Rafael Holdings Inc. Class B Common Stock (RFL)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a business with durable earning power and a margin of safety. Rafael Holdings does not show that today. The company is mostly a holding vehicle for clinical and early-stage pharmaceutical and medical-device interests, plus real estate, with only 21 employees. In fiscal Q3 2026, the quarter ended 2026-04-30, it reported revenue of $179,000 and a net loss of $4.2 million, or diluted EPS of -$0.08. That follows fiscal Q2 2026, the quarter ended 2026-01-31, with revenue of $211,000 and net loss of $6.4 million, and fiscal Q1 2026, the quarter ended 2025-10-31, with revenue of $240,000 and net loss of $9.8 million. On a filed annual basis, revenue fell from $637,000 in fiscal 2024, the year ended 2024-07-31, to $30,000 in fiscal 2025, the year ended 2025-07-31, while net loss was $30.5 million. The latest quarters show a narrowing loss, but the revenue base is negligible. Free cash flow was -$24.8 million over the trailing twelve months, a -32.5% FCF yield on the $76.3 million market cap. The FairStock P/B is 1.03, P/E is -2.07, ROE is -37.59%, ROCE is -22.77%, Piotroski is 4/9, Altman Z-Score is 0.31, and the FairStock Score is 53/100. Debt is low with D/E of 0.01, which helps, but low debt alone is not a moat. The Lynch framework finds no category because of losses in each of the last four years. The stock at $1.49 on 2026-10-13 trades near book value, but book value here is tied to uncertain drug and real estate assets. I see no margin of safety from earnings, and the clinical pipeline must prove itself before the business can be judged on profits.

In plain English: Rafael Holdings is a small company that mostly invests in early-stage drug and medical-device businesses, with a real estate segment. Its revenue is tiny, it has been losing money, and it burned cash over the last year. At the 2026-10-13 close of $1.49, the stock is not clearly cheap on earnings because there are no earnings, though it trades around its accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-30) · fiscal Q2 2026 10-Q (period ended 2026-01-31) · fiscal Q1 2026 10-Q (period ended 2025-10-31) · fiscal Q4 2025 10-K (period ended 2025-07-31) · FY2025 10-K (period ended 2025-07-31) · FY2024 10-K (period ended 2024-07-31) · FY2023 10-K/A (period ended 2023-07-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer