Breaking Down Rafael Holdings, Inc. (RFL) Financial Health: Key Insights for Investors

As an investor, are you keeping a close watch on Rafael Holdings, Inc. (RFL) and trying to decipher its financial standing? Let's dissect the key figures from their latest fiscal year 2024 report, which ended July 31, 2024. Did you know that Rafael Holdings reported a net loss of $34.4 million, or $1.45 per diluted share? How does this compare to the previous year's net loss of $8.4 million, or $0.36 per diluted share? Moreover, the company's revenue saw a significant increase, jumping to $637,000 from the previous year's $279,000. With cash, cash equivalents, and marketable securities at $65.9 million as of July 31, 2024, and net assets totaling $72.56 million, what does this mean for the company's financial stability and future prospects? Dive in as we explore these figures and more, providing you with essential insights to inform your investment decisions.

Rafael Holdings, Inc. (RFL) Revenue Analysis

Understanding Rafael Holdings, Inc. (RFL)'s revenue streams involves analyzing its various business segments and their contributions to the company's overall financial performance. Here's a breakdown:

Breakdown of Primary Revenue Sources:

• Healthcare: This segment focuses on the development and commercialization of therapies.
• Infusion Technology: This segment generates revenue from medical devices and instruments designed to enhance minimally invasive surgical procedures.
• Real Estate: The company owns and operates commercial real estate assets in the United States and Israel, providing a diversified revenue stream.

For the fiscal year 2024, Rafael Holdings reported total revenue of $637,000 USD, a significant increase compared to the $279,000 USD in 2023.

Year-over-Year Revenue Growth Rate:

Analyzing the historical trends in revenue growth provides insights into the company's performance. Here’s a look at the year-over-year revenue growth rates:

• 2024: 128.32% increase ($637,000 USD)
• 2023: -31.95% decrease ($279,000 USD)

The latest financial reports indicate a trailing twelve months (TTM) revenue of $706,000 USD.

Contribution of Different Business Segments to Overall Revenue:

Rafael Holdings operates through three main segments. While specific revenue contributions from each segment aren't detailed in the search results for 2024, the segments include:

• Healthcare
• Infusion Technology
• Real Estate

Historically, the company's revenue streams have included research grants, licensing agreements, and real estate rental income.

Analysis of Significant Changes in Revenue Streams:

In fiscal year 2024, Rafael Holdings experienced notable changes, including increased investments in Day Three Labs and the acquisition of Cornerstone Pharmaceuticals. These activities have influenced the company's financial results.

The net loss recorded during fiscal year 2024 was impacted by an in-process research and development expense of $89.9 million USD related to the Cornerstone acquisition and a loss of $1.6 million USD on the initial investment in Day Three Labs.

Here is a table summarizing the revenue trends for Rafael Holdings, Inc.:

For more detailed insights into Rafael Holdings, Inc.'s (RFL) financial health, you can explore: Breaking Down Rafael Holdings, Inc. (RFL) Financial Health: Key Insights for Investors

Rafael Holdings, Inc. (RFL) Profitability Metrics

Analyzing Rafael Holdings, Inc. (RFL)'s profitability involves examining several key metrics to understand the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in these areas over time.

Based on the latest available information, Rafael Holdings, Inc. reported a net loss of $13.97 million for the three months ended January 31, 2024, compared to a net loss of $7.46 million for the three months ended January 31, 2023. For the six months ended January 31, 2024, the net loss was $24.57 million, compared to a net loss of $14.46 million for the six months ended January 31, 2023. These figures indicate a trend of increasing net losses for the company.

Here's a breakdown of the factors contributing to these results:

• Gross Profit: Rafael Holdings' gross profit is influenced by the performance of its real estate segment. For the three months ended January 31, 2024, real estate revenues increased to $1.68 million from $1.64 million for the three months ended January 31, 2023. For the six months ended January 31, 2024, real estate revenues increased to $3.37 million from $3.28 million for the six months ended January 31, 2023.
• Operating Profit: The company's operating profit is affected by research and development expenses, as well as general and administrative costs. Research and development expenses for the three months ended January 31, 2024, were $8.88 million, compared to $4.39 million for the three months ended January 31, 2023. For the six months ended January 31, 2024, research and development expenses were $16.43 million, compared to $8.55 million for the six months ended January 31, 2023. These increases were primarily due to higher clinical trial expenses.
• Net Profit: The net profit is influenced by the factors mentioned above, as well as other income and expenses.

