Rafael Holdings (RFL) AI Stock Analysis

• Market Cap: $75.07M
• Dividend Yield: N/A
• Average Volume (3M): 81.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 47.63%
• EPS Growth: 48.30%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.19
• 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: 0.11
• Enterprise Value/Revenue: 8.18
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: -0.26
• 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: 45 Neutral
• Price Target: $1.50 ▲(22.95% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

Rafael Holdings faces significant challenges with profitability and cash flow, despite a strong balance sheet. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Very low leverage / strong capital structure

A debt-to-equity ratio of 0.007 indicates minimal leverage and materially lower financial risk. This durable strength gives management flexibility to fund operations, support portfolio companies, or absorb shocks without relying on expensive external financing, improving medium-term resilience.

High gross profit margin

A gross margin near 80% shows strong direct-margin economics at the business or asset level, implying efficient cost control on core revenue sources. If maintained, this provides a structural buffer to cover SG&A and R&D, supporting path to profitability as operating efficiency improves.

Positive free cash flow growth

Free cash flow growth of ~19.8% TTM signals improving cash generation despite operational weaknesses. Sustained FCF expansion can fund capex, real estate maintenance, or selective investments in portfolio companies without new equity, enhancing financial flexibility over the next several months.

Negative Factors

Negative return on equity

A negative ROE of -38.41% indicates the company is destroying shareholder value and failing to generate returns from its equity base. This structural inefficiency suggests poor asset utilization or unprofitable investments, which undermines long-term capital formation and investor confidence.

Negative operating cash flow

Negative operating cash flow shows core operations are not generating sufficient cash to sustain activities. That structural shortfall forces reliance on asset sales, financing, or investment monetizations, increasing liquidity risk and constraining reinvestment or support for portfolio companies.

Business model dependent on binary pharma outcomes

Rafael’s earnings and upside depend materially on the progress and milestone outcomes of portfolio drug programs rather than recurring product revenues. That creates binary, timing-dependent returns and elevated revenue volatility, making durable forecasting and stable earnings generation more difficult.

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 generates revenue through its biopharmaceutical operations, particularly by developing and potentially commercializing drug candidates that target various forms of cancer. The company may receive milestone payments and royalties from partnerships with larger pharmaceutical companies for the development and commercialization of its therapies. Additionally, Rafael Holdings has a portfolio of real estate assets that contribute to its revenue through leasing and property management activities. The combination of these revenue streams, alongside strategic collaborations and partnerships in the pharmaceutical industry, underpins the company's financial performance.

Rafael Holdings Financial Statement Overview

Summary

Rafael Holdings shows revenue growth but struggles with profitability and cash flow. The company has a strong balance sheet with low leverage, yet negative profitability metrics and cash flow issues indicate a need for improved operational efficiency.

Income Statement

Rafael Holdings shows a mixed performance in its income statement. The company has achieved a revenue growth rate of 12.21% in the TTM period, indicating positive sales momentum. However, profitability remains a significant concern, with a negative net profit margin of -33.28% and negative EBIT and EBITDA margins, reflecting ongoing operational challenges. The gross profit margin is relatively strong at 79.93%, suggesting efficient cost management at the gross level, but this is overshadowed by substantial net losses.

Balance Sheet

The balance sheet of Rafael Holdings presents a stable financial position with a low debt-to-equity ratio of 0.007, indicating minimal leverage and reduced financial risk. However, the return on equity is negative at -38.41%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure, but the negative ROE points to potential issues in asset utilization and profitability.

Cash Flow

Cash flow analysis reveals challenges for Rafael Holdings. The company has a negative operating cash flow, which is concerning for liquidity and operational sustainability. Despite a positive free cash flow growth rate of 19.80% in the TTM period, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is aligned with net income, but overall cash flow management remains a concern.

Breakdown	TTM	Jul 2025	Oct 2024	Jul 2023	Oct 2022	Jul 2021
Income Statement
Total Revenue	1.03M	917.00K	637.00K	279.00K	410.00K	3.97M
Gross Profit	823.00K	495.00K	483.00K	279.00K	410.00K	3.90M
EBITDA	-32.88M	-32.25M	-66.79M	-8.67M	-139.89M	-23.34M
Net Income	-31.33M	-30.52M	-34.41M	-1.88M	-124.66M	-25.15M
Balance Sheet
Total Assets	105.38M	114.11M	96.83M	98.83M	118.32M	154.06M
Cash, Cash Equivalents and Short-Term Investments	45.54M	52.77M	65.94M	79.51M	63.23M	7.85M
Total Debt	664.00K	692.00K	2.39M	0.00	15.00M	14.53M
Total Liabilities	16.20M	15.74M	10.57M	2.20M	21.11M	17.35M
Stockholders Equity	85.18M	94.39M	82.19M	100.29M	100.52M	122.29M
Cash Flow
Free Cash Flow	-22.69M	-18.93M	-7.98M	40.79M	-26.08M	-15.81M
Operating Cash Flow	-22.69M	-18.92M	-7.80M	-10.89M	-26.08M	-15.60M
Investing Cash Flow	35.03M	44.03M	-10.82M	21.21M	-63.80M	-7.26M
Financing Cash Flow	24.85M	24.83M	-179.00K	-15.22M	103.86M	29.39M

Rafael Holdings Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RFL, the sentiment is Positive. The current price of 1.22 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.22, and below the 200-day MA of 1.46, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 75.81 is Negative, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	55 Neutral	$36.97M	-0.51	-108.03%	―	-36.25%	11.92%
FTHM	51 Neutral	$31.93M	-1.22	-43.75%	―	32.78%	36.50%
STHO	49 Neutral	$107.11M	-1.81	-42.01%	―	-3.22%	-280.23%
RFL	45 Neutral	$75.07M	-1.71	-34.57%	―	47.63%	48.30%