Last Updated: 17 Sep 2024
Executive Summary
Rafael Holdings Inc Class B (RFL) is a commercial real estate and pharmaceutical investment company. Despite a revenue increase of 3.732% year-over-year, the company faces significant financial challenges. With negative EBITDA, EPS, and key profitability metrics, RFL is currently unprofitable. The stock price is trading at $1.63, below its 52-week high of $2.27.
Company Overview
Rafael Holdings owns commercial real estate properties and invests in preclinical and clinical-stage pharmaceutical companies. Headquartered in Newark, New Jersey, the company's real estate portfolio consists of office and retail properties.
Fundamental Analysis
Negative Financials: RFL reported a negative EBITDA of $70,220,912 and an EPS of -$1.2 for the latest quarter. The company's gross profit margin is low at 0%, and its operating margin is -184.1%.
High Price-to-Sales Ratio: RFL's trailing price-to-sales ratio of 75.97 indicates that the stock is overvalued compared to its revenue.
Low Price-to-Book Ratio: The price-to-book ratio of 0.476 suggests that the stock is undervalued based on its book value.
Technical Analysis
Below Moving Averages: The stock price is currently trading below both its 50-day and 200-day moving averages, indicating a downtrend.
Support and Resistance Levels: The stock has support at $1.29 and resistance at $2.27.
Short Term Outlook
Continued Downtrend: Given the negative financial performance and technical indicators, the stock is likely to continue its downtrend in the short term.
Potential for Volatility: The stock's high beta of 1.046 indicates that it is more volatile than the broader market.
Long Term Outlook
Uncertain Profitability: RFL's long-term profitability is uncertain due to its current financial challenges.
Real Estate Market Outlook: The performance of RFL's real estate portfolio will depend on the overall health of the real estate market.
Pharmaceutical Investment Risk: The company's investments in pharmaceutical companies carry inherent risk.
Analyst Recommendations
Due to the company's negative financial performance and uncertain outlook, most analysts do not have a strong buy or hold recommendation for RFL. The stock is considered a speculative investment with high risk.