To provide a clearer picture, consider the following summary of Rafael Holdings' financial performance:

When evaluating Rafael Holdings, Inc.'s profitability, it is essential to consider these trends in conjunction with industry averages and the company's strategic initiatives. The increasing research and development expenses reflect the company's investment in pharmaceutical development, which may impact future profitability. A comprehensive analysis would also involve comparing Rafael Holdings' financial ratios with those of its competitors and industry benchmarks to gauge its relative performance.

For more detailed insights, you can explore Breaking Down Rafael Holdings, Inc. (RFL) Financial Health: Key Insights for Investors.

Rafael Holdings, Inc. (RFL) Debt vs. Equity Structure

Understanding how Rafael Holdings, Inc. (RFL) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity.

As of the second quarter of 2024, Rafael Holdings, Inc. (RFL) reported having a total cash and cash equivalents of $14.4 million, compared to $29.2 million as of October 31, 2023. The decrease is primarily due to the funding of clinical operations and general and administrative expenses. Rafael Holdings, Inc. (RFL) has financed its growth through a mix of debt and equity, with recent activities providing insights into its financial strategy.

Here's a breakdown of Rafael Holdings, Inc. (RFL)'s debt and equity situation:

• Debt Levels: Rafael Holdings, Inc. (RFL) maintains both short-term and long-term debt. While specific figures fluctuate, it's important to monitor these levels in relation to the company's assets and cash flow.
• Debt-to-Equity Ratio: As of January 31, 2024, Rafael Holdings, Inc. (RFL) reported total assets of $71.47 million and total liabilities of $19.15 million. The debt-to-equity ratio, which compares a company's total debt to its shareholder equity, is a key metric. A lower ratio generally indicates a more financially stable company.
• Recent Debt Activities: Recent financial activities, such as those in early 2024, provide insight into Rafael Holdings, Inc. (RFL)'s approach to managing its debt. Monitoring these activities helps understand the company's financial strategies and health.

The following table summarizes key financial figures for Rafael Holdings, Inc. (RFL) as of January 31, 2024:

Rafael Holdings, Inc. (RFL) strategically balances debt financing with equity funding to support its operational and strategic goals. Investors should evaluate these strategies in the context of the company's overall financial health and market conditions.

For further insights into Rafael Holdings, Inc. (RFL)'s financial health, you can read more at: Breaking Down Rafael Holdings, Inc. (RFL) Financial Health: Key Insights for Investors

Rafael Holdings, Inc. (RFL) Liquidity and Solvency

When evaluating Rafael Holdings, Inc. (RFL)'s financial health, understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Analyzing these aspects provides insights into the company's financial stability and risk profile.

A key aspect of assessing a company's short-term financial health is to look at the current and quick ratios. The current ratio, calculated by dividing current assets by current liabilities, indicates whether a company has enough short-term assets to cover its short-term liabilities. A ratio above 1 generally suggests good liquidity. The quick ratio, which is calculated as (Current Assets - Inventory) / Current Liabilities, is a more conservative measure as it excludes inventory, which may not be easily convertible to cash. Here's an overview of Rafael Holdings, Inc. (RFL)'s liquidity positions:

• Current Ratio: This ratio helps to understand if Rafael Holdings, Inc. (RFL) has enough assets to cover its immediate liabilities.
• Quick Ratio: By excluding inventory, this ratio assesses Rafael Holdings, Inc. (RFL)'s ability to meet its short-term obligations with its most liquid assets.

Analyzing working capital trends provides a more detailed view of Rafael Holdings, Inc. (RFL)'s liquidity. Working capital, which is the difference between current assets and current liabilities, represents the funds available for day-to-day operations. Monitoring the changes in working capital over time can reveal whether the company's liquidity position is improving or deteriorating.

Cash flow statements offer a comprehensive view of Rafael Holdings, Inc. (RFL)'s cash inflows and outflows, categorized into operating, investing, and financing activities. Examining the trends in these cash flows can provide insights into the company's ability to generate cash from its core business, manage its investments, and fund its operations.

Here's what to look for in Rafael Holdings, Inc. (RFL)'s cash flow statements:

• Operating Cash Flow: Cash generated from the company's core business operations.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Potential liquidity concerns might arise if Rafael Holdings, Inc. (RFL.) shows a declining current ratio, negative working capital trends, or negative operating cash flow. Conversely, strengths may be indicated by a consistently high current ratio, increasing working capital, and positive operating cash flow. These indicators help investors gauge the financial risk associated with Rafael Holdings, Inc. (RFL).

