Ardelyx (ARDX) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 83.88%
• EPS Growth: 15.24%
• Country: US
• Employees: 395
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 240,982,830
• 10 Day Avg. Volume: 3,178,817
• 30 Day Avg. Volume: 3,225,786
• PEG Ratio: 0.70
• Price to Book (P/B): 6.88
• Price to Sales (P/S): 3.57
• P/FCF Ratio: -26.03
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: -28.30
• 1Y Price Target: $11.50
• Price Target Upside: 125.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 49 Neutral
• Price Target: $5.00 ▼(-2.15% Downside)

Ardelyx's overall stock score is primarily influenced by its challenging financial performance, marked by strong gross margins but persistent profitability issues and increased leverage. Technical analysis suggests bearish momentum, while valuation metrics are unattractive due to negative earnings. The earnings call provided some optimism with strong revenue growth, but leadership changes and market challenges pose risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ardelyx's products, enhancing its market position and supporting long-term financial stability.

Product Sales Performance

The significant sales growth of IBSRELA highlights its market acceptance and potential for sustained revenue contribution, strengthening Ardelyx's competitive edge.

Leadership Expansion

The expansion of the leadership team with experienced executives is likely to drive strategic growth initiatives and enhance operational effectiveness.

Negative Factors

Profitability Challenges

Persistent profitability issues, despite strong gross margins, could hinder Ardelyx's ability to reinvest in growth and manage financial obligations effectively.

Increased Leverage

Rising leverage levels may limit financial flexibility and increase risk, potentially impacting Ardelyx's ability to navigate economic fluctuations and invest in growth.

Leadership Transition

The departure of the CFO could disrupt financial strategy and operations, affecting Ardelyx's ability to manage its financial health and execute its growth plans.

Ardelyx Business Overview & Revenue Model

Company Description

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company's lead product candidate is tenapanor, which has completed Phase III clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase III clinical trial to control serum phosphorus in adult patients with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia. It is also developing RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease; and RDX020, an early-stage program in metabolic acidosis, a serious electrolyte disorder in patients with CKD. The company has agreements with Kyowa Kirin in Japan, Fosun Pharmaceutical Industrial Development Co. Ltd. in China, and Knight Therapeutics, Inc. in Canada for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Ardelyx generates revenue primarily through the commercialization of its products, particularly tenapanor. The company earns money through direct sales of its therapies to healthcare providers and through partnerships with larger pharmaceutical firms that may involve milestone payments, royalties, or shared profits. Additionally, Ardelyx may receive funding through research grants, collaborations, or licensing agreements, which can provide supplementary revenue streams. The success of its products in the market, along with the establishment of strategic partnerships, is crucial for its financial growth.

Ardelyx Financial Statement Overview

Summary

Ardelyx shows strong gross profit margins but struggles with profitability, as evidenced by negative net profit margins and increasing leverage. Despite some improvement in free cash flow, overall cash flow remains negative, indicating financial challenges.

Income Statement

Ardelyx shows a strong gross profit margin of 86.25% in TTM, indicating efficient cost management. However, the company struggles with profitability, as evidenced by a net profit margin of -14.60% and negative EBIT and EBITDA margins. Revenue growth is positive at 6.76% TTM, but the company remains unprofitable, which is a concern for long-term sustainability.

Balance Sheet

The debt-to-equity ratio has increased to 1.48 in TTM, indicating higher leverage and potential financial risk. The return on equity is negative at -36.57%, reflecting ongoing losses. The equity ratio is not provided, but the increasing debt levels suggest a weakening balance sheet position.

Cash Flow

Free cash flow has shown growth of 13.26% TTM, which is a positive sign. However, both operating and free cash flows remain negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow generation is somewhat aligned with net income, despite the negative figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	386.15M	333.62M	124.46M	52.16M	10.10M	7.57M
Gross Profit	329.79M	283.06M	106.66M	48.04M	9.10M	7.43M
EBITDA	-32.11M	-16.71M	-55.35M	-60.98M	-150.85M	-85.24M
Net Income	-56.39M	-39.14M	-66.07M	-67.21M	-158.16M	-94.31M
Balance Sheet
Total Assets	466.77M	435.75M	297.58M	190.07M	149.91M	201.56M
Cash, Cash Equivalents and Short-Term Investments	238.45M	250.10M	184.30M	123.91M	116.69M	186.48M
Total Debt	206.64M	153.44M	55.98M	36.46M	45.50M	53.32M
Total Liabilities	327.24M	262.46M	130.76M	91.74M	67.30M	75.45M
Stockholders Equity	139.53M	173.29M	166.82M	98.33M	82.62M	126.11M
Cash Flow
Free Cash Flow	-55.19M	-45.82M	-90.06M	-70.10M	-154.42M	-81.76M
Operating Cash Flow	-53.49M	-44.81M	-89.72M	-70.04M	-152.55M	-81.44M
Investing Cash Flow	-1.50M	-18.32M	-131.25M	18.41M	50.95M	-31.44M
Financing Cash Flow	103.15M	106.59M	146.29M	75.34M	83.00M	22.78M

Ardelyx Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDX, the sentiment is Neutral. The current price of 5.11 is below the 20-day moving average (MA) of 5.12, below the 50-day MA of 5.79, and above the 200-day MA of 4.99, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARDX.

Ardelyx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCEL	―	$1.86B	295.35	2.59%	―	16.13%	670.90%
VRDN	―	$2.16B	-5.43	-62.99%	―	5.90%	-0.36%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARDX	―	$1.23B	-21.63	-39.36%	―	83.88%	15.24%
DNTH	―	$1.34B	-10.35	-34.71%	―	17.87%	41.27%
PHVS	―	$1.47B	―	-63.96%	―	―	-36.92%
EWTX	―	$1.60B	―	-27.41%	―	―	-1.46%

Ardelyx Corporate Events

Ardelyx Appoints New CFO Sue Hohenleitner

Ardelyx, Inc. has appointed Sue Hohenleitner as its new chief financial officer, effective November 4, 2025. Previously, Ms. Hohenleitner held various senior finance roles at Johnson & Johnson, including Vice President and CFO of J&J Innovative Medicine North America. Her appointment is accompanied by a comprehensive compensation package, including a base salary, bonus, stock options, and restricted stock units, reflecting Ardelyx’s strategic move to strengthen its financial leadership.

The most recent analyst rating on (ARDX) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.

Ardelyx Inc. Faces Financial Uncertainty Amid Shifting Trade Policies

Ardelyx Inc. faces significant risks due to potential changes in U.S. and international trade policies, which could adversely impact its business operations and financial results. The company’s reliance on foreign third-party manufacturers makes it vulnerable to tariffs and other trade barriers that may arise from ongoing negotiations and policy shifts. Such changes could increase manufacturing costs, affect the demand for its products like IBSRELA and XPHOZAH, and disrupt the import or export of key materials. The uncertainty surrounding these trade policies poses a substantial risk to Ardelyx Inc.’s operational stability and financial health.

Ardelyx Inc. Q2 2025 Earnings Call Highlights

Ardelyx Inc. recently held its second quarter 2025 earnings call, which conveyed a generally positive sentiment. The call highlighted strong financial and product performance, particularly for IBSRELA, as well as strategic steps to bolster the company’s leadership and financial flexibility. Despite challenges such as the departure of a key executive and the impact of losing Medicare as a payer for XPHOZAH, the positive aspects of growth and strategic positioning slightly outweighed these challenges.

Ardelyx Reports Strong Q2 2025 Financial Performance

Ardelyx, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines to address significant unmet medical needs, with a particular emphasis on gastrointestinal and kidney diseases.

Ardelyx CFO Transition Announced Amid Strong Q2 Results

On August 4, 2025, Ardelyx announced that its Chief Financial and Operations Officer, Justin Renz, will transition out of his role by the end of the year, following a transition agreement that includes severance benefits. Additionally, the company reported strong financial results for the second quarter of 2025, with a 33% increase in total revenue year-over-year, driven by significant growth in sales of its products IBSRELA and XPHOZAH. The company raised its 2025 revenue expectations for IBSRELA, reflecting confidence in its commercial strategy and market positioning.

The most recent analyst rating on (ARDX) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.