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: 73
• 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 faces significant challenges with profitability and cash flow, despite a solid equity position. Revenue and earnings decline, coupled with negative margins, pose risks to financial health. Improvements in operational efficiency and cash flow generation are necessary for better financial stability.

Income Statement

Rafael Holdings shows a declining revenue trend with significant negative EBIT and net income, indicating operational inefficiencies. The company's TTM gross profit margin is decent at 67.53%, but the net profit margin is severely negative at -7149.15%, undermining profitability. Revenue growth is inconsistent and overall negative, signaling weak market position.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 83.54% TTM, indicating low leverage. However, the company's return on equity is negative due to sustained net losses, and the debt-to-equity ratio is low at 0.01, suggesting minimal use of debt financing. While stability exists, profitability is a concern.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, highlighting cash generation issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, showing inadequate cash conversion from operations. The company needs to improve cash management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
706.00K	637.00K	279.00K	410.00K	3.97M	4.91M
	Gross Profit
477.00K	483.00K	201.00K	338.00K	3.90M	4.91M
	EBIT
-107.49M	-102.63M	-15.04M	19.17M	-29.81M	-8.46M
	EBITDA
-83.42M	-67.28M	-8.67M	-139.89M	-23.34M	-5.02M
	Net Income Common Stockholders
-50.47M	-69.94M	-1.88M	-124.66M	-25.15M	-6.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	65.94M	79.51M	63.23M	7.85M	6.21M
	Total Assets
0.00	96.83M	98.83M	118.32M	154.06M	136.35M
	Total Debt
0.00	2.39M	0.00	15.00M	14.53M	0.00
	Net Debt
0.00	-288.00K	-21.50M	-11.54M	6.67M	-6.21M
	Total Liabilities
0.00	10.57M	2.20M	21.11M	17.35M	5.82M
	Stockholders Equity
48.81M	82.19M	100.29M	100.52M	122.29M	116.80M
Cash Flow		Free Cash Flow
-8.67M	-7.95M	40.79M	-26.08M	-15.81M	-5.20M
	Operating Cash Flow
-8.50M	-7.80M	-10.89M	-26.08M	-15.60M	-4.67M
	Investing Cash Flow
49.83M	-10.82M	21.21M	-63.80M	-8.17M	-1.03M
	Financing Cash Flow
-129.00K	-179.00K	-15.22M	103.86M	30.30M	-96.00K

Rafael Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.87
• 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 1.87 is below 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
SELF	66 Neutral	$56.91M	27.01	4.36%	5.74%	2.79%	-28.56%
LOAN	61 Neutral	$66.57M	11.91	12.97%	7.90%	-1.10%	2.37%
Sector *	61 Neutral	$4.70B	17.65	-3.00%	11.43%	5.99%	-19.07%
CLPR	57 Neutral	$62.65M	―	46.22%	9.79%	7.65%	42.14%
RFL	56 Neutral	$60.89M	―	-57.90%	―	156.73%	-2380.26%
SACH	48 Neutral	$52.13M	―	-19.22%	31.53%	-0.32%	-140.32%
LODE	45 Neutral	$64.32M	―	-77.25%	―	136.66%	-532.74%

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.