This is a step-by-step stock review to answer the question, is Moderna (MRNA) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Moderna (MRNA) stock a good buy?
1. Moderna Company History
- Founded: Moderna was founded in 2010 by Derrick Rossi, Noubar Afeyan, Robert Langer, and Kenneth Chien, focusing on messenger RNA (mRNA) technology.
- Early Focus: Initially, the company focused on developing mRNA-based therapies for various diseases, harnessing the body’s cellular machinery to produce therapeutic proteins.
- Strategic Partnerships: In the early 2010s, Moderna formed partnerships with pharmaceutical giants like AstraZeneca and Merck, accelerating its research and development efforts.
- COVID-19 Breakthrough: Moderna gained global recognition in 2020 with the rapid development of one of the first COVID-19 vaccines, mRNA-1273, under Operation Warp Speed.
- Vaccine Success: The Moderna COVID-19 vaccine became a key tool in the global fight against the pandemic, showcasing the potential of mRNA technology for vaccines and therapeutics.
- Expansion: Following its vaccine success, Moderna expanded its pipeline to include mRNA-based treatments for a variety of diseases, including cancer, heart disease, and rare genetic conditions.
- IPO: Moderna went public in 2018, listing on the NASDAQ, and became one of the largest biotech companies in the world by market capitalization.
- Headquarters: Moderna is headquartered in Cambridge, Massachusetts, and continues to innovate in the biotech and pharmaceutical sectors.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 22
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Moderna makes money:
- Vaccine Sales: Moderna makes money primarily from selling its COVID-19 vaccine, which has been a major revenue driver due to high global demand.
- Government Contracts: The company earns revenue through contracts with governments and public health organizations for vaccine supply and research funding.
- Research Partnerships: Moderna collaborates with other pharmaceutical companies and research institutions, earning revenue from research and development partnerships.
- Licensing Agreements: The company licenses its mRNA technology and intellectual property to other companies, generating revenue from these agreements.
- Grants and Funding: Moderna receives grants and funding from government agencies and non-profit organizations to support its research and development efforts.
- Pipeline Products: Revenue is also expected from other mRNA-based therapies and vaccines in Moderna’s pipeline as they advance to commercialization.
- Arcturus Therapeutics
- Amplify Bio
- Enterome
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Moderna stacks up against other companies.
- Arcellx, Inc.(ACLX) – 89
- United Therapeutics Corporation.(UTHR) – 89
- Protagonist Therapeutics, Inc.(PTGX) – 84
- Harmony Biosciences Holdings, Inc.(HRMY)
- Roivant Sciences Ltd.(ROIV) – 78
- Moderna, Inc.(MRNA) – 22
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- COVID-19 Vaccine Development: Stéphane Bancel Successfully led the rapid development and approval of Moderna’s COVID-19 vaccine, becoming one of the first vaccines available and playing a key role in the global pandemic response.
- mRNA Technology Expansion: Pioneered advancements in mRNA technology, broadening its application to other vaccines and therapeutics beyond COVID-19.
- Public Offering: Oversaw Moderna’s successful initial public offering (IPO) in 2018, significantly raising capital for research and expansion.
- Partnerships and Collaborations: Established strategic partnerships with governments, pharmaceutical companies, and research institutions to accelerate vaccine development and production.
- Pipeline Growth: Expanded Moderna’s pipeline to include mRNA-based treatments for various diseases, including cancer and rare genetic conditions, enhancing its therapeutic potential.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Moderna (MRNA) is 57/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Moderna (MRNA) stock a good buy?
Some of the top questions investors can have is Moderna (MRNA) stock a good buy or should I buy Moderna (MRNA) stock?
Moderna is an attractive investment due to its success with the COVID-19 vaccine and promising mRNA technology, which has potential for future treatments. The company’s strong pipeline and strategic partnerships bolster its growth prospects.
However, the biotech industry is volatile, and success depends on clinical trials and regulatory approvals. Intense competition also poses risks.
Overall, Moderna’s innovative approach and successful vaccine make it a compelling investment, though potential risks should be considered.
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To truly know if Moderna is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.