Stock Analysis

Why I Like Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

NasdaqGS:REGN
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Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of REGN, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Regeneron Pharmaceuticals here.

Flawless balance sheet with solid track record

Over the past year, REGN has grown its earnings by 41%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%. which paints a buoyant picture for the company. REGN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. REGN seems to have put its debt to good use, generating operating cash levels of 2.88x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NASDAQGS:REGN Income Statement Export February 4th 19
NASDAQGS:REGN Income Statement Export February 4th 19

Next Steps:

For Regeneron Pharmaceuticals, I've compiled three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for REGN’s future growth? Take a look at our free research report of analyst consensus for REGN’s outlook.
  2. Valuation: What is REGN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether REGN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of REGN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.