Long-established in the Biotechnology industry, Moderna Inc (MRNA, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 0.82%, juxtaposed with a three-month change of -16.54%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Moderna Inc.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 3/10
- Growth rank: 7/10
- GF Value rank: 3/10
- Momentum rank: 2/10
Based on the above method, GuruFocus assigned Moderna Inc a GF Score of 65 out of 100, which signals poor future outperformance potential.
Understanding Moderna Inc's Business
Moderna Inc, with a market cap of $33.69 billion and sales of $9.09 billion, is a commercial-stage biotech that was founded in 2010 and had its initial public offering in December 2018. The firm's mRNA technology was rapidly validated with its COVID-19 vaccine, which was authorized in the United States in December 2020. As of mid-2023, Moderna had 39 mRNA development candidates in clinical trials. Programs span a wide range of therapeutic areas, including infectious disease, oncology, cardiovascular disease, and rare genetic diseases. Despite its impressive technological advancements, the company's operating margin stands at -29.32%, indicating challenges in profitability.
Profitability Breakdown
Moderna Inc's low Profitability rank of 3/10 can raise warning signals for investors. This metric reflects the company's ability to generate income relative to revenue, assets, equity, and other financial metrics. A low profitability rank often indicates that a company may be facing challenges in converting its business operations into net income, which is a crucial aspect for sustaining growth and rewarding shareholders. Moderna's current profitability metrics suggest that despite its technological prowess and market presence, it may struggle to maintain the high levels of profitability seen during the peak of the COVID-19 vaccine rollout.
Next Steps
Considering Moderna Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While the company has demonstrated significant innovation and growth in the biotech industry, its current valuation and momentum ranks suggest that it may face challenges in maintaining its historical performance levels. Investors should closely monitor these metrics and consider the broader industry trends, regulatory factors, and competitive landscape when evaluating Moderna's future prospects.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
