Rigetti Computing (RGTI) AI Stock Analysis

• Market Cap: $9.25B
• Dividend Yield: N/A
• Average Volume (3M): 45.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: -37.20%
• EPS Growth: -58.82%
• Country: US
• Employees: 137
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.05
• Shares Outstanding: 324,165,160
• 10 Day Avg. Volume: 56,563,253
• 30 Day Avg. Volume: 45,716,141
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 393.64
• Enterprise Value/Gross Profit: 970.32
• Enterprise Value/Ebitda: -15.25
• 1Y Price Target: $18.75
• Price Target Upside: -34.26% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 53 Neutral
• Price Target: $19.50 ▼(-31.63% Downside)

Rigetti Computing's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profit margins. While technical indicators suggest a bullish trend, caution is advised due to valuation concerns with a negative P/E ratio. The company's technological advancements and strategic financial moves provide some optimism, but financial health remains a critical area for improvement.

Positive Factors

Technological Advancements

Rigetti's development of the Cepheus-1-36Q positions it at the forefront of quantum computing, enhancing its competitive edge and potential to solve complex problems, which is crucial for long-term growth in the tech sector.

Strategic Partnerships

The partnership with Quanta enhances Rigetti's technological capabilities, potentially leading to improved product offerings and market position, which are vital for sustained competitive advantage in the quantum computing industry.

Financial Strengthening

The significant capital raise strengthens Rigetti's balance sheet, providing financial flexibility to invest in R&D and commercial scale-up, essential for long-term strategic initiatives and growth.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in market demand or competitive positioning, which could hinder Rigetti's ability to sustain operations and invest in future growth without strategic adjustments.

Negative Profit Margins

Persistent negative profit margins reflect operational inefficiencies or pricing challenges, which could limit Rigetti's capacity to reinvest in innovation and growth, affecting long-term financial health.

Increased Operating Expenses

Rising operating expenses without corresponding revenue growth can strain financial resources, potentially impacting Rigetti's ability to fund strategic initiatives and maintain competitive positioning.

Rigetti Computing Business Overview & Revenue Model

Company Description

Rigetti Computing, Inc. operates as an integrated systems company. The company builds quantum computers and the superconducting quantum processors that power them. Its machines are integrated into various public, private, or hybrid clouds through its Quantum Cloud Services platform. The company was founded in 2013 and is based in Berkeley, California.

How the Company Makes Money

Rigetti Computing primarily generates revenue through its Quantum Cloud Services platform, which allows customers to access its quantum processors on a pay-per-use or subscription basis. This platform serves as a key revenue stream by providing cloud-based quantum computing resources to businesses, researchers, and developers. Additionally, Rigetti engages in partnerships and collaborations with academic institutions, government agencies, and private enterprises, which can lead to funded research projects and joint ventures, contributing to its revenue. The company may also receive grants or contracts from governmental bodies for advancing quantum computing technologies. Rigetti's earnings are significantly influenced by its ability to continuously innovate and improve its quantum computing capabilities, maintaining a competitive edge in this rapidly evolving sector.

Rigetti Computing Financial Statement Overview

Summary

Rigetti Computing faces significant financial challenges, including declining revenues, negative profit margins, and cash flow issues. The income statement shows a revenue decline of 13.95% with a deeply negative net profit margin of -20.80%. Despite a low debt-to-equity ratio, the negative return on equity and operating cash flow highlight the need for strategic improvements.

Income Statement

Rigetti Computing's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a revenue decline of 13.95%, and the net profit margin is deeply negative at -20.80%. Gross profit margin has also decreased from previous years, indicating pressure on profitability. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is low at 0.014, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative, indicating that the company is not generating returns for its shareholders. The equity ratio is relatively stable, but the overall financial position needs improvement to ensure long-term sustainability.

Cash Flow

Cash flow analysis shows some improvement in free cash flow growth at 10.58% in the TTM period, but operating cash flow remains negative. The operating cash flow to net income ratio is concerning at -5.16, indicating cash flow challenges. The company must focus on enhancing cash generation to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.92M	10.79M	12.01M	13.10M	8.20M	5.54M
Gross Profit	3.21M	5.70M	9.21M	10.23M	1.92M	4.05M
EBITDA	-204.56M	-190.83M	-61.90M	-58.68M	-31.13M	-30.79M
Net Income	-164.83M	-200.99M	-75.11M	-71.52M	-38.24M	-17.21M
Balance Sheet
Total Assets	636.69M	284.79M	159.91M	203.44M	46.43M	49.68M
Cash, Cash Equivalents and Short-Term Investments	57.18M	192.09M	99.93M	142.81M	11.73M	22.20M
Total Debt	8.01M	8.80M	30.57M	39.14M	24.79M	0.00
Total Liabilities	83.43M	158.20M	50.33M	53.22M	117.96M	85.11M
Stockholders Equity	553.26M	126.59M	109.59M	150.22M	9.99M	-35.43M
Cash Flow
Free Cash Flow	-65.56M	-61.73M	-59.64M	-85.43M	-36.30M	-34.47M
Operating Cash Flow	-53.79M	-50.63M	-50.58M	-62.69M	-29.29M	-30.07M
Investing Cash Flow	-441.06M	-78.36M	773.00K	-107.02M	-7.01M	-4.40M
Financing Cash Flow	531.46M	175.46M	13.23M	215.45M	25.83M	56.29M

Rigetti Computing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGTI, the sentiment is Positive. The current price of 28.52 is above the 20-day moving average (MA) of 17.58, above the 50-day MA of 16.32, and above the 200-day MA of 12.05, indicating a bullish trend. The MACD of 2.28 indicates Negative momentum. The RSI at 86.70 is Negative, neither overbought nor oversold. The STOCH value of 93.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGTI.

Rigetti Computing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGTI	53 Neutral	$9.25B	―	-48.81%	―	-37.20%	-58.82%
IONQ	52 Neutral	20.96B	-34.90	-39.91%	―	67.83%	-154.69%
QUBT	51 Neutral	3.72B	-34.22	-63.89%	―	-21.56%	-103.08%
QBTS	46 Neutral	9.19B	-25.49	-229.67%	―	120.20%	-143.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%