Regeneron Pharmaceuticals, Inc. (REGN) stock analysis

P/E above its 5-year median

Regeneron Pharmaceuticals's P/E of 21.2 is above its own 5-year median of 18.0.

P/E below the industry

Regeneron Pharmaceuticals's P/E of 21.2 is below the Drugs median of 25.1.

EV/EBITDA above its 5-year median

Regeneron Pharmaceuticals's EV/EBITDA of 17.1 is above its 5-year median of 16.4.

P/B above the industry

Regeneron Pharmaceuticals's price-to-book of 2.96 is above the Drugs median of 2.29.

Trading above fair value

The share price of $959.41 is above our fair value estimate of $890.93.

Margin of safety under 20%

The price is 7.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 5.2% over the last twelve months, against a 5-year average of 5.1% a year.

Growing faster than the industry

Revenue grew 18.6% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Regeneron Pharmaceuticals lowered its full year 2026 Non-GAAP SG&A (a) outlook on Oct 30, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 14.9% over the last twelve months and averaged 24.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 16.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Regeneron Pharmaceuticals's return on equity of 14.9% is above the Drugs median of -58.9%.

Earnings grew over 5 years

Net income grew 5.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 28.5% over the last twelve months, against a 5-year average of 35.7%.

Net margin above the industry

Regeneron Pharmaceuticals's net margin of 28.5% is above the Drugs median of -53.0%.

Low debt

Debt is 5.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 17.9% five years ago to 5.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 244% of total debt.

Interest well covered

Operating income covers interest expense 104.2 times.

Short-term assets cover short-term debts

Current assets are 3.35 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.84; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Regeneron Pharmaceuticals paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Regeneron Pharmaceuticals yields 0.4%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 8.0% of net income.

Covered by free cash flow

Dividends take 10.0% of free cash flow.