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NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 47.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- REGN's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.31, which clearly demonstrates the ability to cover short-term cash needs.
- 36.59% is the gross profit margin for REGENERON PHARMACEUTICALS which we consider to be strong. Regardless of REGN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.85% trails the industry average.
- REGENERON PHARMACEUTICALS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, REGENERON PHARMACEUTICALS reported lower earnings of $3.80 versus $6.61 in the prior year. This year, the market expects an improvement in earnings ($4.38 versus $3.80).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 79.4% when compared to the same quarter one year ago, falling from $470.41 million to $96.81 million.
Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions in the United States and internationally. Regeneron has a market cap of $32.1 billion and is part of the health care sector and drugs industry. Shares are up 21.7% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.