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Rockwell Medical Technologies (RMTI)
NASDAQ:RMTI
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Rockwell Med
(NASDAQ:RMTI)
Rating:55Neutral
Price Target:
$1.00
▲( 2.04% Upside)
Positive Factors
New Product Opportunities
Rockwell Medical 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.
Valuation
Shares currently trade at an EV/revenue multiple of 0.2x the 2026 estimate, a discount to the peer average, suggesting a compelling valuation.
Negative Factors
Customer Transition
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
The company has lowered its revenue guidance for 2025, which implies a decline in top-line growth.
Revenue Decline
Rockwell Medical continues to expect significant loss of revenue from what was historically its largest customer.
Rockwell Med (RMTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.47M
Dividend YieldN/A
Average Volume (3M)225.68K
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth12.82%
EPS Growth96.46%
CountryUS
Employees244
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.04
Shares Outstanding34,174,686
10 Day Avg. Volume287,364
30 Day Avg. Volume225,682
Financial Highlights & Ratios
PEG Ratio-2.04
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio11.99
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda26.80
Forecast
1Y Price Target
$4.00Price Target Upside308.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Rockwell Med Business Overview & Revenue Model
Company DescriptionRockwell Medical, Inc. (RMTI) is a biopharmaceutical company primarily focused on the development, manufacturing, and commercialization of treatments for end-stage renal disease (ESRD) and chronic kidney disease (CKD). The company operates within the healthcare sector, specifically targeting the nephrology market. Its core products include Triferic, an iron maintenance therapy designed to treat anemia in dialysis patients, and Calcitriol, an active vitamin D injection for treating secondary hyperparathyroidism in patients undergoing chronic renal dialysis.
How the Company Makes MoneyRockwell 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 shown revenue growth and improvements in cash flow and balance sheet strength. However, profitability remains a challenge with consistent net losses, although margins are improving. The equity position has strengthened and leverage reduced, enhancing 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%.45
Neutral
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.50
Neutral
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.55
Neutral
| 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 |
| 13.54M | 13.44M | 16.36M | 28.89M | 23.94M | Net Debt |
| -2.13M | 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 | |||
| 3.19M | -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
Negative
0.98
Price Trends
1.15
Negative
1.54
Negative
2.30
Negative
Market Momentum
-0.05
Positive
39.80
Neutral
14.29
Positive
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 0.98 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.15, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMTI.
Rockwell Med Risk Analysis
Rockwell Med disclosed 37 risk factors in its most recent earnings report. Rockwell Med reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rockwell Med Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $33.47M | ― | -2.12% | ― | 12.82% | 96.46% | |
53 Neutral | $5.14B | 3.03 | -44.09% | 2.83% | 16.75% | -0.06% | |
51 Neutral | $48.52M | ― | 1063.61% | ― | 475.53% | 89.94% | |
45 Neutral | $35.48M | ― | -75.66% | ― | ― | -31.16% | |
43 Neutral | $30.28M | ― | -43.47% | ― | -98.13% | -129.06% | |
40 Underperform | $48.86M | ― | -546.55% | ― | 127.51% | 56.94% | |
38 Underperform | $56.58M | ― | -1546.58% | ― | -19.45% | 31.22% |
* Healthcare Sector Average
Performance Comparison
RMTI
Rockwell Med
0.98
-0.81
-45.25%
BLUE
Bluebird Bio
4.99
-13.81
-73.46%
ATRA
Atara Biotherapeutics
7.14
-8.15
-53.30%
SCYX
SCYNEXIS
0.78
-1.58
-66.95%
VRCA
Verrica Pharmaceuticals
0.61
-7.81
-92.76%
LTRN
Lantern Pharma
3.29
-2.89
-46.76%
Rockwell Med Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -12.50%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Rockwell Medical's earnings call showed a company in transition, focusing on expanding and diversifying its customer base amidst challenges with its largest customer. While there were positive developments in product expansion and manufacturing efficiency, the significant revenue decline and negative adjusted EBITDA due to customer transition posed major challenges.Q1-2025 Updates
Positive Updates
New Contracts and Diversification
Rockwell Medical diversified its customer base by signing several new contracts with leading hemodialysis providers, enhancing its position as a preferred provider with high-quality products.
Manufacturing Efficiency
The company continued to consolidate and automate its manufacturing operations, reducing expenses and sustaining its gross margin within the guidance range.
Product Portfolio Expansion
Rockwell Medical added a single-use bicarbonate cartridge technology to its portfolio, targeting a fast-growing segment in the dialysis products market.
Gross Margin Improvement
Q1 2025 gross margin increased to 16%, up from 14% in the same period of 2024.
Net Loss Improvement
Net loss for Q1 2025 was $1.5 million, an improvement from a net loss of $1.7 million in Q1 2024.
Negative Updates
Revenue Decline
Net sales for Q1 2025 were $18.9 million, a 17% decrease from $22.7 million in Q1 2024, primarily due to the largest customer transitioning to another supplier.
Customer Transition Impact
The largest customer transition resulted in a significant decrease in revenue, although a one-time payment of $900,000 was received to ensure continuity of supply.
Negative Adjusted EBITDA
Adjusted EBITDA for Q1 2025 was negative $400,000, impacted by seasonal payroll tax and other expenses.
Cash Reserves Decrease
Cash, cash equivalents, and investments available for sale decreased to $17.3 million from $21.6 million at the end of December 2024.
Company Guidance
During Rockwell Medical's first quarter 2025 earnings call, the company reaffirmed its guidance for fiscal year 2025, projecting net sales between $65 million and $70 million, a gross margin ranging from 16% to 18%, and an adjusted EBITDA between negative $500,000 and positive $500,000. Despite a 17% decrease in first-quarter net sales compared to the same period in 2024, due to the transition of their largest customer to a different supplier, the gross margin improved from 14% to 16%. The company also highlighted the addition of a single-use bicarbonate cartridge technology to its product portfolio, aiming to diversify offerings and capture growth in the dialysis products market. Furthermore, Rockwell Medical addressed ongoing discussions with its largest customer about potential contract extensions, while also actively pursuing new business development opportunities, both domestically and internationally. The company is confident in maintaining its guidance, with potential upside from acquiring new customers not yet factored into its current projections.Rockwell Med Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Rockwell Med Holds 2025 Annual Stockholders Meeting
Neutral
May 20, 2025
On May 20, 2025, Rockwell Medical, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were voted on. The election of two Class I directors, approval of executive compensation, ratification of EisnerAmper LLP as the independent accounting firm, and an amendment to the 2018 Long Term Incentive Plan were all addressed, reflecting the company’s ongoing governance and strategic planning efforts.
The most recent analyst rating on (RMTI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Rockwell Med stock, see the RMTI Stock Forecast page.
Business Operations and Strategy
Rockwell Med Updates Corporate Presentation May 2025
Neutral
May 12, 2025
On May 12, 2025, Rockwell Medical, Inc. released an updated corporate presentation. This update is part of their ongoing efforts to provide stakeholders with current information, although it is not intended to be filed under the Securities Exchange Act of 1934.
The most recent analyst rating on (RMTI) stock is a Buy with a $6.0000 price target. To see the full list of analyst forecasts on Rockwell Med stock, see the RMTI Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.