Repligen Corp (RGEN, Financial) saw a daily gain of 22.07% and an Earnings Per Share (EPS) (EPS) of 2.42, despite a 3-month loss of -19.42%. This article aims to answer the question: Is Repligen fairly valued? We will delve into a valuation analysis to provide a comprehensive understanding of Repligen's intrinsic value.
Company Overview
Repligen Corp is a global life sciences company that develops and commercializes innovative bioprocessing technologies. These technologies increase efficiencies in the process of manufacturing biological drugs. Repligen markets its products globally and the majority of its revenue is generated in North America.
With a stock price of $139.37 per share, Repligen has a market cap of $7.80 billion. When compared to the GF Value of $146.67, the stock appears to be fairly valued. This is a crucial starting point for understanding Repligen's value and sets the stage for a deeper exploration.
Understanding the GF Value
The GF Value is an estimation of a stock's intrinsic value, calculated based on historical trading multiples, past performance, and future business performance estimates. The GF Value Line on our summary page provides an overview of the fair value at which the stock should ideally be traded.
Repligen (RGEN, Financial) appears to be fairly valued based on the GuruFocus Value calculation. This suggests that the long-term return of its stock is likely to be close to the rate of its business growth.
Financial Strength
Companies with poor financial strength pose a high risk of permanent capital loss. To avoid this, it's crucial to review a company's financial strength before deciding to purchase shares. Both the cash-to-debt ratio and interest coverage of a company are a great way to understand its financial strength. Repligen has a cash-to-debt ratio of 1.43, ranking worse than 59.21% of 831 companies in the Medical Devices & Instruments industry. However, the overall financial strength of Repligen is 8 out of 10, indicating strong financial health.
Profitability and Growth
Companies that have been consistently profitable over the long term offer less risk for investors. Higher profit margins usually dictate a better investment compared to a company with lower profit margins. Repligen has been profitable 10 times over the past 10 years. Over the past twelve months, the company had revenue of $729.30 million and an EPS of $2.42. Its operating margin is 18.61%, ranking better than 82.27% of 829 companies in the Medical Devices & Instruments industry. Overall, the profitability of Repligen is ranked 9 out of 10, indicating strong profitability.
Growth is probably the most important factor in the valuation of a company. A faster growing company creates more value for shareholders, especially if the growth is profitable. The 3-year average annual revenue growth of Repligen is 36.4%, ranking better than 89.12% of 726 companies in the Medical Devices & Instruments industry. The 3-year average EBITDA growth rate is 60.4%, ranking better than 92.57% of 727 companies in the same industry.
ROIC vs WACC
Another way to evaluate a company's profitability is to compare its return on invested capital (ROIC) to its weighted cost of capital (WACC). ROIC measures how well a company generates cash flow relative to the capital it has invested in its business. WACC is the rate that a company is expected to pay on average to all its security holders to finance its assets. If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders. Over the past 12 months, Repligen's ROIC was 6.18, while its WACC came in at 10.1.
Conclusion
In summary, the stock of Repligen (RGEN, Financial) appears to be fairly valued. The company's financial condition is strong and its profitability is strong. Its growth ranks better than 92.57% of 727 companies in the Medical Devices & Instruments industry. To learn more about Repligen stock, you can check out its 30-Year Financials here.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
