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RHYTHM PHARMACEUTICALS INC (RYTM) Stock Fundamental Analysis

NASDAQ:RYTM - Nasdaq - US76243J1051 - Common Stock - Currency: USD

64.63  +1.92 (+3.06%)

After market: 64.63 0 (0%)

Fundamental Rating

3

RYTM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 563 industry peers in the Biotechnology industry. While RYTM seems to be doing ok healthwise, there are quite some concerns on its profitability. RYTM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

In the past year RYTM has reported negative net income.
RYTM had a negative operating cash flow in the past year.
RYTM had negative earnings in each of the past 5 years.
RYTM had a negative operating cash flow in each of the past 5 years.
RYTM Yearly Net Income VS EBIT VS OCF VS FCFRYTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -50M -100M -150M -200M -250M

1.2 Ratios

RYTM has a worse Return On Assets (-103.49%) than 77.98% of its industry peers.
RYTM's Return On Equity of -246.70% is on the low side compared to the rest of the industry. RYTM is outperformed by 72.47% of its industry peers.
Industry RankSector Rank
ROA -103.49%
ROE -246.7%
ROIC N/A
ROA(3y)-56.77%
ROA(5y)-52.61%
ROE(3y)-112.7%
ROE(5y)-88.62%
ROIC(3y)N/A
ROIC(5y)N/A
RYTM Yearly ROA, ROE, ROICRYTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -100 -200 -300

1.3 Margins

The Gross Margin of RYTM (89.64%) is better than 90.94% of its industry peers.
In the last couple of years the Gross Margin of RYTM has grown nicely.
The Profit Margin and Operating Margin are not available for RYTM so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 89.64%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.35%
GM growth 5YN/A
RYTM Yearly Profit, Operating, Gross MarginsRYTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K -3K -4K -5K

4

2. Health

2.1 Basic Checks

RYTM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RYTM has been increased compared to 1 year ago.
The number of shares outstanding for RYTM has been increased compared to 5 years ago.
RYTM has a better debt/assets ratio than last year.
RYTM Yearly Shares OutstandingRYTM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
RYTM Yearly Total Debt VS Total AssetsRYTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

RYTM has an Altman-Z score of 4.16. This indicates that RYTM is financially healthy and has little risk of bankruptcy at the moment.
RYTM has a Altman-Z score of 4.16. This is in the better half of the industry: RYTM outperforms 79.22% of its industry peers.
RYTM has a Debt/Equity ratio of 0.66. This is a neutral value indicating RYTM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, RYTM is doing worse than 76.02% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Altman-Z 4.16
ROIC/WACCN/A
WACC9.99%
RYTM Yearly LT Debt VS Equity VS FCFRYTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

2.3 Liquidity

RYTM has a Current Ratio of 3.24. This indicates that RYTM is financially healthy and has no problem in meeting its short term obligations.
RYTM's Current ratio of 3.24 is on the low side compared to the rest of the industry. RYTM is outperformed by 63.23% of its industry peers.
A Quick Ratio of 3.08 indicates that RYTM has no problem at all paying its short term obligations.
With a Quick ratio value of 3.08, RYTM is not doing good in the industry: 61.28% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 3.24
Quick Ratio 3.08
RYTM Yearly Current Assets VS Current LiabilitesRYTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

7

3. Growth

3.1 Past

RYTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.31%.
Looking at the last year, RYTM shows a very strong growth in Revenue. The Revenue has grown by 101.61%.
Measured over the past years, RYTM shows a very strong growth in Revenue. The Revenue has been growing by 245.69% on average per year.
EPS 1Y (TTM)-40.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2.86%
Revenue 1Y (TTM)101.61%
Revenue growth 3Y245.69%
Revenue growth 5YN/A
Sales Q2Q%72.61%

3.2 Future

The Earnings Per Share is expected to grow by 34.40% on average over the next years. This is a very strong growth
RYTM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 62.52% yearly.
EPS Next Y40.41%
EPS Next 2Y29.46%
EPS Next 3Y34.27%
EPS Next 5Y34.4%
Revenue Next Year44.54%
Revenue Next 2Y54.73%
Revenue Next 3Y63.14%
Revenue Next 5Y62.52%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
RYTM Yearly Revenue VS EstimatesRYTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
RYTM Yearly EPS VS EstimatesRYTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 5 10 15

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RYTM. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for RYTM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
RYTM Price Earnings VS Forward Price EarningsRYTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RYTM Per share dataRYTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

A more expensive valuation may be justified as RYTM's earnings are expected to grow with 34.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.46%
EPS Next 3Y34.27%

0

5. Dividend

5.1 Amount

RYTM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

RHYTHM PHARMACEUTICALS INC

NASDAQ:RYTM (5/7/2025, 8:00:02 PM)

After market: 64.63 0 (0%)

64.63

+1.92 (+3.06%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-26 2025-02-26/bmo
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners97.18%
Inst Owner Change-0.06%
Ins Owners0.61%
Ins Owner Change0.63%
Market Cap4.11B
Analysts86.67
Price Target80.83 (25.07%)
Short Float %8.98%
Short Ratio6.98
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.91%
Min EPS beat(2)0.76%
Max EPS beat(2)11.07%
EPS beat(4)3
Avg EPS beat(4)2.61%
Min EPS beat(4)-6.55%
Max EPS beat(4)11.07%
EPS beat(8)5
Avg EPS beat(8)1.31%
EPS beat(12)8
Avg EPS beat(12)4.05%
EPS beat(16)10
Avg EPS beat(16)-25.8%
Revenue beat(2)2
Avg Revenue beat(2)3.41%
Min Revenue beat(2)0.25%
Max Revenue beat(2)6.56%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)6.56%
Revenue beat(8)3
Avg Revenue beat(8)1.47%
Revenue beat(12)5
Avg Revenue beat(12)19.22%
Revenue beat(16)7
Avg Revenue beat(16)6.31%
PT rev (1m)5.32%
PT rev (3m)8.29%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)-3.49%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-1.85%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)0.39%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 26.33
P/FCF N/A
P/OCF N/A
P/B 24.98
P/tB 25.95
EV/EBITDA N/A
EPS(TTM)-4.49
EYN/A
EPS(NY)-2.68
Fwd EYN/A
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)-1.79
OCFYN/A
SpS2.45
BVpS2.59
TBVpS2.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -103.49%
ROE -246.7%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 89.64%
FCFM N/A
ROA(3y)-56.77%
ROA(5y)-52.61%
ROE(3y)-112.7%
ROE(5y)-88.62%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.35%
GM growth 5YN/A
F-Score4
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.24
Quick Ratio 3.08
Altman-Z 4.16
F-Score4
WACC9.99%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2.86%
EPS Next Y40.41%
EPS Next 2Y29.46%
EPS Next 3Y34.27%
EPS Next 5Y34.4%
Revenue 1Y (TTM)101.61%
Revenue growth 3Y245.69%
Revenue growth 5YN/A
Sales Q2Q%72.61%
Revenue Next Year44.54%
Revenue Next 2Y54.73%
Revenue Next 3Y63.14%
Revenue Next 5Y62.52%
EBIT growth 1Y-119.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.54%
EBIT Next 3Y24.99%
EBIT Next 5YN/A
FCF growth 1Y16.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.36%
OCF growth 3YN/A
OCF growth 5YN/A