TransCode Therapeutics (RNAZ) AI Stock Analysis

• Market Cap: $9.80M
• Dividend Yield: N/A
• Average Volume (3M): 175.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.25
• Revenue Growth: N/A
• EPS Growth: 99.64%
• Country: US
• Employees: 7
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -56.61
• Shares Outstanding: 833,683
• 10 Day Avg. Volume: 480,058
• 30 Day Avg. Volume: 175,751
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: -1.18K
• Enterprise Value/Revenue: -7.68K
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 158.80
• 1Y Price Target: $10.00
• Price Target Upside: -10.31% Downside
• 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 Progress

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.

Drug Effectiveness

The company observed a miRNA-10b inhibition of ~66% in Cohort 1, indicating the drug's effectiveness even at low doses in the blood.

Strategic Growth

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

Negative Factors

Financial Performance

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.

Funding 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.

TransCode Therapeutics Business Overview & Revenue Model

Company Description

TransCode Therapeutics (RNAZ) is a biotechnology company focused on developing RNA-based therapeutics for the treatment of cancer and other diseases. Operating within the pharmaceutical and biotechnology sectors, TransCode leverages its proprietary platform to design and deliver RNA-targeted therapies, aiming to address significant unmet medical needs. The company's core products include a pipeline of therapeutics targeting various forms of cancer, utilizing their expertise in RNA technologies to innovate in precision medicine.

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	0.00	-98.61K	-42.47K	0.00
EBITDA	-16.19M	-17.97M	-17.47M	-6.11M	0.00
Net Income	-16.75M	-18.55M	-35.13M	-6.94M	-2.74M
Balance Sheet
Total Assets	7.29M	5.17M	7.59M	22.94M	1.06M
Cash, Cash Equivalents and Short-Term Investments	5.81M	2.77M	4.97M	20.83M	828.02K
Total Debt	38.29K	450.57K	0.00	0.00	2.09M
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	-13.36M	-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: Neutral
• Last Price: 11.15
• 50DMA: Positive
• 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 11.15 is above the 20-day moving average (MA) of 9.90, above the 50-day MA of 8.35, and below the 200-day MA of 143.27, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 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 *	46 Neutral	C$202.78M	-3.27	-23.14%	2.83%	20.78%	-1.17%
EVGN	42 Neutral	$11.15M	―	-655.00%	―	-26.38%	40.99%
PTNT	38 Underperform	$10.25M	―		―	-94.07%	52.36%
SLXN	34 Underperform	$114.09M	―	-590.37%	―	―	-73095.97%
MTVA	33 Underperform	$12.43M	―	-339.64%	―	―	-75.88%
RNAZ	27 Underperform	$9.80M	―	-342.99%	―	―	99.64%

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.