Ardelyx (ARDX) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 3.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 127.33%
• EPS Growth: 21.31%
• Country: US
• Employees: 395
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 239,255,220
• 10 Day Avg. Volume: 3,024,799
• 30 Day Avg. Volume: 3,900,677
• PEG Ratio: 0.54
• Price to Book (P/B): 7.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.24
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: -8.06
• 1Y Price Target: $10.80
• Price Target Upside: 154.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: $4.50 ▲(6.13%Upside)

Ardelyx's overall score reflects strong revenue growth and strategic financial moves, such as the loan amendment, against the backdrop of profitability and cash flow challenges. Positive technical indicators provide market support, while valuation concerns highlight the need for improved profitability.

Positive Factors

Market Potential

$1B peak Ibsrela net sales guidance looks achievable and possibly conservative, requiring less than 10% of the current annual prescription volume.

Product Differentiation

Ibsrela remains the only non-secretagogue on the market, likely making it the preferred second-line agent and appealing to a large number of refractory patients.

Negative Factors

Medicare Access Challenges

A positive appeals decision could restore Part D for Xphozah and add back a large growth driver for the stock.

Revenue Performance

A small sequential retracement in overall Xphozah revenue is expected from the first quarter to the second quarter, with growth likely returning in the third quarter.

Ardelyx Business Overview & Revenue Model

Company Description

Ardelyx, Inc. (ARDX) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines to improve treatment for people with cardiorenal diseases. The company primarily operates in the healthcare sector with a focus on pharmaceuticals, and its core product offerings include tenapanor, a first-in-class medicine for the treatment of irritable bowel syndrome with constipation (IBS-C) and hyperphosphatemia in patients with chronic kidney disease on dialysis.

How the Company Makes Money

Ardelyx generates revenue through the commercialization of its pharmaceutical products, primarily tenapanor. The company earns money by selling its approved drug to healthcare providers and through partnerships with other pharmaceutical companies for the distribution and co-development of its treatments. Additionally, Ardelyx may receive milestone payments and royalties from licensing agreements and collaborations with other companies in the pharmaceutical industry. The company's revenue is significantly influenced by its ability to successfully market its products and expand its reach in the healthcare market.

Ardelyx Financial Statement Overview

Summary

Ardelyx demonstrates promising revenue growth, but faces significant profitability and cash flow challenges. Despite a stable balance sheet, negative net profit margins and cash flow issues hinder overall financial health.

Income Statement

Ardelyx has shown a strong revenue growth trajectory with substantial increases in total revenue over recent periods. Gross profit margin is healthy, but the company is still facing challenges with profitability as reflected by a negative net profit margin. The EBIT and EBITDA margins are also negative, indicating operational challenges and cost management issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach in leveraging financing through debt. However, the return on equity remains negative due to consistent net losses, indicating the need for improved profitability to enhance shareholder returns. The equity ratio suggests a stable capital structure, but overall asset utilization needs improvement for better financial health.

Cash Flow

Despite negative operating cash flows, Ardelyx has managed to maintain adequate liquidity through financing activities. However, the free cash flow remains negative, indicating challenges in generating surplus cash from operations. The ratios of operating and free cash flow to net income are unfavorable, highlighting persistent cash flow management difficulties.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	333.62M	124.46M	52.16M	10.10M	7.57M
Gross Profit	283.06M	106.66M	48.04M	9.10M	7.43M
EBITDA	-16.71M	-55.35M	-60.98M	-150.85M	-85.24M
Net Income	-39.14M	-66.07M	-67.21M	-158.16M	-94.31M
Balance Sheet
Total Assets	435.75M	297.58M	190.07M	149.91M	201.56M
Cash, Cash Equivalents and Short-Term Investments	250.10M	184.30M	123.91M	116.69M	186.48M
Total Debt	153.44M	55.98M	36.46M	45.50M	53.32M
Total Liabilities	262.46M	130.76M	91.74M	67.30M	75.45M
Stockholders Equity	173.29M	166.82M	98.33M	82.62M	126.11M
Cash Flow
Free Cash Flow	-45.82M	-90.06M	-70.10M	-154.42M	-81.76M
Operating Cash Flow	-44.81M	-89.72M	-70.04M	-152.55M	-81.44M
Investing Cash Flow	-18.32M	-131.25M	18.41M	50.95M	-31.44M
Financing Cash Flow	106.59M	146.29M	75.34M	83.00M	22.78M

Ardelyx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDX, the sentiment is Negative. The current price of 4.24 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.04, and below the 200-day MA of 4.88, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 13.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARDX.

Ardelyx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDXG	78 Outperform	$1.06B	33.33	16.62%	―	6.85%	-67.67%
AUPH	78 Outperform	$1.21B	32.77	17.33%	―	25.59%	―
ARDX	63 Neutral	$1.01B	―	-36.26%	―	127.33%	21.31%
LQDA	55 Neutral	$1.60B	―	-188.03%	―	-11.42%	0.26%
OCUL	53 Neutral	$1.84B	―	-57.19%	―	-0.33%	-3.59%
Sector *	52 Neutral	kr5.49B	9.89	-63.86%	2.02%	27.11%	26.73%
CLDX	49 Neutral	$1.46B	―	-23.20%	―	24.49%	5.14%

Ardelyx Corporate Events

Ardelyx Secures $50 Million Loan Amendment

On June 30, 2025, Ardelyx, Inc. amended its Loan and Security Agreement, initially dated February 23, 2022, with SLR Investment Corp. and other lenders. The Fifth Amendment allowed Ardelyx to immediately draw $50 million and provided options for additional loans totaling $100 million. The loans have specific interest rates and maturity dates, with interest-only payments allowed until maturity. The amendment impacts Ardelyx’s financial strategy by securing significant funding options for future operations.

The most recent analyst rating on (ARDX) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.

Ardelyx Stockholders Approve Equity Plan Amendment

On June 18, 2025, Ardelyx, Inc. held its Annual Meeting where stockholders approved an amendment to the 2014 Equity Incentive Award Plan. This amendment, initially approved by the Board on April 28, 2025, aims to enhance the company’s equity compensation framework. The meeting also saw the election of Class II directors, approval of the Say-On-Pay proposal, and ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (ARDX) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.