Rhythm Pharmaceuticals, Inc. (RYTM)
NEUTRALFundamental
43
Price
$112.88
Market Cap
$7.66B
Part 1 · What the company is worth
Overview
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases in the United States and internationally. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, Bardet-Biedl and Alström syndrome, Prader-Willi syndrome, and hypothalamic obesity. It is in Phase 3 clinical trials for treating acquired hypothalamic obesity, congenital hypothalamic obesity, pro-opiomelanocortin (POMC) and LEPR insufficiency obesities, SRC1 deficiency obesity, and SH2B1 deficiency obesity; and in phase 2 clinical trails for the treatment of Prader-Willi syndrome and MC4R deficiency. The company is also developing bivamelagon, an investigational oral small molecule MC4R agonist that is in phase 2 clinical trial for the treatment of MC4R pathway diseases; and RM-718, a next generation MC4R peptide agonist that is in phase 1 clinical trial for the treatment of hypothalamic obesity. 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.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$240M
Trailing 12 months (through 6/30/2026)
Net Income
$-205M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-117M
Total Equity
$139M
Total Liabilities
$210M
Current Ratio
3.45
Interest Coverage
10.86
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$141.53
Current Price
$112.88
Margin of Safety
+20.2%
Fair Value Range
$134.46 - $148.61
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-141.3%
P/B Ratio
74.51
P/FCF
-
Gross Margin
89.0%
ROIC
-50.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-50.5%
WACC
15.5%
ROIC − WACC
-66.0 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (10)
- Price CAGR 15.94%
- Gross Margin 89.0%
- Debt/Equity ratio
- Current Ratio
- Interest Coverage
- Low reliance on intangibles
- Analyst Consensus 91% Buy
- Earnings Surprise avg 4.8%
- Net Margin Trend -85.6% vs -117.2%
- Piotroski F-Score 6/9
Failed (9)
- EPS shows upward trend
- ROIC -50.5%
- P/B Ratio 74.51
- Operating Margin -83.6%
- Positive Free Cash Flow
- Return on Tangible Assets
- DCF valuation (Unknown)
- ROE -80.5%
- Share Dilution 5.2%
Unavailable (8)
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Debt/EBITDA
- Price below Graham Number
- Revenue Growth 5Y (Finnhub)
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Dr. David P. Meeker M.D. | Chairman, President & CEO | 71 |
| Mr. Hunter C. Smith M.B.A. | CFO & Treasurer | 56 |
| Dr. Alastair Garfield Ph.D. | Chief Scientific Officer | 45 |
| Mr. Yann Mazabraud | Executive VP & Head of International | 52 |
| Ms. Jennifer Lee | Executive VP & Head of North America | 50 |
| Mr. Christopher P. German | Corporate Controller & Principal Accounting Officer | 53 |
| Mr. Joseph Shulman | Chief Technical Officer | 50 |
| Mr. David Connolly | Head of Investor Relations & Corporate Communications | - |
| Mr. Jim Flaherty | Senior VP & General Counsel | - |
| Ms. Sarah Ryan | Vice President of Sales & Marketing | - |
Audit Risk
8
Board Risk
7
Compensation Risk
9
Shareholder Rights Risk
8
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for RYTM, sourced from Markets Gazette.
- 5/6/2026POSITIVERhythm Pharmaceuticals Analysts Boost Their Forecasts Following Upbeat Q1 Results
Rhythm Pharmaceuticals (NASDAQ: RYTM) has seen analysts upgrade their Q1 forecasts following a strong earnings report. The company highlighted robust demand for its drug IMCIVREE, a key driver of the positive outlook. Furthermore, Rhythm Pharmaceuticals is advancing its strategic expansion plans, with potential launches anticipated in both European and Japanese markets. This dual approach of strong domestic performance and international growth initiatives positions the company favorably for sustained revenue increases and market share expansion, potentially leading to increased investor confidence and a higher stock valuation.
- 3/2/2026POSITIVERhythm Pharmaceuticals Discloses 18.8% BMI Drop In Rare Obesity Patients
Rhythm Pharmaceuticals has disclosed compelling Phase 3 clinical trial data, showcasing an impressive 18.8% reduction in Body Mass Index (BMI) among patients suffering from rare forms of obesity. This positive development has fueled investor optimism, leading to a notable surge in the company's shares. The demonstrated efficacy of the drug positions Rhythm Pharmaceuticals favorably ahead of the crucial FDA decision, which is anticipated by March 20. Analysts suggest that regulatory approval could unlock a substantial market for treating these rare conditions, offering new hope for patients and significant growth opportunities for the company. Investors will closely watch the FDA's verdict, which will be pivotal for the stock's trajectory.
- 2/26/2026NEUTRALRhythm Pharma (RYTM) Earnings Call Transcript
The market is keenly awaiting the earnings call transcript for Rhythm Pharmaceuticals (RYTM), but the specific content is currently unavailable. This lack of information prevents analysts from forming a precise judgment on the company's financial performance and future outlook. Investors will need to await the publication of details to assess the impact on revenues, costs, and management's guidance. The absence of concrete data makes it impossible to identify a clear trading signal, keeping the stock in a phase of uncertainty until further announcements.
via Markets Gazette