Regeneron (REGN) AI Stock Analysis

• Market Cap: $65.55B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.66
• Revenue Growth: 8.27%
• EPS Growth: 10.35%
• Country: US
• Employees: 15,106
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): 38.28
• Shares Outstanding: 106,951,515
• 10 Day Avg. Volume: 951,573
• 30 Day Avg. Volume: 1,065,183
• PEG Ratio: 1.52
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.07
• Price to Cash Flow (P/CF): 14.30
• P/FCF Ratio: 14.10
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $876.40
• Price Target Upside: 45.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

Regeneron's strong financial performance and strategic focus on growth through innovation and shareholder returns are key strengths. The company's robust balance sheet and consistent profitability support its valuation. However, technical indicators suggest caution due to bearish trends, and competitive pressures pose potential risks. Overall, Regeneron remains a solid company with a well-rounded strategy for long-term growth.

Positive Factors

International Market Expansion

There is strong growth potential in international markets for Vabysmo, where efforts to secure reimbursement and launch new products are ongoing.

Market Share Gains

Roche expects Vabysmo to gain more share from competitors in the branded market, despite current challenges.

Pipeline and R&D

Regeneron is considered a blue-chip biotech with a good R&D track record and various pipeline readouts that could be important if positive.

Negative Factors

Competitive Pressure

Expect EYLEA headwinds to continue, given biosimilar launch and inventory.

Earnings and Revenue Decline

Product sales and total revenues are expected to decrease significantly due to the impact of patient assistance funds closing.

Patient Assistance Funding Issues

Patient assistance funding challenges are expected to persist, impacting Eylea and leading to revised growth expectations for Regeneron.

Regeneron Business Overview & Revenue Model

Company Description

Regeneron Pharmaceuticals, Inc. is a leading biotechnology company that specializes in the discovery, development, and commercialization of innovative medicines. The company operates primarily in the healthcare sector, focusing on therapeutic areas such as ophthalmology, immunology, oncology, cardiovascular diseases, and infectious diseases. Core products include EYLEA, a treatment for retinal diseases, Dupixent for allergic and inflammatory diseases, and Libtayo for certain types of cancer.

How the Company Makes Money

Regeneron generates revenue primarily through the sale of its proprietary pharmaceutical products. Key revenue streams include product sales, especially from its flagship drugs like EYLEA and Dupixent, which are distributed globally. Additionally, the company engages in strategic collaborations and partnerships with other pharmaceutical companies, such as Sanofi, which contribute to its earnings through shared profits and milestone payments. Regeneron also earns revenue from royalties and licensing agreements, as well as research and development services provided to partners.

Regeneron Financial Statement Overview

Summary

Regeneron exhibits strong financial performance with robust profitability margins and a healthy balance sheet characterized by low leverage and solid equity ratios. Although there is a slight reduction in free cash flow growth, overall financial health remains solid, supporting future growth.

Income Statement

Regeneron shows strong profitability with a Gross Profit Margin of 93.07% and a Net Profit Margin of 31.08% for 2024, indicating efficient cost management. The company's Revenue Growth Rate from 2023 to 2024 is 8.27%, which is solid but shows a deceleration compared to the previous year. While the EBIT and EBITDA margins have slightly decreased compared to earlier years, they remain healthy, reflecting stable profitability.

Balance Sheet

The balance sheet is robust with a Debt-to-Equity Ratio of 0.09, implying low leverage risk. The Return on Equity (ROE) for 2024 stands at 15.03%, indicating efficient use of equity. The Equity Ratio is a strong 77.75%, demonstrating a solid capital structure with a significant proportion of assets financed by equity.

Cash Flow

Regeneron has a stable Free Cash Flow, with a slight decrease of 0.08% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.00, suggesting that operating cash flow generation is closely aligned with net income. However, the Free Cash Flow to Net Income Ratio of 0.83 indicates that a portion of earnings is being used for capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.20B	13.12B	12.17B	16.07B	8.50B
	Gross Profit
12.23B	11.30B	10.61B	13.63B	7.38B
	EBIT
3.99B	4.05B	4.74B	8.95B	3.58B
	EBITDA
5.32B	4.69B	5.34B	9.28B	3.90B
	Net Income Common Stockholders
4.41B	3.95B	4.34B	8.08B	3.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.01B	10.84B	14.33B	12.53B	6.72B
	Total Assets
37.76B	33.08B	29.21B	25.43B	17.16B
	Total Debt
2.70B	2.70B	2.70B	2.70B	2.70B
	Net Debt
216.20M	-27.10M	-404.50M	-185.90M	502.00M
	Total Liabilities
8.41B	7.11B	6.55B	6.67B	6.14B
	Stockholders Equity
29.35B	25.97B	22.66B	18.77B	11.03B
Cash Flow		Free Cash Flow
3.66B	3.67B	4.42B	6.53B	2.00B
	Operating Cash Flow
4.42B	4.59B	5.01B	7.08B	2.62B
	Investing Cash Flow
-2.47B	-3.19B	-3.78B	-5.38B	-70.60M
	Financing Cash Flow
-2.20B	-1.79B	-1.01B	-1.01B	-1.97B

Regeneron Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 602.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REGN, the sentiment is Neutral. The current price of 602.64 is above the 20-day moving average (MA) of 584.19, below the 50-day MA of 643.94, and below the 200-day MA of 850.84, indicating a neutral trend. The MACD of -16.90 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 90.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for REGN.

Regeneron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	84 Outperform	$12.60B	11.63	23.16%	―	30.43%	82.29%
REGN	75 Outperform	$65.55B	15.72	15.95%	0.15%	8.27%	10.35%
ARGX	71 Outperform	$35.31B	41.82	17.33%	―	78.01%	―
INCY	67 Neutral	$11.45B	218.14	0.76%	―	14.76%	-88.32%
ALNY	58 Neutral	$32.72B	―	-414.62%	―	22.97%	38.54%
BNTX	58 Neutral	$24.48B	―	-3.38%	―	-27.64%	-172.62%
Sector *	51 Neutral	$5.31B	3.39	-40.42%	2.90%	18.11%	2.25%

Regeneron Corporate Events

Regeneron Highlights Growth and Innovation at Conference

Regeneron presented significant business updates at the J.P. Morgan Healthcare Conference, highlighting progress across its clinical pipeline and market performance. The announcement included key advancements such as the expansion of Dupixent’s usage in treating chronic diseases, the continued leadership of EYLEA in the U.S. anti-VEGF category, and Libtayo’s groundbreaking results in high-risk cutaneous squamous cell carcinoma. Additionally, Regeneron’s pipeline is poised for future growth with promising candidates targeting a commercial market expected to exceed $220 billion by 2030, underscoring its strategic positioning in the industry.