Recursion Pharmaceuticals (NasdaqGS:RXRX) - Share price, News & Analysis

RXRX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

RXRX Stock Overview

Rewards

Revenue is forecast to grow 15.23% per year

Revenue grew by 100.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 12.6% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Recursion Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Recursion Pharmaceuticals
Historical stock prices
Current Share Price	US$8.99
52 Week High	US$42.81
52 Week Low	US$4.92
Beta	0
1 Month Change	63.75%
3 Month Change	32.99%
1 Year Change	-73.38%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-71.28%

Recent News & Updates

May 16

These Analysts Think Recursion Pharmaceuticals, Inc.'s (NASDAQ:RXRX) Sales Are Under Threat

The analysts covering Recursion Pharmaceuticals, Inc. ( NASDAQ:RXRX ) delivered a dose of negativity to shareholders...

Shareholder Returns

	RXRX	US Biotechs	US Market
7D	18.0%	10.3%	6.6%
1Y	-73.4%	-24.4%	-18.5%

Return vs Industry: RXRX underperformed the US Biotechs industry which returned -25.1% over the past year.

Return vs Market: RXRX underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is RXRX's price volatile compared to industry and market?
RXRX volatility
RXRX Average Weekly Movement	14.4%
Biotechs Industry Average Movement	13.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: RXRX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: RXRX's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2013	450	Chris Gibson	https://www.recursion.com

Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. The company develops REC-994, which is in Phase IIa clinical trial to treat cerebral cavernous malformation; REC-2282 for the treatment of neurofibromatosis type 2; REC-4881 to treat familial adenomatous polyposis; and REC-3599, which is in Phase I clinical trial to treat GM2 gangliosidosis. Its preclinical stage product includes REC-3964 to treat Clostridium difficile colitis; REC-64917 for the treat of neural or systemic inflammation; REC-65029 to treat HRD-negative ovarian cancer; REC-648918 to enhance anti-tumor immune; REC-2029 for the treatment of wnt-mutant hepatocellular carcinoma; REC-14221 to treat solid and hematological malignancies; and REC-64151 for the treatment of immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer.

Recursion Pharmaceuticals Fundamentals Summary

How do Recursion Pharmaceuticals's earnings and revenue compare to its market cap?
RXRX fundamental statistics
Market Cap	US$1.55b
Earnings (TTM)	-US$211.74m
Revenue (TTM)	US$12.95m

119.4x

P/S Ratio

-7.3x

P/E Ratio

Is RXRX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RXRX income statement (TTM)
Revenue	US$12.95m
Cost of Revenue	US$151.40m
Gross Profit	-US$138.45m
Other Expenses	US$73.29m
Earnings	-US$211.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.23
Gross Margin	-1,069.22%
Net Profit Margin	-1,635.19%
Debt/Equity Ratio	0.1%

How did RXRX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is RXRX 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RXRX. This is calculated by dividing RXRX's market cap by their current preferred multiple.
What is RXRX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.55b

RXRX 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/Revenue	77.8x
Enterprise Value/EBITDA	-5.1x
PEG Ratio	n/a

Price to Book Ratio vs Peers

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

RXRX PB Ratio vs Peers

The above table shows the PB ratio for RXRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	2.9x

Price-To-Book vs Peers: RXRX is expensive based on its Price-To-Book Ratio (3.1x) compared to the peer average (2.9x).

Price to Earnings Ratio vs Industry

How does RXRX's PE Ratio compare vs other companies in the U.S. Biotechs Industry?

Price-To-Book vs Industry: RXRX is expensive based on its Price-To-Book Ratio (3.1x) compared to the US Biotechs industry average (1.6x)

Price to Book Ratio vs Fair Ratio

What is RXRX'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.

RXRX PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	3.1x
Fair PB Ratio	n/a

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

Share Price vs Fair Value

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

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

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RXRX's PEG Ratio to determine if it is good value.

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Future Growth

How is Recursion Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RXRX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RXRX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RXRX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RXRX's revenue (15.2% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: RXRX's revenue (15.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: RXRX is forecast to be unprofitable in 3 years.

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Past Performance

How has Recursion Pharmaceuticals 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

-113.2%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: RXRX is currently unprofitable.

Growing Profit Margin: RXRX is currently unprofitable.

Past Earnings Growth Analysis

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

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

Earnings vs Industry: RXRX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (96.9%).

Return on Equity

High ROE: RXRX has a negative Return on Equity (-42.9%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Recursion Pharmaceuticals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RXRX's short term assets ($619.5M) exceed its short term liabilities ($85.7M).

Long Term Liabilities: RXRX's short term assets ($619.5M) exceed its long term liabilities ($155.0M).

Debt to Equity History and Analysis

Debt Level: RXRX has more cash than its total debt.

Reducing Debt: Insufficient data to determine if RXRX'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: RXRX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RXRX has sufficient cash runway for 2.5 years if free cash flow continues to reduce at historical rates of 37% each year.

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Dividend

What is Recursion Pharmaceuticals'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
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate RXRX'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 RXRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RXRX'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 RXRX has not reported any payouts.

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Management

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

2.3yrs

Average management tenure

CEO

Chris Gibson (38 yo)

8.58yrs

Tenure

US$673,591

Compensation

Dr. Christopher C. Gibson, also known as, Chris, Ph.D. is a Co-Founder of Recursion Pharmaceuticals Inc and serves as its Chief Executive Officer and Director since November 2013. Previously, Dr. Gibson wa...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD673.59K) is below average for companies of similar size in the US market ($USD5.50M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: RXRX's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: RXRX's board of directors are considered experienced (7.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31