Long-established in the Biotechnology industry, Moderna Inc (MRNA, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 1.31%, juxtaposed with a three-month change of -44.5%. 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: 8/10
- Profitability rank: 3/10
- Growth rank: 5/10
- GF Value rank: 6/10
- Momentum rank: 2/10
Based on the above method, GuruFocus assigned Moderna Inc the GF Score of 66 out of 100, which signals poor future outperformance potential.
Understanding Moderna Inc's Business
Moderna Inc is a commercial-stage biotech company with a market capitalization of $16.35 billion and sales amounting to $5.056 billion. Founded in 2010, Moderna 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. Despite its innovative approach, the company faces challenges, as indicated by its operating margin of -53.26%.
Profitability Breakdown
Moderna Inc's low Profitability rank can also raise warning signals. With a profitability rank of 3 out of 10, the company struggles to maintain a competitive edge in the market. This low score reflects challenges in generating consistent profits, which could be attributed to high research and development costs and the competitive nature of the biotechnology industry. Investors should be cautious, as profitability is a key indicator of a company's ability to sustain operations and grow over time.
Next Steps
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights Moderna Inc's unparalleled position for potential underperformance. While the company has made significant strides in mRNA technology, its current financial metrics suggest that it may face challenges in maintaining its growth trajectory. Investors should consider these factors when evaluating the company's future prospects. For those interested in exploring other companies with strong GF Scores, GuruFocus Premium members can use 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.
