IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

NASDAQ:IRWD • US46333X1081

3.42 USD
-0.24 (-6.56%)
At close: Feb 27, 2026
3.43 USD
+0.01 (+0.29%)
After Hours: 2/27/2026, 7:12:17 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, IRWD scores 5 out of 10 in our fundamental rating. IRWD was compared to 520 industry peers in the Biotechnology industry. IRWD has an average financial health and profitability rating. IRWD has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • IRWD had positive earnings in the past year.
  • In the past year IRWD had a positive cash flow from operations.
  • In multiple years IRWD reported negative net income over the last 5 years.
  • Of the past 5 years IRWD 4 years had a positive operating cash flow.
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 0 500M -500M -1B

1.2 Ratios

  • IRWD's Return On Assets of 7.21% is amongst the best of the industry. IRWD outperforms 92.72% of its industry peers.
  • IRWD's Return On Invested Capital of 73.91% is amongst the best of the industry. IRWD outperforms 99.81% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 17.87%.
  • The last Return On Invested Capital (73.91%) for IRWD is above the 3 year average (36.95%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.21%
ROE N/A
ROIC 73.91%
ROA(3y)-65.53%
ROA(5y)-26.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)36.95%
ROIC(5y)30.66%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K

1.3 Margins

  • IRWD's Profit Margin of 8.42% is amongst the best of the industry. IRWD outperforms 89.85% of its industry peers.
  • IRWD's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 42.38%, IRWD belongs to the best of the industry, outperforming 99.04% of the companies in the same industry.
  • IRWD's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 42.38%
PM (TTM) 8.42%
GM N/A
OM growth 3Y-21.4%
OM growth 5Y0.07%
PM growth 3Y-87.48%
PM growth 5Y-45.09%
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 0 100 -100 -200

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRWD is creating value.
  • IRWD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 200M 400M 600M 800M 1B

2.2 Solvency

  • Based on the Altman-Z score of -3.25, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of -3.25, IRWD is in line with its industry, outperforming 45.40% of the companies in the same industry.
  • IRWD has a debt to FCF ratio of 8.64. This is a slightly negative value and a sign of low solvency as IRWD would need 8.64 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 8.64, IRWD belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.64
Altman-Z -3.25
ROIC/WACC9.42
WACC7.85%
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 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.
  • IRWD's Current ratio of 1.13 is on the low side compared to the rest of the industry. IRWD is outperformed by 85.25% of its industry peers.
  • 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.
  • The Quick ratio of IRWD (1.13) is worse than 84.29% of its industry peers.
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 200M 400M 600M

More info and screens

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

2

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 1050.00% over the past year.
  • The earnings per share for IRWD have been decreasing by -21.87% on average. This is quite bad
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-47.31%

3.2 Future

  • IRWD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.01% yearly.
  • The Revenue is expected to decrease by -10.69% on average over the next years. This is quite bad
EPS Next Y254.78%
EPS Next 2Y106.33%
EPS Next 3Y55.63%
EPS Next 5Y-15.01%
Revenue Next Year37.22%
Revenue Next 2Y26.17%
Revenue Next 3Y5.66%
Revenue Next 5Y-10.69%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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. Valuation

4.1 Price/Earnings Ratio

  • IRWD is valuated correctly with a Price/Earnings ratio of 14.87.
  • 95.79% of the companies in the same industry are more expensive than IRWD, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of IRWD to the average of the S&P500 Index (27.07), we can say IRWD is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 4.19, the valuation of IRWD can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.66% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (28.05), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE 14.87
Fwd PE 4.19
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 98.47% of the companies are valued more expensively.
  • 99.04% 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 8.22
EV/EBITDA 6.87
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

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.
  • IRWD has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as IRWD's earnings are expected to grow with 55.63% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y106.33%
EPS Next 3Y55.63%

More info and screens

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

0

5. Dividend

5.1 Amount

  • IRWD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (2/27/2026, 7:12:17 PM)

After market: 3.43 +0.01 (+0.29%)

