What If You Were Missing The Value In Regeneron Pharmaceuticals Stock?
Here is why we think Regeneron Pharmaceuticals (REGN) stock deserves consideration as a value stock. It is currently trading nearly 44% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable fundamentals for its level of valuation.
- Reasonable Revenue Growth: 5.4% LTM and 0.3% last 3 year average.
- Cash Generative: Nearly 25.0% free cash flow margin and 27.0% operating margin LTM.
- No Major Margin Shocks: Regeneron Pharmaceuticals has avoided any large margin collapse in the last 12 months.
- Modest Valuation: Despite encouraging fundamentals, REGN stock trades at a PE multiple of 13.4
- Opportunity vs S&P: Compared to S&P, you get lower valuation, higher LTM revenue growth, and better margins
As a quick background, Regeneron Pharmaceuticals provides innovative medicines worldwide, including treatments for eye diseases, atopic dermatitis, asthma, and rheumatoid arthritis through discovery, development, manufacturing, and commercialization.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds – likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.
| REGN | S&P Median | |
|---|---|---|
| Sector | Health Care | – |
| Industry | Biotechnology | – |
| PE Ratio | 13.4 | 23.8 |
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| LTM* Revenue Growth | 5.4% | 5.2% |
| 3Y Average Annual Revenue Growth | 0.3% | 5.3% |
| LTM Operating Margin Change | -1.9% | 0.3% |
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| LTM* Operating Margin | 27.0% | 18.6% |
| 3Y Average Operating Margin | 30.1% | 17.8% |
| LTM* Free Cash Flow Margin | 25.0% | 13.3% |
*LTM: Last Twelve Months
But do these numbers tell the full story? Read Buy or Sell REGN Stock to see if Regeneron Pharmaceuticals still has an edge that holds up under the hood.
Stocks Like These Can Outperform. Here Is Data
Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.
- Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
- Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
- Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.
But Consider The Risk
That said, REGN isn’t immune to big drops. It fell nearly 69% in the Dot-Com crash, about 58% in the Global Financial Crisis, and 48% during the 2018 correction. Even the more recent shocks—the Covid pandemic and inflation spike—saw declines around 25-27%. The stock has solid fundamentals, but when the market shakes, losses can still run deep.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read REGN Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.