Rallybio (RLYB) AI Stock Analysis

• Market Cap: $26.30M
• Dividend Yield: N/A
• Average Volume (3M): 283.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 12.71%
• EPS Growth: 79.93%
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.36
• Shares Outstanding: 41,786,472
• 10 Day Avg. Volume: 220,035
• 30 Day Avg. Volume: 283,421
• PEG Ratio: 0.03
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 65.73
• P/FCF Ratio: -0.85
• Enterprise Value/Market Cap: -1.16
• Enterprise Value/Revenue: -45.30
• Enterprise Value/Gross Profit: -47.41
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: $1.00
• Price Target Upside: 42.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 35 Underperform
• Price Target: ―

Rallybio's stock is under significant pressure due to poor financial performance characterized by operational losses and negative cash flows, compounded by bearish technical indicators and challenging valuation metrics. Without revenue growth, the sustainability of operations is at risk, making it a highly speculative investment in its current state.

Positive Factors

Strong Equity Base

A strong equity base with minimal debt provides financial stability, allowing Rallybio to focus on long-term R&D without immediate pressure from creditors.

Revenue Growth Potential

Significant revenue growth potential indicates Rallybio's ability to capitalize on its pipeline as products advance through clinical trials, enhancing future revenue streams.

Partnership-Driven Revenue Model

Rallybio's strategy of leveraging partnerships for revenue provides a scalable model that can enhance cash flow and reduce risk by sharing development costs.

Negative Factors

Negative Cash Flow

Sustained negative cash flow highlights the risk of cash depletion, necessitating continuous external financing, which can dilute existing shareholders.

Operational Losses

Persistent operational losses reflect the high costs of R&D without offsetting revenue, challenging Rallybio's financial sustainability and investor confidence.

Eroding Equity

Eroding equity due to ongoing losses undermines Rallybio's financial health, potentially limiting its ability to invest in future growth opportunities.

Rallybio Business Overview & Revenue Model

Company Description

Rallybio (RLYB) is a biotechnology company focused on identifying and developing transformative therapies for patients with severe and rare disorders. The company operates within the biopharmaceutical sector, leveraging cutting-edge science and innovative research to address unmet medical needs. Rallybio's core products and services include the development of novel therapeutics in areas such as hematology, immunology, and metabolic disorders.

How the Company Makes Money

Rallybio makes money through the development and commercialization of its proprietary drug candidates. Revenue is primarily generated from partnerships and collaborations with larger pharmaceutical companies, which may include milestone payments, royalties, and licensing fees. Additionally, the company may receive funding from grants and research agreements to support its clinical trials and product development efforts. As Rallybio advances its pipeline products through clinical trials and towards regulatory approval, it aims to establish further commercial agreements to drive revenue growth.

Rallybio Financial Statement Overview

Summary

Rallybio's financials indicate significant challenges, with high operational losses and a negative cash flow situation typical for a biotech in the R&D phase. The firm relies heavily on equity financing, and the lack of revenue growth poses sustainability risks.

Income Statement

Rallybio's income statement reveals significant challenges, with high negative EBIT and net income figures, indicating substantial losses. The gross profit margin is theoretically 100% due to low revenue but masks the underlying operational losses. The company has shown no revenue growth, reflecting the R&D stage typical in biotech, yet this poses sustainability concerns.

Balance Sheet

The balance sheet shows a strong equity base relative to liabilities, with a high equity ratio due to minimal debt. However, the substantial and consistent net losses are eroding equity, with return on equity being severely negative, indicating inefficient use of equity capital.

Cash Flow

Rallybio's cash flow statement highlights a concerning trend of negative operating and free cash flows, indicating cash burn typical for a biotech firm in development phases. The positive but declining cash position from financing activities raises sustainability questions without revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	674.00K	636.00K	0.00	0.00	0.00	0.00
Gross Profit	644.00K	636.00K	0.00	0.00	0.00	-62.03K
EBITDA	-15.20M	-60.37M	-78.78M	-67.72M	-45.39M	-24.83M
Net Income	-14.17M	-57.77M	-74.56M	-66.65M	-47.01M	-26.45M
Balance Sheet
Total Assets	67.66M	68.11M	115.62M	180.44M	182.19M	141.86M
Cash, Cash Equivalents and Short-Term Investments	59.32M	65.51M	109.93M	168.99M	175.33M	140.23M
Total Debt	198.00K	154.00K	392.00K	555.00K	0.00	0.00
Total Liabilities	4.63M	6.45M	9.44M	11.12M	6.58M	5.86M
Stockholders Equity	63.03M	61.65M	106.18M	169.32M	175.60M	136.00M
Cash Flow
Free Cash Flow	-35.00M	-49.28M	-60.28M	-57.34M	-45.87M	-22.18M
Operating Cash Flow	-35.00M	-49.28M	-60.27M	-57.28M	-45.53M	-22.04M
Investing Cash Flow	41.77M	33.49M	27.66M	-112.17M	-2.33M	-2.07M
Financing Cash Flow	28.00K	5.20M	143.00K	51.08M	82.97M	144.89M

Rallybio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLYB, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.59, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLYB.

Rallybio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MBRX	44 Neutral	$24.59M	-0.11	-503.80%	―	―	60.64%
APVO	38 Underperform	$19.75M	>-0.01	-256.30%	―	―	99.02%
CTXR	38 Underperform	$23.64M	―	-53.42%	―	―	18.73%
RLYB	35 Underperform	$26.30M	-0.68	-21.17%	―	12.71%	79.93%
PCSA	29 Underperform	$17.42M	-0.15	-270.74%	―	―	72.88%
ALLR	28 Underperform	$17.86M	-0.13	-150.58%	―	―	99.59%