RGC Stock Overview
Regencell Bioscience Holdings Limited operates a Traditional Chinese medicine (TCM) bioscience company.
Regencell Bioscience Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$30.70|
|52 Week High||US$59.00|
|52 Week Low||US$6.00|
|1 Month Change||-17.69%|
|3 Month Change||23.79%|
|1 Year Change||336.70%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||192.38%|
Recent News & Updates
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.
|RGC||US Pharmaceuticals||US Market|
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.
|RGC Average Weekly Movement||13.0%|
|Pharmaceuticals Industry Average Movement||12.1%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.1%|
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
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
|RGC fundamental statistics|
Is RGC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RGC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.35|
|Net Profit Margin||0.00%|
How did RGC perform over the long term?See historical performance and comparison
Is RGC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is RGC's n/a Ratio?|
Price to Book Ratio vs Peers
How does RGC's PB Ratio compare to its peers?
|RGC PB Ratio vs Peers|
|Company||PB||Estimated Growth||Market Cap|
OCUL Ocular Therapeutix
EYPT EyePoint Pharmaceuticals
ANTX AN2 Therapeutics
ORMP Oramed Pharmaceuticals
RGC Regencell Bioscience Holdings
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.
|Current PB Ratio||20.3x|
|Fair PB Ratio||n/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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How is Regencell Bioscience Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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.
How has Regencell Bioscience Holdings performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Regencell Bioscience Holdings's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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.
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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What is Regencell Bioscience Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
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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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yat-Gai Au (49 yo)
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...
Experienced Management: RGC's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Experienced Board: RGC's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.
Regencell Bioscience Holdings Limited's employee growth, exchange listings and data sources
- 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
- Regencell Bioscience Holdings Limited
- First Commercial Building
- 11th Floor
- Causeway Bay
- Hong Kong
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/16 00:00|
|End of Day Share Price||2022/08/16 00:00|
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.