Is Revolution Medicines Stock a Good Investment?
Revolution Medicines Investment Advice | RVMD |
- Examine Revolution Medicines' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Revolution Medicines' leadership team and their track record. Good management can help Revolution Medicines navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Revolution Medicines' business and its evolving consumer preferences.
- Compare Revolution Medicines' performance and market position to its competitors. Analyze how Revolution Medicines is positioned in terms of product offerings, innovation, and market share.
- Check if Revolution Medicines pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Revolution Medicines' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Revolution Medicines stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Revolution Medicines is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Revolution Medicines Stock
Researching Revolution Medicines' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 3.66. Revolution Medicines had not issued any dividends in recent years.
To determine if Revolution Medicines is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Revolution Medicines' research are outlined below:
| The company reported the previous year's revenue of 11.58 M. Net Loss for the year was (436.37 M) with loss before overhead, payroll, taxes, and interest of (217.69 M). | |
| Revolution Medicines currently holds about 461.43 M in cash with (350.57 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.26. | |
| Revolution Medicines has a poor financial position based on the latest SEC disclosures | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Wellington Management Group LLP Reduces Stake in Revolution Medicines Inc |
Revolution Medicines Quarterly Accounts Payable |
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Revolution Medicines uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Revolution Medicines. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Revolution Medicines' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of February 2024 Upcoming Quarterly Report | View | |
| 13th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 26th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Revolution Medicines' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Revolution Medicines' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-02-28 | 2021-12-31 | -0.64 | -0.71 | -0.07 | 10 | ||
2023-05-08 | 2023-03-31 | -0.81 | -0.72 | 0.09 | 11 | ||
2021-11-10 | 2021-09-30 | -0.63 | -0.72 | -0.09 | 14 | ||
2023-08-08 | 2023-06-30 | -0.82 | -0.92 | -0.1 | 12 | ||
2020-08-10 | 2020-06-30 | -0.36 | -0.46 | -0.1 | 27 | ||
2021-03-02 | 2020-12-31 | -0.38 | -0.52 | -0.14 | 36 | ||
2023-02-27 | 2022-12-31 | -0.82 | -0.63 | 0.19 | 23 | ||
2024-02-26 | 2023-12-31 | -0.88 | -1.14 | -0.26 | 29 |
Know Revolution Medicines' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Revolution Medicines is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Revolution Medicines backward and forwards among themselves. Revolution Medicines' institutional investor refers to the entity that pools money to purchase Revolution Medicines' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corp | 2024-06-30 | 5.1 M | Bellevue Group Ag | 2024-06-30 | 5 M | Hhg Plc | 2024-06-30 | 4.6 M | Casdin Capital, Llc | 2024-06-30 | 4.4 M | Boxer Capital Llc | 2024-06-30 | 4.3 M | Geode Capital Management, Llc | 2024-06-30 | 3.3 M | Woodline Partners Lp | 2024-06-30 | 3.3 M | Jpmorgan Chase & Co | 2024-06-30 | 3.1 M | Deerfield Management Co | 2024-06-30 | 3.1 M | Vanguard Group Inc | 2024-06-30 | 14.4 M | Wellington Management Company Llp | 2024-06-30 | 13.7 M |
Revolution Medicines' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 10.17 B.Market Cap |
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Revolution Medicines' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.22) | (0.23) | |
| Return On Capital Employed | (0.25) | (0.26) | |
| Return On Assets | (0.21) | (0.22) | |
| Return On Equity | (0.24) | (0.25) |
Determining Revolution Medicines' profitability involves analyzing its financial statements and using various financial metrics to determine if Revolution Medicines is a good buy. For example, gross profit margin measures Revolution Medicines' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Revolution Medicines' profitability and make more informed investment decisions.
Please note, the presentation of Revolution Medicines' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Revolution Medicines' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Revolution Medicines' management manipulating its earnings.
