Fundamental Analysis
Regeneron (NASDAQ: REGN) is a leading science and technology company delivering life-transforming medicines for serious diseases.
Founded by physician-scientists 30 years ago, our science-driven approach has resulted in six FDA-approved medicines and numerous product candidates in a range of diseases, including asthma, pain, cancer and infectious diseases.
In addition to our medicines, our innovations include the VelociSuite®technologies, world-class manufacturing operations, one of the largest human genetics sequencing efforts in the world and rapid response technologies being used for global good.
Reasons to buy – REGENERON PHARMACEUTICALS
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
-
- Here we see REGENERON PHARMACEUTICALS makes a margin of 38% on Gross Level and about 32% on Net level. This means that out of $1 that it makes $0.32 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
-
- Here we see net revenue growth of 14.5% in the revenue and the net profit figures grew by 92%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
-
- Here we see REGENERON PHARMACEUTICALS makes a Return on Assets of 20% and Return of Equity of 29% which is pretty good.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio. Although the Return on Equity maybe low when compared to our threshold, in the Pharma space there could be binary changes in the profits with the discovery of a new drug/treatment method. So this is a risky bet that is worth keeping in the bag.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by REGENERON PHARMACEUTICALS to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
