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Analyzing Regenxbio’s Valuation Metrics

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Regenxbio (RGNX) generated revenues, chiefly from licensing, of $40.03 million in the second quarter compared to $6.56 million in Q2 2017.

For fiscal 2018, Regenxbio is expected to generate revenues of $194.55 million compared to $10.39 million in fiscal 2017.

The increase in revenues helped Regenxbio generate a net income of $10.59 million in the second quarter compared to a net loss of $14.47 million in the second quarter of 2017.

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Analyst recommendations

In September, there are six analysts covering Regenxbio. Four of them have given Regenxbio stock a “buy” rating, and two have given it a “hold.” The mean rating for Regenxbio stock is 2.33 with a target price of $87.58, implying an upside potential of 17.9% over its closing price of $74.30 on September 11.

Peer ratings

In comparison, peers Amgen (AMGN), Bluebird Bio (BLUE), and Regeneron Pharmaceuticals (REGN) have mean ratings of 2.3, 2.14, and 2.56, respectively, and target prices of $204.26, $211, and $406.05, respectively.

Valuation metrics

From $26.55 on January 8, Regenxbio stock steadily rose to $82.15 on July 10, which was also its highest point in 2018. Subsequently, the stock corrected to its current $74 level in September.

The enterprise value of Regenxbio is $2.1 billion, and its enterprise-value-to-revenue ratio is 11.96x. Its price-to-sales ratio is 14.97, and its price-to-book ratio is 7.56x.

Its current ratio, a metric of how effectively a company can meet its short-term obligations, stands at 17.40. In comparison, the ratios for peers Amgen (AMGN), Bluebird Bio (BLUE), and Regeneron Pharmaceuticals (REGN) are 3.40x, 9.50x, and 3.60x, respectively, indicating that Regenxbio is in a better position to satisfy its short-term obligations than its peers.

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