One-glance verdict
Undervalued
$1,557.43 our estimate vs market $813.18
Wall Street consensus: $867.33 (-44.3% lower than our fair-value estimate)
48% below our estimate, below the bear case
Fundamentals snapshot
Regeneron Pharmaceuticals, Inc.
REGN · NMS · Healthcare · Biotechnology
Current price
$813.18
52-week range
$591.52 - $859.34
Market cap
$83.72B
Balance sheet
Healthy
84.52x Strong cushion
Net cash $5.29B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.3% last year.
- Reward Returns 14.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 38.9% to 33.1% over 3 years.
What this company does
Regeneron Pharmaceuticals, Inc.
Regeneron Pharmaceuticals invents and sells medicines for serious diseases, with its main income coming from treatments for eye conditions like wet age-related macular degeneration and allergic/inflammatory issues such as asthma. This matters because these medicines address significant health needs, and Regeneron's success relies on developing more effective treatments and managing the costs associated with creating them, which impacts its profit margins (the percentage of money left after paying for the direct costs of producing its medicines).
How the company got here
Regeneron Pharmaceuticals was founded in 1988 with a focus on using cutting-edge science to create new medicines. A major turning point was the development and success of EYLEA, a drug that revolutionized the treatment of serious eye conditions. This success provided the financial foundation and scientific credibility for the company to expand its research into other complex diseases. Over the years, Regeneron has built a reputation for tackling challenging medical needs through its innovative antibody-based therapies.
What it actually does
Regeneron is a biopharmaceutical company that invents and develops medicines to treat a wide range of diseases. Think of them as highly specialized scientists and manufacturers creating unique treatments for serious illnesses. They focus on conditions affecting the eyes, allergies, inflammation, heart health, metabolism, the nervous system, and cancer. Their work involves complex biological research to create targeted therapies that address the root causes of these diseases, aiming to improve patients' lives.
EYLEA
This is Regeneron's flagship product, primarily used to treat serious eye conditions like age-related macular degeneration and diabetic macular edema. These are conditions that can lead to vision loss, and EYLEA injections help to slow or stop the progression of the disease. It works by targeting a specific protein that contributes to abnormal blood vessel growth in the eye. EYLEA is a significant revenue driver for Regeneron, representing a large portion of its overall sales.
Dupixent
Dupixent is a key medicine for treating allergic and inflammatory conditions, such as atopic dermatitis (a type of eczema) and asthma. It works by targeting specific pathways in the immune system that cause inflammation. This drug has been very successful, expanding to treat multiple conditions and becoming a major growth engine for the company. It represents a substantial and growing part of Regeneron's business, demonstrating their expertise in immunology.
Other Medicines and Pipeline
Regeneron also develops and markets other important medicines, including treatments for certain types of cancer (like Libtayo) and high cholesterol (like Praluent), as well as rheumatoid arthritis (Kevzara). Beyond these approved drugs, the company has a robust pipeline of experimental therapies in development for various other diseases, including neurological disorders, infectious diseases, and rare genetic conditions. This ongoing research and development is crucial for the company's future growth and its ability to address unmet medical needs.
What management is betting on now
Regeneron's management is focused on expanding the use of its existing successful drugs, like Dupixent, to more patients and new indications (diseases). They are also heavily investing in their research and development pipeline, particularly in areas like gene editing and novel antibody technologies, to create the next generation of breakthrough medicines. A key strategy involves forging collaborations with other companies to leverage expertise and accelerate the development of promising drug candidates. This dual approach of maximizing current products while innovating for the future is central to their long-term vision.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.05B
FY2024 Q4
$1.06B
FY2025 Q1
$815.80M
FY2025 Q2
$925.40M
FY2025 Q3
$1.42B
FY2025 Q4
$922.00M
FY2026 Q1
$848.30M
FY2026 Q2
$572.80M
Revenue
$4.29B
Net income
$1.30B
Diluted EPS
12.23
Operating cash flow
$813.00M
Free cash flow
$572.80M
Fetching…
Sources
Revenue
$3.61B
Net income
$727.20M
Diluted EPS
6.75
Operating cash flow
$1.08B
Free cash flow
$848.30M
Fetching…
Sources
Revenue
$3.88B
Net income
$844.60M
Diluted EPS
7.78
Operating cash flow
$1.17B
Free cash flow
$922.00M
Fetching…
Sources
Revenue
$3.75B
Net income
$1.46B
Diluted EPS
13.62
Operating cash flow
$1.62B
Free cash flow
$1.42B
Fetching…
Sources
Revenue
$3.68B
Net income
$1.39B
Diluted EPS
12.81
Operating cash flow
$1.14B
Free cash flow
$925.40M
Fetching…
Sources
Revenue
$3.03B
Net income
$808.70M
Diluted EPS
7.27
Operating cash flow
$1.05B
Free cash flow
$815.80M
Fetching…
Sources
Revenue
$3.79B
Net income
$917.70M
Diluted EPS
8.12
Operating cash flow
$1.26B
Free cash flow
$1.06B
Fetching…
Sources
Revenue
$3.72B
Net income
$1.34B
Diluted EPS
11.54
Operating cash flow
$1.29B
Free cash flow
$1.05B
Fetching…
Sources
Is it cheap or expensive?
Fair value $1,557.43 vs current price $813.18
Wall Street consensus is the average analyst price target: $867.33 (-44.3% lower than our fair-value estimate).
Our most-likely fair value is $1,557.43 a share — about 91.5% above today's price of $813.18, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $5.3B - more cash than debt. Interest coverage 84.5x.
Net debt
$-5.29B
Interest coverage
84.52x
Regeneron Pharmaceuticals, Inc.'s profit covers its interest bill about 84.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
REGN
BASELINE
Regeneron Pharmaceuticals, Inc.
Total debt $2.71B Interest coverage 84.52x This is the baseline the peer rows are being compared against.
Total debt $57.30B Interest coverage 3.30x -96% vs REGN Carries about 25.6x less debt cushion than REGN.
Total debt $1.98B Interest coverage 342.44x +305% vs REGN Carries about 4.1x more debt cushion than REGN.
Total debt $26.25B Interest coverage 11.43x -86% vs REGN Carries about 7.4x less debt cushion than REGN.
Total debt $8.36B Interest coverage 9.23x -89% vs REGN Carries about 9.2x less debt cushion than REGN.
Total debt $1.29B Interest coverage -307.40x -100% vs REGN This peer has almost no interest-payment cushion compared with REGN.
What you should know
The case for and against REGN
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.3% last year.
-
Returns 14.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 38.9% to 33.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.11x
Forward P/E
12.97x
P/B
2.57x
P/S
5.39x
EV/EBITDA
16.03x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
44.5%
Operating margin
33.1%
Net margin
27.9%
ROE
14.0%
ROA
6.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
3.33x
Quick ratio
2.63x
Total debt
$2.71B
Total cash
$7.99B
Growth
How the business has been compounding
Revenue TTM
$15.53B
Revenue 5Y CAGR
-2.8%
EPS TTM
40.44
EPS 5Y CAGR
2.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.68B
Free CF TTM
$4.08B
FCF margin
26.3%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
9.0%
Last ex-div date
2026-08-18