Rigel (RIGL) AI Stock Analysis

• Market Cap: $518.39M
• Dividend Yield: N/A
• Average Volume (3M): 687.02K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 2.22
• Revenue Growth: 105.62%
• EPS Growth: N/A
• Country: US
• Employees: 162
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 3.28
• Shares Outstanding: 17,937,340
• 10 Day Avg. Volume: 635,041
• 30 Day Avg. Volume: 687,016
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 2.68
• 1Y Price Target: $42.50
• Price Target Upside: 44.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $33.00 ▲(11.86% Upside)

Rigel's strong financial performance and positive earnings call are major strengths, driving the overall score. However, technical analysis indicates bearish momentum, and high leverage remains a concern. The stock's undervaluation presents an opportunity, but investors should be cautious of potential risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Rigel's products, enhancing its market position and financial health.

Global Market Expansion

Expanding global market access strengthens Rigel's competitive position and diversifies revenue streams, supporting long-term growth.

Cash Generation

Strong cash generation enhances Rigel's ability to invest in R&D and manage debt, supporting sustainable growth.

Negative Factors

High Leverage

High leverage can strain Rigel's financial flexibility and increase risk, potentially impacting long-term stability.

Negative Return on Equity

Negative ROE indicates potential inefficiencies in capital use, which could hinder long-term profitability and shareholder value.

Operational Challenges

Volatility in operational margins can signal underlying business challenges, affecting Rigel's ability to maintain profitability.

Rigel Business Overview & Revenue Model

Company Description

Rigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat hematologic disorders, cancer, and rare immune diseases. The company offers Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia. It also develops Fostamatinib that is in phase III clinical trial for the treatment of warm autoimmune hemolytic anemia; phase III clinical trial for the treatment of hospitalized COVID-19 patients; and phase III clinical trial for the treatment of COVID-19. In addition, the company is developing R289, an oral interleukin receptor associated kinase 1/4 inhibitor, which is in phase I clinical trial for autoimmune, inflammatory, and hematology-oncology diseases; and R552, a receptor-interacting serine/threonine-protein kinase 1 inhibitor that has completed phase I clinical trial for autoimmune and inflammatory diseases. It has research and license agreements with AstraZeneca AB for the development and commercialization of R256, an inhaled JAK inhibitor; BerGenBio AS for the development and commercialization of AXL inhibitors in oncology; and Daiichi Sankyo to develop murine double minute 2 inhibitors for solid and hematological malignancies, as well as license and supply agreement with Kissei Pharmaceutical Co., Ltd. to develop and commercialize Fostamatinib. The company also has a license agreement and strategic collaboration with Eli Lilly and Company to co-develop and commercialize R552 for various indications, including autoimmune and inflammatory diseases, as well as other non-central nervous system (non-CNS) disease development candidates. Rigel Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in South San Francisco, California.

How the Company Makes Money

Rigel Pharmaceuticals generates revenue through several key streams, primarily from the commercialization of its approved therapies. The company earns money by selling its marketed drugs, which include treatments for specific hematologic conditions. Additionally, Rigel may receive milestone payments and royalties from partnerships with larger pharmaceutical companies that involve co-development or licensing agreements for its drug candidates. Research and development collaborations also contribute to its revenue, allowing Rigel to leverage its technology and expertise while sharing costs and risks with partners. The success of its clinical trials and the subsequent approval of new therapies are critical factors influencing its earnings potential.

Rigel Financial Statement Overview

Summary

Rigel shows strong revenue growth and profitability improvements, with a high gross profit margin and significant cash flow generation. However, the high debt-to-equity ratio and negative return on equity are concerns.

Income Statement

Rigel's income statement shows strong revenue growth with a 31.93% increase in TTM, indicating robust sales performance. The gross profit margin remains high at 89.64%, reflecting efficient cost management. The net profit margin improved significantly to 18.31%, showcasing enhanced profitability. However, historical volatility in EBIT and EBITDA margins suggests potential operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.29 in TTM, indicating significant leverage, which could pose financial risk. Despite this, the company has improved its equity position over time. The return on equity is negative, suggesting inefficiencies in generating returns from shareholders' equity.

Cash Flow

Rigel's cash flow statement is strong, with an impressive 85.33% growth in free cash flow in TTM, indicating improved cash generation. The free cash flow to net income ratio is healthy at 1.00, showing effective conversion of profits into cash. However, the operating cash flow to net income ratio is moderate, suggesting room for improvement in operational cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	267.92M	179.28M	116.88M	120.24M	149.24M	108.62M
Gross Profit	245.19M	160.63M	109.77M	118.49M	148.15M	107.73M
EBITDA	109.30M	28.51M	-16.98M	-53.87M	-11.29M	-27.68M
Net Income	97.82M	17.48M	-25.09M	-58.57M	-17.91M	-29.74M
Balance Sheet
Total Assets	206.74M	163.98M	117.22M	134.28M	167.33M	110.38M
Cash, Cash Equivalents and Short-Term Investments	108.38M	77.32M	56.93M	58.21M	124.97M	57.33M
Total Debt	61.04M	59.97M	60.58M	41.55M	30.57M	39.09M
Total Liabilities	124.80M	160.69M	145.87M	147.90M	136.95M	76.35M
Stockholders Equity	81.93M	3.29M	-28.64M	-13.62M	30.37M	34.03M
Cash Flow
Free Cash Flow	66.15M	31.43M	-20.74M	-74.21M	5.25M	-53.45M
Operating Cash Flow	65.83M	31.47M	-5.74M	-73.76M	5.88M	-52.19M
Investing Cash Flow	-40.94M	4.13M	-4.30M	72.78M	-80.04M	47.47M
Financing Cash Flow	-7.47M	-11.64M	18.37M	6.55M	62.67M	12.57M

Rigel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIGL, the sentiment is Positive. The current price of 29.5 is below the 20-day moving average (MA) of 32.25, below the 50-day MA of 33.80, and above the 200-day MA of 23.01, indicating a neutral trend. The MACD of -1.88 indicates Positive momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 32.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIGL.

Rigel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	71 Outperform	$518.39M	5.45	376.09%	―	105.62%	―
LXRX	61 Neutral	$512.39M	―	-65.30%	―	1504.83%	56.81%
RGNX	55 Neutral	$540.00M	―	-62.49%	―	74.95%	34.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BCYC	45 Neutral	$570.39M	―	-31.58%	―	-51.13%	7.57%
VSTM	44 Neutral	$529.90M	―	-437.92%	―	-78.63%	1.88%
OPT	39 Underperform	$488.59M	―	―	―	-80.09%	60.14%

Rigel Corporate Events

Rigel Pharmaceuticals Approves Equity Plan Amendment

On May 22, 2025, Rigel Pharmaceuticals, Inc. held its 2025 Annual Meeting of Stockholders, where stockholders approved an amendment to the 2018 Equity Incentive Plan, adding 700,000 shares for issuance. The plan became effective immediately upon approval. Additionally, stockholders elected directors to serve until the 2028 Annual Meeting, approved executive compensation, and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2023.