Regeneron Pharmaceuticals Inc (REGN, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $891.01, Regeneron Pharmaceuticals Inc has witnessed a daily loss of 2.43%, marked against a three-month change of 9.87%. A thorough analysis, underlined by the GF Score, suggests that Regeneron Pharmaceuticals Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, growth, and momentum, and a slightly lower GF Value rank, GuruFocus assigned Regeneron Pharmaceuticals Inc the GF Score of 94 out of 100, which signals the highest outperformance potential.
Understanding Regeneron Pharmaceuticals Inc's Business
Regeneron Pharmaceuticals Inc, with a market cap of $97.07 billion and sales of $13.10 billion, operates at an impressive operating margin of 33.65%. The company is at the forefront of biotechnology, focusing on the discovery, development, and commercialization of products that address eye disease, cardiovascular disease, cancer, and inflammation. Its portfolio includes Eylea for eye diseases, Praluent for cholesterol management, Dupixent in immunology, Libtayo in oncology, and Kevzara for rheumatoid arthritis. Regeneron Pharmaceuticals Inc is also engaged in cutting-edge partnerships in monoclonal and bispecific antibodies, RNAi (Alnylam), and CRISPR-based gene editing (Intellia), ensuring a dynamic pipeline for future growth.
Financial Strength Breakdown
According to the Financial Strength rating, Regeneron Pharmaceuticals Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Regeneron Pharmaceuticals Inc stands impressively at 61.12, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5. With an Altman Z-Score of 10.78, Regeneron Pharmaceuticals Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.21, Regeneron Pharmaceuticals Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Regeneron Pharmaceuticals Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased over the past five years, with a current margin of 38.48%. This trend is a testament to Regeneron Pharmaceuticals Inc's efficient operational management and its ability to maximize earnings. Additionally, Regeneron Pharmaceuticals Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Regeneron Pharmaceuticals Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 23.3%, which outperforms better than 69.21% of 760 companies in the Biotechnology industry. Moreover, Regeneron Pharmaceuticals Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 25.8, and the rate over the past five years is 28. This trend accentuates the company's continued capability to drive growth.
Conclusion: Regeneron Pharmaceuticals Inc's Position for Outperformance
Considering Regeneron Pharmaceuticals Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic initiatives, robust pipeline, and strong financial metrics not only provide a solid foundation for current operations but also pave the way for future success. Investors looking for companies with similar characteristics can explore more options using the GF Score Screen provided by GuruFocus. With a GF Score of 94, Regeneron Pharmaceuticals Inc stands as a beacon of financial health and growth potential in the biotechnology industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
