TransCode Therapeutics (RNAZ) AI Stock Analysis

• Market Cap: $779.80K
• Dividend Yield: N/A
• Average Volume (3M): 9.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.38
• Revenue Growth: N/A
• EPS Growth: 98.97%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -265.83
• Shares Outstanding: 696,249
• 10 Day Avg. Volume: 26,016,358
• 30 Day Avg. Volume: 9,047,183
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.10
• 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: $20.00
• Price Target Upside: 2798.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

TransCode Therapeutics' stock is hindered by significant financial challenges, including limited revenue and negative cash flows, impacting its financial performance score. While recent corporate events provide some liquidity relief, the company's valuation remains unattractive due to its negative P/E ratio and lack of dividend yield. Technical indicators show short-term momentum but suggest caution due to longer-term weaknesses.

Positive Factors

Clinical Trials

The safety review committee has approved opening of Cohort 4 in the Phase 1 trial evaluating TTX-MC138 in advanced/metastatic solid tumors, based on favorable safety observed in previous cohorts.

Financial Performance

An NIH grant of $2M was awarded to the company to assist in funding the trial.

Strategic Partnerships

The company is engaged in potential pipeline partnerships, indicating strategic growth opportunities following the presentation of initial data.

Negative Factors

Investor Sentiment

Investors may be disappointed with not seeing initial responses.

Market Risks

There is a de-listing risk if shares go under $1.

TransCode Therapeutics Business Overview & Revenue Model

Company Description

TransCode Therapeutics, Inc., a biopharmaceutical company, engages in the development and commercialization of drugs and diagnostics for treating and identifying metastatic disease. Its lead therapeutic candidate, TTX-MC138, is a preclinical stage product for the treatment of metastatic cancer. The company's products in preclinical programs include TTX-siPDL1, an siRNA-based modulator of programmed death-ligand 1; TTX-siLIN28B, an siRNA-based inhibitor of RNA-binding protein LIN28B. Its cancer agnostic programs comprise TTX-RIGA, an RNA–based agonist of the RIG-I-driven immune response in the tumor microenvironment; TTX-CRISPR, a CRISPR/Cas9–based therapy platform for the repair or elimination of cancer-causing genes inside tumor cells; and TTX-mRNA, an mRNA-based platform for the development of cancer vaccines meant to activate cytotoxic immune responses against tumor cells. The company was incorporated in 2016 and is based in Boston, Massachusetts.

How the Company Makes Money

TransCode Therapeutics generates revenue primarily through the development and commercialization of its RNA-targeted therapies. The company's revenue streams may include licensing agreements, partnerships with larger pharmaceutical companies, and potential sales of FDA-approved therapeutics. Additionally, TransCode might engage in collaborative research and development projects, which could result in milestone payments and royalties. The company may also receive funding through grants and research support from government and non-governmental organizations aimed at advancing its therapeutic programs.

TransCode Therapeutics Financial Statement Overview

Summary

TransCode Therapeutics faces significant financial challenges, characterized by limited revenue generation and persistent losses. The balance sheet shows minimal leverage, but declining equity ratios suggest weakening financial stability. Cash flow statements highlight liquidity concerns, with negative cash flows influencing the company's ability to sustain operations without additional financing.

Income Statement

TransCode Therapeutics has shown minimal revenue generation in the TTM (Trailing-Twelve-Months) period with negative profit margins. The gross profit margin is 43.6%, but the company is struggling to cover its operational costs, as indicated by significant negative EBIT and net profit margins. Revenue growth is not applicable due to negligible prior revenue.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.09, which suggests limited reliance on debt financing. However, the equity ratio has fallen to 42% in the TTM, indicating a decreasing proportion of equity financing. The company's negative net income results in a negative ROE, reflecting challenges in generating returns for shareholders.

Cash Flow

TransCode Therapeutics exhibits negative free cash flow and operating cash flow. The cash flow metrics indicate that the company is not generating sufficient cash from operations to cover investment and financing activities, posing a risk to liquidity and ongoing operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
753.15K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
328.49K	-516.75K	-98.61K	-42.47K	0.00	0.00
	EBIT
-14.67M	-19.42M	-18.67M	-6.15M	-726.60K	-456.87K
	EBITDA
-14.29M	-17.97M	-17.47M	-6.11M	0.00	0.00
	Net Income Common Stockholders
-14.93M	-18.55M	-35.13M	-6.94M	-2.74M	-764.14K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
204.47K	2.77M	4.97M	20.83M	828.02K	204.47K
	Total Assets
204.47K	5.17M	7.59M	22.94M	1.06M	204.47K
	Total Debt
927.81K	450.57K	0.00	0.00	2.09M	927.81K
	Net Debt
723.34K	-2.32M	-4.97M	-20.83M	1.26M	723.34K
	Total Liabilities
1.31M	3.53M	4.35M	2.53M	4.46M	1.31M
	Stockholders Equity
-1.11M	1.64M	3.24M	20.40M	-3.41M	-1.11M
Cash Flow		Free Cash Flow
-15.84M	-18.11M	-15.86M	-5.52M	-492.97K	-508.51K
	Operating Cash Flow
-15.85M	-18.07M	-15.76M	-5.27M	-492.97K	-508.51K
	Investing Cash Flow
-35.59M	-35.61K	-100.92K	-251.82K	0.00	0.00
	Financing Cash Flow
10.30M	15.91M	5.99K	25.52M	1.12M	500.00K

TransCode Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNAZ, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 5.08, and below the 200-day MA of 13.35, indicating a bearish trend. The MACD of -1.47 indicates Negative momentum. The RSI at 28.84 is Positive, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNAZ.

TransCode Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRPT	67 Neutral	$7.41B	32.02	19.71%	―	52.97%	―
ALNY	59 Neutral	$36.86B	―	-414.62%	―	22.97%	38.54%
IONS	49 Neutral	$5.23B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.94B	0.66	-52.58%	2.47%	22.65%	0.94%
MRNA	48 Neutral	$12.60B	―	-28.77%	―	-52.75%	25.00%
ARWR	47 Neutral	$2.03B	―	-600.68%	―	-98.62%	-86.21%
RNAZ	42 Neutral	$779.80K	―	-490.03%	―	―	98.97%

TransCode Therapeutics Corporate Events

TransCode Therapeutics Raises $8M in Private Placement

TransCode Therapeutics, Inc. recently executed a private placement agreement with institutional investors, raising approximately $8 million to bolster working capital and corporate initiatives. The deal includes issuing shares, Series C, and Series D warrants, subject to stockholder approval, and aims to bring the company into compliance with Nasdaq’s equity requirements. This strategic move reflects TransCode’s commitment to advancing its RNA therapeutic platform in oncology, while navigating regulatory frameworks to ensure continued Nasdaq listing.

TransCode Therapeutics Announces Reverse Stock Split

TransCode Therapeutics has announced a 1-for-33 reverse stock split aimed at boosting its stock price to meet Nasdaq’s minimum bid requirements. This split, effective December 4, 2024, will consolidate every 33 shares into one, streamlining the number of shares from over 17 million to approximately 523,202. The move, expected to affect all shareholders equally, comes as part of TransCode’s strategy to maintain its Nasdaq listing, with no fractional shares being issued as shares will be rounded up.