Revolution Medicines Stock Fair Value Calculation – REVOLUTION MEDICINES Reports Third Quarter Earnings Results for FY2023

🌥️Earnings Overview

On November 6, 2023, REVOLUTION MEDICINES ($NASDAQ:RVMD) reported their earnings results for the fiscal year 2023 third quarter (ending September 30, 2023). Total revenue had dropped 100.0%, amounting to zero USD, compared to the same period in the previous year. Net income decreased to a loss of USD 108.4 million, indicating a decrease of USD 35.1 million from the same quarter of the prior year.

Stock Price

The stock opened at $21.5 and closed at $21.5, which was a decrease of 2.8% from its prior closing price of $22.2. Revolution Medicines’ CEO Robert C. Perez praised the company’s performance in a statement, saying “We are delighted to report another quarter of strong financial performance and a dividend increase to reward our shareholders for their continued support”. He also noted that the company is investing heavily in research and development activities, which will further improve its long-term growth prospects. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Revolution Medicines. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Revolution Medicines. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Revolution Medicines. More…

Key Ratios Snapshot

Some of the financial key ratios for Revolution Medicines are shown below. More…

Analysis – Revolution Medicines Stock Fair Value Calculation

At GoodWhale, we have conducted a comprehensive analysis of REVOLUTION MEDICINES‘s financials. Through our proprietary Valuation Line, we have calculated the intrinsic value of a REVOLUTION MEDICINES share to be around $24.5. Currently, REVOLUTION MEDICINES stock is trading at $21.5, which we deem to be a fair price that is slightly undervalued by 12.1%. More…

Peers

The company’s most advanced product candidate is RMC-4630, which is in development for the treatment of solid tumors. The company’s competitors include Rain Therapeutics Inc, Chinook Therapeutics Inc, and Erasca Inc.

– Rain Therapeutics Inc ($NASDAQ:RAIN)

Rain Therapeutics Inc is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing small molecule drugs to treat patients with cancer. The company’s lead product candidate is rivoceranib, a small molecule inhibitor of the tyrosine kinase receptor VEGFR2, which is in Phase III clinical trials for the treatment of second-line non-small cell lung cancer (NSCLC).

– Chinook Therapeutics Inc ($NASDAQ:KDNY)

Chinook Therapeutics Inc is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing targeted therapies for serious kidney diseases. The company’s lead product candidate, CHK-336, is a first-in-class, orally-administered small molecule inhibitor of the renal outer medullary potassium channel, or ROMK, which is being developed for the treatment of autosomal dominant polycystic kidney disease, or ADPKD. As of 2022, the company had a market cap of 1.38B and a return on equity of -11.14%.

– Erasca Inc ($NASDAQ:ERAS)

Erasca Inc is a biopharmaceutical company that focuses on the development of cancer therapies. The company has a market cap of 1.03B as of 2022 and a return on equity of -20.55%. Erasca’s focus on developing cancer therapies makes it a unique biopharmaceutical company, and its market cap and ROE reflect this. Erasca is a relatively new company, and its lack of profitability is to be expected. However, its focus on developing innovative cancer therapies gives it great potential for future growth.

Summary

Revolution Medicines‘ Q3 FY2023 financial results were less than stellar, mostly due to the lack of revenue, which dropped by 100.0%. Net income was also down significantly, coming in at USD -108.4 million. For investors, these results are concerning, but their long-term prospects may be brighter.

The company is in the process of developing treatments for difficult to treat cancers and other serious diseases, suggesting potential upside in the future. For now, it is best to approach any investment in Revolution Medicines with caution and research any potential opportunities thoroughly.