Regeneron (REGN) AI Stock Analysis

• Market Cap: $80.22B
• Dividend Yield: 0.45%
• Average Volume (3M): 794.57K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.72
• Revenue Growth: 2.89%
• EPS Growth: 0.50%
• Country: US
• Employees: 15,158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 11.83
• Shares Outstanding: 103,282,320
• 10 Day Avg. Volume: 398,661
• 30 Day Avg. Volume: 794,574
• PEG Ratio: 1.68
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 5.41
• P/FCF Ratio: 20.97
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 4.10
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 10.23
• 1Y Price Target: $774.10
• Price Target Upside: 1.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $898.00 ▲(17.66% Upside)

Regeneron's strong financial performance and robust earnings call results are the primary drivers of its high stock score. The company demonstrates solid revenue growth and profitability, supported by a strong balance sheet and cash flow. Technical indicators show bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is fairly valued, aligning with its growth potential. Despite some operational challenges, Regeneron's commitment to innovation and strategic investments position it well for future growth.

Positive Factors

Revenue Growth

Dupixent's strong sales growth indicates robust demand and market penetration, supporting Regeneron's revenue expansion and long-term growth prospects.

R&D Pipeline Progress

Advancements in the R&D pipeline demonstrate Regeneron's commitment to innovation and potential for future product launches, enhancing competitive positioning.

Collaboration Agreement

The collaboration with ModeX Therapeutics leverages Regeneron's expertise in multispecific antibodies, potentially expanding its therapeutic offerings and market reach.

Negative Factors

EYLEA Affordability Issues

Affordability challenges for EYLEA could limit its market growth and impact Regeneron's revenue from this key product, necessitating strategic adjustments.

FDA Setback for EYLEA HD

FDA setbacks for EYLEA HD could delay product enhancements and affect sales momentum, impacting Regeneron's competitive edge in the ophthalmology market.

EYLEA U.S. Sales Decline

The decline in EYLEA's U.S. sales suggests potential market saturation or increased competition, which could pressure Regeneron's revenue growth from this segment.

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 pharmaceutical products. The company's key revenue streams include sales of EYLEA and Dupixent, which are significant contributors to its overall earnings. Additionally, Regeneron engages in partnerships and collaborations with other pharmaceutical companies and research institutions to develop new therapies, which can also provide financial benefits through milestone payments and royalties. For example, Regeneron has a notable collaboration with Sanofi for the development and commercialization of Dupixent. The company's revenue model is further supported by its robust pipeline of investigational drugs, which, if successfully developed and approved, can lead to additional revenue streams in the future.

Regeneron Financial Statement Overview

Summary

Regeneron exhibits strong financial health with impressive revenue growth and profitability metrics. The low leverage and solid equity position enhance financial stability, while healthy cash flows support ongoing operations and potential investments. Despite minor fluctuations in margins and cash flow ratios, the company is well-positioned for sustained growth and resilience in the biotechnology sector.

Income Statement

Regeneron has demonstrated strong revenue growth with a 23.6% increase in the TTM period, indicating robust demand for its products. The company maintains high profitability with a gross profit margin of 85.4% and a net profit margin of 32.1%, showcasing efficient cost management. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, which could indicate rising operational costs or increased competition.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.087, reflecting conservative financial leverage and a strong equity base. Return on equity remains healthy at 15.3%, indicating effective use of shareholder funds. The equity ratio is also strong, suggesting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Regeneron's cash flow is robust, with a positive free cash flow growth rate of 8.1% in the TTM period. The operating cash flow to net income ratio of 1.15 indicates strong cash generation relative to earnings. However, the free cash flow to net income ratio has slightly decreased, suggesting potential reinvestment needs or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.25B	14.20B	13.12B	12.17B	16.07B	8.50B
Gross Profit	12.17B	12.23B	10.87B	10.47B	13.35B	7.14B
EBITDA	5.71B	5.32B	4.69B	5.26B	9.67B	4.10B
Net Income	4.58B	4.41B	3.95B	4.34B	8.08B	3.51B
Balance Sheet
Total Assets	40.17B	37.76B	33.08B	29.21B	25.43B	17.16B
Cash, Cash Equivalents and Short-Term Investments	8.44B	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	9.21B	8.41B	7.11B	6.55B	6.67B	6.14B
Stockholders Equity	30.96B	29.35B	25.97B	22.66B	18.77B	11.03B
Cash Flow
Free Cash Flow	4.15B	3.66B	3.67B	4.42B	6.53B	2.00B
Operating Cash Flow	5.07B	4.42B	4.59B	5.01B	7.08B	2.62B
Investing Cash Flow	-498.80M	-2.47B	-3.19B	-3.78B	-5.38B	-70.60M
Financing Cash Flow	-4.07B	-2.20B	-1.79B	-1.01B	-1.01B	-1.97B

Regeneron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 763.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 763.23 is above the 20-day moving average (MA) of 754.65, above the 50-day MA of 714.49, and above the 200-day MA of 603.55, indicating a bullish trend. The MACD of 17.45 indicates Positive momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 49.80 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	81 Outperform	$19.98B	17.08	30.39%	―	18.09%	3563.21%
ARGX	79 Outperform	$49.36B	37.62	24.75%	―	89.58%	―
REGN	78 Outperform	$80.22B	18.27	15.19%	0.45%	2.89%	0.50%
VRTX	78 Outperform	$113.87B	31.63	22.31%	―	10.53%	―
ALNY	60 Neutral	$52.56B	1,654.87	32.73%	―	53.24%	―
BNTX	53 Neutral	$23.29B	-36.81	-2.94%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%