Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 11, 2026
Rhythm Pharmaceuticals, Inc. (RYTM)
A forensic read on Rhythm Pharmaceuticals, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
5.7
Distress distance
Clean
Earnings quality
5
Forensic signals
-36.9
P / E (ttm)
-141.3%
ROE
$8.0B
Market cap
0.00%
Dividend yield
45.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Rhythm Pharmaceuticals, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 5.7, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+54.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +54.5% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +41% against revenue +46% and inventory up +37% against +46% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 32% of net operating assets, diverging from the balance-sheet accrual read.
-46.4%
FY2025
Return on invested capital.Return on invested capital is -46.4% in the latest fiscal year and rising from -66% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.6%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +25% over the last 3 years to FY2025 (+7.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~7.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~20%.
417d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 374 to 417 FY2024→FY2025 (against cost of goods sold; inventory +37% vs +46% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
Key fundamentals
Latest Revenue$189.8M
Revenue Growth YoY+45.8%
Revenue CAGR (3yr)+100.2%
Net Margin-103.6%
Free Cash Flow-$116.6M
Return on Equity-141.3%
Debt / Equity0.78x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Rhythm Pharmaceuticals, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
Rhythm Pharmaceuticals, Inc. (RYTM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
35% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 35% of revenue in FY2025 — about $1.03 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 7.7% a year and is falling.