Rockwell Medical, Inc. (NASDAQ: RMTI)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001041024
Market Cap 31.56 Mn
P/B 0.85
P/E -5.72
P/S 0.42
ROIC (Qtr) -10.18
Div Yield % 0.00
Rev 1y % (Qtr) -43.75
Total Debt (Qtr) 13.13 Mn
Debt/Equity (Qtr) 0.35
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About

Rockwell Medical, Inc., often recognized by its ticker symbol RMTI, operates within the healthcare industry, specializing in the development, manufacturing, commercialization, and distribution of a range of hemodialysis products for dialysis providers globally. The company holds a prominent position as the leading supplier of liquid bicarbonate concentrates and the second-largest supplier of acid and dry bicarbonate concentrates for dialysis patients in the United States. Rockwell Medical's primary business activities revolve around the creation...

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Investment thesis

Bull case

  • Healthy cash reserves of 13.61M provide 6.07x coverage of short-term debt 2.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 46.77M provides 3.56x coverage of total debt 13.12M, indicating robust asset backing and low credit risk.
  • Short-term investments of 10.10M provide solid 1.74x coverage of other current liabilities 5.82M, indicating strong liquidity.
  • Tangible assets of 46.77M provide robust 8.04x coverage of other current liabilities 5.82M, indicating strong asset backing.
  • Cash reserves of 13.61M provide robust 1.42x coverage of current liabilities 9.58M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (2.08M) barely covers its investment activities of (4.75M), with a coverage ratio of 0.44, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.75M) provide weak support for R&D spending of 1000, which is -4745x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (2.08M) shows concerning coverage of stock compensation expenses of 1.74M, with a -1.20 ratio indicating potential earnings quality issues.
  • High receivables of 8.33M relative to inventory of 3.96M (2.10 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (2.94M) provides weak coverage of capital expenditures of 851000, with a -3.45 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 59.62 Bn 29.27 7.67 9.24 Bn
2 TAK Takeda Pharmaceutical Co Ltd 57.33 Bn 79.02 2.00 36.56 Bn
3 HLN Haleon plc 51.85 Bn 33.06 3.83 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.45 Bn 27.98 2.29 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.54 Bn 16.94 6.89 0.00 Bn
6 RGC Regencell Bioscience Holdings Ltd 16.16 Bn -4,510.00 0.00 -
7 ELAN Elanco Animal Health Inc 12.79 Bn 355.14 2.78 4.32 Bn
8 NBIX Neurocrine Biosciences Inc 12.71 Bn 26.56 4.44 0.42 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 38.12
EV to Cash from Ops. EV/CFO -15.87 -121.97
EV to Debt EV to Debt 2.52 403.43
EV to EBIT EV/EBIT -7.54 -55.05
EV to EBITDA EV/EBITDA -67.12 -57.64
EV to Free Cash Flow [EV/FCF] EV/FCF -11.27 -65.56
EV to Market Cap EV to Market Cap 1.05 -4.24
EV to Revenue EV/Rev 0.44 -1,205.44
Price to Book Value [P/B] P/B 0.85 43.48
Price to Earnings [P/E] P/E -5.72 -46.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.04
Interest Coverage Int. cover (Qtr) -3.89 -46.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -29.14 -154.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.31 86,151.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -624.37 31.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -110.50 9.88
EBIT Growth (1y) % EBIT 1y % (Qtr) -624.37 91.77
EBT Growth (1y) % EBT 1y % (Qtr) -346.28 90.13
EPS Growth (1y) % EPS 1y % (Qtr) -260.00 -12.06
FCF Growth (1y) % FCF 1y % (Qtr) -211.42 -224.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -31.54 26.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.31 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.42 2.12
Current Ratio Curr Ratio (Qtr) 3.92 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.35 -1.15
Interest Cover Ratio Int Coverage (Qtr) -3.89 -46.13
Times Interest Earned Times Interest Earned (Qtr) -3.89 -46.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.10 -59,714.97
EBIT Margin % EBIT Margin % (Qtr) -5.81 -60,539.44
EBT Margin % EBT Margin % (Qtr) -7.30 -64,118.78
Gross Margin % Gross Margin % (Qtr) 15.10 8,658.69
Net Profit Margin % Net Margin % (Qtr) -7.30 -64,120.53