IRONWOOD PHARMACEUTICALS INC (IRWD) Fundamental Analysis & Valuation

NASDAQ:IRWD • US46333X1081

Current stock price

4.33 USD
-0.04 (-0.92%)
At close:
4.443 USD
+0.11 (+2.61%)
After Hours:

This IRWD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. IRWD Profitability Analysis

1.1 Basic Checks

  • IRWD had positive earnings in the past year.
  • IRWD had a positive operating cash flow in the past year.
  • IRWD had positive earnings in 4 of the past 5 years.
  • IRWD had a positive operating cash flow in each of the past 5 years.
IRWD Yearly Net Income VS EBIT VS OCF VS FCFIRWD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • IRWD's Return On Assets of 6.05% is amongst the best of the industry. IRWD outperforms 91.28% of its industry peers.
  • With an excellent Return On Invested Capital value of 60.60%, IRWD belongs to the best of the industry, outperforming 99.42% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for IRWD is significantly above the industry average of 27.73%.
  • The 3 year average ROIC (51.03%) for IRWD is below the current ROIC(60.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROIC 60.6%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -500 -1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.11%, IRWD belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of IRWD has declined.
  • Looking at the Operating Margin, with a value of 40.07%, IRWD belongs to the top of the industry, outperforming 98.06% of the companies in the same industry.
  • In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
Industry RankSector Rank
OM 40.07%
PM (TTM) 8.11%
GM N/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
GM growth 3YN/A
GM growth 5YN/A
IRWD Yearly Profit, Operating, Gross MarginsIRWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. IRWD Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRWD is creating value.
  • The number of shares outstanding for IRWD has been increased compared to 1 year ago.
  • IRWD has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for IRWD has been reduced compared to a year ago.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
IRWD Yearly Total Debt VS Total AssetsIRWD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • IRWD has an Altman-Z score of -3.43. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
  • IRWD has a Altman-Z score (-3.43) which is comparable to the rest of the industry.
  • IRWD has a debt to FCF ratio of 4.60. This is a neutral value as IRWD would need 4.60 years to pay back of all of its debts.
  • The Debt to FCF ratio of IRWD (4.60) is better than 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Altman-Z -3.43
ROIC/WACC7.05
WACC8.6%
IRWD Yearly LT Debt VS Equity VS FCFIRWD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M

2.3 Liquidity

  • IRWD has a Current Ratio of 1.13. This is a normal value and indicates that IRWD is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.13, IRWD is not doing good in the industry: 85.27% of the companies in the same industry are doing better.
  • IRWD has a Quick Ratio of 1.13. This is a normal value and indicates that IRWD is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.13, IRWD is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13
IRWD Yearly Current Assets VS Current LiabilitesIRWD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. IRWD Growth Analysis

3.1 Past

  • IRWD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1050.00%, which is quite impressive.
  • The earnings per share for IRWD have been decreasing by -21.87% on average. This is quite bad
  • IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.72%.
  • The Revenue has been decreasing by -5.33% on average over the past years.
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%

3.2 Future

  • The Earnings Per Share is expected to decrease by -25.82% on average over the next years. This is quite bad
  • Based on estimates for the next years, IRWD will show a very negative growth in Revenue. The Revenue will decrease by -10.75% on average per year.
EPS Next Y498.7%
EPS Next 2Y154.17%
EPS Next 3Y90.41%
EPS Next 5Y-25.82%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IRWD Yearly Revenue VS EstimatesIRWD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100M 200M 300M 400M
IRWD Yearly EPS VS EstimatesIRWD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 -2 -4 -6

More info and screens

Find the best growth stocksShow best growing peers

9

4. IRWD Valuation Analysis

4.1 Price/Earnings Ratio

  • IRWD is valuated rather expensively with a Price/Earnings ratio of 18.83.
  • 93.80% of the companies in the same industry are more expensive than IRWD, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.53. IRWD is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 3.14, the valuation of IRWD can be described as very cheap.
  • IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 99.03% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (37.95), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE 18.83
Fwd PE 3.14
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 96.71% of the companies in the same industry.
  • 99.42% of the companies in the same industry are more expensive than IRWD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.56
EV/EBITDA 8.97
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1

4.3 Compensation for Growth

  • IRWD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of IRWD may justify a higher PE ratio.
  • A more expensive valuation may be justified as IRWD's earnings are expected to grow with 90.41% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y154.17%
EPS Next 3Y90.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. IRWD Dividend Analysis

