Rhythm Pharmaceuticals (RYTM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Rhythm Pharmaceuticals

NasdaqGM•Healthcare•Biotechnology

$97.71-1.31(-0.01%)Market closed

Market Cap

$6.70B

P/S

27.9x

P/B

65.1x

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.

How this company scores

WeakMetricSide Score: 40/100

Grade capped at D — Interest coverage below 1× (-11.0x) — earnings cannot cover interest. Strongest: Growth (16/25); weakest: Cash & Earnings Quality (6/25).

Profitability7/25

Growth16/25

Balance Sheet & Red Flags11/25

Cash & Earnings Quality6/25

Strengths

Growing revenueConsistent growthImproving margins

Grade capped at D

Interest coverage below 1× (-11.0x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 27.9x5y range 17.6x – 370.1x

Currently near its 19-quarter median.

P/B · 65.1x5y range 1.1x – 286.0x

Currently above its 18-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $6.70B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $239.92M
Q. Revenue: $71.25M
TTM EBITDA: $-200.63M
TTM Op. Income: $-200.63M
Q. Op. Income: $-48.55M
TTM Net Income: $-205.35M
Q. Net Income: $-49.30M
EPS: $-0.73
Shares Out.: $68.59M

$239.92M in TTM revenue grew 53.5% YoY, reaching $71.25M last quarter. TTM EBITDA of $-200.63M and TTM operating income of $-200.63M show growth is flowing through to the bottom line. However, net income is negative at $205.35M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 87.5%
EBITDA Margin: -68.1%
Op. Margin: -68.1%
Net Margin: -69.2%

Op. margin of -68.1% is up 25.3% YoY — cost efficiency is improving. Net margin at -69.2% and gross margin of 87.5% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 27% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 27.9x
P/B Ratio: 65.1x

P/S of 27.9x and P/B of 65.1x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $437.27M
Cash: $65.61M
Long-Term Debt: $93.40M
Book Value: $102.98M
D/E Ratio: 0.9
Debt/EBITDA: N/A

With $437.27M in assets and $93.40M in long-term debt, D/E is 0.9and book value is $102.98M — a conservative capital structure with a cushion to weather downturns. Across the last 6 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-9.15M
TTM Free Cash Flow: $-106.30M
FCF Margin: -44.3%
FCF / Net Income: 0.5

TTM FCF of $-106.30M on $-9.15M in operating cash flow. The FCF / Net Income ratio of 0.5x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is up 1% — an improving trend.