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Rockwell Medical Technologies (RMTI)
NASDAQ:RMTI

Rockwell Med (RMTI) AI Stock Analysis

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Rockwell Med

(NASDAQ:RMTI)

48Neutral
Rockwell Med achieves a score of 48, reflecting revenue growth and improved financial stability. However, the loss of a major customer and projected revenue decline pose significant challenges. Technical analysis suggests caution, and valuation metrics highlight concerns due to negative earnings. The company's strategic initiatives offer potential but carry execution risks.
Positive Factors
Market Expansion
Rockwell Medical plans to target additional customers representing an estimated 14.5M gallons of potential available business within its distribution footprint.
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 Loss Impact
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 Downgrade
The company has lowered its revenue guidance for 2025, which implies a decline in top-line growth.
Revenue Loss
Rockwell's largest customer is transitioning its volume away from the company, resulting in an expected $34M revenue loss.

Rockwell Med (RMTI) vs. S&P 500 (SPY)

Rockwell Med Business Overview & Revenue Model

Company DescriptionRockwell 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 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 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
45
Neutral
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
50
Neutral
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
55
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
101.49M83.61M72.81M61.93M62.20M
Gross Profit
17.48M8.70M4.08M-2.42M2.73M
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 SheetCash, Cash Equivalents and Short-Term Investments
21.60M10.94M21.49M22.44M58.68M
Total Assets
59.21M52.17M46.63M48.57M77.75M
Total Debt
11.10M13.44M16.36M28.89M23.94M
Net Debt
-4.56M4.46M-5.13M15.62M-24.75M
Total Liabilities
26.62M30.88M32.53M46.04M43.58M
Stockholders Equity
32.59M21.29M14.11M2.54M34.17M
Cash FlowFree 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-2.40M311.00K3.21M
Financing Cash Flow
7.35M11.34M16.63M-2.18M63.32M

Rockwell Med Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.23
Price Trends
50DMA
1.32
Negative
100DMA
1.69
Negative
200DMA
2.36
Negative
Market Momentum
MACD
-0.04
Negative
RSI
55.12
Neutral
STOCH
50.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMTI, the sentiment is Neutral. The current price of 1.23 is above the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.32, and below the 200-day MA of 2.36, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 50.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.36B3.88-42.93%2.87%17.85%1.45%
48
Neutral
$42.03M-2.86%21.38%93.09%
48
Neutral
$38.28M-33.25%-97.33%-136.16%
45
Neutral
$38.18M-66.93%-31.16%
39
Underperform
$43.50M-1546.58%47.66%-5.04%
37
Underperform
$38.67M-295.35%184.12%31.92%
31
Underperform
$45.07M1063.61%1404.02%59.49%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RMTI
Rockwell Med
1.23
-0.35
-22.15%
BLUE
Bluebird Bio
3.95
-14.05
-78.06%
ATRA
Atara Biotherapeutics
7.82
-8.93
-53.31%
SCYX
SCYNEXIS
1.02
-0.75
-42.37%
VRCA
Verrica Pharmaceuticals
0.47
-6.79
-93.53%
LTRN
Lantern Pharma
3.54
-2.61
-42.44%

Rockwell Med Earnings Call Summary

Earnings Call Date:Mar 20, 2025
(Q4-2024)
|
% Change Since: -30.11%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Neutral
Rockwell Medical had a successful 2024 with record sales and improved margins, but faces significant challenges in 2025 due to the loss of its largest customer. The company is actively pursuing new opportunities to counter the revenue decline.
Q4-2024 Updates
Positive Updates
Record Net Sales and Profitability
For the full year 2024, Rockwell Medical achieved net sales of $101.5 million, marking a 21% increase from 2023, and achieved profitability on an adjusted EBITDA basis for the first time in its history.
Gross Margin Improvement
Gross margin improved from 10% in 2023 to 17% in 2024, driven by price increases, premium-priced product orders, and operational efficiencies.
Successful Strategic Acquisitions
Rockwell Medical acquired dialysis concentrates assets from Evoqua in 2023, which contributed significantly to top-line revenue and market presence.
Expansion in International Markets
The company now sells products in over 30 countries, with a notable expansion in the Philippines through Nephro Group Dialysis Centers.
New Product and Customer Wins
Introduced a convenience pack for home and acute care markets, and entered into long-term agreements with major dialysis product providers and distributors like B. Braun and Nipro Medical Corporation.
Negative Updates
Loss of Major Customer
The largest customer, representing $34 million in revenue, is transitioning away from Rockwell to another supplier by June 30, 2025.
Revenue Decline Projected for 2025
Net sales for 2025 are projected to be between $65 million and $70 million, a significant decrease from 2024 due to the loss of the largest customer.
Transition Year with Uncertain Outcomes
2025 is expected to be a transition year with efforts focused on mitigating revenue loss through new business development opportunities.
Company Guidance
During Rockwell Medical's fourth quarter and full year 2024 results conference call, the company provided guidance for 2025, emphasizing the year as a transition phase due to a significant customer transitioning to another supplier, which is expected to reduce revenue by approximately $34 million. Despite this, Rockwell projects net sales between $65 million and $70 million, with a gross margin of 16% to 18%, and adjusted EBITDA ranging from negative $500,000 to positive $500,000. The company achieved over $100 million in net sales for 2024, with a 21% year-over-year increase, and improved its gross margin to 17%. Rockwell also recorded net sales of $24.7 million in Q4 2024, marking a 12% increase from the same period in 2023, while achieving profitability on an adjusted EBITDA basis for the first time in its history. The company's strategic initiatives for 2025 include diversifying its customer base, expanding its product portfolio, and optimizing business operations, with plans to target additional customers and pursue new business development opportunities.

Rockwell Med Corporate Events

Executive/Board Changes
Rockwell Med Appoints New CFO to Strengthen Leadership
Positive
Dec 12, 2024

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.

Business Operations and Strategy
Rockwell Med Reveals Strategic Corporate Presentation
Neutral
Nov 12, 2024

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.

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.