Recent News
On October 16, 2025 the company received a Commissioner’s National Priority Voucher for daraxonrasib (RMC-6236); on November 5, 2025 Revolution Medicines reported third-quarter 2025 results and confirmed daraxonrasib’s Phase 3 programs (RASolute 302 winding down enrollment; RASolute 303 and 304 progressing), noting Breakthrough Therapy and Orphan Drug designations; on December 18, 2025 the first patient randomized in RASolute 304, the Phase 3 adjuvant trial in resectable PDAC.
Technical Analysis
ADX / DI+ / DI-: ADX at 51.11 indicates a very strong trend; simultaneous DI+ decreasing and DI- increasing point to a shift toward downside pressure despite the strong trend, which raises the probability that recent gains may consolidate or retrace relative to the current valuation.
MACD: MACD sits at 3.54 while the signal line reads 4.34 and the MACD trend shows decreasing momentum; the MACD trading below its signal line signals waning bullish momentum and reinforces the near-term bias toward consolidation or pullback.
MRO (Momentum/Regression Oscillator): MRO at 38.06 with a peak-and-reversal pattern indicates price currently above model target and suggests measurable downside potential as momentum reverts toward target levels.
RSI: RSI at 72.48 with a decreasing trend shows the security moved into overbought territory and has begun to lose upward momentum, consistent with the MACD and MRO signals pointing to near-term vulnerability.
Price vs Moving Averages & Support: Last close $78.78 trades above the 20-day average ($78.02), 50-day average ($66.14) and 200-day average ($45.86), reflecting sustained multi-horizon strength; however, the 12-day EMA shows a peak-and-reversal and the super trend lower at $74.29 provides the immediate technical support level to watch for consolidation relative to valuation.
Bollinger Bands & Volatility: Price sits near the upper 1x standard-deviation band ($79.52) with 20-day standard deviation $1.50, indicating compressed volatility near the recent highs and elevated probability of a short-term reversion toward the band center.
Ichimoku: Tenkan-Sen above Kijun-Sen and price above the cloud (Senkou A $56.09, Senkou B $49.38) preserves a constructive intermediate bias, but the combination of overbought RSI, decreasing MACD, and ADX-driven trend strength suggests any pullback could remain within an overall higher base rather than signaling a trend reversal.
Fundamental Analysis
Earnings and Guidance Figures: Reported EPS of -$1.61 missed the estimate of -$1.41 by -$0.20, an EPS surprise ratio of -14.18%. Forward EPS stands at -$1.568, producing a forward PE of -39.82 and a trailing PE of -29.48; negative earnings drive distorted multiples and limit standard PE interpretations for near-term valuation.
Profitability & Returns: Net income for the period registers -$305,206,000; return on assets equals -13.04% and return on equity equals -19.11%, both reflecting the company’s clinical-stage cost structure and ongoing R&D investment. QoQ and YoY earnings growth read as 43.769% QoQ and 42.694% YoY when expressed as percentages (earningsGrowthQoQ 0.43769; earningsGrowthYoY 0.42694), indicating improvement from recent prior periods.
Cash, Liquidity, and Capital Structure: Cash and short-term investments total $1,931,508,000 with cash $217,442,000; current ratio equals 8.05, providing a substantial near-term liquidity cushion. Total debt stands at $158,461,000 with debt-to-assets of 7.04% and debt-to-equity of 9.92%, which presents a conservative leverage profile relative to the company’s cash runway and planned pivotal programs.
R&D and Cash Flow: Research and development expense totals $262,506,000. Operating cash flow at -$282,780,000 and free cash flow at -$210,660,000 reflect investment in trials; free cash flow yield of -2.34% highlights negative free cash conversion while free cash to net income equals 69.02%.
Valuation Context vs Industry Peers: Price-to-book ratio at 5.64 sits below the industry peer mean of 6.98 and slightly above the industry peer median of 5.93, placing the company inside the industry peer range but nearer the median. Debt-to-assets at 7.04% falls below the industry peer mean of 21.41% and inside the lower end of the industry peer range. Return on assets at -13.04% lies belowthe industry peer mean of -2.175% (negative two-point-one-seven-five percent) and below the industry peer median of 0.383%, indicating materially weaker asset returns compared with peers. WMDST values the stock as under-valued, reflecting the pipeline progress and large cash balance adjusted for negative earnings and cash burn from clinical programs.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 406.4 M |
| Operating Cash Flow | $ -282.78 M | |
| Capital Expenditures | $ -3.35 M | |
| Change In Working Capital | $ 56.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -184.05 M | |
| End Period Cash Flow | $ 222.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | — | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 4.1 M | |
| Depreciation and Amortization | $ 4.3 M | |
| Research and Development | $ 262.5 M | |
