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 Margin40.5%
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 Margin38.1%
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 Debt1.4 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$12.6B
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$14.6B
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
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book2.74x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$1.4B
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 Income18.3%
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$2.4B
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.
About Regeneron Pharmaceuticals, Inc.
Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines to treat various diseases worldwide. The company develops product candidates to treat eye, allergic and inflammatory, cardiovascular, metabolic, neurological, infectious, and rare diseases; and cancer, hematologic conditions. It also offers EYLEA injections for wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; diabetic retinopathy; neovascular glaucoma; retinopathy of prematurity; Dupixent injection to treat atopic dermatitis and asthma; Libtayo injection for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent injection to treat heterozygous familial hypercholesterolemia (HoFH); and Kevzara solution for rheumatoid arthritis. It has license and collaboration agreement with Bayer for the development and commercialization of EYLEA 8 mg and EYLEA; Alnylam Pharmaceuticals, Inc. to discover, develop, and commercialize RNAi therapeutics for diseases by addressing therapeutic disease targets expressed in eye and central nervous system; Intellia Therapeutics, Inc. to advance CRISPR/Cas9 gene-editing technology for in vivo therapeutic development for therapies focused on neurological and muscular diseases; Hansoh Pharmaceuticals Group Company Limited to acquire development and commercial rights for HS-20094, a dual GLP-1/GIP receptor; and Tessera Therapeutics, Inc. develops and commercializes TSRA-196, an investigational gene editing therapy for Alpha-1 antitrypsin deficiency. The company has a strategic collaboration with Telix Pharmaceuticals Limited to develop and commercialize radiopharmaceutical therapies. It also has a strategic collaboration with CytomX Therapeutics, Inc. to create conditionally-activated bispecific cancer therapies. It has a strategic alliance with Sanofi to develop long-acting immunology antibodies. The company was incorporated in 1988 and is based in Tarrytown, New York.
Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines to treat various diseases worldwide. The company develops product candidates to treat eye, allergic and inflammatory, cardiovascular, metabolic, neurological, infectious, and rare diseases; and cancer, hematologic conditions. It also offers EYLEA injections for wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; diabetic retinopathy; neovascular glaucoma; retinopathy of prematurity; Dupixent injection to treat atopic dermatitis and asthma; Libtayo injection for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent injection to treat heterozygous familial hypercholesterolemia (HoFH); and Kevzara solution for rheumatoid arthritis. It has license and collaboration agreement with Bayer for the development and commercialization of EYLEA 8 mg and EYLEA; Alnylam Pharmaceuticals, Inc. to discover, develop, and commercialize RNAi therapeutics for diseases by addressing therapeutic disease targets expressed in eye and central nervous system; Intellia Therapeutics, Inc. to advance CRISPR/Cas9 gene-editing technology for in vivo therapeutic development for therapies focused on neurological and muscular diseases; Hansoh Pharmaceuticals Group Company Limited to acquire development and commercial rights for HS-20094, a dual GLP-1/GIP receptor; and Tessera Therapeutics, Inc. develops and commercializes TSRA-196, an investigational gene editing therapy for Alpha-1 antitrypsin deficiency. The company has a strategic collaboration with Telix Pharmaceuticals Limited to develop and commercialize radiopharmaceutical therapies. It also has a strategic collaboration with CytomX Therapeutics, Inc. to create conditionally-activated bispecific cancer therapies. It has a strategic alliance with Sanofi to develop long-acting immunology antibodies. The company was incorporated in 1988 and is based in Tarrytown, New York.
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.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
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.
