Rhythm Pharmaceuticals (NasdaqGM:RYTM) - Share price, News & Analysis

RYTM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

RYTM Stock Overview

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic diseases of obesity.

Rewards

Trading at 95.2% below our estimate of its fair value

Revenue is forecast to grow 64.29% per year

Risk Analysis

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

Does not have meaningful revenue ($5M)

Rhythm Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rhythm Pharmaceuticals
Historical stock prices
Current Share Price	US$3.36
52 Week High	US$21.74
52 Week Low	US$3.04
Beta	1.68
1 Month Change	-52.27%
3 Month Change	-54.78%
1 Year Change	-82.87%
3 Year Change	-86.66%
5 Year Change	n/a
Change since IPO	-88.80%

Shareholder Returns

	RYTM	US Biotechs	US Market
7D	2.8%	1.6%	5.9%
1Y	-82.9%	-21.1%	-10.2%

Return vs Industry: RYTM underperformed the US Biotechs industry which returned -22.1% over the past year.

Return vs Market: RYTM underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is RYTM's price volatile compared to industry and market?
RYTM volatility
RYTM Average Weekly Movement	12.4%
Biotechs Industry Average Movement	12.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: RYTM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: RYTM's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	140	David Meeker	https://www.rhythmtx.com

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic diseases of obesity. The company’s lead product candidate is IMCIVREE, a potent melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is also developing setmelanotide, which is in Phase II clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, Smith-Magenis syndrome obesity, POMC epigenetic disorders, and other MC4R disorders.

Rhythm Pharmaceuticals Fundamentals Summary

How do Rhythm Pharmaceuticals's earnings and revenue compare to its market cap?
RYTM fundamental statistics
Market Cap	US$169.32m
Earnings (TTM)	-US$166.13m
Revenue (TTM)	US$4.62m

36.7x

P/S Ratio

-1.0x

P/E Ratio

Is RYTM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RYTM income statement (TTM)
Revenue	US$4.62m
Cost of Revenue	US$825.00k
Gross Profit	US$3.79m
Other Expenses	US$169.92m
Earnings	-US$166.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.30
Gross Margin	82.13%
Net Profit Margin	-3,598.14%
Debt/Equity Ratio	0%

How did RYTM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RYTM ($3.36) is trading below our estimate of fair value ($70.72)

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

Price To Earnings Ratio

PE vs Industry: RYTM is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Biotechs industry average.

PE vs Market: RYTM is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: RYTM is good value based on its Price-To-Book Ratio (0.7x) compared to the US Biotechs industry average (1.4x).

Future Growth

How is Rhythm Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

50.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RYTM's revenue (64.3% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: RYTM's revenue (64.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Rhythm Pharmaceuticals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RYTM is currently unprofitable.

Growing Profit Margin: RYTM is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: RYTM is unprofitable, and losses have increased over the past 5 years at a rate of 19% per year.

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

Earnings vs Industry: RYTM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (96.9%).

Return on Equity

High ROE: RYTM has a negative Return on Equity (-70.46%), as it is currently unprofitable.

Financial Health

How is Rhythm Pharmaceuticals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RYTM's short term assets ($253.4M) exceed its short term liabilities ($47.3M).

Long Term Liabilities: RYTM's short term assets ($253.4M) exceed its long term liabilities ($1.8M).

Debt to Equity History and Analysis

Debt Level: RYTM is debt free.

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

Balance Sheet

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: RYTM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RYTM has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 32.9% each year.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RYTM has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure

CEO

David Meeker (67 yo)

1.83yrs

Tenure

US$6,458,360

Compensation

Dr. David P. Meeker, M.D., had been Independent Non-Executive Director of Pharvaris N.V. (formerly known as Pharvaris B.V.) since January 1, 2021 and serves as its Independent Non-Executive Chair. Dr. Meek...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.46M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: RYTM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: RYTM's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31