Regeneron Pharmaceuticals, Inc.: A look at fundamentals

Capitalcube gives Regeneron Pharmaceuticals, Inc. a score of 81.

Our analysis is based on comparing Regeneron Pharmaceuticals, Inc. with the following peers – Amgen Inc., Alnylam Pharmaceuticals, Inc, Biogen Inc., pSivida Corp., Johnson & Johnson, Ophthotech Corp., Sanofi Sponsored ADR and Novartis AG Sponsored ADR (AMGN-US, ALNY-US, BIIB-US, PSDV-US, JNJ-US, OPHT-US, SNY-US and NVS-US).

Investment Outlook

Regeneron Pharmaceuticals, Inc. has a fundamental score of 81 and has a relative valuation of OVERVALUED.

Fundamental Score

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Company Overview

  • Compared to peers, relative outperformance over the last year has faded more recently.
  • Regeneron Pharmaceuticals, Inc. currently trades at a higher Price/Book ratio (15.48) than its peer median (4.71).
  • The market expects REGN-US to grow faster than its peers and for the company to improve its current ROE.
  • REGN-US has relatively low net profit margins while its asset efficiency is relatively high.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • Over the last five years, REGN-US‘s return on assets has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • Compared with the peers chosen, REGN-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • REGN-US has the financial and operating capacity to borrow quickly.

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Leverage & Liquidity

REGN-US has the financial and operating capacity to borrow quickly.

  • With debt at a relatively low 0.74% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 6.75%), and a well-cushioned interest coverage level of 43.21x, REGN-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
  • Of the 8 chosen peers for the company, only 6 of the stocks have an outstanding debt balance. Companies with no debt include ALNY-US and PSDV-US.

REGN-US has maintained its Quick & Able profile from the recent year-end.

  • REGN-US‘s interest coverage is its highest relative to the last five years and compares to a low of -9.64x in 2011.
  • The increase in its interest coverage to 43.21x from 19.24x (in 2014) was also accompanied by an increase in its peer median during this period to 43.21x from 33.06x.
  • Interest coverage rose 13.82 points relative to peers.
  • REGN-US‘s debt-EV is its lowest relative to the last five years and compares to a high of 8.67% in 2011.
  • Though its debt-EV has remained relatively stable at 0.74% compared to 2014, its peer median has increased to 6.75% from 1.10% during this period.
  • Relative to peers, debt-EV fell 6.01 percentage points.

Access the detailed analysis for Regeneron Pharmaceuticals, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Amgen Inc. 26.96 5.48 7.02 24.77
Alnylam Pharmaceuticals, Inc 0 15.45 No interest exp 999
Biogen Inc. 0.62 2.2 171.14 692.82
pSivida Corp. 0 8.91 No interest exp 999
Johnson & Johnson 6.75 2.36 39.28 105.78
Ophthotech Corp. 8.44 20.29 No interest exp -63.63
Sanofi Sponsored ADR 13.96 1.35 11.97 47.79
Novartis AG Sponsored ADR 8.64 0.84 12.65 58.67
Regeneron Pharmaceuticals, Inc. 0.74 3.8 43.21 202.38
Peer Median 6.75 3.8 43.21 105.78
Best In Class 0.62 20.29 No interest exp 999

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Company Profile

Regeneron Pharmaceuticals, Inc. operates as a biopharmaceutical company. It discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. Regeneron markets medicines for eye diseases, colorectal cancer and a rare inflammatory condition and has product candidates in development in other areas of high unmet medical need, including hypercholesterolemia, oncology, rheumatoid arthritis, asthma and atopic dermatitis. The company’s products include EYLEA (aflibercept) injection, which is used for the treatment of neovascular age related macular degeneration; ARCALYST (rilonacept), which is used for the treatment of Cryopyrin-Associated Periodic Syndrome, including Familial Cold Auto-inflammatory Syndrome and Muckle-Wells Syndrome; and ZALTRAP (ziv-aflibercept) Injection for Intravenous Infusion. It has active research and development programs in many disease areas, including ophthalmology, inflammation, cancer, and hypercholesterolemia. The company was founded by Alferd G. Gilman, Leonard S. Schleifer and Eric M. Shooter on January 8, 1988 and is headquartered in Tarrytown, NY.

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