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RGC

Regencell Bioscience Holdings NasdaqCM:RGC Stock Report

Last Price

US$30.70

Market Cap

US$399.5m

7D

-4.5%

1Y

336.7%

Updated

16 Aug, 2022

Data

Company Financials
RGC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

RGC Stock Overview

Regencell Bioscience Holdings Limited operates a Traditional Chinese medicine (TCM) bioscience company.

Regencell Bioscience Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Regencell Bioscience Holdings
Historical stock prices
Current Share PriceUS$30.70
52 Week HighUS$59.00
52 Week LowUS$6.00
Beta0
1 Month Change-17.69%
3 Month Change23.79%
1 Year Change336.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO192.38%

Recent News & Updates

Aug 16

Slow And Steady Wins The Race With Regencell Bioscience

Regencell Bioscience is an early-stage bioscience company focused on the research, development, and commercialization of Traditional Chinese Medicine. Regencell Chairman and CEO, Yat-Gai Au recently purchased more than $5.9 million in RGC shares. Majority shareholders of Regencell are insider investors. Regencell is comfortably poised amidst turbulent market conditions, especially for a biotech stock. The company has a list of successful clinical trials, with more to come in the year. Investors from all corners of the market are shrieking to shield their portfolios against a looming recession that's looking to threaten the market as major league stocks have performed poorly over the last couple of months. With the Fed's aggressive rate hike policy as an arsenal to dampen soaring inflation, which hit another fresh high of 9.1% in June, investors are seeking some form of continuity and security in the stock market as conditions only become more choppy. It's been a tumultuous season so far, and value investors who bought in May and went away are perhaps now jumping to get a hand back on their portfolios. Although conditions aren't favorable, some sectors have been receiving growing interest from investors in the last few months as inflation, and rising interest rates are hurting companies' bottom line performance. So while experts and investors are split over the shaky economic conditions, where are they looking now to find a safe haven that can prove to deliver on its performance and return on investment? Is Biotech The Solution Many Are Looking For? Biotech and bioscience stocks have seen a bumpy start to the year, with companies experiencing major stock sell-offs as tourist investors dumped their stocks as interest and hype surrounding the pandemic started winding down. As investors with no interest or knowledge of biotech left the market, it caused a dramatic drop in prices. The biotechnology sector has now become a hunting ground for hedge funds on the lookout for bargain stocks, and some have already scooped up stocks or even launched portfolios to capitalize on the turbulence. There's been a lot of up and down in the biotech market, but some are proving strong and steady against a backdrop of immense economic uncertainty. What's Your Slow And Steady? As investors are on the lookout for cheap biotech stocks which may have great potential upside, the slow and steady performance of some companies may present viable financial returns in the coming years. One company of interest in this specific category is Regencell Bioscience Holdings Limited (RGC), an early-stage bioscience company focusing on the research, development, and commercialization of Traditional Chinese Medicine ("TCM"). Regencell Bioscience focuses on the research and development of neurocognitive disorders and degeneration, more specifically in ADHD, ASD, and infectious diseases such as COVID-19. The bioscience company went public with around 2.6 million ordinary shares at $9.50 per share, raising approximately $22.7 million. RGC has kept investors interested and has received media attention for all the right reasons; the most recent - the company's chairman and CEO, Yat-Gai Au used over $5.9 million of his personal funds to purchase ordinary RGC shares through the open market to support the growth and potential of the company. Sizable stock purchases by insider investors, with the CEO being an exception, have helped the company sidestep short sellers and hedge fund managers that have been taking advantage of small-time investors. Currently, the company has just over 2.6 million shares on the market available for trade. Why Does RGC Make Sense, For Now At Least? RGC is not ordinary, and in many ways, we can see why investors have started noticing the company. So far, year-to-date share prices have increased by 17.03% while the Nasdaq Biotechnology Index has only gone up by 2.69%. On average, share prices are zig-zagging between $34.79 and $35.84, and some investors have set up their year range closer to $59.00 per share. For the six months between July 2021 and December 2021, the company reported a basic diluted loss per share of $0.29, compared to $0.03 for the same period of 2020. The loss could be attributed to the company's sudden increase in operating expenses, which jumped from $368,465 for the 6 months ending December 31, 2020, to $3,658,906 for the same period in 2021, an increase of roughly 893%. The company reported cash availability of $19 million in December 2021, compared to $0.06 million in June 2021. The main source of cash came from net proceeds of the company's IPO, including proceeds from the sales of over-allotment shares, totaling approximately 22.7 million. Initially, when the company went public back in July 2021, share prices were well below their current levels, and a month later, in August 2021, share prices jumped as much as 204% in a single trading session. Since going public, Regencell has treated more than 88 COVID patients with over 94% effectiveness in eliminating symptoms within 6 days; they have ongoing ADHD/ASD clinical studies and were included in the MSCI world microcap index. RGC was also one of the top best-performing stocks on Nasdaq in 2021, according to www.stockanalysis.com. Late last year, Regencell entered preliminary trials for ADHD/ASD. During this time, the stock was trading in the low $20's range. By mid-February 2022, share prices had climbed over $40 before scaling down to the $20's range. Although market conditions have been volatile and investor sentiment negative, RGC has performed quite well since April 2022, with share prices making a swing above $30. The recovery of the stock performance comes from positive clinical results related to the company's RGC-COV19 TCM formula. From our view, we can expect RGC to see another price swing in the coming months when the company announces a second clinical study of a standardized TCM formula for the treatment of ADHD and ASD. Regencell has been working to establish an industry benchmark for treatment, dosing, adverse effects, and measuring patient response. The promising track record and positive clinical results have kept investors interested as RGC has remained relatively stable and resolute in its performance. For investors who can digest small purchases a lot better, RGC could outpace sluggish market conditions. RGC Offers Stability One of the leading reasons or factors that have made RGC stable is its unique ownership structure. Currently, individual insiders possess over 81% of the company's shares, a majority that stands to benefit the most from the stock's relatively good performance so far. On the one hand, RGC is mostly owned by founder and CEO Yat-Gai Au, who is the largest shareholder with an 81% stake. On the other side of the coin, the remaining shareholders own roughly 19% of RGC stock. If we had to look at the most recent data, currently, insider owners own at least $430 million of the $416 million business. When studying these circumstances can act as an indication to investors that the majority of owners are executives, managers, and leaders all within the company. Both general public ownership (11.2%) and private equity ownership (7.6%) are still substantial, and it gives them some power to influence company decisions on performance and growth. Yet, while large enough to play a role, it's not big enough to change company policy. As most of the power is vested and held within the company, it gives them better control over the decision-making and their path towards growth. So for investors who are looking to make a jump at RGC, there's a bit more stability and certainty in its current practice, seeing as board members are investing alongside casual investors.

