Rhythm Pharmaceuticals Inc. Common Stock (RYTM)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. Rhythm is a commercial-stage biotech selling IMCIVREE for rare neuroendocrine diseases. Revenue is clearly scaling: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $71.3M versus $48.5M in fiscal Q2 2025; FY2025 revenue was $189.8M versus $130.1M in FY2024. That suggests real adoption, and rare-disease approvals, specialist prescribers, and limited competition can create a moat. But the financials are still speculative. FY2025 net loss was $196.5M, and fiscal Q2 2026 net loss was $49.3M. Trailing free cash flow was -$106.3M, with a FairStock-calculated FCF yield of -1.8%. FairStock also shows ROE -117.05%, ROCE -30.96%, P/B 57.74, and a negative P/E of -27.76 at the 2026-10-13 close of $86.61. Debt/equity is 0.51 and Altman Z is 12.23, so balance-sheet distress is not the immediate issue, but Piotroski is 4/9. The computed Lynch category is none because it lost money in each of the last four years. Profit growth of -5.72% and continuing losses mean Graham's margin of safety is difficult to find. A $6.0B market cap already discounts much future success. Growth is impressive, but until losses narrow and cash flow turns positive, I would view this as a speculative growth story rather than a value investment.

In plain English: Rhythm Pharmaceuticals is a biotech company that sells a medicine for rare diseases that affect appetite and weight. Sales are growing, but the company still loses money and spends more cash than it brings in. At $86.61 on October 13, 2026, the shares look expensive compared with today's losses, so the value depends heavily on future drug success.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer