RedHill Biopharma Ltd. (RDHL) AI Stock Analysis
RDHL AI stock analysis summary
AI ResearchRedHill Biopharma Ltd. (RDHL) is a specialized biopharmaceutical company focused on gastrointestinal and infectious diseases. The company experienced a steep drop in annual revenue from $85.8M in FY2021 to $286,000 in FY2025, alongside persistent cash outflows with free cash flow of -$9.7M in FY2025. With a market cap of $4.3M as of October 16, 2026, the stock has declined 69.4% over the past year.
- Market cap
- $4.3M
- Revenue (TTM)
- $0
- P/E
- —
- 1Y return
- -69.4% S&P 500 16.8%
- Avg. target
- $19000.00 3958233.3% vs last close
Bull case
- RedHill Biopharma maintains net cash of $2.9M on its balance sheet as of March 31, 2026.
- The company's gross margin was reported at 100.0% in FY2025, up from 60.3% in FY2024.
- The stock trades at a price-to-book ratio of 0.8x, alongside an EV/EBITDA multiple of 0.3x.
Bear case
- Revenue declined 96.4% in FY2025 to $286,000, down from $85.8M in FY2021.
- Free cash flow remained negative at -$9.7M in FY2025, contributing to a weak current ratio of 0.34 as of March 31, 2026.
- Significant dilution has occurred, with the 5-year share count expanding by 66306229.4%.
What RedHill Biopharma does
RedHill Biopharma Ltd. focuses primarily on developing and commercializing treatments for gastrointestinal and infectious diseases. Its commercial gastrointestinal portfolio includes Movantik for opioid-induced constipation in adults with chronic non-cancer pain, Talicia for Helicobacter pylori infection, and Aemcolo for travelers' diarrhea. In research and development, the company is advancing RHB-204 in Phase 3 trials for pulmonary nontuberculous mycobacteria infections. Its pipeline also features opaganib (Yeliva), an SK2 selective inhibitor in Phase 2 trials for severe COVID-19 pneumonia and advanced unresectable cholangiocarcinoma, RHB-107 in Phase 2/3 trials for COVID-19, and gastrointestinal candidates RHB-104, RHB-102 (Bekinda), and RHB-106.
Growth and profitability
RedHill Biopharma's top line contracted significantly from FY2021 to FY2025, reflecting a 5-year revenue CAGR of -66.2%. Annual revenue dropped from $85.8M in FY2021 to $61.8M in FY2022, and $6.5M in FY2023. While revenue rebounded by 23.2% to $8.0M in FY2024, it fell 96.4% in FY2025 to $286,000. Operating margin deteriorated to -2765.4% in FY2025 from -181.7% in FY2024. Net income was -$429,000 in FY2025, compared to -$8.3M in FY2024 and positive net income of $23.9M in FY2023. For the trailing twelve months ended June 30, 2025, revenue was $0 with quarterly revenue growth of 58.6% year-over-year.
Balance sheet and cash flow
As of March 31, 2026, RedHill Biopharma held $4.0M in cash and short-term investments against total debt of $1.1M, resulting in net cash of $2.9M. Shareholders' equity stood at $4.3M, and total assets were $25.3M. Liquidity remains constrained, evidenced by a current ratio of 0.34 and a debt-to-equity ratio of 0.25. Operating cash flow was -$9.7M in FY2025, while capital expenditures were $5,000, leading to free cash flow of -$9.7M. Over the past five years, the company's share count increased by 66306229.4%.
Valuation and performance
RedHill Biopharma trades at an enterprise value of $413,101 and a market cap of $4.3M. Its price-to-sales multiple is 10.2x, which stands above the 4.1x median of its US-listed Healthcare peers. Its EV/EBITDA multiple is 0.3x compared to the sector peer median of 12.0x, while its price-to-book ratio is 0.8x. Over the 1-year period leading up to October 16, 2026, RDHL delivered a return of -69.4%, underperforming the S&P 500 (SPY) return of 16.8%. The stock is down 100.0% over five years and trades with a beta of 4.90.
What analysts expect
Wall Street coverage on RedHill Biopharma lists a mean price target of $19000.00, representing an implied premium of 3958233.3% relative to its last close of $0.48 on October 16, 2026. The company did not beat consensus earnings per share estimates over the last four reported quarters, recording 0 beats.
Key risks and what to watch
- Working capital is pressured by a low current ratio of 0.34 as of March 31, 2026.
- The 5-year revenue CAGR of -66.2% highlights substantial long-term commercial contraction.
- Shareholder value faces ongoing dilution following a 5-year share count change of 66306229.4%.
- High equity volatility is indicated by a beta of 4.90 and a 1-year stock return of -69.4%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RDHL AI stock analysis
This page is an AI-written research summary of RedHill Biopharma Ltd. (RDHL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RDHL income statement, RDHL balance sheet, RDHL key metrics, RDHL chart. See the RDHL stock overview for the latest quote and news.
RDHL AI stock analysis FAQ
What products does RedHill Biopharma commercialize?
RedHill Biopharma's commercial portfolio includes Movantik for opioid-induced constipation, Talicia for Helicobacter pylori infection, and Aemcolo for travelers' diarrhea.
What is RedHill Biopharma's current cash and debt position?
As of March 31, 2026, the company held $4.0M in cash and short-term investments and $1.1M in total debt, leaving net cash of $2.9M.
How has RDHL stock performed compared to the broader market?
Over the past year as of October 16, 2026, RDHL dropped 69.4% compared to a 16.8% gain for the S&P 500 (SPY). Over five years, the stock is down 100.0%.
Does RedHill Biopharma pay a dividend?
No, RedHill Biopharma does not pay a dividend.