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Rockwell Medical (RMTI)
:RMTI
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Rockwell Med
(NASDAQ:RMTI)
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Rating:52Neutral
Price Target:
$1.50
▲(22.95% Upside)
Rockwell Med's overall stock score reflects a company facing significant challenges but showing some positive signs. The financial performance is hindered by profitability issues and revenue decline, but improved cash flow and leverage offer some optimism. Technical analysis suggests mixed momentum, while valuation remains a concern due to negative earnings. The earnings call provides a cautiously optimistic outlook with strategic improvements, but recent financial setbacks weigh heavily on the score.
Positive Factors
Long-Term Contracts
Securing long-term contracts enhances revenue stability and predictability, providing a solid foundation for future growth and operational planning.
Cash Flow Management
Improved cash flow management indicates better operational efficiency and financial health, allowing for reinvestment in growth initiatives and debt reduction.
Operational Efficiency
Enhanced operational efficiency through equipment investments helps stabilize margins, offsetting revenue declines and supporting long-term profitability.
Negative Factors
Revenue Decline
A declining revenue trend poses a risk to financial sustainability, potentially limiting the company's ability to invest in growth and compete effectively.
Loss of Major Customer
Losing a major customer significantly affects revenue streams and highlights dependency risks, necessitating diversification to mitigate future impacts.
Decreased Profitability
Ongoing profitability challenges with negative margins indicate operational inefficiencies and could hinder the company's ability to achieve sustainable growth.
Rockwell Med (RMTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.97M
Dividend YieldN/A
Average Volume (3M)2.64M
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth-6.79%
EPS Growth61.56%
CountryUS
Employees244
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.05
Shares Outstanding34,430,350
10 Day Avg. Volume985,190
30 Day Avg. Volume2,638,548
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.60
Enterprise Value/Ebitda20.02
Forecast
1Y Price Target
$4.00Price Target Upside227.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company navigating a transition period with both challenges and strategic wins. While revenue and profitability have declined due to the loss of the largest customer, Rockwell Medical has improved its cash position, secured long-term contracts, and maintained operational efficiency. The positive steps towards stabilizing the business suggest potential for future growth, but the recent financial performance remains a concern.Q2-2025 Updates
Positive Updates
Improved Cash Position
Rockwell Medical improved its cash position to $18.4 million from $17.3 million at the end of Q1, driven by $1.8 million in cash flow from operations.
Long-Term Contracts Established
More than 80% of Rockwell's customers are now under long-term contracts, demonstrating stability and predictability in their business model.
New Product Purchase Agreements
Entered into a multimillion-dollar purchase agreement with Innovative Renal Care, and other significant agreements with large U.S. health systems.
Operational Efficiency Improvements
Investments in new equipment increased operational efficiency, stabilizing gross margins at 16% despite revenue decline.
Negative Updates
Significant Revenue Decline
Net sales for Q2 dropped by 38% year-over-year, primarily due to the largest customer transitioning to another supplier.
Decreased Profitability
Gross profit for Q2 2025 decreased by 45% compared to the same period in 2024, with a net loss of $1.5 million.
Loss of Major Customer
The transition of the largest customer, representing a significant portion of revenue, impacted overall financial performance.
Company Guidance
During Rockwell Medical's Second Quarter 2025 conference call, the company reiterated its guidance for the year, projecting net sales between $65 million and $70 million, with a gross margin ranging from 16% to 18%. Adjusted EBITDA is expected to be between negative $500,000 and positive $500,000. The company highlighted its strategic focus on securing long-term contracts, with over 80% of its customers now under such agreements, which is a significant improvement from previous years. Despite a 38% decline in second-quarter net sales year-over-year, largely due to the transition of its largest customer to another supplier, Rockwell managed to improve its cash position to $18.4 million and maintain a consistent gross margin of 16%. The company also emphasized ongoing discussions with major customers and potential expansion opportunities in the Western United States, which could significantly impact future financials.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.45
Neutral
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.50
Neutral
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.60
Neutral
| 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
Negative
1.22
Price Trends
1.28
Negative
1.13
Positive
1.39
Negative
Market Momentum
-0.05
Positive
40.71
Neutral
13.55
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 1.22 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.28, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 13.55 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 35 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $87.89M | -2.01 | -17.82% | ― | -11.42% | 89.01% | |
53 Neutral | $48.47M | -14.67 | -10.47% | ― | 11.34% | 71.13% | |
52 Neutral | $40.97M | ― | -8.65% | ― | -6.79% | 61.56% | |
45 Neutral | $33.38M | -1.90 | -38.65% | ― | -66.30% | 50.52% | |
31 Underperform | $10.81M | -0.23 | ― | ― | ― | 51.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RMTI
Rockwell Med
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.