Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin25.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin31.4%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$11.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$13.7B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$3.8B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income26.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$6.3B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit85.4%
Operating Margin25.8%
Net Margin31.4%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
85.4%▼
86.1%▼
86.2%▼
87.2%•
N/A
Operating Margin %
25.8%▼
28.1%▼
30.9%▼
38.9%•
N/A
Net Income %
31.4%▲
31.1%▲
30.1%▼
35.6%•
N/A
Diluted EPS
41.48▲
38.34▲
34.77▼
38.22•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$40.6B
$37.8B
$33.1B
$29.2B
N/A
Total Debt
$2.7B▲
$2.7B▲
$2.7B▲
$2.7B•
N/A
Working Capital
$13.7B▼
$14.7B▼
$16.1B▲
$12.7B•
N/A
Years to Pay Debt
0.60
0.61
0.68
0.62
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$3.8B▲
$3.5B▼
$3.7B▲
$3.4B•
N/A
Owner Earnings
$6.3B
$5.8B
$5.3B
$6.3B
N/A
CapEx % of Net Income
26.9%
20.0%
23.4%
37.3%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
114,059
1,329
-26,698
-26,183
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
4,996,200
5,300,700
5,145,800
5,504,300
Total Unusual Items
822,000
17,300
-452,500
-244,700
Total Unusual Items Excluding Goodwill
822,000
17,300
-452,500
-244,700
Net Income From Continuing Operation Net Minority Interest
4,504,900
4,412,600
3,953,600
4,338,400
Reconciled Depreciation
543,700
482,900
421,000
341,400
Reconciled Cost Of Revenue
2,100,700
1,970,500
1,815,800
1,560,400
EBITDA
5,818,200
5,318,000
4,693,300
5,259,600
EBIT
5,274,500
4,835,100
4,272,300
4,918,200
Net Interest Income
673,000
656,200
422,900
100,700
Interest Expense
43,800
55,200
73,000
59,400
Interest Income
716,800
711,400
495,900
160,100
Normalized Income
3,796,959
4,396,629
4,379,402
4,556,917
Net Income From Continuing And Discontinued Operation
4,504,900
4,412,600
3,953,600
4,338,400
Total Expenses
10,640,900
10,211,300
9,070,100
7,434,000
Total Operating Income As Reported
3,577,900
3,990,700
4,047,100
4,738,900
Diluted Average Shares
108,600
115,100
113,700
113,500
Basic Average Shares
104,600
107,900
106,700
107,100
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
4,504,900
4,412,600
3,953,600
4,338,400
Net Income Common Stockholders
4,504,900
4,412,600
3,953,600
4,338,400
Net Income
4,504,900
4,412,600
3,953,600
4,338,400
Net Income Including Noncontrolling Interests
4,504,900
4,412,600
3,953,600
4,338,400
Net Income Continuous Operations
4,504,900
4,412,600
3,953,600
4,338,400
Tax Provision
725,800
367,300
245,700
520,400
Pretax Income
5,230,700
4,779,900
4,199,300
4,858,800
Other Income Expense
855,700
133,000
-270,700
19,200
Other Non Operating Income Expenses
33,700
14,700
-4,300
8,800
Special Income Charges
-124,100
-101,000
-186,100
-255,100
Other Special Charges
124,100
101,000
186,100
255,100
Restructuring And Mergern Acquisition
186,100
255,100
48,000
Gain On Sale Of Security
946,100
118,300
-266,400
10,400
Net Non Operating Interest Income Expense
673,000
656,200
422,900
100,700
Interest Expense Non Operating
43,800
55,200
73,000
59,400
Interest Income Non Operating
716,800
711,400
495,900
160,100
Operating Income
3,702,000
3,990,700
4,047,100
4,738,900
Operating Expense
8,540,200
8,240,800
7,254,300
5,873,600
Other Operating Expenses
-10,000
53,400
-2,100
-89,900
Research And Development
5,850,200
5,233,000
4,625,100
3,847,600
Selling General And Administration
2,700,000
2,954,400
2,631,300
2,115,900
Gross Profit
12,242,200
12,231,500
11,301,400
10,612,500
Cost Of Revenue
2,100,700
1,970,500
1,815,800
1,560,400
Total Revenue
14,342,900
14,202,000
13,117,200
12,172,900
Operating Revenue
13,640,300
13,687,000
12,581,100
11,807,800
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
33,700
28,200
25,500
22,600
Ordinary Shares Number
105,717
109,617
109,418
109,600
Share Issued
139,417
137,817
134,918
132,200
Total Debt
2,705,900
2,704,400
2,702,900
2,701,400
Tangible Book Value
29,999,500
28,205,000
24,934,500
21,748,500
Invested Capital
33,242,800
31,338,000
27,956,000
24,645,400
Working Capital
13,653,500
