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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Regeneron Pharmaceuticals, Inc. (XNAS:REGN) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
REGN
Name:
REGENERON PHARMACEUTICALS, INC. (XNAS:REGN)
Sector:
1.96B
Industry:
Biotechnology
CEO:
Dr. Leonard Schleifer
Total Employees:
10,368
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -97.54% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF REGENERON PHARMACEUTICALS, INC.(REGN) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BIOTECHNOLOGY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
580.62
One Month Price Target:
$581.56
Six Month Price Target :
$586.29
Likely Price in One Year's Time:
Ticker:
$591.95
Likely Trading Range Today Under (Normal Volatility)
$579.03
Price Upper limit ($) :
$583.22
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$555.76
This week:
$525.04
This month :
$469.46
Other Primary facts
Market Cap:
62.57B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
109.01M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
11.54%
-10.49%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$695.86
$642.34
$465.38
$518.90
Medium risk (<10%) entry points
Buy Call
Sell Call
$624.91
Buy Put:
Sell Put:
$613.49
$536.18
$547.75
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
REGN
Sharpe Ratio:
3.66%
Comparison:
REGN, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 88.34% higher than the industry
& ratio is 60.67% higher than the market/S&P 500 average
Average Returns/Yield of
REGN
Daily returns:
0.09%
Weekly returns:
0.43%
Monthly returns:
1.73%
Yearly returns:
25.22%
Comparison of returns:
Average annual returns/yield (last 3 years) is -17.47% below industry average
Classification:
REGN, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.67
Statistical test of Returns:
REGN has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.13%
Weekly Volatility:
4.76%
Monthly Volatility:
9.51%
Yearly Volatility:
32.95%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.80%
Volatility in last five trading days has been 31.86% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.28%
Weekly VaR:
-9.57%
Monthly VaR:
-19.15%
How Much Can the price of
REGN
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-66.32%
This translates to price declining to:
$488.10
This translates to price declining to:
$195.54
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
REGN is a 35.13% riskier investment compared to the market/S&P 500 & is 15.76% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -55.27% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
REGN
Beta in relation to market/S&P 500--0.29
Expected beta in 1 year's time:
0.484
Expected beta in 3 year's time:
0.685
Unlevered (debt free) Beta:
0.26
Beta in relation to Nasdaq (XNAS):
0.533
Beta in relation to all global stocks::
0.434
Beta Comparison & Analysis
Beta of competitors/peers::
0.936
Beta is -68.98% lower than peers
Average Industry Beta:
1.152
Beta is -74.78% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
51.17%
Sustainable growth rate is -2.44% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.157
Alpha is 10.52% above industry average alpha yield
Alpha is 998% higher than market/& is unsustainably high
Analysis of Cost of Capital of
REGN
Equity cost of capital:
0.051
Equity cost of capital is -53.44% below industry mean WACC
Unlevered (without debt) cost of capital:
4.60%
Before-tax cost of debt:
2.08%
After-tax cost of debt:
1.65%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.65%
WACC is -47.27% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$151.44
Revenue growth rate per share of (3Y):
3.18
Annual revenue growth rate is -74.78% below industry average
EPS:
$70.56
Expected Annual growth rate of EPS (3Y):
54.86%
Expected future EPS growth rate is 449.69% higher than the Biotechnology industry
Free cash flow (FCF) per share:
$73.78
-
-
Debt per share
$24.77
EBITDA per share
$87.00
Valuation Analysis Today of
REGN
P/E Ratio:
11.6
P/E Ratio of Competitors/Peers:
38.67
P/E ratio is -70.01% lower than main peers & is -87.08% lower than the industry
