Long-established in the Biotechnology industry, Moderna Inc (MRNA, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 1.65%, juxtaposed with a three-month change of 23.45%. 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.
Understanding 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: 4/10
- Growth rank: 2/10
- GF Value rank: 3/10
- Momentum rank: 2/10
Based on the above method, GuruFocus assigned Moderna Inc the GF Score of 57 out of 100, which signals poor future outperformance potential.
Company Overview
Moderna Inc is a commercial-stage biotech company 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 September 2024, Moderna had 40 mRNA development candidates in clinical development. These programs span a wide range of therapeutic areas, including infectious disease, oncology, cardiovascular disease, and rare genetic diseases. With a market cap of $12.8 billion and sales of $3.1 billion, the company faces challenges, as indicated by its operating margin of -118.8%.
Profitability Concerns
Moderna Inc's low Profitability rank can also raise warning signals. Additionally, Moderna Inc's Gross Margin has also declined over the past five years, as evidenced by the data: 2020: 97.08; 2021: 85.24; 2022: 71.31; 2023: 30.52; 2024: 54.24. This trend underscores the company's struggles to convert its revenue into profits.
Growth Prospects
A lack of significant growth is another area where Moderna Inc seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -41.3% per year over the past three years, which underperforms worse than 86.57% of 789 companies in the Biotechnology industry. Stagnating revenues may pose concerns in a fast-evolving market.
Conclusion
In conclusion, the financial strength, profitability, and growth metrics of Moderna Inc, as highlighted by the GF Score, indicate a potential for underperformance. The company's challenges in maintaining profitability and growth in a competitive industry suggest that investors should approach with caution. For those seeking companies with stronger GF Scores, GuruFocus Premium members can explore more options 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.
