One-glance verdict
Undervalued
$149.35 our estimate vs market $7.40
Wall Street consensus: $23.73 (-84.1% lower than our fair-value estimate)
95% below our estimate, below the bear case
Fundamentals snapshot
REGENXBIO Inc.
RGNX · NMS · Healthcare · Biotechnology
Current price
$7.40
52-week range
$5.46 - $16.19
Market cap
$488.50M
Balance sheet
Distressed
-3.58x Concerning
Net debt $144.94M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 2.4% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -137.6% last year — the company lost money on shareholders' equity.
What this company does
REGENXBIO Inc.
REGENXBIO is a biotech company that develops gene therapies, which are treatments designed to fix diseases caused by faulty genes. Because its own drugs are still in the clinical trial (the human testing phase required for approval) stage, the company currently makes its money by licensing (letting other companies pay to use) its core technology for their own research. This means the company's financial success is tied to these partnership payments and the future potential of its own drugs being approved for sale.
How the company got here
REGENXBIO was founded in 2008 to build a business around a new gene therapy technology developed at the University of Pennsylvania. This technology, called the NAV Technology Platform, provides a way to deliver healthy genes into cells to correct genetic defects. The company initially focused on licensing this platform to other biotech companies, which provided revenue (money earned from business activities) to fund its own drug development. A key turning point was its initial public offering (IPO) in 2015, which raised more money to develop its own pipeline (a set of products in development) of potential new medicines. A major partnership with the large pharmaceutical company AbbVie in 2021 to co-develop a treatment for eye diseases further solidified its strategy.
What it actually does
REGENXBIO is a biotechnology company working on a new type of medicine called gene therapy. Think of it like this: some diseases are caused by a faulty gene, which is like a typo in the body's instruction manual. REGENXBIO's technology uses a modified, harmless virus as a delivery truck to carry a correct copy of the gene into the body's cells. This allows the cells to start making the right protein they were missing, potentially treating the disease with a single dose. The company is developing these one-time treatments for serious genetic diseases, including those affecting the eyes, muscles, and nervous system.
Internal Product Pipeline
This is the company's own set of potential medicines that it is developing and testing in clinical trials (studies in humans to see if a treatment is safe and effective). These potential drugs target rare and serious diseases, such as Duchenne muscular dystrophy (a muscle-wasting disease) and various metabolic disorders. If one of these drugs is successful and gets approved by regulators, REGENXBIO will be responsible for selling it, sometimes with a partner. This part of the business represents a major area of spending on research and development but holds the potential for significant future revenue from product sales.
NAV Technology Platform Licensing
Besides developing its own drugs, REGENXBIO also makes money by licensing, or renting out, its core gene delivery technology to other pharmaceutical and biotech companies. These other companies pay REGENXBIO for the right to use its NAV Technology Platform to develop their own gene therapies for different diseases. This business line generates revenue through upfront fees, milestone payments (money paid when a research goal is met), and royalties (a percentage of sales if a partner's drug is successful). This provides a steady stream of income that helps fund the company's own, more expensive, drug development efforts.
What management is betting on now
Management is heavily focused on getting its most advanced potential drugs through the final stages of clinical trials and approved for sale. A top priority is a potential one-time treatment for eye diseases like wet age-related macular degeneration, which is being developed with its partner AbbVie. Another key bet is on a treatment for Duchenne muscular dystrophy, a rare muscle disease. The company is also investing in its own manufacturing capabilities to have more control over producing its complex gene therapies. Successfully launching these first few products is the central part of their strategy to transition from a research-focused company to a commercial one.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-40.88M
FY2024 Q4
$-32.70M
FY2025 Q1
$32.60M
FY2025 Q2
$-49.73M
FY2025 Q3
$-56.45M
FY2025 Q4
$-52.80M
FY2026 Q1
$-77.42M
FY2026 Q2
$-63.00M
Revenue
$108.02M
Net income
$22.71M
Diluted EPS
0.43
Operating cash flow
$-62.24M
Free cash flow
$-63.00M
Fetching…
Sources
Revenue
$6.39M
Net income
$-90.05M
Diluted EPS
-1.72
Operating cash flow
$-76.19M
Free cash flow
$-77.42M
Fetching…
Sources
Revenue
$30.34M
Net income
$-67.15M
Diluted EPS
-1.30
Operating cash flow
$-52.29M
Free cash flow
$-52.80M
Fetching…
Sources
Revenue
$29.73M
Net income
$-61.94M
Diluted EPS
-1.20
Operating cash flow
$-55.96M
Free cash flow
$-56.45M
Fetching…
Sources
Revenue
$21.36M
Net income
$-70.87M
Diluted EPS
-1.38
Operating cash flow
$-49.34M
Free cash flow
$-49.73M
Fetching…
Sources
Revenue
$89.01M
Net income
$6.08M
Diluted EPS
0.12
Operating cash flow
$33.63M
Free cash flow
$32.60M
Fetching…
Sources
Revenue
$21.21M
Net income
$-51.19M
Diluted EPS
-0.99
Operating cash flow
$-31.62M
Free cash flow
$-32.70M
Fetching…
Sources
Revenue
$24.20M
Net income
$-59.60M
Diluted EPS
-1.17
Operating cash flow
$-40.55M
Free cash flow
$-40.88M
Fetching…
Sources
Is it cheap or expensive?
Fair value $149.35 vs current price $7.40
Wall Street consensus is the average analyst price target: $23.73 (-84.1% lower than our fair-value estimate).
Our most-likely fair value is $149.35 a share — about 1,918.2% above today's price of $7.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $144.9M. Interest coverage -3.6x.
Net debt
$144.94M
Interest coverage
-3.58x
REGENXBIO Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
RGNX
BASELINE
REGENXBIO Inc.
Total debt $250.46M Interest coverage -3.58x This is the baseline the peer rows are being compared against.
Total debt $1.06B Interest coverage -17.25x Neither company has much profit cushion over interest right now.
Total debt $73.41M Interest coverage -15.10x Neither company has much profit cushion over interest right now.
What you should know
The case for and against RGNX
2 Rewards
1 Risk
Rewards
-
Revenue grew 2.4% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -137.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-2.46x
P/B
5.58x
P/S
2.80x
EV/EBITDA
-4.26x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-44.9%
Operating margin
27.1%
Net margin
-112.6%
ROE
-137.6%
ROA
-21.2%
Health
Liquidity and balance-sheet strength
Debt / equity
3.49x
Current ratio
2.86x
Quick ratio
2.70x
Total debt
$250.46M
Total cash
$105.52M
Growth
How the business has been compounding
Revenue TTM
$174.48M
Revenue 5Y CAGR
-22.4%
EPS TTM
-3.78
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-246.67M
Free CF TTM
$-126.38M
FCF margin
-72.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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