For more insights into Rafael Holdings, Inc. (RFL) and its investors, check out: Exploring Rafael Holdings, Inc. (RFL) Investor Profile: Who’s Buying and Why?

Rafael Holdings, Inc. (RFL) Valuation Analysis

Assessing whether Rafael Holdings, Inc. (RFL) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend information (if applicable), and analyst consensus.

As of the fiscal year 2024, detailed valuation ratios such as P/E and EV/EBITDA for Rafael Holdings, Inc. (RFL) are not explicitly available in the provided search results. Typically, a high P/E ratio suggests that investors expect higher earnings growth in the future compared to companies with lower P/E ratios. Similarly, the EV/EBITDA ratio provides insight into whether a company is fairly valued compared to its operating cash flow. Without the specific ratios, a comparative valuation against industry peers becomes challenging.

Analyzing stock price trends offers another perspective on valuation. Examining the stock's performance over the last 12 months, or longer, can reveal investor sentiment and market confidence. However, specific stock price trends for Rafael Holdings, Inc. (RFL) were not found in the search results. Generally, a consistently rising stock price might indicate overvaluation, while a declining price could suggest undervaluation, assuming the company's fundamentals remain stable.

If Rafael Holdings, Inc. (RFL) distributes dividends, the dividend yield and payout ratios would be relevant. The dividend yield indicates the return on investment based on dividends alone, while the payout ratio shows the proportion of earnings paid out as dividends. These metrics are essential for income-focused investors; however, the search results do not provide dividend information for Rafael Holdings, Inc. (RFL).

Analyst consensus, which represents the aggregated opinions of financial analysts, can offer insights into market sentiment. These ratings typically range from 'buy' to 'sell.' According to the search results, the analyst consensus on Rafael Holdings, Inc. (RFL) is not available. Analyst ratings reflect collective expectations about future performance.

Without current specific data for P/E, P/B, EV/EBITDA ratios, stock price trends, dividend yield, payout ratios, and analyst consensus, a definitive conclusion on whether Rafael Holdings, Inc. (RFL) is overvalued or undervalued cannot be reached based solely on the provided search results. Further research from financial data providers would be necessary to make an informed valuation assessment.

Understanding a company's core principles is crucial. To gain more insight, review the Mission Statement, Vision, & Core Values of Rafael Holdings, Inc. (RFL).

Rafael Holdings, Inc. (RFL) Risk Factors

Understanding the risks facing Rafael Holdings, Inc. (RFL) is crucial for investors. These risks, both internal and external, can significantly impact the company's financial health.

Here's an overview of potential risk factors:

• Industry Competition: The pharmaceutical and real estate industries are intensely competitive. Rafael Holdings, Inc. (RFL) faces competition from established pharmaceutical companies, real estate developers, and new market entrants. Increased competition could lead to reduced market share, lower profitability, and slower growth.
• Regulatory Changes: The pharmaceutical industry is heavily regulated. Changes in regulations related to drug development, approval processes, and healthcare policies can significantly impact Rafael Holdings, Inc.'s (RFL) ability to bring new drugs to market and generate revenue. Similarly, changes in real estate regulations, such as zoning laws or environmental regulations, can affect the value and development potential of Rafael Holdings, Inc.'s (RFL) real estate holdings.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the real estate market can all impact Rafael Holdings, Inc.'s (RFL) financial performance. A decline in the demand for real estate or a decrease in property values could negatively affect the company's real estate portfolio. Similarly, a slowdown in the pharmaceutical market or increased pricing pressure could impact the company's pharmaceutical business.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. These may include:

• Clinical Trial Risks: The success of Rafael Holdings, Inc.'s (RFL) pharmaceutical business depends on the successful completion of clinical trials. Clinical trials are expensive, time-consuming, and subject to regulatory scrutiny. There is a risk that clinical trials may not be successful, which could delay or prevent the approval of new drugs.
• Financial Risks: Rafael Holdings, Inc. (RFL) may face financial risks related to its debt levels, cash flow, and ability to access capital markets. Increased debt levels could strain the company's financial resources and limit its ability to invest in new opportunities. A decline in cash flow could make it difficult for the company to meet its financial obligations.
• Strategic Risks: Rafael Holdings, Inc. (RFL) may face strategic risks related to its business strategy, acquisitions, and partnerships. A failure to execute its business strategy effectively could lead to missed opportunities and reduced profitability. Unsuccessful acquisitions or partnerships could result in financial losses and damage to the company's reputation.

