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Rockwell Medical Technologies (RMTI)
NASDAQ:RMTI
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Rockwell Med
(NASDAQ:RMTI)
46Neutral
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.
New agreements
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.
Product portfolio expansion
The company added a single-use bicarbonate cartridge to its product portfolio, which could tap into a $100M market opportunity.
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.
Revenue guidance
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)
Market Cap
$45.98M
Dividend YieldN/A
Average Volume (3M)275.92K
Price to Earnings (P/E)―
Beta (1Y)3.26
Revenue Growth21.38%
EPS Growth93.09%
CountryUS
Employees237
SectorHealthcare
Sector Strength71
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.03
Shares Outstanding34,056,920
10 Day Avg. Volume360,043
30 Day Avg. Volume275,920
Financial Highlights & Ratios
PEG RatioN/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 Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside233.33% 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 is showing signs of recovery with improved revenue and cash flows. Despite being unprofitable, the company has enhanced its gross profit margin and cash flow. The balance sheet shows manageable leverage, but profitability remains a concern.Income Statement
Rockwell Med's income statement shows a positive trend in revenue growth over the years, with the TTM (Trailing-Twelve-Months) revenue increasing by 18.3% from the previous year. However, the company remains unprofitable with a negative net income, though the loss has reduced significantly. The gross profit margin improved to 16.9% TTM, indicating enhanced cost management. Despite these improvements, the EBIT and EBITDA margins are still weak at 0.6% and 3.1% TTM respectively, suggesting ongoing operational challenges.55
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.49, indicating manageable leverage. The return on equity remains negative due to net losses, but the company has improved its equity ratio to 51.0% TTM, demonstrating better asset management. The increase in stockholders' equity over the periods highlights strengthened financial health, yet profitability remains a concern.60
Neutral
Cash Flow
Rockwell Med's cash flow situation is improving, with a positive operating cash flow of $3.29 million TTM, turning around from prior negative flows. The free cash flow has also turned positive at $2.64 million TTM, indicating better cash management. The operating cash flow to net income ratio is strong, as cash flow exceeds net loss, but reliance on financing activities persists, which could be risky if not managed carefully.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 98.92M | 83.61M | 72.81M | 61.93M | 62.20M | 61.30M | Gross Profit |
| 16.72M | 8.70M | 4.08M | -2.42M | 2.73M | 2.84M | EBIT |
| 580.00K | -6.67M | -16.78M | -30.34M | -28.42M | -34.10M | EBITDA |
| 3.02M | -4.69M | -16.17M | -27.80M | -26.72M | -31.48M | Net Income Common Stockholders |
| -1.24M | -8.44M | -20.58M | -35.03M | -31.93M | -31.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 33.53M | 10.94M | 21.49M | 22.44M | 58.68M | 26.04M | Total Assets |
| 52.56M | 52.17M | 46.63M | 48.57M | 77.75M | 44.32M | Total Debt |
| 850.00K | 13.44M | 16.36M | 28.89M | 23.94M | 4.04M | Net Debt |
| -21.86M | 4.46M | -5.13M | 15.62M | -24.75M | -7.76M | Total Liabilities |
| 25.28M | 30.88M | 32.53M | 46.04M | 43.58M | 24.00M | Stockholders Equity |
| 27.28M | 21.29M | 14.11M | 2.54M | 34.17M | 20.32M |
| Cash Flow | Free Cash Flow | ||||
| 2.63M | -9.70M | -17.70M | -34.06M | -30.69M | -28.59M | Operating Cash Flow |
| 3.29M | -9.41M | -17.41M | -33.53M | -29.64M | -27.25M | Investing Cash Flow |
| -2.53M | -3.04M | -2.40M | 311.00K | 3.21M | -4.75M | Financing Cash Flow |
| 3.81M | 11.34M | 16.63M | -2.18M | 63.32M | 21.08M |
Rockwell Med Technical Analysis
Negative
1.20
Price Trends
1.82
Negative
2.20
Negative
2.46
Negative
Market Momentum
-0.13
Positive
26.29
Positive
5.98
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 1.2 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.82, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 26.29 is Positive, neither overbought nor oversold. The STOCH value of 5.98 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.19B | 224.61 | 1.52% | ― | 33.97% | ― | |
66 Neutral | $1.70B | ― | -9.85% | ― | 56.60% | -403.56% | |
54 Neutral | $509.40M | ― | 91.25% | ― | -17.75% | -19.17% | |
49 Neutral | $6.90B | 0.78 | -53.19% | 2.46% | 20.86% | 1.26% | |
46 Neutral | $45.98M | ― | -2.86% | ― | 21.38% | 93.09% | |
32 Underperform | $72.90M | ― | -59.34% | ― | ― | 64.71% |
* Healthcare Sector Average
Performance Comparison
RMTI
Rockwell Med
1.20
-0.45
-27.27%
AKBA
Akebia Therapeutics
1.95
-0.05
-2.50%
AUPH
Aurinia Pharmaceuticals
8.67
3.74
75.86%
CRBP
Corbus Pharmaceuticals
6.10
-30.05
-83.13%
KNSA
Kiniksa Pharmaceuticals
23.19
3.22
16.12%
Rockwell Med Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -31.82% | Next Earnings Date: May 19, 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.Highlights
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.
Lowlights
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.