Rhythm Pharmaceuticals, a prominent player in the Biotechnology industry, has been outperforming despite the overall market downturn. The company's strong
financial position is evident in its total stockholder equity of
264.3 million and net assets worth
382.48 million. Moreover, the company's current valuation stands at
721.49 million, which is a positive sign for potential investors. The firm also boasts a significant institutional ownership of 99.60%, demonstrating the trust and confidence of
institutional investors.in the company's potential. However, it's worth noting that the company reported a loss, with an income before tax of 181.1 million and earnings per share at -3.38. Despite these challenges, Rhythm Pharmaceuticals' robust working capital of 314.43 million and absence of net debt (-125.7 million) indicate its resilience and potential for growth.
Continued study
Rhythm Pharmaceuticals is currently undervalued, trading at $28.01 per share with modest future projections. The company's stock has shown a relatively low level of volatility over the past three months. Rhythm Pharmaceuticals has maintained a Sharpe Ratio, or Efficiency, of 0.16, suggesting that the firm has generated a 0.16% return per unit of risk during this period.
In forecasting stock volatility, we utilize all available market data along with stock-specific technical indicators that cannot be diversified away. A thorough analysis of Rhythm Pharmaceuticals' technical indicators can currently provide insight into whether the expected return of 0.71% is justified by the implied risk.
Please evaluate Rhythm Pharmaceuticals' Semi Deviation of 3.23, Coefficient of Variation of 1211.26, and Risk Adjusted Performance of 0.0631 to verify if our risk estimates align with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Rhythm Pharmaceuticals income statement, its balance sheet, and the statement of cash flows. Potential Rhythm Pharmaceuticals investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Rhythm Pharmaceuticals investors may use each financial statement separately, they are all related. The changes in Rhythm Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Rhythm Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Rhythm Pharmaceuticals
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Rhythm Pharmaceuticals performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Rhythm Pharmaceuticals shares is the value that is considered the true value of the share. If
the intrinsic value of Rhythm is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Rhythm Pharmaceuticals. Please read more on our
fundamental analysis page.
How effective is Rhythm Pharmaceuticals in utilizing its assets?
Rhythm Pharmaceuticals reports assets on its Balance Sheet. It represents the amount of Rhythm resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Rhythm Pharmaceuticals aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect Rhythm volatility, please check the breakdown of all its
fundamentals.
Are Rhythm Pharmaceuticals Earnings Expected to grow?
The
future earnings power of Rhythm Pharmaceuticals involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Rhythm Pharmaceuticals factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Rhythm Pharmaceuticals
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Rhythm
expected earnings.
Rhythm Pharmaceuticals Gross Profit
Rhythm Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Rhythm Pharmaceuticals previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Rhythm Pharmaceuticals Gross Profit growth over the last 10 years. Please check Rhythm Pharmaceuticals'
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Rhythm Pharmaceuticals
Many companies such as Rhythm Pharmaceuticals have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Rhythm is distributed among investors.
Ownership Allocation
Rhythm Pharmaceuticals has a total of 56.85 Million outstanding shares. The majority of Rhythm Pharmaceuticals
outstanding shares are owned by
third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Rhythm Pharmaceuticals to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Rhythm Pharmaceuticals. Please pay attention to any change in the institutional holdings of Rhythm Pharmaceuticals as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors | 0.0 |
| Insiders | 0.4 |
| Institutions | 99.6 |
| 2010 | 2022 | 2023 (projected) |
Interest Expense | 5.2 M | 4.68 M | 4.65 M | Gross Profit | 2.56 M | 21.5 M | 18.28 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rhythm Pharmaceuticals has an asset utilization ratio of 6.18 percent. This suggests that the company is making $0.0618 for each dollar of assets. An increasing asset utilization means that Rhythm Pharmaceuticals is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 302.43 Million | 88.77 |
| Assets Non Current | 30.47 Million | 8.95 |
| Goodwill | 7.78 Million | 2.28 |
Rhythm Pharmaceuticals, a commercial-stage biopharmaceutical company, has been outperforming in the market, showing resilience amidst a market downturn. Despite the high probability of bankruptcy at 73.32%, the company's
fundamentals remain strong with a current ratio of 5.59X, indicating its ability to cover short-term liabilities. The company's market capitalization stands at
$1.29 billion, with 56.85 million shares outstanding. Rhythm Pharmaceuticals reported total revenue of $23.6 million, against total operating expenses of
$200.7 million, resulting in an operating income loss of $179.2 million. However, the company's cash position is robust with cash and short-term investments amounting to $333.3 million. The company's total assets stand at $382.48 million against total liabilities of $118.2 million. Despite a negative EPS estimate for the current year at $-3.23, Wall Street's target price for the stock is $36.89, significantly higher than its 52-week high of $34.99. The company's beta of 1.68 suggests it's more volatile than the market, but its price to sales ratio of 95.69X indicates that investors are willing to pay a high price for its future growth. Despite the challenges, Rhythm Pharmaceuticals continues to buck the trend, demonstrating the potential for significant returns.
Over 3 percent roll up for Rhythm Pharmaceuticals. What does it mean for insiders?
Rhythm Pharmaceuticals has recently experienced a significant decrease in its Value at Risk (VaR) indicator, dropping to -7.27. This trend suggests a potential for a price increase, which could be a favorable sign for investors. The company's over 3 percent roll up indicates a bullish trend, potentially reflecting insider confidence in the company's
future performance. Given the potential for further price appreciation, this could be a strategic time for insiders to augment their holdings. However, as always, investors should conduct thorough due diligence before making any investment decisions. Rhythm Pharmaceuticals exhibits above-average downside volatility for the selected time horizon. We recommend investors to scrutinize Rhythm Pharmaceuticals further and ensure that all
market timing and asset allocation strategies align with the projection of Rhythm Pharmaceuticals' future alpha. Understanding different
market volatility trends often aids investors in market timing. Proper utilization of volatility indicators allows traders to measure Rhythm Pharmaceuticals' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
Rhythm Pharmaceuticals' stock price, causing stress to investors as they watch the value of their shares decline. This scenario typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of today's strong performance, Rhythm Pharmaceuticals, Inc. remains a compelling investment opportunity. With an
Analyst Overall Consensus of 'Buy' and a total of
5 Strong Buys out of 9 estimates, the
market sentiment is clearly bullish. The company's lead product candidate, IMCIVREE, continues to show promise in the treatment of rare genetic diseases of obesity, reinforcing its position in the biopharmaceutical industry. The
Analyst Target Price Estimated Value stands at
$37.111, offering a significant upside from the current trading levels. Even the Naive Expected Forecast Value of $26.15 and the Valuation Real Value of $28.01 suggest potential for growth. However, investors should also consider the possible downside price of $21.7. As the fiscal year end in December approaches, Rhythm Pharmaceuticals is expected to maintain its momentum, making it a worthwhile consideration for investors. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Rhythm Pharmaceuticals. Please refer to our
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