Mr. Market is currently offering Regeneron Pharmaceuticals, Inc. at $904.35.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $904.35, the stock trades at a 144% premium to its Graham Number of $369.90. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 9.3x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
88.8%▲
84.9%
Operating Margin %
40.5%▲
23.1%
Net Income %
38.1%▲
21.7%
Diluted EPS
18.45▲
7.86
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$44.4B
$40.6B
Total Debt
$2.7B▲
$2.7B
Working Capital
$14.6B▲
$13.7B
Years to Pay Debt
1.39
3.20
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$1.4B▲
$880M
Owner Earnings
$2.4B
$1.3B
CapEx % of Net Income
18.3%
34.4%
Income Statement
2026
2025
Tax Effect Of Unusual Items
5,697
-7,669
Tax Rate For Calcs
0
0
Normalized EBITDA
2,376,900
1,241,100
Total Unusual Items
38,800
-40,200
Total Unusual Items Excluding Goodwill
38,800
-40,200
Net Income From Continuing Operation Net Minority Interest
1,948,700
844,600
Reconciled Depreciation
121,000
145,000
Reconciled Cost Of Revenue
573,600
584,600
EBITDA
2,415,700
1,200,900
EBIT
2,294,700
1,055,900
Net Interest Income
171,200
181,100
Interest Expense
10,600
12,200
Interest Income
181,800
193,300
Normalized Income
1,915,597
877,131
Net Income From Continuing And Discontinued Operation
1,948,700
844,600
Total Expenses
3,046,100
2,985,700
Total Operating Income As Reported
2,048,200
879,900
Diluted Average Shares
105,600
107,500
Basic Average Shares
101,700
102,900
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
1,948,700
844,600
Net Income Common Stockholders
1,948,700
844,600
Net Income
1,948,700
844,600
Net Income Including Noncontrolling Interests
1,948,700
844,600
Net Income Continuous Operations
1,948,700
844,600
Tax Provision
335,400
199,100
Pretax Income
2,284,100
1,043,700
Other Income Expense
43,200
-36,000
Other Non Operating Income Expenses
4,400
4,200
Special Income Charges
-21,500
-18,700
Other Special Charges
21,500
18,700
Gain On Sale Of Security
60,300
-21,500
Net Non Operating Interest Income Expense
171,200
181,100
Interest Expense Non Operating
10,600
12,200
Interest Income Non Operating
181,800
193,300
Operating Income
2,069,700
898,600
Operating Expense
2,472,500
2,401,100
Other Operating Expenses
0
Research And Development
1,794,700
1,626,100
Selling General And Administration
677,800
775,000
Gross Profit
4,542,200
3,299,700
Cost Of Revenue
573,600
584,600
Total Revenue
5,115,800
3,884,300
Operating Revenue
4,805,800
3,645,700
Balance Sheet
2026
2025
Treasury Shares Number
33,700
Ordinary Shares Number
103,417
105,717
Share Issued
103,417
139,417
Total Debt
2,707,000
2,705,900
Tangible Book Value
32,183,000
29,999,500
Invested Capital
35,485,500
33,242,800
Working Capital
14,593,000
13,653,500
Net Tangible Assets
32,183,000
29,999,500
Capital Lease Obligations
720,000
720,000
Common Stock Equity
33,498,500
31,256,900
Total Capitalization
35,485,500
33,242,800
Total Equity Gross Minority Interest
33,498,500
31,256,900
Stockholders Equity
33,498,500
31,256,900
Gains Losses Not Affecting Retained Earnings
-197,500
77,500
Other Equity Adjustments
-197,500
77,500
Treasury Stock
20,948,600
18,612,800
Retained Earnings
39,471,800
35,797,100
Additional Paid In Capital
15,172,700
13,995,000
Capital Stock
100
100
Common Stock
100
100
Total Liabilities Net Minority Interest
10,906,700
9,301,800
Total Non Current Liabilities Net Minority Interest
4,704,600
4,933,400
Other Non Current Liabilities
2,497,400
2,018,800
Non Current Deferred Liabilities
220,200
208,700
Non Current Deferred Revenue
220,200
208,700
Long Term Debt And Capital Lease Obligation
1,987,000
2,705,900
Long Term Capital Lease Obligation
0
720,000
Long Term Debt
1,987,000
1,985,900
Current Liabilities
6,202,100
4,368,400
Current Deferred Liabilities
749,800
553,000
Current Deferred Revenue
749,800
553,000
Current Debt And Capital Lease Obligation
720,000
Current Capital Lease Obligation
720,000
Payables And Accrued Expenses
4,732,300
3,815,400
Current Accrued Expenses
3,592,000
2,525,100
Payables
1,140,300
1,290,300
Total Tax Payable
351,300
Income Tax Payable
351,300
Accounts Payable
1,140,300
939,000
Total Assets
44,405,200
40,558,700
Total Non Current Assets
23,610,100
22,536,800
Other Non Current Assets
2,474,100
1,821,200
Non Current Deferred Assets
4,535,600
4,077,200
Non Current Deferred Taxes Assets
4,535,600
4,077,200
Investments And Advances
9,557,400
10,260,600
Investmentin Financial Assets
9,557,400
10,260,600
Available For Sale Securities
9,557,400
10,260,600
Goodwill And Other Intangible Assets
1,315,500
1,257,400
Other Intangible Assets
1,257,400
Net PPE
5,727,500
5,120,400
Accumulated Depreciation
-2,614,300
Gross PPE
7,734,700
Leases
174,400
Construction In Progress
1,890,200
Other Properties
1,543,700
Machinery Furniture Equipment
741,700
Buildings And Improvements
3,105,900