Evaluate Revolution Medicines' management efficiency
Revolution Medicines has return on total asset (ROA) of (0.2856) % which means that it has lost $0.2856 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4718) %, meaning that it created substantial loss on money invested by shareholders. Revolution Medicines' management efficiency ratios could be used to measure how well Revolution Medicines manages its routine affairs as well as how well it operates its assets and liabilities. As of November 11, 2024, Return On Tangible Assets is expected to decline to -0.23. In addition to that, Return On Capital Employed is expected to decline to -0.26. At present, Revolution Medicines' Net Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 7.4 M, whereas Other Assets are forecasted to decline to 0.95.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 16.14 | 16.95 | |
| Tangible Book Value Per Share | 15.50 | 16.28 | |
| Enterprise Value Over EBITDA | (5.52) | (5.79) | |
| Price Book Value Ratio | 1.78 | 1.69 | |
| Enterprise Value Multiple | (5.52) | (5.79) | |
| Price Fair Value | 1.78 | 1.69 | |
| Enterprise Value | 2.6 B | 1.4 B |
Revolution Medicines has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 1.404 |
Basic technical analysis of Revolution Stock
As of the 11th of November 2024, Revolution Medicines holds the Coefficient Of Variation of 432.52, risk adjusted performance of 0.1824, and Semi Deviation of 2.04. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Revolution Medicines, as well as the relationship between them. Please check Revolution Medicines information ratio, and the relationship between the downside deviation and value at risk to decide if Revolution Medicines is priced some-what accurately, providing market reflects its current price of 60.6 per share. Given that Revolution Medicines has jensen alpha of 0.3963, we recommend you to check out Revolution Medicines's recent market performance to make sure the company can sustain itself at a future point.Revolution Medicines' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Revolution Medicines insiders, such as employees or executives, is commonly permitted as long as it does not rely on Revolution Medicines' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Revolution Medicines insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Revolution Medicines' Outstanding Corporate Bonds
Revolution Medicines issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Revolution Medicines uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Revolution bonds can be classified according to their maturity, which is the date when Revolution Medicines has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Revolution Medicines' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Revolution Medicines' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1824 | |||
| Market Risk Adjusted Performance | 0.5184 | |||
| Mean Deviation | 1.99 | |||
| Semi Deviation | 2.04 | |||
| Downside Deviation | 2.53 | |||
| Coefficient Of Variation | 432.52 | |||
| Standard Deviation | 2.53 | |||
| Variance | 6.41 | |||
| Information Ratio | 0.1648 | |||
| Jensen Alpha | 0.3963 | |||
| Total Risk Alpha | 0.0478 | |||
| Sortino Ratio | 0.1646 | |||
| Treynor Ratio | 0.5084 | |||
| Maximum Drawdown | 10.95 | |||
| Value At Risk | (3.24) | |||
| Potential Upside | 4.81 | |||
| Downside Variance | 6.42 | |||
| Semi Variance | 4.16 | |||
| Expected Short fall | (2.11) | |||
| Skewness | (0.15) | |||
| Kurtosis | 0.1247 |
| Risk Adjusted Performance | 0.1824 | |||
| Market Risk Adjusted Performance | 0.5184 | |||
| Mean Deviation | 1.99 | |||
| Semi Deviation | 2.04 | |||
| Downside Deviation | 2.53 | |||
| Coefficient Of Variation | 432.52 | |||
| Standard Deviation | 2.53 | |||
| Variance | 6.41 | |||
| Information Ratio | 0.1648 | |||
| Jensen Alpha | 0.3963 | |||
| Total Risk Alpha | 0.0478 | |||
| Sortino Ratio | 0.1646 | |||
| Treynor Ratio | 0.5084 | |||
| Maximum Drawdown | 10.95 | |||
| Value At Risk | (3.24) | |||
| Potential Upside | 4.81 | |||
| Downside Variance | 6.42 | |||
| Semi Variance | 4.16 | |||
| Expected Short fall | (2.11) | |||
| Skewness | (0.15) | |||
| Kurtosis | 0.1247 |
Consider Revolution Medicines' intraday indicators
Revolution Medicines intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Revolution Medicines stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Revolution Medicines Corporate Filings
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 5th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 28th of June 2024 Other Reports | ViewVerify |
Revolution Stock media impact
Far too much social signal, news, headlines, and media speculation about Revolution Medicines that are available to investors today. That information is available publicly through Revolution media outlets and privately through word of mouth or via Revolution internal channels. However, regardless of the origin, that massive amount of Revolution data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Revolution Medicines news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Revolution Medicines relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Revolution Medicines' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Revolution Medicines alpha.
Revolution Medicines Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Revolution Medicines can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Revolution Medicines Corporate Management
| David Pompliano | Founding Officer | Profile | |
| Jack Anders | Chief Officer | Profile | |
| Walter Reiher | Chief Officer | Profile | |
| Path FRCP | Pres RD | Profile | |
| Margaret JD | Chief Officer | Profile | |
| Michael Fischbach | Academic Board | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Revolution Medicines. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. For information on how to trade Revolution Stock refer to our How to Trade Revolution Stock guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Revolution Medicines. If investors know Revolution will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Revolution Medicines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.66) | Revenue Per Share 0.005 | Quarterly Revenue Growth (0.95) | Return On Assets (0.29) | Return On Equity (0.47) |
The market value of Revolution Medicines is measured differently than its book value, which is the value of Revolution that is recorded on the company's balance sheet. Investors also form their own opinion of Revolution Medicines' value that differs from its market value or its book value, called intrinsic value, which is Revolution Medicines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Revolution Medicines' market value can be influenced by many factors that don't directly affect Revolution Medicines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Revolution Medicines' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Revolution Medicines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Revolution Medicines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.