TransCode Therapeutics (RNAZ) AI Stock Analysis

• Market Cap: $9.49M
• Dividend Yield: N/A
• Average Volume (3M): 11.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.01
• Revenue Growth: N/A
• EPS Growth: 99.64%
• Country: US
• Employees: 7
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -56.61
• Shares Outstanding: 23,341,335
• 10 Day Avg. Volume: 4,851,548
• 30 Day Avg. Volume: 11,969,141
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 2339.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

TransCode Therapeutics exhibits significant financial challenges with no revenue and high expenses typical of an early-stage biotech. The technical analysis suggests an oversold condition, but the bearish trend remains strong. Valuation metrics are unfavorable, highlighting the speculative and high-risk nature of the investment.

Positive Factors

Clinical Development

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 Resources

TransCode ended 2024 with $5.8M in cash and equivalents, which does not include the recent $8.8M equity raise, assumed sufficient to fund operations into 2026.

Strategic Partnerships

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

Negative Factors

Clinical Risks

Risks include safety signals emerging with any of the company’s clinical or preclinical programs and efficacy from clinical programs being lower than expected.

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

TransCode Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.41
• 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 Neutral. The current price of 0.41 is above the 20-day moving average (MA) of 0.39, below the 50-day MA of 1.53, and below the 200-day MA of 8.99, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNAZ.

TransCode Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.38B	3.59	-41.63%	2.87%	17.72%	1.87%
PTN	40 Underperform	$5.63M	―	422.38%	―	-95.07%	40.41%
EVGN	38 Underperform	$7.54M	―	-310.98%	―	50.90%	42.10%
SLXN	34 Underperform	$8.56M	―		―	―	-73095.97%
MTVA	33 Underperform	$15.92M	―	-224.18%	―	―	-75.88%
RNAZ	24 Underperform	$9.49M	―	-490.03%	―	―	99.64%

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.