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Rhythm Pharmaceuticals

Nasdaq:RYTM
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RYTM
Nasdaq
$619M
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic disorders that result in life-threatening metabolic disorders. The last earnings update was 26 days ago. More info.


Add to Portfolio Compare Print
  • Rhythm Pharmaceuticals has significant price volatility in the past 3 months.
RYTM Share Price and Events
7 Day Returns
-0.6%
NasdaqGM:RYTM
6.3%
US Biotechs
12.6%
US Market
1 Year Returns
-48.8%
NasdaqGM:RYTM
1.6%
US Biotechs
-9.1%
US Market
RYTM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rhythm Pharmaceuticals (RYTM) -0.6% -22.7% -38.9% -48.8% - -
US Biotechs 6.3% -7.9% -7.9% 1.6% 7.7% -8.8%
US Market 12.6% -16.7% -19.6% -9.1% 8.2% 21.5%
1 Year Return vs Industry and Market
  • RYTM underperformed the Biotechs industry which returned 1.6% over the past year.
  • RYTM underperformed the Market in United States of America which returned -9.1% over the past year.
Price Volatility
RYTM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Rhythm Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rhythm Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rhythm Pharmaceuticals.

NasdaqGM:RYTM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:RYTM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.203 (1 + (1- 21%) (0.58%))
1.139
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.139 * 5.44%)
7.94%

Discounted Cash Flow Calculation for NasdaqGM:RYTM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rhythm Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:RYTM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.94%)
2020 -332.00 Analyst x1 -307.58
2021 -83.00 Analyst x1 -71.24
2022 116.00 Analyst x1 92.24
2023 185.00 Analyst x1 136.29
2024 314.00 Analyst x1 214.31
2025 419.97 Est @ 33.75% 265.56
2026 521.37 Est @ 24.15% 305.43
2027 612.21 Est @ 17.42% 332.27
2028 690.08 Est @ 12.72% 346.99
2029 755.12 Est @ 9.43% 351.77
Present value of next 10 years cash flows $1,666.00
NasdaqGM:RYTM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $755.12 × (1 + 1.74%) ÷ (7.94% – 1.74%)
$12,394.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,394.60 ÷ (1 + 7.94%)10
$5,773.98
NasdaqGM:RYTM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,666.00 + $5,773.98
$7,439.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,439.98 / 44.06
$168.86
NasdaqGM:RYTM Discount to Share Price
Calculation Result
Value per share (USD) From above. $168.86
Current discount Discount to share price of $14.04
= -1 x ($14.04 - $168.86) / $168.86
91.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rhythm Pharmaceuticals is available for.
Intrinsic value
>50%
Share price is $14.04 vs Future cash flow value of $168.86
Current Discount Checks
For Rhythm Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rhythm Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Rhythm Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rhythm Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rhythm Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:RYTM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-3.86
NasdaqGM:RYTM Share Price ** NasdaqGM (2020-03-27) in USD $14.04
United States of America Biotechs Industry PE Ratio Median Figure of 37 Publicly-Listed Biotechs Companies 15.87x
United States of America Market PE Ratio Median Figure of 2,935 Publicly-Listed Companies 13.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rhythm Pharmaceuticals.

NasdaqGM:RYTM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:RYTM Share Price ÷ EPS (both in USD)

= 14.04 ÷ -3.86

-3.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rhythm Pharmaceuticals is loss making, we can't compare its value to the US Biotechs industry average.
  • Rhythm Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Rhythm Pharmaceuticals's expected growth come at a high price?
Raw Data
NasdaqGM:RYTM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
58.8%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 0.99x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1.03x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rhythm Pharmaceuticals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rhythm Pharmaceuticals's assets?
Raw Data
NasdaqGM:RYTM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $6.39
NasdaqGM:RYTM Share Price * NasdaqGM (2020-03-27) in USD $14.04
United States of America Biotechs Industry PB Ratio Median Figure of 428 Publicly-Listed Biotechs Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,145 Publicly-Listed Companies 1.27x
NasdaqGM:RYTM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:RYTM Share Price ÷ Book Value per Share (both in USD)

= 14.04 ÷ 6.39

2.2x

* Primary Listing of Rhythm Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rhythm Pharmaceuticals is good value based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Rhythm Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Rhythm Pharmaceuticals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Rhythm Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
58.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rhythm Pharmaceuticals expected to grow at an attractive rate?
  • Rhythm Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Rhythm Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Rhythm Pharmaceuticals's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:RYTM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:RYTM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 58.8%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:RYTM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:RYTM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 659 355 338 4
2023-12-31 468 183 246 4
2022-12-31 219 66 47 6
2021-12-31 65 -135 -101 8
2020-12-31 6 -171 -149 7
2020-03-28
NasdaqGM:RYTM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 -123 -141
2019-09-30 -112 -133
2019-06-30 -95 -115
2019-03-31 -82 -87
2018-12-31 -62 -74
2018-09-30 -49 -59
2018-06-30 -40 -53
2018-03-31 -34 -47
2017-12-31 -29 -38
2017-09-30 -28 -36
2017-06-30 -24 -32
2017-03-31 -24 -30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rhythm Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Rhythm Pharmaceuticals is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:RYTM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Rhythm Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:RYTM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 6.03 9.29 3.14 4.00
2023-12-31 3.55 6.53 0.96 4.00
2022-12-31 0.80 2.89 -1.33 5.00
2021-12-31 -2.11 -0.96 -3.31 7.00
2020-12-31 -3.34 -2.61 -4.35 7.00
2020-03-28
NasdaqGM:RYTM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -3.86
2019-09-30 -3.87
2019-06-30 -3.34
2019-03-31 -2.64
2018-12-31 -2.39
2018-09-30 -2.04
2018-06-30 -2.41
2018-03-31 -2.65
2017-12-31 -2.83
2017-09-30 -3.91
2017-06-30 -3.13
2017-03-31 -2.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Rhythm Pharmaceuticals will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Rhythm Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rhythm Pharmaceuticals has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rhythm Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rhythm Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rhythm Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Rhythm Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Rhythm Pharmaceuticals's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Rhythm Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rhythm Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:RYTM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 -140.73 36.55 109.45
2019-09-30 -133.28 35.52 103.40
2019-06-30 -114.96 33.53 87.54
2019-03-31 -86.58 31.12 60.81
2018-12-31 -74.06 28.08 50.34
2018-09-30 -59.18 24.02 38.23
2018-06-30 -52.92 17.80 33.49
2018-03-31 -46.52 12.72 30.31
2017-12-31 -37.58 9.52 22.89
2017-09-30 -36.14 7.93 21.87
2017-06-30 -31.90 6.60 21.32
2017-03-31 -30.42 6.36 20.55
2016-12-31 -29.07 6.31 19.59
2016-09-30 -26.65 5.59 17.58
2016-06-30 -22.90 5.53 14.36
2016-03-31 -17.28 4.66 10.40
2015-12-31 -12.00 3.43 7.15
2015-09-30 -6.01 1.54 4.15
2015-06-30 -2.82 0.93 1.89
2015-03-31 -4.66 1.07 3.59
2014-12-31 -6.49 1.21 5.28
2013-12-31 -12.20 1.70 10.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Rhythm Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Rhythm Pharmaceuticals has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Rhythm Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Rhythm Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rhythm Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rhythm Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rhythm Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rhythm Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rhythm Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rhythm Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Rhythm Pharmaceuticals has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rhythm Pharmaceuticals Company Filings, last reported 2 months ago.

NasdaqGM:RYTM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 281.02 0.00 292.46
2019-09-30 149.12 0.00 162.44
2019-06-30 181.47 0.00 195.17
2019-03-31 220.49 0.00 221.52
2018-12-31 246.26 0.00 252.06
2018-09-30 269.64 0.00 272.39
2018-06-30 284.32 0.00 287.55
2018-03-31 133.66 0.00 136.45
2017-12-31 144.79 0.00 148.08
2017-09-30 29.09 0.00 30.42
2017-06-30 15.29 0.00 17.74
2017-03-31 21.58 0.00 23.88
2016-12-31 7.30 0.00 10.54
2016-09-30
2016-06-30
2016-03-31 32.00 0.00 34.87
2015-12-31 32.00 0.00 34.87
2015-09-30 22.77 0.00 23.91
2015-06-30 -0.40 0.00 0.17
2015-03-31 -0.40 0.00 0.17
2014-12-31 -0.36 0.00 0.15
2013-12-31 -1.35 0.00 0.24
  • Rhythm Pharmaceuticals has no debt.
  • Rhythm Pharmaceuticals has not taken on any debt in the past 5 years.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Rhythm Pharmaceuticals has sufficient cash runway for 2.3 years based on current free cash flow.
  • Rhythm Pharmaceuticals has less than a year of cash runway if free cash flow continues to grow at historical rates of 50% each year.
X
Financial health checks
We assess Rhythm Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rhythm Pharmaceuticals has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Rhythm Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Rhythm Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought $2,000 of Rhythm Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Rhythm Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Rhythm Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:RYTM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:RYTM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Rhythm Pharmaceuticals has not reported any payouts.
  • Unable to verify if Rhythm Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Rhythm Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Rhythm Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Rhythm Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Rhythm Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rhythm Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rhythm Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Rhythm Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Gottesdiener
COMPENSATION $3,539,804
AGE 65
TENURE AS CEO 8.4 years
CEO Bio

Dr. Keith Michael Gottesdiener, M.D. has been the Chief Executive Officer of Rhythm Holding Company, LLC since October 2011. Dr. Gottesdiener has been the Chief Executive Officer of Rhythm Pharmaceuticals Inc. since October 2011 and has been its President since August 2017. He joined Rhythm after 16 years at Merck Research Laboratories, or Merck. Prior to Rhythm, he served as Vice President and Late-Stage Therapeutic Group Leader at Merck & Co., Inc., with responsibility for pivotal trials of Merck's products in all therapeutic areas and served as the Head of Early-Stage Clinical Development Programs. Over a 16-year career at Merck, he was responsible for more than 40 major clinical programs and products, including the approval of Gardasil(TM) (HPV vaccine) and the more recent FDA approval of Victrelis(TM) (HCV protease inhibitor). From 2006 to 2011, he was a Leader of Merck’s late clinical development organization, first overseeing the development of Merck’s infectious diseases and vaccine products through pivotal trials, registration and life cycle management, including GardasilTM (HPV Vaccine), RotateqTM (rotavirus vaccine), ZostavaxTM (zoster vaccine) and IsentressTM (HIV integrase inhibitor), among others. In 2008, Dr. Gottesdiener was appointed Late Stage Therapeutic Group Leader, and in that role led Merck’s late-stage clinical development efforts (from Phase 2 through patent expiry) across all therapeutic areas. After Merck’s merger with Schering-Plough Corporation in 2009, he continued as Co-Head of Late Development. From 2009 to 2011, he served as Merck’s Vice President of Clinical Sciences and Therapeutic Area Group Leader. Dr. Gottesdiener was the Chief Executive Officer of Motus Therapeutics, Inc. since October 2011 until December 2016. He has been a Director of Intercept Pharmaceuticals, Inc. since July 19, 2016. He served as the Chairman at Rhythm Pharmaceuticals, Inc. until April 2017 and has been its Director since October 2011. He has extensive experience in the pharmaceutical industry as a senior executive. Dr. Gottesdiener joined Merck in 1995 and held positions of increasing responsibility, eventually leading Merck's early clinical development across all therapeutic areas from 2001 through early 2006. Dr. Gottesdiener served as the Chairman of Motus Therapeutics, Inc. and served as its Director until December 2016. He served as the Chairman of the Board of Rhythm Holding Company, LLC until April 2017 and has been its Director since October 2011. After his fellowship, he did Postdoctoral Research in the Laboratory of Dr. Jack Strominger at Dana Farber Cancer Institute working on the molecular immunology of the T-cell receptor. In 1986, he joined the faculty as an Assistant Professor at Columbia University, started an independent research laboratory with NIH RO-1 funding, focusing on gene transcription and was Associate Clinical Professor of Medicine at the time he left to enter Merck in 1995. He completed his residency and fellowship at the combined Brigham and Women's Hospital-Beth Israel Medical Center-Dana Farber Cancer Institute Children's Hospital programs. Dr. Gottesdiener received an A.B. from Harvard College and an M.D. from the University of Pennsylvania.