Shareholder Returns

RGCUS PharmaceuticalsUS Market
7D-4.5%0.3%4.5%
1Y336.7%-0.9%-8.9%

Return vs Industry: RGC exceeded the US Pharmaceuticals industry which returned 0.3% over the past year.

Return vs Market: RGC exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is RGC's price volatile compared to industry and market?
RGC volatility
RGC Average Weekly Movement13.0%
Pharmaceuticals Industry Average Movement12.1%
Market Average Movement7.6%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: RGC is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: RGC's weekly volatility has decreased from 44% to 13% over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
201414Yat-Gai Auhttps://www.regencellbioscience.com

Regencell Bioscience Holdings Limited operates a Traditional Chinese medicine (TCM) bioscience company. It focuses on the research, development, and commercialization of TCM for the treatment of neurocognitive disorders and degeneration, primarily attention deficit hyperactivity disorder and autism spectrum disorder. The company was incorporated in 2014 and is headquartered in Causeway Bay, Hong Kong.

Regencell Bioscience Holdings Fundamentals Summary

How do Regencell Bioscience Holdings's earnings and revenue compare to its market cap?
RGC fundamental statistics
Market CapUS$399.49m
Earnings (TTM)-US$4.60m
Revenue (TTM)n/a

0.0x

P/S Ratio

-86.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RGC income statement (TTM)
RevenueUS$0
Cost of RevenueUS$0
Gross ProfitUS$0
Other ExpensesUS$4.60m
Earnings-US$4.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.35
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio6.9%

How did RGC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RGC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RGC?

Other financial metrics that can be useful for relative valuation.

RGC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDA-86.3x
PEG Ration/a

Price to Book Ratio vs Peers

How does RGC's PB Ratio compare to its peers?

RGC PB Ratio vs Peers
The above table shows the PB ratio for RGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average3.7x
OCUL Ocular Therapeutix
6.2x71.3%US$409.5m
EYPT EyePoint Pharmaceuticals
2.4x6.2%US$368.7m
ANTX AN2 Therapeutics
3.6x-8.6%US$420.1m
ORMP Oramed Pharmaceuticals
2.4x37.1%US$370.0m
RGC Regencell Bioscience Holdings
20.3xn/aUS$399.5m

Price-To-Book vs Peers: RGC is expensive based on its Price-To-Book Ratio (20.3x) compared to the peer average (3.7x).


Price to Earnings Ratio vs Industry

How does RGC's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Book vs Industry: RGC is expensive based on its Price-To-Book Ratio (20.3x) compared to the US Pharmaceuticals industry average (2.1x)


Price to Book Ratio vs Fair Ratio

What is RGC's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RGC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio20.3x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate RGC's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of RGC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate RGC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RGC's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Regencell Bioscience Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.1%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Regencell Bioscience Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Take a look at our analysis of RGC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Regencell Bioscience Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-442.8%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: RGC is currently unprofitable.

Growing Profit Margin: RGC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RGC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare RGC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RGC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.5%).


Return on Equity

High ROE: RGC has a negative Return on Equity (-23.72%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Regencell Bioscience Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RGC's short term assets ($19.0M) exceed its short term liabilities ($1.4M).

Long Term Liabilities: RGC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RGC's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RGC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if RGC has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RGC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Regencell Bioscience Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RGC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RGC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RGC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RGC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RGC has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Yat-Gai Au (49 yo)

no data

Tenure

Mr. Yat-Gai Au serves as the Chief Financial Officer of Armitage Technologies Holding Ltd. Mr. Au served as Compliance Officer and Executive Director of Armitage Technologies Holding Ltd. He joined Armitag...


Leadership Team

Experienced Management: RGC's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: RGC's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RGC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Regencell Bioscience Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Regencell Bioscience Holdings Limited
  • Ticker: RGC
  • Exchange: NasdaqCM
  • Founded: 2014
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$399.495m
  • Shares outstanding: 13.01m
  • Website: https://www.regencellbioscience.com

Number of Employees


Location

  • Regencell Bioscience Holdings Limited
  • First Commercial Building
  • 11th Floor
  • Causeway Bay
  • KY1-1107
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.