Land And Improvements
278,800
Current Assets
20,795,100
18,021,900
Other Current Assets
1,020,800
474,800
Current Deferred Assets
900,500
Inventory
1,994,100
3,200,800
Other Inventories
727,500
Finished Goods
101,100
190,200
Work In Process
1,345,000
1,641,600
Raw Materials
548,000
641,500
Receivables
7,578,600
5,741,100
Accounts Receivable
7,578,600
5,741,100
Cash Cash Equivalents And Short Term Investments
9,301,100
8,605,200
Other Short Term Investments
5,642,000
5,487,100
Cash And Cash Equivalents
3,659,100
3,118,100
Cash Flow
2026
2025
Free Cash Flow
1,426,900
880,000
Repurchase Of Capital Stock
-495,400
-1,190,900
Issuance Of Capital Stock
300,900
503,500
Capital Expenditure
-356,500
-290,700
End Cash Position
3,671,600
3,123,700
Beginning Cash Position
2,466,000
2,513,100
Effect Of Exchange Rate Changes
500
-300
Changes In Cash
1,205,100
610,900
Financing Cash Flow
-290,200
-780,100
Cash Flow From Continuing Financing Activities
-290,200
-780,100
Net Other Financing Charges
0
Cash Dividends Paid
-95,700
-92,700
Common Stock Dividend Paid
-95,700
-92,700
Net Common Stock Issuance
-194,500
-687,400
Common Stock Payments
-495,400
-1,190,900
Common Stock Issuance
300,900
503,500
Investing Cash Flow
-288,100
220,300
Cash Flow From Continuing Investing Activities
-288,100
220,300
Net Investment Purchase And Sale
68,400
511,300
Sale Of Investment
1,597,000
2,555,000
Purchase Of Investment
-1,528,600
-2,043,700
Net Business Purchase And Sale
-300
Purchase Of Business
-300
Net Intangibles Purchase And Sale
-56,300
-42,000
Purchase Of Intangibles
-56,300
-42,000
Capital Expenditure Reported
-300,200
-248,700
Operating Cash Flow
1,783,400
1,170,700
Cash Flow From Continuing Operating Activities
1,783,400
1,170,700
Change In Working Capital
-390,600
5,900
Change In Other Working Capital
64,800
-3,100
Change In Payables And Accrued Expense
784,500
-24,700
Change In Payable
784,500
-24,700
Change In Account Payable
784,500
-24,700
Change In Prepaid Assets
-339,000
82,800
Change In Inventory
112,300
2,100
Change In Receivables
-1,013,200
-51,200
Changes In Account Receivables
-1,013,200
-51,200
Other Non Cash Items
91,100
136,900
Stock Based Compensation
255,800
249,300
Deferred Tax
-182,300
-232,500
Deferred Income Tax
-182,300
-232,500
Depreciation Amortization Depletion
121,000
145,000
Depreciation And Amortization
121,000
145,000
Operating Gains Losses
-60,300
21,500
Gain Loss On Investment Securities
-60,300
21,500
Net Income From Continuing Operations
1,948,700
844,600
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.8B▲ $5.1B+36.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 86.1%▲ 88.8%+2.7pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 55.1%▲ 40.5%-14.7pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 38.9%▲ 38.1%-0.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$5.1B/qtr (≈$20.5B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
3.35x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$1.4B
vs Positive
Operating Cash Flow
$1.8B
Latest quarter · Buffett's cash reality check
ROIC
4.3%
Based on latest annual operating income
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.
Market Cap / Net Assets
2.7x
Net Assets: $33.5B
Asset Context — Biotechnology
R&D costs are expensed immediately under GAAP rather than capitalised as assets, meaning a pharma/biotech company's most valuable assets (drug pipeline, patents) are largely invisible on the balance sheet. Net Assets significantly understates true economic value. Pipeline depth and revenue diversification matter more.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Senior Vice President of Quality Assurance & Operations
Ryan Crowe
Senior Vice President of Investor Relations & Strategic Analysis
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.97%
9,113,506
Vanguard Capital Management LLC
6.52%
6,629,759
Dodge & Cox Inc.
4.79%
4,871,137
State Street Corporation
4.76%
4,834,688
Invesco Ltd.
3.88%
3,940,665
JPMORGAN CHASE & CO
3.71%
3,774,199
Vanguard Portfolio Management LLC
3.12%
3,175,313
Franklin Resources, Inc.
2.73%
2,771,839
Risk Analysis
Beta (Market Risk)
0.10
Low volatility — more stable than the market
Short Interest
2.2% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.08x
Conservative balance sheet — low financial risk
Current Ratio
3.35x
Strong liquidity — Graham approved
52-Week Price Range
Low: $591.52Current: $904.35High: $991.73
Currently at 78% of 52-week range
Regeneron Pharmaceuticals, Inc. (REGN) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $369.90. Margin of safety: 0%. Gross profit margin: 88.8%. Operating margin: 40.5%. Net margin: 38.1%. Market cap: $93.6B. Sector: Healthcare. Industry: Biotechnology. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
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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