RGEN

We rate REPLIGEN CORP (RGEN) as a Reduce with a composite score of 44.7/100 at a current price of $134.30. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in stability (62th percentile) and value (54th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (34th percentile) and momentum (44th percentile) tempers our overall conviction. We assign a Narrow Moat rating (46/100), Medium uncertainty, and Standard capital allocation.

Key items to watch: sustainability of the current growth rate. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

REPLIGEN CORP holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.7/100 places it at rank #2853 in our full 7,333-stock universe. At $7.5B in market capitalization, REPLIGEN CORP is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 23%, though momentum at the 44th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 52% (+9.2pp vs sector) narrow to operating margins of 4% (+2.5pp vs sector) and net margins of 4.8%, yielding a gross-to-net conversion rate of 9%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $134.30, REPLIGEN CORP is trading near fair value based on current fundamentals. Our value factor score of 54/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 218.5x (a 882% premium to the sector median of 22.3x), EV/EBITDA of 77.2x (at a premium), P/B of 3.7x, P/S of 11.0x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.

We assign a Medium uncertainty rating to REPLIGEN CORP. The stock presents a balanced risk profile: elevated market sensitivity (beta of 1.48) and elevated valuation multiple (P/E 218.5x) that leaves limited margin for error. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.48); elevated valuation multiple (P/E 218.5x) that leaves limited margin for error. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 62th percentile and quality factor at the 46th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 52% provide a buffer against cost pressures; conservative leverage (26% D/E) limits balance sheet risk; above-average stability (62th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate REPLIGEN CORP's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 1.7%, and the balance sheet is managed within acceptable parameters (D/E: 26%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; REPLIGEN CORP falls short on at least one dimension.

There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.

In summary, REPLIGEN CORP receives a Reduce rating with a composite score of 44.7/100 (rank #2853 of 7,333). Our quantitative framework assigns a Narrow Moat (46/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.

Our analysis does not support a constructive view on REPLIGEN CORP at this time. The combination of the current quantitative profile, medium uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.