Rhythm Pharmaceuticals, Inc. (RYTM) AI Stock Analysis

Rhythm Pharmaceuticals, Inc. is a commercial-phase biopharmaceutical company focused on developing and commercializing treatments for rare genetic obesity disorders. Its lead therapeutic candidate is IMCIVREE, which targets the melanocortin-4 receptor to treat conditions such as pro-opiomelanocortin (POMC) deficiency obesity, proprotein convertase subtilisin/kexin type 1 deficiency obesity, leptin receptor (LEPR) deficiency obesity, Bardet-Biedl syndrome, and Alström syndrome. The company is also advancing setmelanotide in Phase II trials for additional MC4R-related genetic obesity disorders and collaborates with the Clinical Registry Investigating Bardet-Biedl Syndrome. Rhythm Pharmaceuticals was founded in 2008 and is based in Boston, Massachusetts.

Annual revenue expanded from $3.2M in FY2021 to $23.6M in FY2022, $77.4M in FY2023, $130.1M in FY2024, and $189.8M in FY2025, delivering a 5-year revenue CAGR of 458.2%. Gross margins have stayed robust, finishing FY2025 at 89.7%. Operating losses remain substantial due to research and development spending, which totaled $167.3M in FY2025 alongside an operating margin of -101.2%. Annual net income was -$196.5M in FY2025, an improvement from -$260.6M in FY2024. For the trailing twelve months, revenue reached $239.9M, with quarterly revenue growing 46.9% year-over-year in the period ended June 30, 2026, while trailing twelve-month EPS stood at -$3.12.

As of June 30, 2026, Rhythm Pharmaceuticals held $330.9M in cash and short-term investments against total debt of $3.7M, yielding net cash of $327.2M. The company's current ratio was 3.45, with a debt-to-equity ratio of 0.02 and shareholders' equity of $217.3M. In FY2025, operating cash flow was -$115.7M and free cash flow was -$116.6M. Cash uses in FY2025 included $953,000 for capital expenditures and $5.4M in dividends paid, while the 5-year share count change was 36.4%.

Rhythm Pharmaceuticals trades at an enterprise value of $6.55B and a market capitalization of $5.91B. The stock carries a forward P/E ratio of 526.3x and a price-to-sales multiple of 24.7x, well above the US-listed Healthcare peer group medians of 17.3x forward P/E and 4.1x price-to-sales. Its EV-to-revenue ratio is 27.3x. At a last close of $86.17 on October 16, 2026, the stock has declined 22.5% over the past year, compared to a 16.8% gain for the S&P 500 (SPY). Over a 5-year period, however, RYTM gained 661.9% versus 83.0% for SPY.

Wall Street sentiment includes 11 Strong Buy, 5 Buy, and 2 Hold recommendations, with 0 Sell or Strong Sell ratings. The mean price target is $143.94, representing a 67.0% premium over the last close of $86.17. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$3.04 on revenue of $315.1M. For the next fiscal year, 13 analysts project revenue of $565.1M, representing 79.3% growth, with EPS estimated at -$0.63. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Rhythm Pharmaceuticals, Inc. (RYTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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