3.42

-0.24 (-6.56%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners93.44%
Inst Owner Change2.09%
Ins Owners2.66%
Ins Owner Change-2.87%
Market Cap556.37M
Revenue(TTM)N/A
Net Income(TTM)28.55M
Analysts78
Price Target4.95 (44.74%)
Short Float %5.99%
Short Ratio2.11
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)2
Avg EPS beat(2)189.22%
Min EPS beat(2)135.29%
Max EPS beat(2)243.14%
EPS beat(4)2
Avg EPS beat(4)27.35%
Min EPS beat(4)-194.1%
Max EPS beat(4)243.14%
EPS beat(8)2
Avg EPS beat(8)-35.16%
EPS beat(12)4
Avg EPS beat(12)-25.25%
EPS beat(16)5
Avg EPS beat(16)-23.37%
Revenue beat(2)2
Avg Revenue beat(2)48.85%
Min Revenue beat(2)37.5%
Max Revenue beat(2)60.19%
Revenue beat(4)2
Avg Revenue beat(4)20.01%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)60.19%
Revenue beat(8)2
Avg Revenue beat(8)4.05%
Revenue beat(12)4
Avg Revenue beat(12)2.43%
Revenue beat(16)6
Avg Revenue beat(16)1.53%
PT rev (1m)0%
PT rev (3m)169.44%
EPS NQ rev (1m)-75%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)0%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.71%
Valuation
Industry RankSector Rank
PE 14.87
Fwd PE 4.19
P/S 1.64
P/FCF 8.22
P/OCF 8.22
P/B N/A
P/tB N/A
EV/EBITDA 6.87
EPS(TTM)0.23
EY6.73%
EPS(NY)0.82
Fwd EY23.86%
FCF(TTM)0.42
FCFY12.16%
OCF(TTM)0.42
OCFY12.17%
SpS2.08
BVpS-1.62
TBVpS-1.64
PEG (NY)0.06
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.21%
ROE N/A
ROCE 93.56%
ROIC 73.91%
ROICexc 862.99%
ROICexgc 1040.81%
OM 42.38%
PM (TTM) 8.42%
GM N/A
FCFM 19.96%
ROA(3y)-65.53%
ROA(5y)-26.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)36.95%
ROIC(5y)30.66%
ROICexc(3y)70.13%
ROICexc(5y)67.75%
ROICexgc(3y)71.88%
ROICexgc(5y)68.8%
ROCE(3y)46.77%
ROCE(5y)38.81%
ROICexgc growth 3Y-13.6%
ROICexgc growth 5Y-7.25%
ROICexc growth 3Y-13.97%
ROICexc growth 5Y-7.41%
OM growth 3Y-21.4%
OM growth 5Y0.07%
PM growth 3Y-87.48%
PM growth 5Y-45.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.64
Debt/EBITDA 2.64
Cap/Depr 1.84%
Cap/Sales 0.01%
Interest Coverage 250
Cash Conversion 46.49%
Profit Quality 236.95%
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z -3.25
F-Score6
WACC7.85%
ROIC/WACC9.42
Cap/Depr(3y)21726.6%
Cap/Depr(5y)13049.4%
Cap/Sales(3y)77.3%
Cap/Sales(5y)46.48%
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 Y254.78%
EPS Next 2Y106.33%
EPS Next 3Y55.63%
EPS Next 5Y-15.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-47.31%
Revenue Next Year37.22%
Revenue Next 2Y26.17%
Revenue Next 3Y5.66%
Revenue Next 5Y-10.69%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year69.33%
EBIT Next 3Y56.63%
EBIT Next 5Y12.2%
FCF growth 1Y108.51%
FCF growth 3Y-26.61%
FCF growth 5Y96.83%
OCF growth 1Y-70.15%
OCF growth 3Y-26.6%
OCF growth 5Y57.45%

IRONWOOD PHARMACEUTICALS INC / IRWD 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.


Can you provide the profitability details for IRONWOOD PHARMACEUTICALS INC?

IRONWOOD PHARMACEUTICALS INC (IRWD) has a profitability rating of 6 / 10.


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 254.78% in the next year.