Regeneron Pharma (REGN), a leading biotech company, has shown robust financial growth over the past few years. This stock could be a good addition to your portfolio now, given the promising future of the biotech sector. Continue reading ....
Regeneron Pharmaceuticals, Inc., a biotech company, could be an excellent addition to your portfolio, before its first quarter results are released next week. In recent years, the biotech giant has enjoyed tremendous financial success.
REGN's EBIT, revenue and net income have all grown at CAGRs of 22,9%, 31,2% and 27% over the last three years. Over the same time period, its EPS increased at a rate of CAGR 27.5%.
The biotech industry has also been booming due to the aging population, and an increase in chronic diseases. Global biotech is expected to reach $1.68 trillion in 2030 with an 8.7% CAGR.
Let's discuss key financial metrics of the company in this context.
REGN's revenue, gross margin, and return on assets trends
REGN's Net Income grew substantially throughout the series. It grew from $298.4 Million on June 30, 2021 to $807.5 Million on December 31, 2020, an increase by 170%. The net profit peaked at $873.6 on March 31 2022 before falling to $433.8 by December 31, 2022. This is a 50.3% decrease.
REGN has experienced a general upward trend in its revenue since June 2022. The most recent revenue reported in December 2022 was $1.22 billion, which represents a growth of 53% compared to the initial revenue reported of $7.99 billion, in June 2020. The revenue increased from June 2021 until September 2021 from $1.23 to $1.35 billion. It then decreased slightly over the following quarters to reach its current level by the end of 2022.
REGN's Gross Margin steadily decreased from 88.2% at June 30, 2020 to 84.8% by December 31, 2021. This was followed by a fairly steady growth trend up to 87.2% at December 31, 2022.
The ROA of REGN shows a general upward trend between June 2020 and December 22. The ROA increased by 80% from 0.203 in the June 2020 quarter to 0.366 at the end of December 2021. The ROA decreased slightly from 0.366 in December 2021 to 0.327 between March 2022 and the latest quarter. ROA currently stands at 0.157.
The share price of REGN has seen an upward trend, increasing from $716.60 in December 2022 to $826.56 in April 2023. Growth appears to be increasing as the price of REGN's shares increased faster between March 10 and April 27, 2023, than from November 4, 2022 to February 24, 2023. This is a chart showing REGN's share price over the last 180 days.
REGN POWR ratings: Quality, Momentum and Stability
REGN's overall rating is B, which in our POWR Ratings proprietary system translates into Buy. REGN is currently ranked #19 in the Biotech Category out of 383 stocks. This is a good ranking, as lower values indicate superior rank.
The POWR ratings for REGN show that Quality is the top rated, with an overall average of 86 between October 2022 and April 2023. Momentum has also consistently received high ratings, with scores ranging from 13 to 35 over the course of a six-month period.
The lowest score was given to Stability, which averaged only 35 points out of 100. Stability is on a downward trend, with scores as low as 20 in October 2020 and 41 in April 2030.
How does Regeneron Pharma Inc. (REGN), compare to its peers?
Consider also Biogen Inc., Gilead Sciences Inc., and Vanda Pharmaceuticals Inc.
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REGN shares traded at $781.97 a share Thursday morning. This was up $3.97 (+0.51%). REGN shares have gained 8.38% year-to-date compared to the benchmark S&P 500's 7.25% increase during the same time period.
Anushka is a financial analyst who was motivated to enter the investment research field by her desire to understand the impact of economic changes on financial markets.