Regeneron Pharmaceuticals, Inc. (REGN)
Valuation Overview•Is Regeneron Pharmaceuticals, Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
High-quality fundamentals with a strong composite quality score of 82/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
REGN demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($412M) and minimal debt risk.
The company demonstrates solid revenue growth (5.6% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 24.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $3.6B | +1.0% | +5.6% | +11.0% | +13.3% | |
| EBITDA | $766.1M | — | -10.4% | — | — | |
| Net Income | $727.2M | +2.1% | +1.3% | — | +21.6% | |
| EPS (Diluted) | $6.75 | +8.2% | +2.8% | +6.3% | +22.3% | |
| Free Cash Flow | $848.3M | +11.3% | -2.7% | +15.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 84.5% | 84.8% | 84.7% | 86.6% |
| Operating Margin | 24.3% | 28.7% | 37.2% | 36.2% |
| Net Margin | 29.6% | 30.9% | 35.7% | 32.7% |
| FCF Margin | 27.9% | 27.4% | 31.8% | 27.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $8.91 | $9.47 | +6.3% | ||
| Q1'26 | $10.74 | $11.44 | +6.5% | ||
| Q4'25 | $9.65 | $11.83 | +22.6% | ||
| Q3'25 | $8.43 | $12.89 | +52.9% | ||
| Q2'25 | $8.62 | $8.22 | -4.6% | ||
| Q1'25 | $11.21 | $12.07 | +7.7% | ||
| Q4'24 | $11.69 | $12.46 | +6.6% | ||
| Q3'24 | $10.61 | $11.56 | +9.0% |
Total return is +19.5% (1Y), lagging the benchmark by -5.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -21.2% | -30.5% | — |
| 1Y | +19.5% | -5.5% | +0.7% |
| 3YCAGR | -7.6% | -27.3% | +0.7% |
| 5YCAGR | +2.7% | -9.7% | +1.0% |
| 10YCAGR | +5.7% | -8.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Regeneron Pharmaceuticals, Inc. (REGN) valuation, health, and returns.
Regeneron Pharmaceuticals, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +41.2% upside to DCF intrinsic value of $861.41)
Regeneron Pharmaceuticals, Inc. has multiple valuation anchors: DCF Intrinsic Value: $861.41 | Peer Relative Fair Value: $632.78 | Wall Street Analyst Target: $836.00 (implying +37.1% upside). A convergence of these signals offers higher conviction.
Regeneron Pharmaceuticals, Inc. displays excellent financial health with a composite quality score of 82/100, supported by a Altman Z-Score of 6.2 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.9%.
Regeneron Pharmaceuticals, Inc. pays a 0.6% dividend yield, covered by a 8% payout ratio with 1 years of growth, supplemented by a 6.3% buyback yield.
Regeneron Pharmaceuticals, Inc.'s current growth trajectory is Decelerating. The company achieved +1.0% 1Y revenue growth and +8.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.6%.
Wall Street consensus is Buy based on 48 analysts, beating EPS expectations in 83% of recent quarters with a 4-quarter streak. The consensus price target represents a +37.1% change from current levels.
Investment risks for Regeneron Pharmaceuticals, Inc. include: -26.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.51x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.