One-glance verdict
Undervalued
$140.34 our estimate vs market $48.79
Wall Street consensus: $63.00 (-55.1% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Rigel Pharmaceuticals, Inc.
RIGL · NMS · Healthcare · Biotechnology
Current price
$48.79
52-week range
$24.95 - $52.24
Market cap
$911.39M
Balance sheet
Healthy
17.14x Strong cushion
Net cash $55.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 126.9% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Reward Trades at 2.9x P/E vs peer median 9.1x (68.1% cheaper).
- Risk Forward P/E (9.9x) is higher than trailing (2.9x) - earnings are expected to drop.
What this company does
Rigel Pharmaceuticals, Inc.
Rigel Pharmaceuticals is a drug company that creates treatments for blood disorders and cancer, with its main products being TAVALISSE, REZLIDHIA, and GAVRETO. The money the company makes primarily comes from selling these prescription medicines, and understanding how well these drugs are selling is key to seeing if Rigel is growing and can continue to fund new research.
How the company got here
Rigel Pharmaceuticals was founded in 1996 with the goal of creating new medicines for serious diseases. For many years, the company focused on research and development, exploring different scientific approaches to find treatments. A key moment was the FDA approval of TAVALISSE, their first approved drug, which marked a significant step from a research-focused entity to a commercial one. This transition allowed them to bring their innovations to patients and begin generating revenue from their discoveries.
What it actually does
Rigel Pharmaceuticals is a biotechnology company, which means it uses living organisms or their components to develop medicines. They focus on creating treatments for blood disorders and cancer. Instead of making a physical product you'd find in a store, Rigel develops complex drugs, often pills or injections, that target specific mechanisms within the body to fight disease. These are typically prescribed by doctors and administered to patients under medical supervision.
TAVALISSE
TAVALISSE is a medication developed by Rigel for adults with chronic immune thrombocytopenia, a condition where the immune system mistakenly attacks and destroys platelets. It works by inhibiting a specific enzyme (spleen tyrosine kinase) involved in the disease process. This product represents Rigel's initial commercial success and is a primary revenue driver for the company, serving a specific patient population with a serious blood disorder.
REZLIDHIA
REZLIDHIA is a treatment for adults with relapsed or refractory acute myeloid leukemia (AML), a type of blood cancer, who have a specific genetic mutation (IDH1). It is designed as a monotherapy, meaning it's used on its own. This drug addresses a critical unmet need in a challenging cancer, expanding Rigel's portfolio into oncology and targeting a specific genetic marker for more precise treatment.
GAVRETO
GAVRETO is an oral medication used to treat certain types of non-small cell lung cancer (NSCLC) and thyroid cancer that have a specific genetic alteration called a RET fusion. It functions as a kinase inhibitor, blocking signals that cancer cells need to grow and spread. This product diversifies Rigel's offerings by targeting different cancer types and genetic drivers, further solidifying their presence in the oncology market.
Pipeline and Research (R289)
Rigel is also developing new potential treatments, such as R289, which is an inhibitor targeting IRAK1/4. This experimental drug is being investigated for use in hematology-oncology, autoimmune diseases, and inflammatory conditions, including lower-risk myelodysplastic syndrome. This represents Rigel's ongoing commitment to research and development, aiming to discover and advance future therapies beyond their currently approved products.
What management is betting on now
Rigel's management is focused on maximizing the commercial potential of their approved therapies, TAVALISSE, REZLIDHIA, and GAVRETO, by reaching more eligible patients. They are also investing in clinical trials to explore new uses for these drugs and to advance their pipeline candidates, like R289, into later stages of development. The company is strategically collaborating with research institutions to accelerate the development of new treatments, particularly in areas like acute myeloid leukemia with specific mutations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$78.70M
Net income
$17.29M
Diluted EPS
0.88
Operating cash flow
$30.65M
Free cash flow
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Sources
Revenue
$58.82M
Net income
$8.65M
Diluted EPS
0.44
Operating cash flow
$2.73M
Free cash flow
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Sources
Revenue
$69.80M
Net income
$268.06M
Diluted EPS
14.11
Operating cash flow
$21.98M
Free cash flow
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Revenue
$69.46M
Net income
$27.90M
Diluted EPS
1.46
Operating cash flow
$24.03M
Free cash flow
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Revenue
$101.69M
Net income
$59.61M
Diluted EPS
3.28
Operating cash flow
$30.54M
Free cash flow
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Revenue
$53.33M
Net income
$11.45M
Diluted EPS
0.63
Operating cash flow
$-893.00K
Free cash flow
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Revenue
$57.60M
Net income
$14.34M
Diluted EPS
0.40
Operating cash flow
$14.50M
Free cash flow
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Revenue
$55.31M
Net income
$12.42M
Diluted EPS
0.70
Operating cash flow
$21.68M
Free cash flow
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Is it cheap or expensive?
Fair value $140.34 vs current price $48.79
Wall Street consensus is the average analyst price target: $63.00 (-55.1% lower than our fair-value estimate).
Our most-likely fair value is $140.34 a share — about 187.6% above today's price of $48.79, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $55.4M - more cash than debt. Interest coverage 17.1x.
Net debt
$-55.38M
Interest coverage
17.14x
Rigel Pharmaceuticals, Inc.'s profit covers its interest bill about 17.1 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RIGL
BASELINE
Rigel Pharmaceuticals, Inc.
Total debt $39.95M Interest coverage 17.14x This is the baseline the peer rows are being compared against.
Total debt $4.09M Interest coverage -11.69x -100% vs RIGL This peer has almost no interest-payment cushion compared with RIGL.
Total debt $73.85M Interest coverage 3.30x -81% vs RIGL Carries about 5.2x less debt cushion than RIGL.
Total debt $278.20M Interest coverage -6.38x -100% vs RIGL This peer has almost no interest-payment cushion compared with RIGL.
Total debt $836.64M Interest coverage 4.32x -75% vs RIGL Carries about 4.0x less debt cushion than RIGL.
What you should know
The case for and against RIGL
3 Rewards
1 Risk
Rewards
-
Returns 126.9% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 2/10 years.
-
Trades at 2.9x P/E vs peer median 9.1x (68.1% cheaper).
Risks
-
Forward P/E (9.9x) is higher than trailing (2.9x) - earnings are expected to drop.
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)
2.89x
Forward P/E
9.88x
P/B
2.14x
P/S
3.29x
EV/EBITDA
9.40x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
75.6%
Operating margin
30.0%
Net margin
116.3%
ROE
126.9%
ROA
15.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
1.94x
Quick ratio
1.58x
Total debt
$39.95M
Total cash
$95.33M
Growth
How the business has been compounding
Revenue TTM
$276.79M
Revenue 5Y CAGR
18.5%
EPS TTM
16.88
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$79.39M
Free CF TTM
$75.66M
FCF margin
27.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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