Revolution Medicines, Inc.
$155.99
+3.1%Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -26.2).
Valuation inputs: P/E -26.2, earnings yield N/A, momentum +3.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -69.3%, ROIC -56.8%).
Profitability stack: net margin 0.0%, ROE -69.3%, ROIC -56.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +30.7%, momentum +3.1%, net margin 0.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Revolution Medicines, Inc. Market vs Earnings Trajectory
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Revolution Medicines, Inc. Fair Value Envelope
Revolution Medicines, Inc. Profit Bridge
Profitability Analysis
Revolution Medicines, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Revolution Medicines, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Revolution Medicines, Inc. Street Expectations Map
Wall Street analysts project that RVMD stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 165.33, with estimates ranging from a low of 73.00 to a high of 205.00.
The consensus 1-year price target stands at 165.33, with estimates ranging from a low of 73.00 to a high of 205.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
Extreme uncertainty: Massive dispersion in price targets reflects fundamental disagreement on business trajectory. This could signal transformation, disruption, or complex valuation—requires deep sector expertise and contrarian mindset.
Revolution Medicines, Inc. Insider Positioning
During the last 12 months, insiders have sold $44.99M worth of RVMD shares, with no buying activity reported.
3 Months
0
0.00
155.7K
21.64M
-21.6M
-$21.64M
3-6 Months
0
0.00
86.2K
7.90M
-7.9M
-$7.90M
6-9 Months
0
0.00
239.4K
13.87M
-13.9M
-$13.87M
9-12 Months
0
0.00
39.4K
1.57M
-1.6M
-$1.57M
Top Buyers
No buying activity
Top Sellers
Goldsmith Mark A
Director, Officer: See Remarks
$29.31M
Horn Margaret A
Officer: Chief Operating Officer
$6.50M
Kelsey Stephen Michael
Officer: See Remarks
$5.03M
Anders Jack
Officer: Chief Financial Officer
$2.15M
Cislini Jeff
Officer: General Counsel
$919K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $44.99M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
RVMD has not reported any dividend yield values in the available annual periods.
rvmd Dividend History
Learning Layer
Related Guides
Build conviction on RVMD by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.