Latest Ratios: P/E Ratio -13.4x · EV/EBITDA N/A · ROE -36.2%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $860M | $1.4B | $1.2B | $1.4B | $452M | $115M | $145M | $121M | $25M | $78M | $142M |
| Enterprise Value | $1.0B | $1.5B | $1.3B | $1.4B | $393M | $88M | $110M | $-2608236 | $-4400586 | $3M | $68M |
| P/E Ratio → | -13.38 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.11 | 3.45 | 3.57 | 10.93 | 8.67 | 11.35 | 19.17 | 22.95 | 9.65 | 1.86 | 5.93 |
| P/B Ratio | 5.02 | 8.42 | 6.88 | 8.15 | 4.60 | 1.39 | 1.15 | 0.65 | 0.22 | 0.56 | 0.74 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.80 | 3.84 | 11.20 | 7.53 | 8.69 | 14.47 | -0.49 | -1.69 | 0.07 | 2.82 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 89.5% | 89.5% | 84.8% | 85.7% | 92.1% | 90.1% | 98.1% | 88.6% | 82.1% | 80.0% | 94.6% |
| Operating Margin | -10.1% | -10.1% | -8.4% | -50.8% | -122.2% | -1528.6% | -1199.0% | -1728.1% | -3488.6% | -155.0% | -469.9% |
| Net Profit Margin | -15.1% | -15.1% | -11.7% | -53.1% | -128.9% | -1566.5% | -1245.7% | -1797.8% | -3502.0% | -153.2% | -467.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -36.2% | -36.2% | -23.0% | -49.8% | -74.3% | -151.6% | -60.3% | -62.8% | -71.6% | -38.7% | -74.4% |
| ROA | -13.1% | -13.1% | -10.7% | -27.1% | -39.5% | -90.0% | -40.9% | -42.9% | -53.5% | -34.7% | -68.1% |
| ROIC | -10.7% | -10.7% | -9.1% | -39.6% | -101.4% | -158.3% | -88.8% | -91.8% | -90.8% | -53.5% | -140.6% |
| ROCE | -10.6% | -10.6% | -9.2% | -34.1% | -57.6% | -114.2% | -44.2% | -45.3% | -59.5% | -39.0% | -74.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.27 | 1.27 | 0.89 | 0.34 | 0.37 | 0.55 | 0.44 | 0.31 | 0.42 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.86 | 0.51 | 0.21 | -0.61 | -0.33 | -0.28 | -0.66 | -0.26 | -0.54 | -0.39 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -1.14 | -1.14 | -0.93 | -6.38 | -12.25 | -34.13 | -17.50 | -15.53 | -24.83 | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.31 | 4.31 | 4.58 | 4.88 | 2.34 | 2.53 | 6.87 | 11.36 | 10.02 | 8.39 | 10.62 |
| Quick Ratio | 4.11 | 4.11 | 4.31 | 4.64 | 2.29 | 2.53 | 6.87 | 11.36 | 10.02 | 8.39 | 10.62 |
| Cash Ratio | 2.99 | 2.99 | 3.21 | 3.66 | 1.89 | 2.21 | 6.56 | 11.14 | 9.48 | 7.50 | 10.46 |
| Asset Turnover | — | 0.81 | 0.77 | 0.42 | 0.27 | 0.07 | 0.04 | 0.02 | 0.01 | 0.27 | 0.11 |
| Inventory Turnover | 2.40 | 2.40 | 2.39 | 1.43 | 1.25 | — | — | — | — | — | — |
| Days Sales Outstanding | — | 64.38 | 63.13 | 64.61 | 54.12 | 18.15 | — | 51.84 | 711.94 | 93.82 | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $241M | $235M | $219M | $159M | $104M | $90M | $64M | $56M | $47M | $40M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying ARDX stock.
Ardelyx, Inc.'s current P/E ratio is -13.4x. This places it at the 50th percentile of its historical range.
Ardelyx, Inc.'s return on equity (ROE) is -36.2%. The historical average is -57.5%.
Based on historical data, Ardelyx, Inc. is trading at a P/E of -13.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ardelyx, Inc. has 89.5% gross margin and -10.1% operating margin.
Key Metrics
Top Statement Risk
Persistent losses and dilution risk
Metrics are mathematically derived from official filings.
Gross Margin Expansion Masks Operating Strain
Gross margin reached 95.2% in Q2 2026, up from 86.7% a year earlier, yet operating margin remained deeply negative at -10.3%, per quarterly filings, indicating commercialization costs still outpace product economics.
The 840 basis point year-over-year gross margin improvement suggests favorable product mix and manufacturing efficiencies, but the operating margin deterioration from -14.7% to -10.3% over the same period implies that SG&A and R&D spending are absorbing the gains. The Q4 2025 blip of +4.1% operating margin appears to have been a temporary inflection, as 2026 returned to losses, underscoring that the path to sustainable profitability hinges on revenue scaling outpacing fixed commercial costs.
Return on Capital Remains Elusive
ROIC swung from -4.1% in Q2 2025 to -2.9% in Q2 2026, while ROE improved from -13.4% to -11.2%, based on reported figures, but both remain negative, indicating the business is still destroying value.
The modest improvement in ROIC and ROE is driven by a larger capital base rather than operational efficiency, as net losses persist. The brief positive ROIC of 1.2% in Q4 2025 and Q3 2025 appears to have been a seasonal or one-off event, not a trend. With equity at $149M and cumulative losses exceeding $1B, the company is not yet compounding returns; investors should monitor whether the record revenue growth can eventually translate into positive returns on invested capital.
Working Capital Cycle Turns Negative
Cash conversion cycle improved to -73 days in Q2 2026 from +88 days a year earlier, per quarterly data, driven by a sharp increase in days payable outstanding to 526, suggesting Ardelyx is stretching supplier payments.
The negative CCC indicates that Ardelyx is effectively using supplier financing to fund its operations, but the DPO of 526 days is unusually high and may reflect extended payment terms or potential liquidity stress. DSO improved to 69 days from 51 days a year ago, while DIO surged to 384 days, indicating significant inventory build-up that could signal either anticipation of demand or slower turnover. The asset turnover of 0.22 remains low, consistent with an asset-light model but also reflecting the high cash burn relative to revenue.
Debt-Fueled Expansion Raises Refinancing Risk
Debt-to-equity climbed to 1.72 in Q2 2026 from 0.70 a year earlier, while interest coverage turned negative at -2.35, per balance sheet data, indicating that debt service is becoming less comfortable.
Total debt surged 144% year-over-year to $256.2M, now representing 44% of total assets, while the company's negative operating income means interest coverage is negative, implying that Ardelyx is borrowing to fund losses. The D/EBITDA of 35.15 in Q4 2025 is not meaningful given negative EBITDA, but the trend suggests increasing reliance on debt. With a modest cash position of $97.2M and persistent losses, refinancing risk appears elevated, and investors should monitor the company's ability to service debt without further dilution.
Liquidity Buffer Thins Despite High Current Ratio
Current ratio fell to 3.34 in Q2 2026 from 4.30 a year earlier, while quick ratio declined to 3.15, per quarterly data, indicating a thinning liquidity cushion despite a cash balance of $97.2M.
The current ratio remains above 3, suggesting adequate short-term liquidity, but the declining trend and the fact that inventory (DIO of 384 days) is a significant component of current assets raise concerns about the quality of that liquidity. The quick ratio of 3.15, which excludes inventory, is still healthy, but the negative operating cash flow of -$6.4M in Q2 2026 indicates that the company is burning cash. Under a severe stress scenario, such as a prolonged reimbursement delay for XPHOZAH, the current liquidity position may not be sufficient without additional financing.
Misapplied Metric: P/E on Negative Earnings
The P/E ratio is commonly misapplied to Ardelyx because it is negative and uninformative; instead, EV/Sales of 2.39 and P/B of 5.69, per current multiples, better reflect the market's growth expectations.
With negative earnings, the P/E ratio of -15.15 provides no insight into valuation, and investors should focus on EV/Sales or EV/EBITDA (though EBITDA is also negative). The P/B of 5.69 suggests the market is pricing in significant future profitability, but this is based on a small equity base that is being eroded by losses. A more appropriate metric is EV/Sales, which at 2.39 implies the market is valuing Ardelyx at roughly 2.4 times its trailing revenue, a premium that likely reflects expectations for XPHOZAH's ramp. However, this multiple may be misleading if gross-to-net adjustments or reimbursement hurdles compress realized revenue, so investors should also monitor price-to-sales on a forward basis and adjust for non-cash items like stock-based compensation.