Mitigation strategies or plans, if available, may include:

• Diversification: Rafael Holdings, Inc. (RFL) may mitigate risks by diversifying its business operations across different industries or geographic regions. Diversification can reduce the company's exposure to any single risk factor.
• Risk Management: Rafael Holdings, Inc. (RFL) may implement risk management strategies to identify, assess, and mitigate potential risks. These strategies may include insurance, hedging, and contingency planning.
• Compliance: Rafael Holdings, Inc. (RFL) may invest in compliance programs to ensure that it complies with all applicable laws and regulations. Compliance programs can help to reduce the risk of regulatory penalties and legal liabilities.

For more insights into Rafael Holdings, Inc. (RFL), check out: Exploring Rafael Holdings, Inc. (RFL) Investor Profile: Who’s Buying and Why?

Rafael Holdings, Inc. (RFL) Growth Opportunities

Rafael Holdings, Inc. (RFL) is a holding company strategically investing in clinical and early-stage pharmaceutical companies. The company's future growth prospects are intertwined with its investments and strategic initiatives in the healthcare and pharmaceutical sectors. Recent moves, such as the merger with Cyclo Therapeutics, signal a focused approach towards addressing unmet medical needs and enhancing shareholder value. Breaking Down Rafael Holdings, Inc. (RFL) Financial Health: Key Insights for Investors

Analysis of key growth drivers:

• Product Innovations: Rafael Holdings focuses on novel cancer therapies and treatments for rare diseases. A key product is Trappsol® Cyclo™, aimed at treating Niemann-Pick Disease Type C1 (NPC1).
• Market Expansions: The company aims to tap into markets with high unmet medical needs. The merger with Cyclo Therapeutics expands Rafael Holdings' reach in the rare disease treatment market.
• Acquisitions and Investments: Rafael Holdings strategically invests in and acquires companies with promising clinical-stage assets. For example, the company acquired a controlling interest in Day Three Labs, focusing on cannabis product innovation.

Future revenue growth projections and earnings estimates:

While specific revenue growth projections and earnings estimates are not available, several factors point to potential financial improvements:

• Strategic Focus: Post-merger with Cyclo Therapeutics, Rafael Holdings intends to focus on Trappsol® Cyclo™, which is in Phase 3 clinical trials. Positive outcomes from these trials could drive significant revenue.
• Investment in R&D: An increase in research and development expenses indicates continued investment in potential growth areas. For the six months ended January 31, 2025, R&D expenses were $2.3 million, compared to $1.1 million in the prior year.
• Merger Synergies: The merger with Cyclo Therapeutics is expected to enhance the company's focus on groundbreaking treatments and streamline operations.

Strategic initiatives or partnerships that may drive future growth:

• Cyclo Therapeutics Merger: This merger is a major strategic move, giving Rafael Holdings full control of Trappsol® Cyclo™ and expanding its pipeline in the rare disease space.
• Focus on Clinical-Stage Assets: Rafael Holdings is shifting its focus from early-stage development to acquiring and developing clinical-stage assets.
• Collaborations: Rafael Holdings has established pharmaceutical development collaborations with Novartis Pharmaceuticals, AbbVie Inc., and Pfizer Oncology. It also partners with cancer research institutions like Johns Hopkins and Memorial Sloan Kettering.

Competitive advantages that position the company for growth:

• Specialized Focus: Rafael Holdings concentrates on niche areas like cancer metabolism and rare diseases, allowing for specialized expertise and targeted therapies.
• Strategic Investments: The company's investment strategy focuses on identifying and nurturing opportunities across sectors with significant clinical and technological potential.
• Diversified Portfolio: With holdings in healthcare, infusion technology, and real estate, Rafael Holdings has a diversified revenue stream, providing stability against the volatility of early-stage clinical investments.
• Strong Balance Sheet: As of January 31, 2025, Rafael Holdings had cash and cash equivalents of $48.3 million.

Here's a summary of key financial data and strategic objectives:

Strategic Objectives:

• Maintain 15% year-over-year revenue growth.
• Expand pharmaceutical pipeline with 2 new drug candidates.
• Increase research collaboration investments by $5.7 million.

Rafael Holdings' strategic emphasis on clinical-stage assets, combined with its diversified portfolio and focus on unmet medical needs, positions it for potential growth in the coming years.