Stock Analysis on Net

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Economic Value Added (EVA)

Microsoft Excel

Economic Profit

Regeneron Pharmaceuticals Inc., economic profit calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating profit after taxes (NOPAT)1 3,374,924 2,823,336 3,547,649 7,819,887 3,702,177
Cost of capital2 5.57% 5.59% 5.58% 5.51% 5.47%
Invested capital3 12,653,600 11,998,500 12,287,700 10,786,500 8,423,300
 
Economic profit4 2,670,201 2,152,387 2,862,038 7,225,292 3,241,605

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,374,9245.57% × 12,653,600 = 2,670,201

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Regeneron Pharmaceuticals Inc. economic profit decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Net Operating Profit after Taxes (NOPAT)

Regeneron Pharmaceuticals Inc., NOPAT calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income 4,412,600 3,953,600 4,338,400 8,075,300 3,513,200
Deferred income tax expense (benefit)1 (757,300) (837,800) (746,400) (147,100) 75,600
Increase (decrease) in deferred revenue2 227,800 37,900 32,400 (120,200) 148,100
Increase (decrease) in equity equivalents3 (529,500) (799,900) (714,000) (267,300) 223,700
Interest expense 55,200 73,000 59,400 57,300 56,900
Interest expense, operating lease liability4 12,939 4,718 3,546 3,546 3,546
Adjusted interest expense 68,139 77,718 62,946 60,846 60,446
Tax benefit of interest expense5 (14,309) (16,321) (13,219) (12,778) (12,694)
Adjusted interest expense, after taxes6 53,830 61,397 49,728 48,069 47,753
(Gain) loss on marketable securities (29,000)
Interest income (711,400) (495,900) (160,100) (45,800) (75,400)
Investment income, before taxes (711,400) (495,900) (160,100) (45,800) (104,400)
Tax expense (benefit) of investment income7 149,394 104,139 33,621 9,618 21,924
Investment income, after taxes8 (562,006) (391,761) (126,479) (36,182) (82,476)
Net operating profit after taxes (NOPAT) 3,374,924 2,823,336 3,547,649 7,819,887 3,702,177

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in deferred revenue.

3 Addition of increase (decrease) in equity equivalents to net income.

4 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 234,400 × 5.52% = 12,939

5 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 68,139 × 21.00% = 14,309

6 Addition of after taxes interest expense to net income.

7 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 711,400 × 21.00% = 149,394

8 Elimination of after taxes investment income.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Regeneron Pharmaceuticals Inc. NOPAT decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Cash Operating Taxes

Regeneron Pharmaceuticals Inc., cash operating taxes calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Income tax expense 367,300 245,700 520,400 1,250,500 297,200
Less: Deferred income tax expense (benefit) (757,300) (837,800) (746,400) (147,100) 75,600
Add: Tax savings from interest expense 14,309 16,321 13,219 12,778 12,694
Less: Tax imposed on investment income 149,394 104,139 33,621 9,618 21,924
Cash operating taxes 989,515 995,682 1,246,398 1,400,760 212,370

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Regeneron Pharmaceuticals Inc. cash operating taxes decreased from 2022 to 2023 and from 2023 to 2024.

Invested Capital

Regeneron Pharmaceuticals Inc., invested capital calculation (financing approach)

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Finance lease liabilities, current portion 719,700
Long-term debt 1,984,400 1,982,900 1,981,400 1,980,000 1,978,500
Finance lease liabilities, excluding current portion 720,000 720,000 720,000 717,200
Operating lease liability1 234,400 87,700 68,200 68,200 68,200
Total reported debt & leases 2,938,800 2,790,600 2,769,600 2,767,900 2,763,900
Stockholders’ equity 29,353,600 25,973,100 22,664,000 18,768,800 11,025,300
Net deferred tax (assets) liabilities2 (3,314,100) (2,575,400) (1,723,700) (876,900) (718,700)
Deferred revenue3 813,400 585,600 547,700 515,300 635,500
Equity equivalents4 (2,500,700) (1,989,800) (1,176,000) (361,600) (83,200)
Accumulated other comprehensive (income) loss, net of tax5 7,900 80,900 238,800 26,200 (29,300)
Adjusted stockholders’ equity 26,860,800 24,064,200 21,726,800 18,433,400 10,912,800
Construction in progress6 (1,721,600) (1,345,000) (980,500) (767,700) (724,500)
Marketable securities7 (15,424,400) (13,511,300) (11,228,200) (9,647,100) (4,528,900)
Invested capital 12,653,600 11,998,500 12,287,700 10,786,500 8,423,300

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of deferred revenue.

