Regeneron (REGN) AI Stock Analysis

• Market Cap: $62.28B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.74
• Revenue Growth: 5.38%
• EPS Growth: 3.58%
• Country: US
• Employees: 15,158
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): 12.89
• Shares Outstanding: 104,170,296
• 10 Day Avg. Volume: 1,021,428
• 30 Day Avg. Volume: 1,005,688
• 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: $724.80
• Price Target Upside: 23.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 72 Outperform
• Price Target: $623.00 ▲(6.14% Upside)

Regeneron's strong financial performance and promising R&D pipeline are key strengths, supported by a solid balance sheet and strategic sales growth. However, technical indicators and valuation suggest caution, with mixed market trends and minimal dividend yield. Challenges in revenue growth and regulatory delays also weigh on the overall score.

Positive Factors

Clinical Trial Success

The study met the primary and key secondary endpoints, which is viewed as an incremental positive for the stock, particularly in light of recent execution questions.

LAG3 Program Developments

Management commentary has increased confidence in Regeneron's LAG3 program, with updates suggesting positive developments in the study's progression.

Revenue and EPS Growth

Cemdisiran increases revenue and EPS estimates in the final year of the forecast by 5% and 7% respectively.

Negative Factors

FDA Approval Delays

The FDA extended the PDUFA date for EYLEA HD to address manufacturing issues.

Inspection Impact

The potential FDA approval of odronextamab has been impacted by the Catalent site inspection.

Safety Concerns

Investor expectations are low for the pozelimab + cemdisiran combination due to toxicity concerns.

Regeneron Business Overview & Revenue Model

Company Description

Regeneron Pharmaceuticals, Inc. is a biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines for the treatment of serious conditions. Headquartered in Tarrytown, New York, Regeneron operates primarily in the biotechnology sector, developing drugs in therapeutic areas including ophthalmology, immunology, oncology, and cardiovascular diseases. The company is known for its flagship products such as Eylea, a treatment for eye diseases, and Dupixent, used for various allergic and inflammatory conditions.

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: 586.96
• 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 586.96 is above the 20-day moving average (MA) of 569.76, above the 50-day MA of 553.14, and below the 200-day MA of 632.01, indicating a neutral trend. The MACD of 9.23 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.75 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	$16.40B	19.10	24.30%	―	18.87%	1088.27%
VRTX	75 Outperform	$99.27B	27.67	22.77%	―	10.38%	―
ARGX	74 Outperform	$42.62B	33.26	24.75%	―	89.58%	―
REGN	72 Outperform	$62.28B	14.42	15.34%	0.45%	5.38%	3.58%
ALNY	60 Neutral	$58.15B	―	-257.82%	―	5.01%	-330.09%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
BNTX	49 Neutral	$25.19B	―	-1.81%	―	7.51%	30.53%

Regeneron Corporate Events

Regeneron Shareholders Approve Key Proposals at 2025 Meeting

At the 2025 Annual Meeting of Shareholders held on June 13, Regeneron Pharmaceuticals’ shareholders voted on several key proposals. The election of Class I directors was confirmed, with nominees set to serve until the 2028 meeting. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, an advisory vote approved the executive compensation package. A significant amendment to declassify the board of directors was passed, while proposals to eliminate supermajority vote requirements for certain amendments to the company’s Certificate of Incorporation were not approved.

The most recent analyst rating on (REGN) stock is a Hold with a $940.00 price target. To see the full list of analyst forecasts on Regeneron stock, see the REGN Stock Forecast page.