5.1 Amount

  • No dividends for IRWD!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

IRWD Fundamentals: All Metrics, Ratios and Statistics

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (4/16/2026, 7:01:53 PM)

After market: 4.443 +0.11 (+2.61%)

4.33

-0.04 (-0.92%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)04-30
Inst Owners91.35%
Inst Owner Change0.05%
Ins Owners3.11%
Ins Owner Change6.18%
Market Cap706.05M
Revenue(TTM)296.15M
Net Income(TTM)24.02M
Analysts78
Price Target5.46 (26.1%)
Short Float %11.36%
Short Ratio6.07
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.37%
Min EPS beat(2)-198.04%
Max EPS beat(2)135.29%
EPS beat(4)2
Avg EPS beat(4)-3.43%
Min EPS beat(4)-198.04%
Max EPS beat(4)243.14%
EPS beat(8)2
Avg EPS beat(8)-46.82%
EPS beat(12)4
Avg EPS beat(12)-41.59%
EPS beat(16)5
Avg EPS beat(16)-34.18%
Revenue beat(2)1
Avg Revenue beat(2)26.01%
Min Revenue beat(2)-8.17%
Max Revenue beat(2)60.19%
Revenue beat(4)2
Avg Revenue beat(4)19.31%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)60.19%
Revenue beat(8)2
Avg Revenue beat(8)3.27%
Revenue beat(12)4
Avg Revenue beat(12)2.18%
Revenue beat(16)5
Avg Revenue beat(16)0.74%
PT rev (1m)10.31%
PT rev (3m)114%
EPS NQ rev (1m)41.18%
EPS NQ rev (3m)1100%
EPS NY rev (1m)16.88%
EPS NY rev (3m)178.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)141.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)43.58%
Valuation
Industry RankSector Rank
PE 18.83
Fwd PE 3.14
P/S 2.38
P/FCF 5.56
P/OCF 5.56
P/B N/A
P/tB N/A
EV/EBITDA 8.97
EPS(TTM)0.23
EY5.31%
EPS(NY)1.38
Fwd EY31.8%
FCF(TTM)0.78
FCFY17.99%
OCF(TTM)0.78
OCFY17.99%
SpS1.82
BVpS-1.61
TBVpS-1.62
PEG (NY)0.04
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROCE 76.71%
ROIC 60.6%
ROICexc N/A
ROICexgc N/A
OM 40.07%
PM (TTM) 8.11%
GM N/A
FCFM 42.89%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)64.6%
ROCE(5y)48.22%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Debt/EBITDA 3.19
Cap/Depr 1.81%
Cap/Sales 0.01%
Interest Coverage 3.91
Cash Conversion 105.4%
Profit Quality 528.83%
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z -3.43
F-Score6
WACC8.6%
ROIC/WACC7.05
Cap/Depr(3y)21724%
Cap/Depr(5y)13039.8%
Cap/Sales(3y)77.29%
Cap/Sales(5y)46.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
EPS Next Y498.7%
EPS Next 2Y154.17%
EPS Next 3Y90.41%
EPS Next 5Y-25.82%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%
EBIT growth 1Y23.97%
EBIT growth 3Y-22.01%
EBIT growth 5Y-5.37%
EBIT Next Year202.12%
EBIT Next 3Y50.56%
EBIT Next 5Y-20.7%
FCF growth 1Y22.83%
FCF growth 3Y-22.57%
FCF growth 5Y-5.33%
OCF growth 1Y22.69%
OCF growth 3Y-22.58%
OCF growth 5Y-5.53%

IRONWOOD PHARMACEUTICALS INC / IRWD Fundamental Analysis FAQ

What is the fundamental rating for IRWD stock?

ChartMill assigns a fundamental rating of 5 / 10 to IRWD.


Can you provide the valuation status for IRONWOOD PHARMACEUTICALS INC?

ChartMill assigns a valuation rating of 9 / 10 to IRONWOOD PHARMACEUTICALS INC (IRWD). This can be considered as Undervalued.


What is the profitability of IRWD stock?

IRONWOOD PHARMACEUTICALS INC (IRWD) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for IRWD stock?

The Price/Earnings (PE) ratio for IRONWOOD PHARMACEUTICALS INC (IRWD) is 18.83 and the Price/Book (PB) ratio is -2.7.


What is the earnings growth outlook for IRONWOOD PHARMACEUTICALS INC?

The Earnings per Share (EPS) of IRONWOOD PHARMACEUTICALS INC (IRWD) is expected to grow by 498.7% in the next year.