Rhythm PharmaceuticalsMEX:RYTM 56 Altman Z-Score is 17.12 as of Jul. 02, 2026, which is 223% above its 10-year median of 5.30. GuruFocus rates MEX:RYTM with a GF Score™ of 56/100 and a GF Value™ of MXN1,863.73. The stock has 3 warning signs investors should review. Among 929 Biotechnology companies, Rhythm Pharmaceuticals ranks better than 86.98% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 17.87 is strong.
Rhythm Pharmaceuticals has a Altman Z-Score of 17.12, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Rhythm Pharmaceuticals's Altman Z-Score or its related term are showing as below:
MEX:RYTM'
s Altman Z-Score Range Over the Past 10 Years
Min: -6.09 Med: 5.3 Max: 68.75
Current: 17.87
During the past 11 years, Rhythm Pharmaceuticals's highest Altman Z-Score was 68.75. The lowest was -6.09. And the median was 5.30.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Rhythm Pharmaceuticals Altman Z-Score Related Terms
Rhythm Pharmaceuticals Altman Z-Score Historical Data
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The historical data trend for Rhythm Pharmaceuticals's Altman Z-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:RYTM vs MIRM, SYRE, PTGX: Altman Z-Score Comparison
For the Biotechnology subindustry, Rhythm Pharmaceuticals's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rhythm Pharmaceuticals Altman Z-Score vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Rhythm Pharmaceuticals's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Rhythm Pharmaceuticals (MEX:RYTM) has a Altman Z-Score of 17.12 as of Jul. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Rhythm Pharmaceuticals and its competitors. This is 223% above median its historical median of 5.30. According to the industry distribution chart, Rhythm Pharmaceuticals ranks #121 out of 929 companies in the Biotechnology industry, placing it in the top 13%.
Is Rhythm Pharmaceuticals' Altman Z-Score too high?
Rhythm Pharmaceuticals' current Altman Z-Score of 17.12 is 223% above median its 10-year median of 5.30. The Biotechnology industry median Altman Z-Score is 2.60. Rhythm Pharmaceuticals' value of 17.12 is 558.5% above this industry median. Based on the distribution chart, Rhythm Pharmaceuticals ranks #121 out of 929 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Rhythm Pharmaceuticals has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' Altman Z-Score compare to MIRM and SYRE?
According to the Biotechnology industry distribution chart, Rhythm Pharmaceuticals ranks #121 out of 929 companies for Altman Z-Score. This places Rhythm Pharmaceuticals in the top 13% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.60. Rhythm Pharmaceuticals' value of 17.12 is 558.5% above this benchmark. While the company's 10-year median is 5.30 vs. the industry median of 2.60, Rhythm Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Biotechnology company?
The median Altman Z-Score among Biotechnology companies is 2.60, based on 929 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rhythm Pharmaceuticals's current Altman Z-Score of 17.12 is 558.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Rhythm Pharmaceuticals and its competitors. For the Biotechnology industry, the median Altman Z-Score is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Pharmaceuticals's current Altman Z-Score is 17.12, which is 223% above median its own 10-year median of 5.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Pharmaceuticals stock overvalued right now?
Rhythm Pharmaceuticals (MEX:RYTM) has a current Altman Z-Score of 17.12. The stock's GF Value™ is MXN1,863.73, compared to a current price of MXN1,866.76 — trading 0.2% above its estimated fair value. The current Altman Z-Score is 17.12, which is 223% above median its 10-year median of 5.30 and 558.5% above the Biotechnology industry median of 2.60. Rhythm Pharmaceuticals' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Rhythm Pharmaceuticals (MEX:RYTM), the current Altman Z-Score is 17.12 as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rhythm Pharmaceuticals (MEX:RYTM) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be overvalued.
The current stock price of MXN1,866.76 is trading 0.2% above its estimated GF Value™ of MXN1,863.73.
Key valuation signals for MEX:RYTM:
Altman Z-Score: 17.12 (223% above median its 10-year median of 5.30)
GF Value™: MXN1,863.73 vs. price of MXN1,866.76 (0.2% above fair value)
Industry Position: 558.5% above the Biotechnology median (#121 of 929)
No single metric tells the full story. See the MEX:RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
56GF Score
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