| Total Operating Expenses | $ 315.3 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | $ -289.44 M | |
| EBIT | $ -293.78 M | |
| Operating Income | $ -315.27 M | |
| Interest Income | $ 22.1 M | |
| Interest Expense | $ 11.4 M | |
| Net Interest Income | $ 10.7 M | |
| Income Before Tax | $ -305.21 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ -305.21 M | |
| Net Income From Continuing Operations | $ -305.21 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.41 | |
| EPS Actual | $ -1.61 | |
| EPS Difference | $ -0.20 | |
| EPS Surprise | -14.184 % | |
| Forward EPS | $ -1.57 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.3 B | |
| Intangible Assets | $ 70.5 M | |
| Net Tangible Assets | $ 1.5 B | |
| Total Current Assets | $ 2.0 B | |
| Cash and Short-Term Investments | $ 1.9 B | |
| Cash | $ 217.4 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 19.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 74.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 245.6 M | |
| Net Debt | — | |
| Total Debt | $ 158.5 M | |
| Total Liabilities | $ 655.0 M | |
| EQUITY | ||
| Total Equity | $ 1.6 B | |
| Retained Earnings | $ -2.50 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.42 | |
| Shares Outstanding | 189.711 M | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | $ 9.0 B |
| Enterprise Value | $ 7.2 B | |
| Enterprise Multiple | -24.98 | |
| Enterprise Multiple QoQ | 29.5 % | |
| Enterprise Multiple YoY | -31.633 % | |
| Enterprise Multiple IPRWA | high: 52.77 median: 26.559 mean: 4.047 RVMD: -24.98 low: -81.356 |
|
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.41 | |
| Asset To Liability | 3.438 | |
| Debt To Capital | 0.09 | |
| Debt To Assets | 0.07 | |
| Debt To Assets QoQ | 28.765 % | |
| Debt To Assets YoY | 1378.361 % | |
| Debt To Assets IPRWA | high: 1.045 mean: 0.214 median: 0.075 RVMD: 0.07 low: 0.0 |
|
| Debt To Equity | 0.099 | |
| Debt To Equity QoQ | 39.388 % | |
| Debt To Equity YoY | 1751.306 % | |
| Debt To Equity IPRWA | high: 1.395 mean: 0.194 RVMD: 0.099 median: 0.09 low: -0.869 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.638 | |
| Price To Book QoQ | 49.446 % | |
| Price To Book YoY | 12.406 % | |
| Price To Book IPRWA | high: 17.968 mean: 6.981 median: 5.933 RVMD: 5.638 low: -8.555 |
|
| Price To Earnings (P/E) | -29.477 | |
| Price To Earnings QoQ | 0.501 % | |
| Price To Earnings YoY | -40.836 % | |
| Price To Earnings IPRWA | high: 56.753 mean: -3.484 median: -10.347 RVMD: -29.477 low: -93.179 |
|
| PE/G Ratio | -1.287 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | -39.819 | |
| Forward PE/G | -1.739 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | — | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 520.898 median: 189.366 mean: 166.152 RVMD: 0 low: -314.885 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | -0.823 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.6 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 1.5 B | |
| Net Working Capital | $ 1.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 7.864 | |
| Current Ratio | 8.051 | |
| Current Ratio QoQ | -31.738 % | |
| Current Ratio YoY | -43.479 % | |
| Current Ratio IPRWA | high: 25.502 RVMD: 8.051 mean: 4.359 median: 3.195 low: 0.02 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -0.547 | |
| Cost Of Debt | 7.817 % | |
| Interest Coverage Ratio | -25.707 | |
| Interest Coverage Ratio QoQ | -9.793 % | |
| Interest Coverage Ratio YoY | 35.899 % | |
| Interest Coverage Ratio IPRWA | high: 815.709 mean: 40.499 median: 4.855 RVMD: -25.707 low: -1538.4 |
|
| Operating Cash Flow Ratio | -1.151 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -7.312 % | |
| Revenue Growth | — | |
| Revenue Growth QoQ | — | |
| Revenue Growth YoY | — | |
| Revenue Growth IPRWA | — | |
| Earnings Growth | 22.901 % | |
| Earnings Growth QoQ | 43.769 % | |
| Earnings Growth YoY | 42.694 % | |
| Earnings Growth IPRWA | high: 162.5 % RVMD: 22.901 % median: -6.452 % mean: -13.514 % low: -198.545 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -210.66 M | |
| Free Cash Flow Yield | -2.34 % | |
| Free Cash Flow Yield QoQ | -28.155 % | |
| Free Cash Flow Yield YoY | 37.243 % | |
| Free Cash Flow Yield IPRWA | high: 30.655 % median: 0.768 % mean: 0.328 % RVMD: -2.34 % low: -57.887 % |
|
| Free Cash Growth | -8.092 % | |
| Free Cash Growth QoQ | -150.778 % | |
| Free Cash Growth YoY | -413.279 % | |
| Free Cash Growth IPRWA | high: 199.867 % mean: 28.142 % median: 21.696 % RVMD: -8.092 % low: -198.468 % |
|
| Free Cash To Net Income | 0.69 | |
| Cash Flow Margin | — | |
| Cash Flow To Earnings | 0.927 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | -13.039 % | |
| Return On Assets QoQ | 26.164 % | |
| Return On Assets YoY | 48.983 % | |
| Return On Assets IPRWA | high: 30.5 % median: 0.383 % mean: -2.175 % RVMD: -13.039 % low: -66.968 % |
|
| Return On Capital Employed (ROCE) | -14.643 % | |
| Return On Equity (ROE) | -0.191 | |
| Return On Equity QoQ | 43.872 % | |
| Return On Equity YoY | 91.541 % | |
| Return On Equity IPRWA | high: 0.948 median: -0.0 mean: -0.004 RVMD: -0.191 low: -1.385 |
|
| DuPont ROE | — | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |