Rhythm Pharmaceuticals

RYTM

Biotechnology · Healthcare

Price

$106.60

+0.51 (+0.48%)

Market Cap

$7.31B

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+31.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 49.6M (2021) → 65.0M (2025)

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

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+83.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-2.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$167M/ year

↓ Declining (-30% vs prior year)

88.2% of revenue

4.9x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

18.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~4 months

$62M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Rhythm Pharmaceuticals grew revenue 84% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

88.1%

Premium pricing power — 88.1% gross margin

Operating Margin

-87.1%

Losing money on operations — -87.1%

ROCE

-15.1%

Weak — -15.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+58.7%

Fast-growing sales (58.7% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

-55.5%

Burning cash (-55.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.82

Elevated debt (1.82)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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