Rockwell Med (RMTI) AI Stock Analysis

• Market Cap: $58.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -6.79%
• EPS Growth: 61.56%
• Country: US
• Employees: 244
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 34,430,350
• 10 Day Avg. Volume: 4,317,204
• 30 Day Avg. Volume: 1,993,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 20.02
• 1Y Price Target: $4.00
• Price Target Upside: 136.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $2.00 ▲(18.34% Upside)

Rockwell Med's overall stock score reflects a company facing significant challenges but with some positive developments. The most significant factor is the financial performance, which shows ongoing profitability issues despite improvements in cash flow and leverage. Technical analysis indicates positive momentum, but valuation concerns and recent earnings challenges weigh on the score. Strategic initiatives from the earnings call provide a cautiously optimistic outlook, but the loss of a major customer and declining revenue remain critical risks.

Positive Factors

Long-Term Contracts

Securing long-term contracts with over 80% of customers enhances revenue stability and predictability, supporting sustained business operations.

Improved Cash Position

An improved cash position strengthens financial flexibility, enabling the company to invest in growth opportunities and manage operational needs.

Operational Efficiency

Enhanced operational efficiency through equipment investments helps maintain stable gross margins, supporting long-term profitability.

Negative Factors

Revenue Decline

A significant revenue decline due to losing a major customer poses challenges to growth, impacting financial performance and market position.

Decreased Profitability

Decreased profitability reflects ongoing cost management issues, which could hinder future investments and strategic initiatives.

Loss of Major Customer

Losing a major customer significantly affects revenue streams, necessitating strategic adjustments to mitigate long-term financial impacts.

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 proprietary medical products, particularly its dialysis solutions and iron therapies. The company markets these products to hospitals, clinics, and dialysis centers, primarily in the United States. Key revenue streams include direct sales of its products and potential licensing agreements with other healthcare firms. Additionally, Rockwell may benefit from partnerships with healthcare providers and institutions that facilitate the adoption of its therapies, contributing to sustained revenue growth.

Rockwell Med Financial Statement Overview

Summary

Rockwell Med's financial performance shows mixed results. While there are improvements in cash flow and leverage, profitability remains a challenge with negative net profit margins and declining revenue. The balance sheet indicates moderate leverage, but negative returns on equity persist.

Income Statement

Rockwell Med's income statement shows a mixed performance. The TTM gross profit margin of 17.52% indicates some improvement in cost management compared to previous years. However, the net profit margin remains negative at -2.39%, reflecting ongoing profitability challenges. Revenue has declined by 9.99% in the TTM period, indicating a concerning trend. The EBIT and EBITDA margins are slightly negative, showing operational inefficiencies.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 0.37 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative at -6.79%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio of 57.79% suggests a reasonable level of financial stability.

Cash Flow

Cash flow analysis shows positive trends with a 30.95% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 0.32 indicates that the company is generating cash from operations, albeit at a low level. The free cash flow to net income ratio of 0.83 suggests that the company is managing its cash flow better than its net income might suggest.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.97M	101.49M	83.61M	72.81M	61.93M	62.20M
Gross Profit	15.41M	17.48M	8.70M	4.08M	-2.42M	2.73M
EBITDA	1.23M	2.95M	-4.69M	-16.17M	-27.80M	-26.72M
Net Income	-2.10M	-480.00K	-8.44M	-18.68M	-32.67M	-30.89M
Balance Sheet
Total Assets	52.63M	59.21M	52.17M	46.63M	48.57M	77.75M
Cash, Cash Equivalents and Short-Term Investments	18.42M	21.60M	10.94M	21.49M	22.44M	58.68M
Total Debt	14.01M	13.54M	13.44M	16.36M	28.89M	23.94M
Total Liabilities	22.22M	26.62M	30.88M	32.53M	46.04M	43.58M
Stockholders Equity	30.41M	32.59M	21.29M	14.11M	2.54M	34.17M
Cash Flow
Free Cash Flow	2.68M	3.19M	-9.70M	-17.70M	-34.06M	-30.69M
Operating Cash Flow	3.50M	4.20M	-9.41M	-17.41M	-33.53M	-29.64M
Investing Cash Flow	-6.55M	-4.87M	-3.04M	-2.40M	311.00K	3.21M
Financing Cash Flow	3.67M	7.35M	11.34M	16.15M	-2.18M	63.32M

Rockwell Med Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.69
• 50DMA: Positive
• 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 RMTI, the sentiment is Positive. The current price of 1.69 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.19, and above the 200-day MA of 1.45, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMTI.

Rockwell Med Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASRT	58 Neutral	$77.49M	―	-38.40%	―	-11.42%	89.01%
RMTI	55 Neutral	$58.19M	―	-8.65%	―	-6.79%	61.56%
CPIX	54 Neutral	$51.31M	―	-10.79%	―	11.34%	71.13%
Sector *	51 Neutral	$8.02B	-0.39	-43.38%	2.20%	22.34%	-2.13%
DRRX	45 Neutral	$59.31M	―	-291.74%	―	-62.57%	11.60%
SCYX	44 Neutral	$43.60M	―	-37.22%	―	-66.30%	50.52%
KALA	31 Underperform	$119.36M	―	-708.34%	―	―	51.27%