Rafael Holdings (RFL) AI Stock Analysis

• Market Cap: $68.34M
• Dividend Yield: N/A
• Average Volume (3M): 81.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 47.63%
• EPS Growth: 48.30%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.13
• Shares Outstanding: 50,975,640
• 10 Day Avg. Volume: 101,467
• 30 Day Avg. Volume: 81,339
• PEG Ratio: 0.06
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 54.22
• P/FCF Ratio: -2.63
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: 9.00
• Enterprise Value/Gross Profit: 10.65
• Enterprise Value/Ebitda: -0.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.50 ▲(22.95% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily held back by weak financial performance driven by large ongoing losses and cash burn, partially offset by low leverage. Technical indicators are mixed/neutral, and valuation is not supportive given negative earnings and no dividend data.

Positive Factors

Low Leverage / Strong Balance Sheet Flexibility

Extremely low debt reduces financial risk and preserves strategic optionality. Over a multi-month horizon this balance-sheet conservatism supports the company’s ability to fund working capital, weather continued losses, and pursue opportunistic investments or asset dispositions without near-term refinancing pressure.

High Gross Margin and Revenue Improvement

Strong gross margins and recent revenue growth show the underlying assets can generate high incremental profit on additional revenue. If management stabilizes operating spend, these margin characteristics make it easier to translate modest top-line gains into meaningful improvement in operating leverage and sustainability.

Diversified Holding-Company Income Streams

A mix of rental cash flow, investment returns, and milestone-driven upside from pharmaceutical holdings provides multiple avenues for value realization. This diversification reduces reliance on any single cash source and offers asymmetric upside if investees progress or real estate cash flows remain stable.

Negative Factors

Persistent Cash Burn

Sustained negative operating and free cash flow indicate the company is consuming capital rather than generating it. Over months this dynamic forces dependence on external financing, asset sales, or parent support, constraining reinvestment and increasing execution risk for strategic initiatives or investee support.

Large, Persistent Net Losses

Material and recurring net losses signal a structural disconnect between the cost base and current revenue scale. Absent meaningful revenue expansion or cost restructuring, these losses will continue to erode capital, hamper operating flexibility, and make it harder to achieve sustained profitability over the medium term.

Eroding Equity and Very Negative ROE

Declining equity and deep negative returns on equity reflect cumulative losses that shrink the capital base. Over 2–6 months this raises the probability of dilutive financing or asset disposals to replenish capital, and it limits the company’s ability to absorb future shocks or pursue growth without altering capital structure.

Rafael Holdings Business Overview & Revenue Model

Company Description

Rafael Holdings, Inc. (RFL) is a biopharmaceutical company focused on advancing innovative therapies to treat cancer and other life-threatening diseases. The company operates primarily in the healthcare sector, with a core emphasis on developing and commercializing targeted drug therapies. Rafael Holdings also engages in real estate investments, which provide additional financial stability and diversification to its business model.

How the Company Makes Money

Rafael Holdings primarily makes money through (1) income and value changes from its investment and holding-company activities and (2) cash flows from real estate ownership. Revenue and earnings can come from rental income and other property-related receipts from its real estate assets, as well as from returns on investments such as equity method income, realized/unrealized gains or losses on securities, and dividends/interest income when applicable. For its pharmaceutical-related holdings, the company’s economic upside is generally tied to the progress and outcomes of the underlying drug development programs (e.g., milestone-driven value creation, financings, or strategic transactions at investee companies), but specific recurring revenue mechanisms (such as product sales) are not available here and are therefore null: null. Significant partnerships and counterparties, if any, that directly drive earnings beyond these general mechanisms are not available here and are therefore null: null.

Rafael Holdings Financial Statement Overview

Summary

Revenue improved and gross margin is strong, and leverage is very low, but results are dominated by large, persistent net losses and ongoing cash burn (negative operating cash flow and free cash flow), indicating significant operational weakness despite balance-sheet flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved to $1.16M (+13.0%), and gross margin is strong (~84.5%), but profitability remains very weak with a large net loss (-$33.1M) and deeply negative net margin. Losses have been persistent across annual periods, with unusually high volatility in operating results (e.g., very large EBIT losses in 2024), suggesting the cost structure is not aligned with the current revenue base.

Balance Sheet

The balance sheet is conservatively levered, with very low debt relative to equity in TTM (~0.8%), which reduces financial risk and provides flexibility. However, equity has trended down versus prior years and returns on equity are materially negative (TTM about -39%), reflecting ongoing losses that continue to erode the capital base over time.

Cash Flow

Cash generation is a key pressure point: TTM operating cash flow is negative (-$13.6M) and free cash flow is also negative (-$13.6M), worsening versus the prior annual period (free cash flow growth about -40%). While free cash flow roughly tracks the net loss in TTM (i.e., losses are translating into cash burn rather than being purely non-cash), the company has not demonstrated sustained positive operating cash flow, and prior-period free cash flow was volatile (including a one-time positive in 2023).

Breakdown	TTM	Jul 2025	Oct 2024	Jul 2023	Oct 2022	Jul 2021
Income Statement
Total Revenue	1.16M	917.00K	637.00K	279.00K	410.00K	802.00K
Gross Profit	983.00K	495.00K	483.00K	279.00K	410.00K	802.00K
EBITDA	-34.39M	-32.25M	-66.79M	-8.67M	-139.89M	-23.34M
Net Income	-33.11M	-30.52M	-34.41M	-1.88M	-124.66M	-24.54M
Balance Sheet
Total Assets	99.31M	114.11M	96.83M	98.83M	118.32M	154.06M
Cash, Cash Equivalents and Short-Term Investments	37.78M	52.77M	65.94M	79.51M	63.23M	7.85M
Total Debt	660.00K	692.00K	2.39M	0.00	15.00M	14.53M
Total Liabilities	16.06M	15.74M	10.57M	2.20M	21.11M	17.35M
Stockholders Equity	79.17M	94.39M	82.19M	100.29M	100.52M	122.29M
Cash Flow
Free Cash Flow	-13.56M	-18.93M	-7.98M	40.79M	-26.08M	-15.81M
Operating Cash Flow	-13.57M	-18.92M	-7.80M	-10.89M	-26.08M	-15.60M
Investing Cash Flow	-7.04M	44.03M	-10.82M	21.21M	-63.80M	-7.26M
Financing Cash Flow	24.91M	24.83M	-179.00K	-15.22M	103.86M	29.39M

Rafael Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFL, the sentiment is Neutral. The current price of 1.22 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.27, and below the 200-day MA of 1.47, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RFL.

Rafael Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
OPAD	52 Neutral	$37.77M	-0.97	-135.60%	―	-36.25%	11.92%
FTHM	51 Neutral	$25.26M	-3.05	-46.07%	―	32.78%	36.50%
STHO	49 Neutral	$99.13M	-1.37	-22.96%	―	-3.22%	-280.23%
RFL	47 Neutral	$68.34M	-2.32	-38.03%	―	47.63%	48.30%