Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide.
The last earnings update was 73 days ago.
Discounted Cash Flow Calculation for DB:RGO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:RGO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Regeneron Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
Regeneron Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Regeneron Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
Regeneron Pharmaceuticals's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Regeneron Pharmaceuticals's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Regeneron Pharmaceuticals's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Regeneron Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
Regeneron Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Regeneron Pharmaceuticals's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Regeneron Pharmaceuticals's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 9.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Schleifer Leonard S., M.D., Ph.D. founded Regeneron Pharmaceuticals, Inc. in 1988 and has been its President and Chief Executive Officer since 1988. Dr. Schleifer served as the Chairman of Regeneron Pharmaceuticals from 1990 to 1994. Dr. Schleifer, together with Regeneron's founding scientist, Dr. Yancopoulos, built and has managed the Company over the past 30 years. With 30 years of experience as Chief Executive Officer of the Company, Dr. Schleifer brings to the board an incomparable knowledge of the Company, significant leadership experience, and an in-depth understanding of the complex research, drug development, and business issues facing companies in the biopharmaceutical industry. In 1992, he was appointed Clinical Professor of Neurology at the Cornell University Medical School and from 1984 to 1988 he served as an Assistant Professor of the Cornell University Medical School in the Departments of Neurology and Neurobiology. Dr. Schleifer has been an Executive Director of Regeneron Pharmaceuticals, Inc. since 1988. He serves as a Director of Biotechnology Industry Organization. He is a licensed physician and is certified in Neurology by the American Board of Psychiatry and Neurology. Dr. Schleifer received his M.D. and Ph.D. in Pharmacology from the University of Virginia.
Schleifer's compensation has been consistent with company performance over the past year.
Schleifer's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Regeneron Pharmaceuticals management team is about average.
Schleifer Leonard S.
Executive VP of Finance & CFO
Executive Vice President of Research & Development
Daniel Van Plew
Executive VP and GM of Industrial Operations & Product Supply
Senior Vice President of Corporate Communications & Citizenship
Senior Vice President of Human Resources
Executive Vice President of Research
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Regeneron Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide. The company’s products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema (DME); myopic choroidal neovascularization; and diabetic retinopathy in patients with DME, as well as macular edema following retinal vein occlusion, including macular edema following central retinal vein occlusion and macular edema following branch retinal vein occlusion. It also provides Dupixent injection to treat atopic dermatitis in adults, and asthma in adults and adolescents; Praluent injection for heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease in adults; and Kevzara solution for subcutaneous injection for treating rheumatoid arthritis in adults. In addition, the company offers Libtayo injection to treat metastatic or locally advanced cutaneous squamous cell carcinoma; ARCALYST injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome; and ZALTRAP injection for intravenous infusion to treat metastatic colorectal cancer. Further, it is developing various product candidates for treating patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neuromuscular diseases, infectious diseases, and other diseases. The company has collaboration and license agreements with Sanofi, Bayer, Teva, Mitsubishi Tanabe Pharma, Alnylam Pharmaceuticals, Inc., and others. Regeneron Pharmaceuticals, Inc. was founded in 1988 and is headquartered in Tarrytown, New York.
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