Revolution Medicines Inc. Common Stock (RVMD)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

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

I look for durable businesses with consistent earnings and a margin of safety. Revolution Medicines does not fit that mold today. It is a clinical-stage precision oncology company focused on RAS-addicted cancers, with 883 employees and a pipeline of RAS(ON) inhibitors. In fiscal year 2023, the year ended 2023-12-31, revenue was $11.6M, but more recent filed periods show revenue n/a. Losses are widening: in fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $644.4M and diluted EPS was $-3.06, compared with fiscal Q2 2025, the quarter ended 2025-06-30, when net loss was $247.8M and diluted EPS was $-1.31. In fiscal year 2025, the year ended 2025-12-31, net loss was $1.1B and diluted EPS was $-5.95, versus fiscal year 2024, the year ended 2024-12-31, when net loss was $600.1M and diluted EPS was $-3.58. FairStock calculations from the data show trailing free cash flow of $-1.6B and a FCF yield of -3.9%. At the 2026-10-13 close of $188.44, FairStock calculates P/E -21.22, P/B 15.50, ROE -79.09%, ROCE -30.12%, Piotroski F-Score 1/9, and a FairStock Score of 27/100. FairStock's Altman Z-Score is 13.85, suggesting low balance-sheet distress risk on that metric, and D/E is 0.46. The Lynch category is none because it lost money in each of the last four years. The potential moat would come from proprietary science and trial data, not current financials. Without revenue, profits, or positive cash flow, intrinsic value rests on future approvals. I see a speculative research bet, not a Graham-style bargain.

In plain English: Revolution Medicines is an early-stage drug company working on new treatments for cancers driven by RAS mutations. It currently has no meaningful revenue and is burning large amounts of cash, with losses growing in recent periods. At $188.44 a share, the market value looks very high relative to today's financial results, so the price looks expensive on current numbers even though future drug success could change that picture.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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