CEO Compensation
  • Keith's compensation has increased whilst company is loss making.
  • Keith's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Rhythm Pharmaceuticals management team in years:

2.7
Average Tenure
51
Average Age
  • The tenure for the Rhythm Pharmaceuticals management team is about average.
Management Team

Keith Gottesdiener

TITLE
President
COMPENSATION
$4M
AGE
65
TENURE
8.4 yrs

Hunter Smith

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
50
TENURE
2.7 yrs

David Connolly

TITLE
Head of Investor Relations & Corporate Communications

Simon Kelner

TITLE
Chief Human Resources Officer
AGE
46
TENURE
1.8 yrs

Nithya Desikan

TITLE
Chief Commercial Officer
COMPENSATION
$1M
AGE
40
TENURE
2.7 yrs

Murray Stewart

TITLE
Chief Medical Officer
AGE
58
TENURE
1.4 yrs

Alastair Garfield

TITLE
Vice President of Translational Research & Development

John Hulburt

TITLE
Controller
AGE
52
Board of Directors Tenure

Average tenure and age of the Rhythm Pharmaceuticals board of directors in years:

5.3
Average Tenure
65
Average Age
  • The tenure for the Rhythm Pharmaceuticals board of directors is about average.
Board of Directors

David Meeker

TITLE
Independent Chairman of the Board
COMPENSATION
$282K
AGE
65
TENURE
2.9 yrs

Keith Gottesdiener

TITLE
President
COMPENSATION
$4M
AGE
65
TENURE
8.4 yrs

Davie McGirr

TITLE
Independent Director
COMPENSATION
$255K
AGE
65
TENURE
4.3 yrs

Lee Kaplan

TITLE
Chairman of Scientific Advisory Board

Christophe Jean

TITLE
Independent Director
COMPENSATION
$244K
AGE
63
TENURE
4.9 yrs

Todd Foley

TITLE
Independent Director
COMPENSATION
$241K
AGE
47
TENURE
5.7 yrs

Ed Mathers

TITLE
Independent Director
COMPENSATION
$240K
AGE
59
TENURE
7 yrs

John Amatruda

TITLE
Member of Scientific Advisory Board
AGE
74

Michael Camilleri

TITLE
Member of Scientific Advisory Board

William Chin

TITLE
Member of Scientific Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Rhythm Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rhythm Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in Rhythm Pharmaceuticals, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Rhythm Pharmaceuticals The Last 12 Months Of Insider Transactions At Rhythm Pharmaceuticals Over the last year, we can see that the biggest insider purchase was by Independent Director Todd Foley for US$10.0m worth of shares, at about US$26.42 per share. … Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Introducing Rhythm Pharmaceuticals (NASDAQ:RYTM), A Stock That Climbed 8.8% In The Last Year

It might be of some concern to shareholders to see the Rhythm Pharmaceuticals, Inc. … Rhythm Pharmaceuticals didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). … And given that the share price has climbed 8.8% in the last year, its fair to say investors think there's a reasonable chance of success.

Simply Wall St -

Should You Take Comfort From Insider Transactions At Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. … Rhythm Pharmaceuticals Insider Transactions Over The Last Year

Simply Wall St -

Investors Are Undervaluing Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) By 45.1%

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Breaking Down Rhythm Pharmaceuticals Inc's (NASDAQ:RYTM) Ownership Structure

In this analysis, my focus will be on developing a perspective on Rhythm Pharmaceuticals Inc’s (NASDAQ:RYTM) latest ownership structure, a less discussed, but important factor. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … See our latest analysis for Rhythm Pharmaceuticals

Simply Wall St -

Company Info

Description

Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic disorders that result in life-threatening metabolic disorders. The company’s lead product candidate is setmelanotide, a melanocortin-4 receptor agonist peptide, which is in Phase III clinical trials to treat pro-opiomelanocortin POMC and leptin receptor deficiency obesity, and Bardet-Biedl and Alström syndrome; and is in Phase II clinical trials for treating POMC heterozygous deficiency obesity and POMC epigenetic disorders. It is also developing RM-853, an orally available ghrelin o-acyltransferase inhibitor that is in preclinical development for Prader-Willi syndrome. 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. Rhythm Pharmaceuticals, Inc. operates as a subsidiary of Allergan GI Corp.

Details
Name: Rhythm Pharmaceuticals, Inc.
RYTM
Exchange: NasdaqGM
Founded: 2008
$618,587,082
44,058,909
Website: http://www.rhythmtx.com
Address: Rhythm Pharmaceuticals, Inc.
500 Boylston Street,
11th Floor,
Boston,
Massachusetts, 02116,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM RYTM Common Stock Nasdaq Global Market US USD 05. Oct 2017
DB 1RV Common Stock Deutsche Boerse AG DE EUR 05. Oct 2017
BMV RYTM * Common Stock Bolsa Mexicana de Valores MX MXN 05. Oct 2017
Number of employees
Current staff
Staff numbers
70
Rhythm Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 02:22
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/18
Last earnings filing: 2020/03/02
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.