Regeneron Pharmaceuticals Stock To $902?
Regeneron Pharmaceuticals (REGN) stock has jumped 22% during the past month, and is currently trading at $693.50. Our multi-factor assessment suggests that it may be time to buy more shares of REGN stock. We have, overall, a positive view of the stock, and a price of $902 may not be out of reach. We believe there are only a couple of things to fear in REGN stock given its overall Strong operating performance and financial condition. Considering stock’s Moderate valuation, we think it is Attractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Moderate |
| What you get: | |
| Growth | Weak |
| Profitability | Very Strong |
| Financial Stability | Very Strong |
| Downturn Resilience | Strong |
| Operating Performance | Strong |
| Stock Opinion | Attractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $72 Bil in market cap, Regeneron Pharmaceuticals provides discovery, development, manufacturing, and commercialization of medicines treating diseases like macular degeneration, diabetic edema, atopic dermatitis, asthma, and rheumatoid arthritis worldwide.
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[1] Valuation Looks Moderate
| REGN | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 5.0 | 3.2 |
| Price-to-Earnings Ratio | 15.7 | 23.4 |
| Price-to-Free Cash Flow Ratio | 18.5 | 20.0 |
This table highlights how REGN is valued vs broader market. For more details see: REGN Valuation Ratios
[2] Growth Is Weak
- Regeneron Pharmaceuticals has seen its top line grow at an average rate of 1.4% over the last 3 years
- Its revenues have grown 2.9% from $14 Bil to $14 Bil in the last 12 months
- Also, its quarterly revenues grew 0.9% to $3.8 Bil in the most recent quarter from $3.7 Bil a year ago.
| REGN | S&P 500 | |
|---|---|---|
| 3-Year Average | 1.4% | 5.5% |
| Latest Twelve Months* | 2.9% | 6.1% |
| Most Recent Quarter (YoY)* | 0.9% | 7.1% |
This table highlights how REGN is growing vs broader market. For more details see: REGN Revenue Comparison
[3] Profitability Appears Very Strong
- REGN last 12 month operating income was $3.8 Bil representing operating margin of 26.7%
- With cash flow margin of 35.6%, it generated nearly $5.1 Bil in operating cash flow over this period
- For the same period, REGN generated nearly $4.6 Bil in net income, suggesting net margin of about 32.1%
| REGN | S&P 500 | |
|---|---|---|
| Current Operating Margin | 26.7% | 18.8% |
| Current OCF Margin | 35.6% | 20.5% |
| Current Net Income Margin | 32.1% | 13.1% |
This table highlights how REGN profitability vs broader market. For more details see: REGN Operating Income Comparison
[4] Financial Stability Looks Very Strong
- REGN Debt was $2.7 Bil at the end of the most recent quarter, while its current Market Cap is $72 Bil. This implies Debt-to-Equity Ratio of 3.8%
- REGN Cash (including cash equivalents) makes up $8.4 Bil of $40 Bil in total Assets. This yields a Cash-to-Assets Ratio of 21.0%
| REGN | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 3.8% | 20.9% |
| Current Cash-to-Assets Ratio | 21.0% | 7.0% |
[5] Downturn Resilience Is Strong
REGN has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- REGN stock fell 25.8% from a high of $738.84 on 8 April 2022 to $548.35 on 14 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 October 2022
- Since then, the stock increased to a high of $1,201.76 on 27 August 2024 , and currently trades at $693.50
| REGN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -25.8% | -25.4% |
| Time to Full Recovery | 112 days | 464 days |
2020 Covid Pandemic
- REGN stock fell 27.3% from a high of $658.21 on 20 July 2020 to $478.30 on 30 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 August 2021
| REGN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -27.3% | -33.9% |
| Time to Full Recovery | 233 days | 148 days |
2008 Global Financial Crisis
- REGN stock fell 57.9% from a high of $28.60 on 2 May 2007 to $12.05 on 11 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 February 2010
| REGN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.9% | -56.8% |
| Time to Full Recovery | 329 days | 1480 days |
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.
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