RXRXRXRX
US • —
$3.67
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+11.1% YoY
Gross Margin
7.2%
Health Score
5/10
D/E Ratio
0.02
Confidence
LOW
Business Snapshot
Recursion Pharmaceuticals (RXRX) is a clinical-stage biotechnology company leveraging artificial intelligence and machine learning to discover and develop therapies, primarily in oncology and rare diseases. It operates within the highly competitive AI-driven drug discovery sector, positioning itself as a technology-first challenger to traditional pharmaceutical R&D models. The company falls within the small-cap tier, though specific market capitalisation and trailing twelve-month revenue figures are not available for this analysis. A defining characteristic is its TechBio approach, aiming to compress the traditional drug discovery timeline through its proprietary platforms. The company's financial profile remains pre-profitability, as indicated by a negative return on equity of -54.3%.
Financial Health
Gross margin stands at a low 7.2%, and year-over-year margin trends cannot be assessed due to missing prior-year data. The company carries a negligible debt-to-equity ratio of 0.02x alongside a strong current ratio of 5.5x, indicating a fortress-like balance sheet with ample short-term liquidity and minimal leverage...
Risk Assessment
- EARNINGS QUALITY — The company reported a net margin of -842.9%, which is flagged as a potential data error or extreme non-operating event, making an assessment of underlying earnings quality unreliable.
- VALUATION — Price/Sales of 29.33x relative to the sector average P/E of 22x (a benchmark for profitable peers) suggests the market is pricing in a very high level of future revenue growth and profitability for a pre-clinical-stage company.
- PROFITABILITY — Return on equity of -54.3% confirms significant value destruction at the current stage, as the company is burning shareholder capital to fund operations.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DATA COMPLETENESS — Core fundamental data points (P/E, Revenue, FCF) are missing, creating a 'fundamental data vacuum' that significantly increases analytical risk....
Gross margin stands at a low 7.2%, and year-over-year margin trends cannot be assessed due to missing prior-year data. The company carries a negligible debt-to-equity ratio of 0.02x alongside a strong current ratio of 5.5x, indicating a fortress-like balance sheet with ample short-term liquidity and minimal leverage. However, the business is deeply unprofitable, evidenced by a negative return on equity of -54.3% and a net margin of -842.9% — note this figure may be distorted due to a one-time item or data anomaly. Free cash flow and FCF yield data are unavailable, preventing a direct assessment of cash burn rate. While the company has no debt risk, the combination of negative profitability and an unclear cash-burn trajectory suggests significant reliance on equity financing, posing a risk of future dilution for shareholders.
- EARNINGS QUALITY — The company reported a net margin of -842.9%, which is flagged as a potential data error or extreme non-operating event, making an assessment of underlying earnings quality unreliable. - VALUATION — Price/Sales of 29.33x relative to the sector average P/E of 22x (a benchmark for profitable peers) suggests the market is pricing in a very high level of future revenue growth and profitability for a pre-clinical-stage company. - PROFITABILITY — Return on equity of -54.3% confirms significant value destruction at the current stage, as the company is burning shareholder capital to fund operations. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DATA COMPLETENESS — Core fundamental data points (P/E, Revenue, FCF) are missing, creating a 'fundamental data vacuum' that significantly increases analytical risk.
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