One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Rhythm Pharmaceuticals, Inc.
RYTM · NGM · Healthcare · Biotechnology
Current price
$98.77
52-week range
$74.50 - $122.20
Market cap
$6.80B
Balance sheet
Healthy
-9.33x Concerning
Net cash $221.11M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 26.4% last year.
- Risk Return on equity was -117.0% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.7% (peer median: 3.9%).
What this company does
Rhythm Pharmaceuticals, Inc.
Rhythm Pharmaceuticals is a healthcare company that creates and sells medicines for very rare genetic disorders that cause severe obesity. The company makes most of its money from sales of its main approved drug, IMCIVREE, which treats a small, specific group of patients. Future growth depends on selling more of this drug and successfully completing clinical trials (the required human testing process to prove a new drug is safe and effective) for other potential medicines in its pipeline.
How the company got here
Rhythm Pharmaceuticals was founded in 2008 with a focus on developing treatments for rare genetic disorders that cause extreme obesity. A major turning point was the U.S. Food and Drug Administration (FDA) approval of its main product, IMCIVREE, in 2020. This approval transformed Rhythm from a company purely in the research and testing phase into a commercial-stage company that could sell its product. The company went public with an initial public offering (IPO), which is when a private company first sells shares of stock to the public, in 2017 to raise money for its research. Since then, it has expanded its operations to Europe and grown to over 400 employees.
What it actually does
Rhythm Pharmaceuticals develops and sells a medicine called IMCIVREE for people with rare genetic conditions that lead to severe obesity and an insatiable hunger. These conditions are caused by a specific genetic impairment in a part of the brain that controls hunger, called the MC4R pathway. IMCIVREE is a precision medicine, meaning it's designed to work on the specific biological cause of the disease. The company also provides support services to help identify and diagnose patients who could benefit from their treatment.
Therapeutics
The company's primary business is the sale of its approved drug, IMCIVREE (setmelanotide). This is currently its only source of revenue (the money a company receives from its business activities). IMCIVREE is prescribed by doctors for patients with specific rare genetic disorders that cause severe obesity. The company makes money when health insurance companies and national health systems pay for patients' prescriptions. This single product accounts for all of the company's sales, making it their sole business segment.
What management is betting on now
Management's current strategy is to increase the number of patients using IMCIVREE by raising awareness of the rare diseases it treats and encouraging more genetic testing to identify eligible individuals. They are also working to get the drug approved for more related conditions and in more countries, such as Japan and additional European nations. A key part of their bet is on their pipeline (the set of products a company has in development), which includes new potential drugs like bivamelagon and RM-718, that also target the same hunger pathway in the brain. The goal is to become the leading company for this specific niche of rare obesity disorders.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-18.84M
FY2025 Q4
$-26.34M
Revenue
$71.25M
Net income
$-49.30M
Diluted EPS
-0.73
Operating cash flow
$-9.15M
Free cash flow
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Sources
Revenue
$60.11M
Net income
$-55.64M
Diluted EPS
-0.83
Operating cash flow
$-44.19M
Free cash flow
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Sources
Revenue
$57.25M
Net income
$-47.51M
Diluted EPS
-0.73
Operating cash flow
$-25.39M
Free cash flow
$-26.34M
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Sources
Revenue
$51.30M
Net income
$-52.90M
Diluted EPS
-0.82
Operating cash flow
$-26.62M
Free cash flow
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Sources
Revenue
$48.50M
Net income
$-46.63M
Diluted EPS
-0.75
Operating cash flow
$-23.31M
Free cash flow
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Sources
Revenue
$32.70M
Net income
$-49.50M
Diluted EPS
-0.81
Operating cash flow
$-40.35M
Free cash flow
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Sources
Revenue
$41.83M
Net income
$-43.33M
Diluted EPS
-0.71
Operating cash flow
$-18.84M
Free cash flow
$-18.84M
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Sources
Revenue
$33.25M
Net income
$-43.64M
Diluted EPS
-0.73
Operating cash flow
$-25.21M
Free cash flow
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Is it cheap or expensive?
Fair value — vs current price $98.77
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $221.1M - more cash than debt. Interest coverage -9.3x.
Net debt
$-221.11M
Interest coverage
-9.33x
Rhythm Pharmaceuticals, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RYTM
BASELINE
Rhythm Pharmaceuticals, Inc.
Total debt $109.78M Interest coverage -9.33x This is the baseline the peer rows are being compared against.
Total debt $1.06B Interest coverage -17.25x Neither company has much profit cushion over interest right now.
Total debt $4.20B Interest coverage 37.57x This peer still has a real interest-payment cushion, while RYTM does not.
Total debt $1.20B Interest coverage -8.63x Neither company has much profit cushion over interest right now.
Total debt $3.37B Interest coverage -2.82x Neither company has much profit cushion over interest right now.
Total debt $3.02B Interest coverage 5.63x This peer still has a real interest-payment cushion, while RYTM does not.
What you should know
The case for and against RYTM
1 Reward
2 Risks
Rewards
-
Revenue grew 26.4% last year.
Risks
-
Return on equity was -117.0% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.7% (peer median: 3.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-161.22x
P/B
66.02x
P/S
28.34x
EV/EBITDA
-33.18x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
89.0%
Operating margin
-68.1%
Net margin
-85.6%
ROE
-117.0%
ROA
-31.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
3.45x
Quick ratio
3.00x
Total debt
$109.78M
Total cash
$330.90M
Growth
How the business has been compounding
Revenue TTM
$239.92M
Revenue 5Y CAGR
178.5%
EPS TTM
-3.12
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-105.35M
Free CF TTM
$-116.63M
FCF margin
-48.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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