14,716,600
16,055,800
12,742,800
Net Tangible Assets
29,999,500
28,205,000
24,934,500
21,748,500
Capital Lease Obligations
720,000
720,000
720,000
720,000
Common Stock Equity
31,256,900
29,353,600
25,973,100
22,664,000
Total Capitalization
33,242,800
31,338,000
27,956,000
24,645,400
Total Equity Gross Minority Interest
31,256,900
29,353,600
25,973,100
22,664,000
Stockholders Equity
31,256,900
29,353,600
25,973,100
22,664,000
Gains Losses Not Affecting Retained Earnings
77,500
-7,900
-80,900
-238,800
Other Equity Adjustments
77,500
-7,900
-80,900
-238,800
Treasury Stock
18,612,800
15,167,400
12,560,400
10,353,300
Retained Earnings
35,797,100
31,672,900
27,260,300
23,306,700
Additional Paid In Capital
13,995,000
12,855,900
11,354,000
9,949,300
Capital Stock
100
100
100
100
Common Stock
100
100
100
100
Total Liabilities Net Minority Interest
9,301,800
8,405,800
7,107,100
6,550,500
Total Non Current Liabilities Net Minority Interest
4,933,400
4,461,500
3,683,700
3,409,200
Other Non Current Liabilities
2,018,800
1,571,400
854,100
638,000
Non Current Deferred Liabilities
208,700
185,700
126,700
69,800
Non Current Deferred Revenue
208,700
185,700
126,700
69,800
Long Term Debt And Capital Lease Obligation
2,705,900
2,704,400
2,702,900
2,701,400
Long Term Capital Lease Obligation
720,000
720,000
720,000
720,000
Long Term Debt
1,985,900
1,984,400
1,982,900
1,981,400
Current Liabilities
4,368,400
3,944,300
3,423,400
3,141,300
Current Deferred Liabilities
553,000
627,700
458,900
477,900
Current Deferred Revenue
553,000
627,700
458,900
477,900
Current Debt And Capital Lease Obligation
719,700
Current Capital Lease Obligation
0
719,700
Payables And Accrued Expenses
3,815,400
3,316,600
2,964,500
2,663,400
Current Accrued Expenses
2,525,100
2,313,900
2,346,200
2,074,200
Payables
1,290,300
1,002,700
618,300
589,200
Dueto Related Parties Current
10,500
287,400
Total Tax Payable
351,300
213,200
11,700
300
Income Tax Payable
351,300
213,200
11,700
300
Accounts Payable
939,000
789,500
606,600
589,200
Total Assets
40,558,700
37,759,400
33,080,200
29,214,500
Total Non Current Assets
22,536,800
19,098,500
13,601,000
13,330,400
Other Non Current Assets
1,821,200
1,136,000
444,100
336,400
Non Current Deferred Assets
4,077,200
3,314,100
2,575,400
1,723,700
Non Current Deferred Taxes Assets
4,077,200
3,314,100
2,575,400
1,723,700
Investments And Advances
10,260,600
8,900,100
5,396,500
6,591,800
Investmentin Financial Assets
10,260,600
8,900,100
5,396,500
6,591,800
Available For Sale Securities
10,260,600
8,900,100
5,396,500
6,591,800
Goodwill And Other Intangible Assets
1,257,400
1,148,600
1,038,600
915,500
Other Intangible Assets
1,257,400
1,148,600
1,038,600
915,500
Net PPE
5,120,400
4,599,700
4,146,400
3,763,000
Accumulated Depreciation
-2,614,300
-2,286,900
-1,978,800
-1,669,200
Gross PPE
7,734,700
6,886,600
6,125,200
5,432,200
Leases
174,400
154,500
133,900
114,300
Construction In Progress
1,890,200
1,721,600
1,345,000
980,500
Other Properties
1,543,700
1,494,500
1,384,500
1,315,300
Machinery Furniture Equipment
741,700
654,600
555,600
487,600
Buildings And Improvements
3,105,900
2,573,200
2,423,100
2,270,000
Land And Improvements
278,800
288,200
283,100
264,500
Current Assets
18,021,900
18,660,900
19,479,200
15,884,100
Other Current Assets
474,800
349,200
386,600
411,200
Current Deferred Assets
521,800
448,500
Prepaid Assets
411,200
332,400
Inventory
3,200,800
3,087,300
2,580,500
2,401,900
Other Inventories
727,500
725,700
522,100
521,800
Finished Goods
190,200
139,800
147,300
98,600
Work In Process
1,641,600
1,342,300
1,121,800
963,100
Raw Materials
641,500
879,500
789,300
818,400
Receivables
5,741,100
6,211,900
5,667,300
5,328,700
Accounts Receivable
5,741,100
6,211,900
5,667,300
5,328,700
Cash Cash Equivalents And Short Term Investments
8,605,200
9,012,500
10,844,800
7,742,300
Other Short Term Investments
5,487,100
6,524,300
8,114,800
4,636,400
Cash And Cash Equivalents
3,118,100
2,488,200
2,730,000
3,105,900
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
3,765,200
3,538,900
3,667,600
3,398,000
Repurchase Of Capital Stock
-3,970,700
-3,632,400
-2,935,600
-2,528,500
Issuance Of Capital Stock
635,900
1,465,300
1,145,500
1,519,500
Capital Expenditure
