Rhythm Pharmaceuticals RYTM
United StatesHealthcare · BiotechnologyUSD
138.59 USD (+56.7%)
17 analysts
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Rhythm Pharmaceuticals is a biotech focused on developing therapies for obesity and rare hyperphagia disorders, with a business model based on R&D and future drug commercialization.
Key points
from its scores- ✓Strong growth9.9
- ✕Little or no dividend0.5
- ✕Demanding valuation0.8
- ✕Unfavourable risk and backdrop2.1
AI analysis
bottom line, main risk, context and newsHold only for investors with high risk tolerance and a long horizon; the thesis depends on drug approval and commercialization, not on current fundamentals.
RYTM shows very strong revenue growth (46.9%) and an 89% gross margin, but remains in development with deeply negative operating margins (-68.14%) and ROIC of -76.97%, explaining its low valuation (0.8) and quality (3.27) scores. The balance sheet is sound (liquidity 3.45, debt/EBITDA 1.11), but profitability is far off.
The main risk is regulatory and clinical execution: the value depends on its pipeline therapies passing trials and gaining approval, with a very negative operating margin that burns cash.
Context and risks
No recent news and no material exposure to current macro factors: biotech does not depend on rates, commodities, or shipping routes.
Is Rhythm Pharmaceuticals stock cheap or expensive?
at the analysis dateOn Price / sales, it trades 640% above the Healthcare median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| Price / book | 59.1 | 4.1 | +1,339% |
| Price / sales | 25.3 | 3.4 | +640% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 0.8 out of 10 (median for Healthcare: 4.7).
Average analyst target: 138.59 USD, +56.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.3 (sector 5.5), Growth 9.9 (sector 6.6).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- Forward P/E
- −144.4
- EV / EBITDA
- −30.0
- Price / book
- 59.1
- Price / sales
- 25.3
- Market cap
- 6.1B USD
- Enterprise value
- 6.0B USD
Profitability
- ROE
- −117.0%
- ROA
- −31.0%
- ROIC (approx.)
- −77.0%
- Gross margin
- 89.0%
- Operating margin
- −68.1%
- Net margin
- −85.6%
- Free cash flow
- −130.6M USD
- FCF yield
- −2.2%
Solvency
- Total debt
- 109.8M USD
- Net debt
- −221.1M USD
- Cash
- 330.9M USD
- EBITDA
- −199.6M USD
- Net debt / EBITDA
- 1.11
- Debt / equity
- 50.52
- Current ratio
- 3.45
- Quick ratio
- 3.00
Growth
- Revenue growth
- +46.9%
- EPS (TTM)
- −3.12 USD
- EPS (forward)
- −0.61 USD
Dividend
- Dividend yield
- 0.0%
Risk and market
- Beta
- 2.01
- Analyst consensus
- none (17)
- Target price
- 138.59 USD
- 52-week range
- 74.50 – 122.20
Recent news
All RYTM news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Rhythm Pharmaceuticals
Is Rhythm Pharmaceuticals stock cheap or expensive?
On Price / sales, it trades 640% above the Healthcare median. Valuation score: 0.8 out of 10 (median for Healthcare: 4.7). Average analyst target: 138.59 USD, +56.7% versus the price. This is not investment advice.
What score does Rhythm Pharmaceuticals get on MeridIAn Screener?
It scores 3.6 out of 10, rank 2,023 of 2,130 (better than 5% of the companies analysed). Its strongest category is Growth (9.9) and its weakest, Dividend (0.5). Analysis of 08/10/2026.
How much is Rhythm Pharmaceuticals worth on the stock market?
Its market capitalisation is 6.1B USD and its enterprise value, debt included, is 6.0B USD.
How much debt does Rhythm Pharmaceuticals have?
It has more cash than debt: net cash of 221.1M USD.
Does Rhythm Pharmaceuticals pay a dividend?
It pays no dividend, or almost none.
How has Rhythm Pharmaceuticals stock performed over the last year?
It has fallen 12.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 74.50 and 122.20 USD. Past performance does not guarantee future results.
What do analysts think of Rhythm Pharmaceuticals?
17 analysts cover it; their average recommendation is “none” and their average target is 138.59 USD (+56.7% versus the price). It is an estimate, not market data.