TransCode Therapeutics (RNAZ) AI Stock Analysis

• Market Cap: $6.35M
• Dividend Yield: N/A
• Average Volume (3M): 281.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.02
• Revenue Growth: N/A
• EPS Growth: 99.64%
• Country: US
• Employees: 7
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -56.61
• Shares Outstanding: 833,620
• 10 Day Avg. Volume: 125,207
• 30 Day Avg. Volume: 281,846
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.60
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.04
• 1Y Price Target: $10.00
• Price Target Upside: 43.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 27 Underperform
• Price Target: ―

TransCode Therapeutics, as an early-stage biotech firm, presents a high-risk investment profile with significant financial challenges. The lack of revenue and increasing losses, coupled with negative equity, highlight financial instability. Technical indicators suggest continued downward pressure on the stock. The absence of a favorable valuation further impacts its attractiveness. Investors should be cautious given the speculative nature and financial health of the company.

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

TransCode ended 2024 with $5.8M in cash and equivalents, which does not include the recent $8.8M equity raise announced on March 25.

Strategic Growth

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

Negative Factors

Clinical Risks

Risks include, but are not limited to: safety signals emerge with any of the company’s clinical or preclinical programs; efficacy from clinical programs is lower than expected or the company’s studies do not achieve statistical significance.

Investor Sentiment

Investors may be disappointed with not seeing initial responses.

Operating Expenses

In 4Q24, the company reported operating expenses of $5.1M, which was significantly higher than 3Q24, likely associated with costs related to dose escalation in the Phase 1 trial of TTX-MC138 for treatment of solid tumors.

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 primarily generates revenue through the development and potential commercialization of its RNA-based therapeutic candidates. The company may enter into collaborative agreements or partnerships with larger pharmaceutical companies to co-develop or license its technologies, which can result in upfront payments, milestone payments, and royalties on sales. Additionally, TransCode might receive funding through grants or research collaborations that support their R&D activities. As a biotechnology firm, the company's earnings are heavily reliant on the successful clinical development and eventual market approval of its drug candidates.

TransCode Therapeutics Financial Statement Overview

Summary

TransCode Therapeutics is in the early stages of development with no revenue generation yet. The financials reflect a typical high-risk, high-reward profile of a biotech startup, with significant losses and reliance on external funding. The company must achieve milestones to attract further funding and transition towards revenue generation to improve financial health.

Income Statement

TransCode Therapeutics has not generated any revenue over the past years, which is typical for early-stage biotech companies. The company consistently reports net losses, with a significant increase in net loss in the latest year. The lack of revenue and increasing expenses pose a risk to financial sustainability without future funding or revenue streams.

Balance Sheet

The company's balance sheet shows negative stockholders' equity, indicating liabilities exceed assets, which is a concern. The debt-to-equity ratio cannot be calculated due to negative equity, and the high liabilities compared to assets reflect financial instability. Cash reserves are present but may not be sufficient to cover ongoing losses.

Cash Flow

Operating cash flow is deeply negative, reflecting the company's pre-revenue status and heavy R&D spending. The company has been financing its operations primarily through external financing, as indicated by positive financing cash flows. Free cash flow remains negative, highlighting the need for more sustainable cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-516.75K	-98.61K	-42.47K	0.00
	EBIT
-15.66M	-19.42M	-18.67M	-6.15M	-726.60K
	EBITDA
-14.03M	-17.97M	-17.47M	-6.11M	0.00
	Net Income Common Stockholders
-16.79M	-18.55M	-35.13M	-6.94M	-2.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.81M	2.77M	4.97M	20.83M	828.02K
	Total Assets
7.29M	5.17M	7.59M	22.94M	1.06M
	Total Debt
38.29K	450.57K	0.00	0.00	2.09M
	Net Debt
-5.77M	-2.32M	-4.97M	-20.83M	1.26M
	Total Liabilities
9.31M	3.53M	4.35M	2.53M	4.46M
	Stockholders Equity
-2.02M	1.64M	3.24M	20.40M	-3.41M
Cash Flow		Free Cash Flow
-13.34M	-18.11M	-15.86M	-5.52M	-492.97K
	Operating Cash Flow
-13.34M	-18.07M	-15.76M	-5.27M	-492.97K
	Investing Cash Flow
-21.76K	-35.61K	-100.92K	-251.82K	0.00
	Financing Cash Flow
16.40M	15.91M	5.99K	25.52M	1.12M

TransCode Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 6.97 is below the 20-day moving average (MA) of 9.91, below the 50-day MA of 12.73, and below the 200-day MA of 213.71, indicating a bearish trend. The MACD of -3.53 indicates Negative momentum. The RSI at 33.79 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 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
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
EVGN	41 Neutral	$7.81M	―	-655.00%	―	-26.38%	40.99%
PTNT	37 Underperform	$5.30M	―		―	-94.07%	52.36%
SLXN	34 Underperform	$9.04M	―	-590.37%	―	―	-73095.97%
MTVA	33 Underperform	$15.45M	―	-339.64%	―	―	-75.88%
RNAZ	27 Underperform	$6.35M	―	-342.99%	―	―	99.64%
LIPO		$12.96M	―	-154.54%	―	―	―

TransCode Therapeutics Corporate Events

TransCode Therapeutics Announces Reverse Stock Split Approval

On May 2, 2025, TransCode Therapeutics announced that its stockholders approved a 1-for-28 reverse stock split to meet Nasdaq’s minimum bid price requirements. This move, aimed at increasing the per-share trading price, will reduce the number of outstanding shares from 23,341,336 to approximately 833,620. The reverse stock split will automatically convert twenty-eight current shares into one new share, with no fractional shares issued. The effective date is yet to be determined, and the company will announce it at least two days before implementation. This strategic decision is significant for maintaining the company’s Nasdaq listing and potentially improving its market position.

Spark’s Take on RNAZ Stock

According to Spark, TipRanks’ AI Analyst, RNAZ is a Underperform.

TransCode Therapeutics, as an early-stage biotech firm, presents a high-risk investment profile with significant financial challenges. The lack of revenue and increasing losses, coupled with negative equity, highlight financial instability. Technical indicators suggest continued downward pressure on the stock. The absence of a favorable valuation further impacts its attractiveness. Investors should be cautious given the speculative nature and financial health of the company.

To see Spark’s full report on RNAZ stock, click here.