Rafael Holdings (RFL) AI Stock Analysis

• Market Cap: $60.89M
• Dividend Yield: N/A
• Average Volume (3M): 28.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 156.73%
• EPS Growth: -2380.26%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -2.11
• Shares Outstanding: 31,257,837
• 10 Day Avg. Volume: 47,703
• 30 Day Avg. Volume: 28,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 65.63
• Price to Cash Flow (P/CF): -5.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Rafael Holdings shows financial struggles with negative profitability and cash flow issues, impacting its overall financial health. The recent merger with Cyclo Therapeutics provides strategic opportunities and positive sentiment, which offsets some financial weaknesses. Technical indicators suggest moderate market conditions, but valuation concerns persist due to a negative P/E ratio and lack of dividend yield.

Rafael Holdings Business Overview & Revenue Model

Company Description

Rafael Holdings, Inc. (RFL) is a holding company with a focus on pharmaceutical development and real estate. The company, through its subsidiaries, is involved in the development of novel therapies for cancer and other diseases. Rafael Holdings' core operations are divided into two main segments: Pharmaceuticals, which is led by its interest in Rafael Pharmaceuticals, and Real Estate, which involves the ownership and management of commercial real estate properties.

How the Company Makes Money

Rafael Holdings primarily generates revenue through its real estate segment by leasing commercial real estate properties. The real estate assets provide a steady stream of income through rental agreements with tenants. In addition, the company holds significant interests in pharmaceutical ventures, such as Rafael Pharmaceuticals, which are in various stages of development. While the pharmaceutical segment has not yet contributed significant revenue, it holds potential for future earnings through the successful development and commercialization of its drug candidates. Strategic partnerships and investments in these pharmaceutical ventures are also critical factors that could contribute to future revenue growth.

Rafael Holdings Financial Statement Overview

Summary

Rafael Holdings is currently facing financial difficulties with significant revenue declines, negative margins, and persistent losses. Despite a strong equity ratio and low leverage, the company's profitability and cash flow generation remain problematic.

Income Statement

Rafael Holdings has experienced a significant decline in revenue from prior years, leading to negative margins. TTM data shows a gross profit margin of 67.15%, but the net profit margin is heavily negative at -5707.75% due to substantial EBIT and net losses. The revenue growth rate shows volatility with a slight increase recently. However, the overall profitability remains a concern with negative EBIT and EBITDA margins, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet reflects a relatively low debt-to-equity ratio of 0.01, suggesting limited leverage, which is a positive indicator of financial stability. However, the return on equity is negative, driven by consistent net losses. The equity ratio is strong at 83.69%, indicating a solid capital structure. Despite these positives, the company's ability to generate returns remains weak, posing a risk to long-term sustainability.

Cash Flow

Rafael Holdings has faced challenges in generating positive cash flows, with a negative free cash flow. The operating cash flow to net income ratio is not favorable, reflecting cash flow challenges. The free cash flow to net income ratio is also negative. Although there has been some reduction in cash outflows recently, the overall cash flow position indicates potential liquidity issues.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
697.00K	637.00K	279.00K	410.00K	3.97M	4.91M
	Gross Profit
468.00K	483.00K	201.00K	338.00K	3.90M	4.91M
	EBIT
-103.99M	-102.63M	-15.04M	19.17M	-29.81M	-8.46M
	EBITDA
-81.47M	-67.28M	-8.67M	-139.89M	-23.34M	-5.02M
	Net Income Common Stockholders
-39.78M	-69.94M	-1.88M	-124.66M	-25.15M	-6.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.30M	65.94M	79.51M	63.23M	7.85M	6.21M
	Total Assets
87.83M	96.83M	98.83M	118.32M	154.06M	136.35M
	Total Debt
688.00K	2.39M	0.00	15.00M	14.53M	0.00
	Net Debt
-7.47M	-288.00K	-21.50M	-11.54M	6.67M	-6.21M
	Total Liabilities
10.45M	10.57M	2.20M	21.11M	17.35M	5.82M
	Stockholders Equity
73.52M	82.19M	100.29M	100.52M	122.29M	116.80M
Cash Flow		Free Cash Flow
-8.89M	-7.95M	40.79M	-26.08M	-15.81M	-5.20M
	Operating Cash Flow
-8.71M	-7.80M	-10.89M	-26.08M	-15.60M	-4.67M
	Investing Cash Flow
4.54M	-10.82M	21.21M	-63.80M	-8.17M	-1.03M
	Financing Cash Flow
-1.03M	-179.00K	-15.22M	103.86M	30.30M	-96.00K

Rafael Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFL, the sentiment is Negative. The current price of 1.9 is above the 20-day moving average (MA) of 1.89, below the 50-day MA of 1.98, and above the 200-day MA of 1.77, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RFL.

Rafael Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$4.71B	17.72	-2.95%	11.43%	6.02%	-21.34%
RFL	56 Neutral	$60.89M	―	-57.90%	―	156.73%	-2380.26%
OPK	54 Neutral	$1.14B	―	-3.87%	―	-17.42%	70.55%
CYCC	36 Underperform	$61.99M	―	-807.39%	―	-80.98%	62.27%

Rafael Holdings Corporate Events

Rafael Holdings Completes Merger with Cyclo Therapeutics

On March 25, 2025, Rafael Holdings completed a merger with Cyclo Therapeutics, marking a significant step in its strategy to develop clinical stage assets. The merger, approved by shareholders, resulted in Rafael issuing Class B common stock to Cyclo shareholders, representing approximately 22% of the combined company. This merger strengthens Rafael’s focus on Trappsol® Cyclo™, a lead clinical asset for treating Niemann-Pick Disease Type C1, with expectations for interim analysis results in mid-2025. Additionally, Markus W. Sieger, former Chairman of Cyclo, joined Rafael’s board, enhancing its leadership with his extensive experience in healthcare and other industries.