-1,213,700
-881,600
-926,400
-1,616,900
Interest Paid Supplemental Data
41,600
52,600
73,100
53,700
Income Tax Paid Supplemental Data
743,000
870,300
1,502,400
1,218,400
End Cash Position
3,123,700
2,489,000
2,737,800
3,119,400
Beginning Cash Position
2,489,000
2,737,800
3,119,400
2,898,100
Effect Of Exchange Rate Changes
300
-700
-400
0
Changes In Cash
634,400
-248,100
-381,200
221,300
Financing Cash Flow
-3,715,400
-2,200,500
-1,790,100
-1,009,000
Cash Flow From Continuing Financing Activities
-3,715,400
-2,200,500
-1,790,100
-1,009,000
Net Other Financing Charges
-10,300
-33,400
Cash Dividends Paid
-370,300
0
0
Common Stock Dividend Paid
-370,300
0
0
Net Common Stock Issuance
-3,334,800
-2,167,100
-1,790,100
-1,009,000
Common Stock Payments
-3,970,700
-3,632,400
-2,935,600
-2,528,500
Common Stock Issuance
635,900
1,465,300
1,145,500
1,519,500
Investing Cash Flow
-629,100
-2,468,100
-3,185,100
-3,784,600
Cash Flow From Continuing Investing Activities
-629,100
-2,468,100
-3,185,100
-3,784,600
Net Other Investing Changes
-230,300
Net Investment Purchase And Sale
587,900
-1,590,100
-2,203,800
-1,937,400
Sale Of Investment
11,546,200
15,027,300
9,442,200
5,550,500
Purchase Of Investment
-10,958,300
-16,617,400
-11,646,000
-7,487,900
Net Business Purchase And Sale
-3,300
-16,500
-54,900
-230,300
Purchase Of Business
-3,300
-16,500
-54,900
-230,300
Net Intangibles Purchase And Sale
-315,300
-125,700
-207,800
-1,026,800
Purchase Of Intangibles
-315,300
-125,700
-207,800
-1,026,800
Net PPE Purchase And Sale
0
20,100
0
0
Sale Of PPE
0
20,100
0
0
Capital Expenditure Reported
-898,400
-755,900
-718,600
-590,100
Operating Cash Flow
4,978,900
4,420,500
4,594,000
5,014,900
Cash Flow From Continuing Operating Activities
4,978,900
4,420,500
4,594,000
5,014,900
Change In Working Capital
532,600
-618,300
-94,100
-243,300
Change In Other Working Capital
-51,700
227,800
37,900
32,400
Change In Payables And Accrued Expense
736,800
735,100
598,600
-138,400
Change In Payable
736,800
735,100
598,600
-138,400
Change In Account Payable
736,800
735,100
598,600
-138,400
Change In Prepaid Assets
-375,300
-407,500
-120,100
-148,600
Change In Inventory
-275,300
-619,700
-271,700
-696,500
Change In Receivables
498,100
-554,000
-338,800
707,800
Changes In Account Receivables
498,100
-554,000
-338,800
707,800
Other Non Cash Items
135,500
36,100
-100
563,000
Stock Based Compensation
993,700
982,800
885,000
725,000
Deferred Tax
-785,400
-757,300
-837,800
-746,400
Deferred Income Tax
-785,400
-757,300
-837,800
-746,400
Depreciation Amortization Depletion
543,700
482,900
421,000
341,400
Depreciation And Amortization
543,700
482,900
421,000
341,400
Amortization Cash Flow
128,900
92,200
37,600
Amortization Of Intangibles
128,900
92,200
37,600
Depreciation
354,100
328,800
303,900
Operating Gains Losses
-946,100
-118,300
266,400
36,800
Gain Loss On Investment Securities
-946,100
-118,300
266,400
36,800
Net Income From Continuing Operations
4,504,900
4,412,600
3,953,600
4,338,400
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $31.3B
Warren's Owner Earnings
$6.3B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$14.3B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
4.13x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $38.22 to $41.48 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+8.5% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $14.3Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 4.13xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $38.22 to $41.48 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what REGN is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
8.1%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
26.9%
20.0%
23.4%
37.3%
N/A
Repurchase of Capital Stock
-$4.0B
-$3.6B
-$2.9B
-$2.5B
N/A
Free Cash Flow
$3.8B▲
$3.5B▼
$3.7B▲
$3.4B•
N/A•
Warren's Owner Earnings
$6.3B
$5.8B
$5.3B
$6.3B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare REGN against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
REGN (REGN) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 85.4%. Operating margin: 25.8%. Net margin: 31.4%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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