Stock price/value with industry average P/E ratio: $6,331.18
REGN is -90.83% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
3.83
Price to sales ratio is -90.53% below the industry mean
P/B (Price to book value ratio):
3.18
Price to free cash flow: 7.87
Price to free cash flow ratio is -73.76% lower than the industry
Net income growth rate (3Y):
237.24%
Net income growth rate is 236.11% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
13.56%
Net debt to equity ratio:
-3.24%
Debt to assets ratio:
10.25%
Net debt to assets ratio:
-2.45%
Debt-to-asset ratio is -75.69% below industry average
Ability to repay debt:
Interest coverage ratio:
168.44
Interest coverage ratio is -242.33% less than industry average
Looking forward:
Debt growth rate:
0.15%
Annual debt growth is -100% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.425
Statistical significance of correlation:
REGN has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.34
Stock price is 25.05% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.34
Correlation of price movement with Nasdaq (^IXIC):
-0.018
Covariance of price movement with the market:
-0.022
Kurtosis
2.784
Returns are, approximately, normally distributed (mesokurtic)
Skewness of returns:
0.253
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
REGN
Gross Profit Margin Ratio:
340%
Operating Profit Margin Ratio:
55.08%
Operating profit margin is -112.85% lower than the industry
Net Profit Margin Ratio:
340%
Effective Tax Rate:
13.14%
Effective tax rate is 130.38% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
39.84%
Return on equity (ROE) is -169.48% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
30.11%
Return on assets (ROA) is -247.58% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
4.76
Current ratio is -41.24% below industry average
Cash Conversion Cycle (days):
124.7
Cash conversion cycle is -76.61% below industry average
The remaining useful life of property plant & equipment is: 9.2 years
Stock based compensation to net income ratio:
2.10%
In-depth Efficiency Analysis
Revenue generated per employee:
1.6M
Each employee generates -1% less revenue than industry average revenue per employee
EBITDA generated per employee:
914.7K
Each employee generates 137% more EBITDA than industry average revenue per employee
Profit generated per employee:
765.2K
Each employee generates 498% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
189.0K
Each employee generates 28% more free cash flow than industry average revenue per employee
Assets/Capital per employee
1.2M
Each employee generates 28% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 6.33%
Growth rate in R&D investment/expenditure is -276.41% lower than the industry
Competitors/Peer firms of
REGN
ILLUMINA, INC. (XNAS:ILMN)
VERTEX PHARMACEUTICALS INCORPORATED (XNAS:VRTX)
BioNTech SE (XNAS:BNTX)
WALGREENS BOOTS ALLIANCE, INC. (XNAS:WBA)
DEXCOM, INC. (XNAS:DXCM)
MODERNA, INC. (XNAS:MRNA)
ALIGN TECHNOLOGY, INC. (XNAS:ALGN)
GILEAD SCIENCES, INC. (XNAS:GILD)
ALXN
Current Analyst Ratings
Strong buy�29%
Buy�25%
Hold�50%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
16.51B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.53B
13.97B
3.01B
-
1.87B
-
- 25300.00K
4.85B
-
56.30M
293.10M
9.48B
9.09B
7.93B
9.13B
1.20B
7.93B
Statement of Cash Flow
Date:
Period:
74.30M
Differed Income Tax :
- 225000.00K
Stock Based Compensation :
166.90M
Change in Working Capital :
823.20M
Accounts Receivables:
1.20B
Other Working Capital:
9.50M
Other Non-Cash Items:
288.80M
Net Cash Provided by Operating Activities:
2.10B
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 2309800.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
3.35B
3.70B
7.05B
4.84B
1.99B
424.90M
14.31B
3.56B
-
-
7.08B
1.14B
262.00M
12.04B
-
26.35B
470.30M
-
-
491.30M
2.05B
3.01B
2.70B
692.50M
3.43B
-
6.43B
100.00K
19.94B
- 170100.0K
142.90M
March 31, 2022 at 6:00:00 AM
7.39B
19.91B
26.35B
10.79B
2.70B
- 645300.0K
746.30M
- 141800.00K
- 1705300.00K
-
521.60M
- 456900.00K
-
-
64.70M
-
461.10M
3.36B
2.90B
2.10B
- 141800.00K
1.96B
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
REGN
2023
2024
2025
2026
2027
$594.91
$606.52
$618.36
$630.44
$642.74