4 Addition of equity equivalents to stockholders’ equity.

5 Removal of accumulated other comprehensive income.

6 Subtraction of construction in progress.

7 Subtraction of marketable securities.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Regeneron Pharmaceuticals Inc. invested capital decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Cost of Capital

Regeneron Pharmaceuticals Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 78,355,186 78,355,186 ÷ 80,793,586 = 0.97 0.97 × 5.66% = 5.49%
Long-term debt and finance lease liabilities3 2,204,000 2,204,000 ÷ 80,793,586 = 0.03 0.03 × 2.91% × (1 – 21.00%) = 0.06%
Operating lease liability4 234,400 234,400 ÷ 80,793,586 = 0.00 0.00 × 5.52% × (1 – 21.00%) = 0.01%
Total: 80,793,586 1.00 5.57%

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 102,773,356 102,773,356 ÷ 105,109,056 = 0.98 0.98 × 5.66% = 5.54%
Long-term debt and finance lease liabilities3 2,248,000 2,248,000 ÷ 105,109,056 = 0.02 0.02 × 2.92% × (1 – 21.00%) = 0.05%
Operating lease liability4 87,700 87,700 ÷ 105,109,056 = 0.00 0.00 × 5.38% × (1 – 21.00%) = 0.00%
Total: 105,109,056 1.00 5.59%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 85,367,935 85,367,935 ÷ 87,599,135 = 0.97 0.97 × 5.66% = 5.52%
Long-term debt and finance lease liabilities3 2,163,000 2,163,000 ÷ 87,599,135 = 0.02 0.02 × 2.86% × (1 – 21.00%) = 0.06%
Operating lease liability4 68,200 68,200 ÷ 87,599,135 = 0.00 0.00 × 5.20% × (1 – 21.00%) = 0.00%
Total: 87,599,135 1.00 5.58%

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 67,550,508 67,550,508 ÷ 70,225,408 = 0.96 0.96 × 5.66% = 5.45%
Long-term debt and finance lease liabilities3 2,606,700 2,606,700 ÷ 70,225,408 = 0.04 0.04 × 2.02% × (1 – 21.00%) = 0.06%
Operating lease liability4 68,200 68,200 ÷ 70,225,408 = 0.00 0.00 × 5.20% × (1 – 21.00%) = 0.00%
Total: 70,225,408 1.00 5.51%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 53,019,577 53,019,577 ÷ 55,762,977 = 0.95 0.95 × 5.66% = 5.39%
Long-term debt and finance lease liabilities3 2,675,200 2,675,200 ÷ 55,762,977 = 0.05 0.05 × 2.02% × (1 – 21.00%) = 0.08%
Operating lease liability4 68,200 68,200 ÷ 55,762,977 = 0.00 0.00 × 5.20% × (1 – 21.00%) = 0.01%
Total: 55,762,977 1.00 5.47%

Based on: 10-K (reporting date: 2020-12-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt and finance lease liabilities. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Regeneron Pharmaceuticals Inc., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit1 2,670,201 2,152,387 2,862,038 7,225,292 3,241,605
Invested capital2 12,653,600 11,998,500 12,287,700 10,786,500 8,423,300
Performance Ratio
Economic spread ratio3 21.10% 17.94% 23.29% 66.98% 38.48%
Benchmarks
Economic Spread Ratio, Competitors4
AbbVie Inc. -2.77% -4.48% 4.95% 4.38% -3.42%
Amgen Inc. 0.09% 2.89% 7.48% 7.46% 11.78%
Bristol-Myers Squibb Co. 1.79% -0.94% 1.33% -14.22%
Danaher Corp. -7.45% -8.20% -3.24% -2.56% -3.95%
Eli Lilly & Co. 15.19% 2.05% 9.41% 11.14% 17.81%
Gilead Sciences Inc. 5.82% 2.31% 8.86% -4.20%
Johnson & Johnson 1.64% -0.21% 5.06% 10.12% 4.92%
Merck & Co. Inc. -8.77% 11.41% 11.57% 4.41%
Pfizer Inc. -9.25% 18.24% 11.40% -3.28%
Thermo Fisher Scientific Inc. -4.31% -4.82% -3.04% -1.17% -0.21%
Vertex Pharmaceuticals Inc. 11.77% 14.52% 15.73% 29.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,670,201 ÷ 12,653,600 = 21.10%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Regeneron Pharmaceuticals Inc. economic spread ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Economic Profit Margin

Regeneron Pharmaceuticals Inc., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit1 2,670,201 2,152,387 2,862,038 7,225,292 3,241,605
 
Revenues 14,202,000 13,117,200 12,172,900 16,071,700 8,497,100
Add: Increase (decrease) in deferred revenue 227,800 37,900 32,400 (120,200) 148,100
Adjusted revenues 14,429,800 13,155,100 12,205,300 15,951,500 8,645,200
Performance Ratio
Economic profit margin2 18.50% 16.36% 23.45% 45.30% 37.50%
Benchmarks
Economic Profit Margin, Competitors3
AbbVie Inc. -3.40% -5.63% 7.01% 7.47% -7.74%
Amgen Inc. 0.18% 7.52% 11.98% 12.35% 18.85%
Bristol-Myers Squibb Co. 2.68% -1.46% 2.31% -30.15%
Danaher Corp. -22.99% -26.91% -8.05% -6.41% -11.59%
Eli Lilly & Co. 12.08% 1.77% 8.01% 10.28% 17.83%
Gilead Sciences Inc. 9.90% 3.89% 15.67% -8.67%
Johnson & Johnson 1.97% -0.24% 6.06% 10.58% 5.85%
Merck & Co. Inc. -10.21% 14.23% 16.80% 5.25%
Pfizer Inc. -24.49% 20.13% 12.30% -8.14%
Thermo Fisher Scientific Inc. -8.26% -9.62% -5.61% -2.39% -0.40%
Vertex Pharmaceuticals Inc. 15.80% 21.42% 19.49% 38.06%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × 2,670,201 ÷ 14,429,800 = 18.50%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Regeneron Pharmaceuticals Inc. economic profit margin deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.