Rigetti Computing, Inc. Fundamental Analysis (NASDAQ: RGTI)
Rigetti Computing, Inc. (NASDAQ: RGTI) shows weak financial fundamentals with a PE ratio of -90.01, profit margin of -3.19%, and ROE of -7.39%. The company generates $0.0B in annual revenue with weak year-over-year growth of -34.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -251.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RGTI's fundamental strength across five key dimensions:
Efficiency Score
WeakRGTI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRGTI trades at attractive valuation levels.
Growth Score
ModerateRGTI shows steady but slowing expansion.
Financial Health Score
ExcellentRGTI maintains a strong and stable balance sheet.
Profitability Score
WeakRGTI struggles to sustain strong margins.
Key Financial Metrics
Is RGTI Expensive or Cheap?
P/E Ratio
RGTI trades at -90.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RGTI's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Rigetti Computing, Inc. at 6.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -115.11 times EBITDA. This is generally considered low.
How Well Does RGTI Make Money?
Net Profit Margin
For every $100 in sales, Rigetti Computing, Inc. keeps $-3.19 as profit after all expenses.
Operating Margin
Core operations generate -8.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-7.39 in profit for every $100 of shareholder equity.
ROA
Rigetti Computing, Inc. generates $-6.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rigetti Computing, Inc. generates limited operating cash flow of $-63.46M, signaling weaker underlying cash strength.
Free Cash Flow
Rigetti Computing, Inc. generates weak or negative free cash flow of $-110.26M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.33 in free cash annually.
FCF Yield
RGTI converts -2.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-90.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
293.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
-0.20
vs 25 benchmark
How RGTI Stacks Against Its Sector Peers
| Metric | RGTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -90.01 | 32.70 | Better (Cheaper) |
| ROE | -7.39% | 758.00% | Weak |
| Net Margin | -318.65% | -4312.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 5.29 | 12.15 | Strong Liquidity |
| ROA | -6.55% | 1067467.00% | Weak |
RGTI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rigetti Computing, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-82.20%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-15.21%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
72.89%
Industry Style: Growth, Innovation, High Beta
High Growth