Today we're going to take a closer look at Mid-Cap Health Care company Revolution Medicines, whose shares are currently trading at $41.23. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Revolution Medicines's Valuation Is in Line With Its Sector Averages:
Revolution Medicines, Inc., a clinical-stage precision oncology company, develops novel targeted therapies for RAS-addicted cancers. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Revolution Medicines has a trailing 12 month P/E ratio of -11.5 and a P/B ratio of 3.38.
Revolution Medicines has moved 11.2% over the last year compared to 9.8% for the S&P 500 — a difference of 1.4%. Revolution Medicines has a 52 week high of $62.4 and a 52 week low of $29.17.
The Firm Has Good EPS Growth:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $50,041 | $42,983 | $29,390 | $35,380 | $11,580 | n/a |
| Net Income (k) | -$47,664 | -$108,159 | -$187,091 | -$248,705 | -$436,367 | -$600,093 |
| Net Interest Expense (k) | $106 | $71 | $12 | n/a | $47,294 | $88,678 |
| Depreciation & Amort. (k) | $2,300 | $2,611 | $3,083 | $3,972 | $1,068 | $6,200 |
| Diluted Shares (k) | 2,772,589 | 54,874 | 72,806 | 80,627 | 113,150 | 167,738 |
| Earnings Per Share | -$22.33 | -$2.01 | -$2.57 | -$3.08 | -$3.86 | -$3.58 |
| EPS Growth | n/a | 91.0% | -27.86% | -19.84% | -25.32% | 7.25% |
| Free Cash Flow (k) | -$52,205 | -$102,997 | -$153,708 | -$235,217 | -$358,301 | -$567,744 |
| CAPEX (k) | $2,589 | $2,933 | $6,528 | $10,816 | $7,729 | $10,308 |
| Current Ratio | 3.11 | 9.63 | 9.77 | 10.65 | 13.06 | 14.2 |
