NasdaqCM:RTTR

Stock Analysis Report

Executive Summary

Ritter Pharmaceuticals, Inc. develops and sells therapeutic products that modulate the gut microbiome to treat digestive disorders and gastrointestinal diseases.

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($2M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

RTTR

2.2%

US Pharmaceuticals

1.1%

US Market


1 Year Return

-75.9%

RTTR

0.5%

US Pharmaceuticals

17.8%

US Market

Return vs Industry: RTTR underperformed the US Pharmaceuticals industry which returned 0.5% over the past year.

Return vs Market: RTTR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

RTTRIndustryMarket
7 Day-2.9%2.2%1.1%
30 Day-27.2%4.8%1.4%
90 Day-82.8%6.5%3.9%
1 Year-75.9%-75.9%3.0%0.5%20.3%17.8%
3 Year-99.3%-99.3%29.7%20.4%44.8%35.4%
5 Yearn/a27.7%14.3%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Ritter Pharmaceuticals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Ritter Pharmaceuticals has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Ritter Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTTR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RTTR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RTTR is forecast to remain unprofitable over the next 3 years.

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RTTR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ritter Pharmaceuticals performed over the past 5 years?

-25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTTR is currently unprofitable.

Growing Profit Margin: RTTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RTTR is unprofitable, and losses have increased over the past 5 years at a rate of -25.8% per year.

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

Earnings vs Industry: RTTR is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: RTTR has a negative Return on Equity (-25931.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ritter Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: RTTR's short term assets ($2.7M) do not cover its short term liabilities ($2.8M).

Long Term Liabilities: RTTR's short term assets ($2.7M) exceed its long term liabilities ($10.3K).


Debt to Equity History and Analysis

Debt Level: RTTR is debt free.

Reducing Debt: RTTR currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RTTR'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: RTTR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RTTR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -9.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RTTR'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 RTTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RTTR'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 RTTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ritter Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Andrew Ritter (36yo)

1.5yrs

Tenure

US$2,646,857

Compensation

Mr. Andrew J. Ritter Co-founded Ritter Pharmaceuticals, Inc in 2007 and has been the President since 2008. Mr. Ritter is Chief Executive Officer of Ritter Pharmaceuticals, Inc. since June 27, 2018. He has  ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.65M) is above average for companies of similar size in the US market ($USD529.29K).

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


Management Age and Tenure

1.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: RTTR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

8.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RTTR's board of directors are considered experienced (8 years average tenure).


Insider Trading

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 substantially diluted in the past year, with total shares outstanding growing by 60.5%.


Management Team

  • John Beck (59yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$935.01k
  • Ellen Mochizuki (52yo)

    Consultant

    • Tenure: 2.2yrs
  • Andrew Ritter (36yo)

    Co-Founder

    • Tenure: 1.5yrs
    • Compensation: US$2.65m
  • Ira Ritter (70yo)

    Co-Founder

    • Tenure: 11.9yrs
    • Compensation: US$1.35m

Board Members

  • Paul Maier (71yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$46.04k
  • Matt Foehr (46yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$44.35k
  • Noah Doyle (51yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$33.94k
  • Warren Grundfest

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Byron Cryer

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Andrew Ritter (36yo)

    Co-Founder

    • Tenure: 1.5yrs
    • Compensation: US$2.65m
  • Ira Ritter (70yo)

    Co-Founder

    • Tenure: 11.9yrs
    • Compensation: US$1.35m
  • Dennis Savaiano

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Todd Klaenhammer

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • William Merino (76yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$40.54k

Company Information

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


Key Information

  • Name: Ritter Pharmaceuticals, Inc.
  • Ticker: RTTR
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.886m
  • Shares outstanding: 10.16m
  • Website: https://www.ritterpharmaceuticals.com

Number of Employees


Location

  • Ritter Pharmaceuticals, Inc.
  • 1880 Century Park East
  • Suite 1000
  • Los Angeles
  • California
  • 90067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTTRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2015
7R9ADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015

Biography

Ritter Pharmaceuticals, Inc. develops and sells therapeutic products that modulate the gut microbiome to treat digestive disorders and gastrointestinal diseases. Its lead product candidate is RP-G28, an or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:50
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.