Rockwell Med (RMTI) AI Stock Analysis

• Market Cap: $36.15M
• Dividend Yield: N/A
• Average Volume (3M): 295.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -6.79%
• EPS Growth: 61.56%
• Country: US
• Employees: 244
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 34,430,350
• 10 Day Avg. Volume: 211,054
• 30 Day Avg. Volume: 295,188
• 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: 0.68
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 20.02
• 1Y Price Target: $4.00
• Price Target Upside: 250.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $1.00 ▼(-12.28% Downside)

Rockwell Med's overall stock score reflects a company facing profitability challenges but showing some positive signs in cash flow management and strategic initiatives. Technical analysis provides a neutral outlook, while valuation concerns persist due to negative earnings. The earnings call suggests potential for future growth, but recent financial setbacks weigh heavily on the score.

Positive Factors

Market Position

The company is the largest supplier of liquid bicarbonate concentrates and the second-largest supplier of acid and dry bicarbonate concentrates for dialysis patients in the U.S.

Strategic Agreements

The new service agreement with Innovative Renal Care demonstrates RMTI's proactive approach to replacing lost revenue following the transition of its largest customer to new suppliers.

Valuation

The shares currently trade at a discount to the peer average, suggesting a compelling valuation, especially given Rockwell's strategic position in the market.

Negative Factors

Customer Transition

RMTI's largest customer, DaVita Inc., is expected to completely transition to other suppliers by the end of 2Q25, representing a significant revenue hit.

Financial Forecast

The full-year 2025 net loss forecast has widened, driven by the reduced top-line forecast and somewhat higher operating expenses.

Revenue Loss

Rockwell Medical continues to expect significant loss of revenue from what was historically its largest customer.

Rockwell Med Business Overview & Revenue Model

Company Description

Rockwell Medical, Inc. (RMTI) is a biotechnology company focused on developing and commercializing innovative therapies for patients with end-stage renal disease (ESRD) and chronic kidney disease (CKD). The company operates primarily in the biotechnology and healthcare sectors, offering a range of products including dialysis solutions and iron replacement therapies, aimed at improving patient outcomes in renal care.

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: 1.14
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1.14 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.99, and below the 200-day MA of 1.57, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.53 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 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	$75.50M	―	-38.40%	―	-11.42%	89.01%
RMTI	54 Neutral	$36.15M	―	-8.65%	―	-6.79%	61.56%
CPIX	53 Neutral	$46.08M	―	-10.79%	―	11.34%	71.13%
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%
DRRX	45 Neutral	$58.38M	―	-291.74%	―	-62.57%	11.60%
SCYX	44 Neutral	$33.12M	―	-37.22%	―	-66.30%	50.52%
KALA	31 Underperform	$58.91M	―	-708.34%	―	―	51.27%

Rockwell Med Corporate Events

Rockwell Med Holds 2025 Annual Stockholders Meeting

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.