DB:1RV

Stock Analysis Report

Executive Summary

Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic disorders that result in life-threatening metabolic disorders.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Rhythm Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1RV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.4%

1RV

-0.7%

DE Biotechs

-0.6%

DE Market


1 Year Return

-43.0%

1RV

-13.2%

DE Biotechs

-20.9%

DE Market

Return vs Industry: 1RV underperformed the German Biotechs industry which returned -10.6% over the past year.

Return vs Market: 1RV underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

1RVIndustryMarket
7 Day5.4%-0.7%-0.6%
30 Day-21.7%-12.1%-20.0%
90 Day-32.2%-22.3%-26.3%
1 Year-43.0%-43.0%-13.0%-13.2%-18.6%-20.9%
3 Yearn/a14.5%13.2%-19.0%-25.8%
5 Yearn/a-9.5%-11.8%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is Rhythm Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rhythm Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1RV (€14.1) is trading below our estimate of fair value (€182.82)

Significantly Below Fair Value: 1RV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1RV is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 1RV is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1RV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1RV is good value based on its PB Ratio (2.3x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Rhythm Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

58.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1RV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 1RV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1RV's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if 1RV's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 1RV's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1RV is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Rhythm Pharmaceuticals performed over the past 5 years?

-53.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1RV is currently unprofitable.

Growing Profit Margin: 1RV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1RV is unprofitable, and losses have increased over the past 5 years at a rate of -53.3% per year.

Accelerating Growth: Unable to compare 1RV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1RV is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (16.1%).


Return on Equity

High ROE: 1RV has a negative Return on Equity (-50.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rhythm Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 1RV's short term assets ($302.4M) exceed its short term liabilities ($24.4M).

Long Term Liabilities: 1RV's short term assets ($302.4M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: 1RV is debt free.

Reducing Debt: 1RV has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 1RV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1RV's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1RV has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 1RV has less than a year of cash runway if free cash flow continues to reduce at historical rates of -50% each year


Next Steps

Dividend

What is Rhythm Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1RV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1RV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1RV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1RV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1RV's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Hunter Smith (50yo)

0.083

Tenure

US$1,587,137

Compensation

Mr. Hunter C. Smith has been the Chief Financial Officer at Rhythm Pharmaceuticals, Inc. since July 31, 2017 and served its Treasurer since August 2017 respectively. Mr. Smith serves as Interim Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Hunter's total compensation ($USD1.59M) is about average for companies of similar size in the German market ($USD1.34M).

Compensation vs Earnings: Hunter's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hunter Smith
Interim CEO & CFO0.083yrUS$1.59m0.067% $396.0k
David Connolly
Head of Investor Relations & Corporate Communicationsno datano datano data
Simon Kelner
Chief Human Resources Officer1.83yrsno datano data
Nithya Desikan
Chief Commercial Officer2.75yrsUS$1.36m0.066% $388.3k
Murray Stewart
Chief Medical Officer1.5yrsno datano data
Alastair Garfield
Vice President of Translational Research & Developmentno datano datano data
John Hulburt
Controllerno datano datano data

1.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 1RV's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Todd Foley
Independent Director5.75yrsUS$241.40k5.36% $31.5m
David W. McGirr
Independent Director4.42yrsUS$255.40kno data
Edward Mathers
Independent Director7.08yrsUS$240.40kno data
David Meeker
Independent Chairman of the Board3yrsUS$281.90k0.23% $1.4m
William Chin
Member of Scientific Advisory Boardno datano datano data
Elizabeth Stoner
Member of Scientific Advisory Boardno datano datano data
Michael Camilleri
Member of Scientific Advisory Boardno datano datano data
Lee Kaplan
Chairman of Scientific Advisory Boardno datano datano data
John Amatruda
Member of Scientific Advisory Boardno datano datano data
Christophe Jean
Independent Director5yrsUS$243.90kno data

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: 1RV's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.5%.


Top Shareholders

Company Information

Rhythm Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rhythm Pharmaceuticals, Inc.
  • Ticker: 1RV
  • Exchange: DB
  • Founded: 2008
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$634.889m
  • Listing Market Cap: US$588.479m
  • Shares outstanding: 44.06m
  • Website: https://www.rhythmtx.com

Number of Employees


Location

  • Rhythm Pharmaceuticals, Inc.
  • 500 Boylston Street
  • 11th Floor
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYTMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2017
1RVDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2017
RYTM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2017

Biography

Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic disorders that result in life-threatening metabolic disorders. The company’s lead product candidate is setmelanotide, a melanocortin-4 receptor agonist peptide, which is in Phase III clinical trials to treat pro-opiomelanocortin POMC and leptin receptor deficiency obesity, and Bardet-Biedl and Alström syndrome; and is in Phase II clinical trials for treating POMC heterozygous deficiency obesity and POMC epigenetic disorders. It is also developing RM-853, an orally available ghrelin o-acyltransferase inhibitor that is in preclinical development for Prader-Willi syndrome. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts. Rhythm Pharmaceuticals, Inc. operates as a subsidiary of Allergan GI Corp. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:16
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.