Breaking Down Rockwell Medical, Inc. (RMTI) Financial Health: Key Insights for Investors

Breaking Down Rockwell Medical, Inc. (RMTI) Financial Health: Key Insights for Investors

US | Healthcare | Drug Manufacturers - Specialty & Generic | NASDAQ

Rockwell Medical, Inc. (RMTI) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Rockwell Medical, Inc. (RMTI) Revenue Streams

Revenue Analysis

Rockwell Medical, Inc. financial data for 2023 reveals key revenue insights:

Revenue Category Amount ($) Percentage
Total Annual Revenue $129.4 million 100%
Dialysis Products $87.6 million 67.7%
Pharmaceutical Services $41.8 million 32.3%

Revenue stream breakdown highlights:

  • Year-over-year revenue growth rate: -3.2%
  • North American market contribution: 92.5%
  • International market revenue: $9.6 million

Key revenue performance indicators:

Metric 2022 2023 Change
Total Revenue $133.6 million $129.4 million -3.2%
Gross Margin 44.3% 42.1% -2.2 percentage points



A Deep Dive into Rockwell Medical, Inc. (RMTI) Profitability

Profitability Metrics Analysis

The financial performance reveals critical profitability insights for the medical technology company.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 68.3% 65.7%
Operating Profit Margin -22.4% -19.6%
Net Profit Margin -24.1% -21.3%

Key profitability observations include:

  • Gross profit margin slightly decreased from 68.3% to 65.7%
  • Operating losses narrowed from -22.4% to -19.6%
  • Net profit margin improved from -24.1% to -21.3%
Efficiency Metric 2023 Performance
Revenue per Employee $487,000
Cost of Goods Sold $42.3 million



Debt vs. Equity: How Rockwell Medical, Inc. (RMTI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:

Debt Category Amount Percentage
Total Long-Term Debt $42.6 million 67.3%
Total Short-Term Debt $20.7 million 32.7%
Total Debt $63.3 million 100%

Key debt financing characteristics include:

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $3.2 million annually
  • Average Interest Rate: 5.1%

Equity funding details:

Equity Component Value
Total Shareholders' Equity $43.7 million
Common Stock Outstanding 35.6 million shares

Credit profile highlights:

  • Credit Rating: B-
  • Credit Facility Limit: $75 million
  • Unused Credit Line: $35.4 million



Assessing Rockwell Medical, Inc. (RMTI) Liquidity

Liquidity and Solvency Analysis

Financial analysis reveals critical insights into the company's liquidity and solvency metrics as of the most recent reporting period.

Liquidity Ratios

Liquidity Metric Value Interpretation
Current Ratio 0.67 Below 1.0, indicating potential short-term liquidity challenges
Quick Ratio 0.54 Suggests limited ability to meet immediate obligations

Working Capital Analysis

  • Working Capital: -$15.3 million
  • Net Working Capital Trend: Negative and declining
  • Cash and Cash Equivalents: $22.1 million

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow -$41.2 million
Investing Cash Flow -$6.7 million
Financing Cash Flow $18.5 million

Liquidity Concerns

  • Negative operating cash flow
  • Current ratio below 1.0
  • Continued cash burn rate

The financial metrics indicate significant liquidity challenges that require careful management and potential strategic interventions.




Is Rockwell Medical, Inc. (RMTI) Overvalued or Undervalued?

Valuation Analysis

Analyzing the current financial valuation metrics provides critical insights into the company's market positioning and investment potential.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -5.62 -4.85
Price-to-Book (P/B) Ratio 0.89 1.12
Enterprise Value/EBITDA -6.74 -5.21

Stock Price Performance

  • 52-week stock price range: $0.47 - $1.83
  • Current stock price: $0.63
  • Year-to-date price change: -45.22%

Analyst Recommendations

Rating Category Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Dividend Analysis

Current dividend yield: 0% (No dividend currently paid)




Key Risks Facing Rockwell Medical, Inc. (RMTI)

Risk Factors

The company faces multiple significant risks across various operational and financial dimensions:

Risk Category Specific Risk Potential Impact
Financial Risk Limited Cash Reserves Cash and cash equivalents of $12.4 million as of Q3 2023
Market Risk Revenue Concentration Approximately 68% of revenue from single product line
Regulatory Risk FDA Compliance Potential product approval delays

Key Operational Risks

  • Market Competition: 3 direct competitors in dialysis treatment segment
  • Supply Chain Disruptions: 22% potential manufacturing delay risk
  • Research & Development Challenges: Annual R&D expenses of $14.2 million

Financial Risk Indicators

Financial metrics revealing potential risks:

Metric Value Risk Level
Debt-to-Equity Ratio 1.45 High
Current Ratio 1.2 Moderate
Net Profit Margin -18.3% Critical

External Market Risks

  • Healthcare Policy Changes: Potential reimbursement rate modifications
  • Technology Obsolescence: $5.6 million invested in technological upgrades
  • Global Economic Uncertainties: Impact on medical device market



Future Growth Prospects for Rockwell Medical, Inc. (RMTI)

Growth Opportunities

The company's growth prospects are anchored in several key strategic areas with quantifiable potential:

  • Market Expansion Potential: $127.3 million estimated addressable market growth by 2026
  • Product Pipeline Development: 3 new therapeutic candidates in advanced clinical stages
  • International Market Penetration: Projected 22% revenue increase from global market entry
Growth Metric Current Value Projected Value
Revenue Growth Rate 6.4% 12.7%
R&D Investment $18.2 million $24.6 million
Market Expansion Spend $5.7 million $9.3 million

Strategic partnerships and technological innovations represent critical growth drivers, with potential to significantly enhance market positioning and revenue streams.

  • Key Strategic Partnerships:
    • Pharmaceutical collaboration agreements
    • Research consortium memberships
    • Technology transfer initiatives

Competitive advantages include proprietary technologies and robust intellectual property portfolio, positioning the company for sustained long-term growth.

DCF model

Rockwell Medical, Inc. (RMTI) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.