Rockwell Med (RMTI) AI Stock Analysis

• Market Cap: $35.20M
• Dividend Yield: N/A
• Average Volume (3M): 303.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: 21.38%
• EPS Growth: 93.09%
• Country: US
• Employees: 244
• Sector: Healthcare
• Sector Strength: 66
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.03
• Shares Outstanding: 34,174,686
• 10 Day Avg. Volume: 258,260
• 30 Day Avg. Volume: 303,318
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.44
• Price to Cash Flow (P/CF): 2.60
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 288.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Rockwell Med's overall score reflects a company with strong recent revenue growth and strategic initiatives but facing significant challenges ahead. The loss of its largest customer will impact 2025 revenue, and despite positive cash flow and improved equity, profitability remains elusive. Technical indicators suggest weak momentum, and valuation metrics highlight ongoing financial struggles.

Positive Factors

Operational Efficiency

RMTI reported 4Q24 topline results slightly ahead of expectations as it continues to execute on its strategy of expanding market reach, diversifying its portfolio, and leveraging automation in manufacturing to minimize costs and increase efficiency.

Product Portfolio Expansion

The company added a single-use bicarbonate cartridge to its product portfolio, which could tap into a $100M market opportunity.

Strategic Partnerships

Recently signed deals include an agreement with Nipro Medical Corporation, Nephro Group Dialysis Centers, and Fresenius Medical Care AG, expanding its reach and potential market.

Negative Factors

Customer Diversification

RMTI's largest customer, DaVita Inc., is expected to completely transition to other suppliers by the end of 1H25, representing a significant potential loss in revenue.

Guidance and Estimates

Due to disappointing guidance which includes the impact of the loss of DaVita – its largest customer, revenue estimates and the 12-month price target have been lowered.

Revenue Loss

Rockwell's largest customer is transitioning its volume away from the company, resulting in an expected $34M revenue loss.

Rockwell Med Business Overview & Revenue Model

Company Description

Rockwell Medical, Inc., together with its subsidiaries, operates as a biopharmaceutical company that targets end-stage renal disease and chronic kidney disease with therapies and products for the treatment of iron deficiency and hemodialysis in the United States and internationally. The company offers Triferic Dialysate and Triferic AVNU, an iron therapy that replaces iron and maintains hemoglobin in dialysis patients without increasing iron stores. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including blood tubing, fistula needles, dialyzers, drugs, specialized component kits, dressings, cleaning agents, filtration salts, and other supplies used by hemodialysis providers. The company's dialysis concentrate products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. It is also developing other therapeutic product candidates for the treatment of hospitalized patients with acute heart failure; and home infusion therapy that allows patients to receive intravenous medications at home. Its target customers include medium and small sized dialysis chains and independent dialysis centers. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.

How the Company Makes Money

Rockwell Medical generates revenue through the sale of its pharmaceutical products, primarily Triferic and Calcitriol, to dialysis clinics and healthcare providers. The company engages in direct sales and distribution agreements to reach its target market within the nephrology sector. Key revenue streams include product sales, licensing agreements, and potential milestone payments from strategic partnerships. Rockwell Medical's earnings are significantly influenced by its ability to expand market penetration, secure regulatory approvals, and establish partnerships that enhance its distribution network and product reach.

Rockwell Med Financial Statement Overview

Summary

Rockwell Med has demonstrated revenue growth and improvements in cash flow and balance sheet strength over recent years. However, profitability remains a challenge with consistent net losses, although margins are improving. The company's improved equity position and reduced leverage enhance its financial stability.

Income Statement

Rockwell Med has shown a positive revenue growth trend, with total revenue increasing from $61.9M in 2021 to $101.5M in 2024. However, the company continues to struggle with profitability, as evidenced by net losses in recent years, with a net profit margin of -0.47% in 2024. Gross profit margin has improved to 17.22% in 2024, indicating better cost control, but the EBIT margin remains low at 0.6%.

Balance Sheet

The company's equity position has improved, with stockholders' equity increasing from $2.5M in 2021 to $32.6M in 2024, reflecting strengthened financial stability. The debt-to-equity ratio decreased significantly to 0.34 in 2024, indicating a more balanced capital structure. However, the company has historically faced high liabilities, which remains a concern.

Cash Flow

Rockwell Med's operating cash flow turned positive in 2024 at $4.2M, compared to negative cash flow in previous years, showing an improvement in cash generation. The free cash flow also turned positive in 2024, suggesting better cash management. Nevertheless, the company needs to maintain this trend to ensure long-term financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
101.49M	83.61M	72.81M	61.93M	62.20M
	Gross Profit
17.48M	8.70M	4.08M	-2.42M	2.73M
	EBIT
608.00K	-6.67M	-16.78M	-30.34M	-28.42M
	EBITDA
2.95M	-4.69M	-16.17M	-27.80M	-26.72M
	Net Income Common Stockholders
-480.00K	-8.44M	-20.58M	-35.03M	-31.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.60M	10.94M	21.49M	22.44M	58.68M
	Total Assets
59.21M	52.17M	46.63M	48.57M	77.75M
	Total Debt
11.10M	13.44M	16.36M	28.89M	23.94M
	Net Debt
-4.56M	4.46M	-5.13M	15.62M	-24.75M
	Total Liabilities
26.62M	30.88M	32.53M	46.04M	43.58M
	Stockholders Equity
32.59M	21.29M	14.11M	2.54M	34.17M
Cash Flow		Free Cash Flow
4.20M	-9.70M	-17.70M	-34.06M	-30.69M
	Operating Cash Flow
4.20M	-9.41M	-17.41M	-33.53M	-29.64M
	Investing Cash Flow
-4.87M	-3.04M	-2.40M	311.00K	3.21M
	Financing Cash Flow
7.35M	11.34M	16.63M	-2.18M	63.32M

Rockwell Med Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMTI, the sentiment is Negative. The current price of 1.03 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.47, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 32.51 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMTI.

Rockwell Med Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
RMTI	46 Neutral	$35.20M	―	-2.86%	―	21.38%	93.09%
LTRN	43 Neutral	$36.88M	―	-66.93%	―	―	-31.16%
SCYX	42 Neutral	$35.25M	―	-33.25%	―	-97.33%	-136.16%
VRCA	37 Underperform	$45.02M	―	-1546.58%	―	47.66%	-5.04%
BLUE	36 Underperform	$40.53M	―	-295.35%	―	184.12%	31.92%
ATRA	25 Underperform	$36.15M	―	1063.61%	―	1404.02%	59.49%

Rockwell Med Corporate Events

Rockwell Med Appoints New CFO to Strengthen Leadership

Rockwell Medical, Inc. announced the appointment of Jesse Neri as the Senior Vice President and Chief Financial Officer. This appointment is significant for the company as it strengthens its financial leadership, potentially impacting its strategic financial planning and operational efficiency. Neri’s role includes substantial compensation and equity incentives, aligning his interests with the company’s long-term success.

Rockwell Med Reveals Strategic Corporate Presentation

Rockwell Medical, Inc. has unveiled a new corporate presentation that could capture the interest of investors keen on tracking the company’s strategic direction and market positioning. This update was made available on November 12, 2024, offering insights without impacting the liabilities under the Securities Exchange Act of 1934.