upside: 26.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 75 Outperform
• Price Target: $643.00 ▲(9.82% Upside)

Regeneron's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust balance sheet and strategic R&D investments position it well for future growth. However, technical indicators suggest some short-term weakness, and competitive pressures on key products like EYLEA present ongoing challenges.

Positive Factors

Strong Product Growth

The significant growth in Dupixent sales highlights Regeneron's ability to expand its market presence and drive revenue through successful product adoption, ensuring long-term financial stability.

Robust Financial Performance

The increase in net income per share reflects Regeneron's strong profitability and effective cost management, supporting its capacity to reinvest in growth opportunities and sustain competitive advantage.

Significant R&D Investments

Substantial R&D investments demonstrate Regeneron's commitment to innovation and pipeline expansion, positioning the company for future growth and resilience against market competition.

Negative Factors

EYLEA Sales Decline

The decline in EYLEA sales due to competitive pressures and pricing issues could impact Regeneron's revenue stability, necessitating strategic adjustments to maintain market share.

Regulatory Delays

Regulatory delays can hinder product launches and revenue growth, affecting Regeneron's ability to capitalize on new market opportunities and maintain its competitive edge.

Market Competition

Increased competition in the anti-VEGF category poses a threat to Regeneron's market position, potentially eroding sales and necessitating strategic innovation to sustain growth.

Regeneron Business Overview & Revenue Model

Company Description

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; and diabetic retinopathy, as well as macular edema following retinal vein occlusion, including macular edema following central retinal vein occlusion and macular edema following branch retinal vein occlusion. It also provides Dupixent injection to treat atopic dermatitis and asthma in adults and pediatrics; Libtayo injection to treat metastatic or locally advanced cutaneous squamous cell carcinoma;Praluent injection for heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease in adults; REGEN-COV for covid-19; and Kevzara solution for treating rheumatoid arthritis in adults. In addition, the company offers Inmazeb injection for infection caused by Zaire ebolavirus; ARCALYST injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome; and ZALTRAP injection for intravenous infusion to treat metastatic colorectal cancer; and develops product candidates for treating patients with eye, allergic and inflammatory, cardiovascular and metabolic, infectious, and rare diseases; and cancer, pain, and hematologic conditions. It has collaboration and license agreements with Sanofi; Bayer; Teva Pharmaceutical Industries Ltd.; Mitsubishi Tanabe Pharma Corporation; Alnylam Pharmaceuticals, Inc.; Roche Pharmaceuticals; and Kiniksa Pharmaceuticals, Ltd., as well as has an agreement with the U.S. Department of Health and Human Services, as well as with Zai Lab Limited; Intellia Therapeutics, Inc.; Biomedical Advanced Research Development Authority; and AstraZeneca PLC. The company was incorporated in 1988 and is headquartered in Tarrytown, New York.

How the Company Makes Money

Regeneron generates revenue primarily through the sale of its proprietary drugs. The company's key revenue streams include product sales from its leading therapies, notably Eylea and Dupixent. Eylea has established itself as a significant revenue driver in the ophthalmology market, while Dupixent has gained traction in the immunology space. Additionally, Regeneron engages in collaborative partnerships and licensing agreements with other pharmaceutical companies, which can provide milestone payments and royalties based on sales. The company's robust pipeline of drug candidates in various stages of development also holds the potential for future revenue growth, particularly as new products gain regulatory approval and enter the market.

Regeneron Financial Statement Overview

Summary

Regeneron exhibits strong profitability and financial stability with a high gross profit margin and low debt-to-equity ratio. However, challenges in revenue growth and declining free cash flow growth present potential risks.

Income Statement

Regeneron's income statement reflects strong profitability with a Gross Profit Margin of 87.44% and a Net Profit Margin of 31.37% for TTM. While the revenue growth rate has slowed recently, historical revenue growth has been impressive. EBIT and EBITDA margins remain healthy, indicating efficient operations. However, the decline in revenue from 2021 to 2022 highlights potential market challenges.

Balance Sheet

Regeneron maintains a robust balance sheet characterized by a low Debt-to-Equity Ratio of 0.09 and a strong Equity Ratio of 78.32% for TTM, indicating low leverage and high financial stability. The Return on Equity is solid at 14.89%, reflecting efficient use of equity capital. The company has a strong asset base, enhancing its financial resilience.

Cash Flow

The cash flow statement indicates healthy cash generation, with an Operating Cash Flow to Net Income Ratio of 1.06 for TTM. The Free Cash Flow to Net Income Ratio is also strong at 0.86, suggesting effective cash management. However, there is a declining trend in free cash flow growth, which may impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.21B	14.20B	13.12B	12.17B	16.07B	8.50B
Gross Profit	11.65B	11.75B	10.87B	10.47B	13.35B	7.14B
EBITDA	5.42B	5.32B	4.69B	5.26B	9.67B	4.10B
Net Income	4.46B	4.41B	3.95B	4.34B	8.08B	3.51B
Balance Sheet
Total Assets	38.22B	37.76B	33.08B	29.21B	25.43B	17.16B
Cash, Cash Equivalents and Short-Term Investments	7.47B	9.01B	10.84B	7.74B	5.69B	3.59B
Total Debt	2.71B	2.70B	2.70B	2.70B	2.70B	2.70B
Total Liabilities	8.28B	8.41B	7.11B	6.55B	6.67B	6.14B
Stockholders Equity	29.94B	29.35B	25.97B	22.66B	18.77B	11.03B
Cash Flow
Free Cash Flow	3.84B	3.66B	3.67B	4.42B	6.53B	2.00B
Operating Cash Flow	4.74B	4.42B	4.59B	5.01B	7.08B	2.62B
Investing Cash Flow	-670.30M	-2.47B	-3.19B	-3.78B	-5.38B	-70.60M
Financing Cash Flow	-3.99B	-2.20B	-1.79B	-1.01B	-1.01B	-1.97B

Regeneron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 585.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REGN, the sentiment is Positive. The current price of 585.5 is above the 20-day moving average (MA) of 575.02, above the 50-day MA of 565.47, and below the 200-day MA of 617.73, indicating a neutral trend. The MACD of 1.68 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 75.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REGN.

Regeneron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCY	80 Outperform	16.56B	19.28	20.88%	―	18.87%	1088.27%
VRTX	75 Outperform	99.26B	27.67	21.18%	―	10.38%	0.00%
REGN	75 Outperform	$62.06B	14.49	15.34%	0.45%	5.38%	3.58%
ARGX	74 Outperform	45.35B	34.50	15.15%	―	89.58%	0.00%
ALNY	60 Neutral	59.21B	-183.11	-127.33%	―	5.01%	-330.09%
BNTX	49 Neutral	23.60B	-61.98	-1.88%	―	7.51%	30.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%