Investment Thesis
Rafael Holdings is a severely cash-flow negative early-stage pharmaceutical company with minimal revenue ($630K) but substantial operating losses (-$23.7M). While the balance sheet is strong with $30.5M in cash and minimal debt, the unsustainable burn rate of $21.6M annually provides only ~1.4 years of runway, requiring dramatic revenue acceleration or cost restructuring to achieve viability.
Strengths
- Strong liquidity position (Current Ratio 3.16x, Quick Ratio 3.14x)
- Substantial cash reserves of $30.5M and debt-free balance sheet with 75.4M stockholders equity
- Early signs of revenue traction with 2956.7% YoY revenue growth from minimal base
Risks
- Severe operating losses of $23.7M on minimal revenue of only $630K indicate unsustainable model
- Negative operating cash flow of -$21.6M with approximately 1.4 years of cash runway at current burn rate
- Missing gross profit data, negative ROE (-27.1%) and ROA (-22.2%), suggesting operational and reporting challenges
Key Metrics to Watch
- Revenue trajectory and path to meaningful commercial scale
- Operating cash flow burn rate and timeline to breakeven or profitability
- Cash balance depletion rate and near-term financing needs
Financial Metrics
Revenue
630.0K
Net Income
-20.5M
EPS (Diluted)
$-0.40
Free Cash Flow
-21.6M
Total Assets
92.0M
Cash
30.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-3,758.4%
Net Margin
-3,247.5%
ROE
-27.1%
ROA
-22.2%
FCF Margin
-3,431.4%
Balance Sheet & Liquidity
Current Ratio
3.16x
Quick Ratio
3.14x
Debt/Equity
0.00x
Debt/Assets
12.2%
Interest Coverage
-147.99x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-06-12T07:37:35.618599 |
Data as of: 2026-04-30 |
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