REGENERON PHARMACEUTICALS, INC. (REGN) Stock Analysis
REGENERON PHARMACEUTICALS, INC. (REGN) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q3 2025.
Overall Grade: F (Concerning)
REGENERON PHARMACEUTICALS, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 14.1% | Solid returns |
| FCF Margin | 29.6% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 29.6% provides financial flexibility for growth and shareholder returns.
Explore REGENERON PHARMACEUTICALS, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: REGENERON PHARMACEUTICALS, INC. earns 14.1% ROIC, Top 25% in Healthcare
REGENERON PHARMACEUTICALS, INC.'s trailing-twelve-month ROIC of 14.1% ranks Top 25% in Healthcare companies (sector median: -3.9%), driven by NOPAT margin of 23.0% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-10-28. Gross margin of 100.0% with operating margin at 25.9% reflects strong pricing power.
| Metric | REGN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 14.1% | Good | Above sector median of -3.9% |
| Return on Equity (ROE) | 15.4% | Good | Efficient use of shareholder equity |
| Gross Margin | 100.0% | Excellent | Strong pricing power |
| Operating Margin | 25.9% | Excellent | Efficient operations |
Cash Flow: REGENERON PHARMACEUTICALS, INC. generates $4.2B FCF at 29.6% margin, positive NaN/8 quarters
REGENERON PHARMACEUTICALS, INC. generated $4.2B in free cash flow (TTM), a 29.6% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.1x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | REGN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 29.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.2B | Good | Positive cash generation |
| OCF/Net Income | 1.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: REGENERON PHARMACEUTICALS, INC. at 0.1x leverage
REGENERON PHARMACEUTICALS, INC.'s debt-to-equity ratio of 0.1x reflects conservative leverage. Net cash position of $6.5B provides financial flexibility. Source: 10-Q filed 2025-10-28.
| Metric | REGN | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $6.5B | Excellent | Net cash positive |
Valuation: REGENERON PHARMACEUTICALS, INC. trades at 12.9x earnings
REGENERON PHARMACEUTICALS, INC. trades at a P/E of 12.9x. Free cash flow yield of 7.1% offers attractive cash returns relative to price.
| Metric | REGN | Rating | Context |
|---|---|---|---|
| P/E Ratio | 12.9x | Adequate | Reasonable valuation |
| EV/Sales | -0.5x | Excellent | Attractive revenue multiple |
| FCF Yield | 7.1% | Good | Attractive cash return |
Capital Allocation: REGENERON PHARMACEUTICALS, INC. returns 6.3% shareholder yield
REGENERON PHARMACEUTICALS, INC.'s total shareholder yield is 6.3% (dividends + buybacks 6.3%). Source: 10-Q filed 2025-10-28.
| Metric | REGN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 6.3% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 6.3% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 14.1% | Top 25% | - |
| Free Cash Flow Margin | 29.6% | Top 5% | - |
| Gross Margin | 100.0% | Top 10% | 1.6x above |
| Operating Margin | 25.9% | Top 25% | 13.5x above |
| Return on Equity (ROE) | 15.4% | Top 25% | - |
| P/E Ratio | 12.9x | N/A | - |
Financial Scorecard
| Metric | REGN | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 14.1% | Good | Top 25% of sector (median: -3.9%) |
| Free Cash Flow Margin | 29.6% | Excellent | Top 5% of sector (median: 0.0%) |
| Gross Margin | 100.0% | Excellent | Top 10% of sector (median: 64.0%) |
| Debt to Equity Ratio | 6.4% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 12.9x | Adequate | Attractively valued |
| Free Cash Flow Yield | 7.1% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is REGENERON PHARMACEUTICALS, INC.'s Return on Invested Capital (ROIC)?
REGENERON PHARMACEUTICALS, INC. (REGN) has a trailing twelve-month Return on Invested Capital (ROIC) of 14.1%. This compares above the sector median of -3.9%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is REGENERON PHARMACEUTICALS, INC.'s Free Cash Flow Margin?
REGENERON PHARMACEUTICALS, INC. (REGN) has a free cash flow margin of 29.6%, generating $4.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is REGENERON PHARMACEUTICALS, INC. stock overvalued or undervalued?
REGENERON PHARMACEUTICALS, INC. (REGN) trades at a P/E ratio of 12.9x, which is above the sector median of N/A. The EV/Sales multiple is -0.5x. Free cash flow yield is 7.1%, which represents an attractive cash return to investors.
Q: What is REGENERON PHARMACEUTICALS, INC.'s revenue and earnings growth?
REGENERON PHARMACEUTICALS, INC. (REGN) grew revenue by 2.9% year-over-year. Earnings per share increased by 3.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is REGENERON PHARMACEUTICALS, INC. buying back stock?
REGENERON PHARMACEUTICALS, INC. (REGN) repurchased $3.7 billion of stock over the trailing twelve months. This represents a buyback yield of 6.3%.
Q: How does REGENERON PHARMACEUTICALS, INC. compare to competitors in Healthcare?
Compared to other companies in Healthcare, REGENERON PHARMACEUTICALS, INC. (REGN) shows: ROIC of 14.1% is above the sector median of -3.9% (Top 23%). FCF margin of 29.6% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 100.0% is 36 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with REGENERON PHARMACEUTICALS, INC.?
REGENERON PHARMACEUTICALS, INC. (REGN) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.