4.5 USD
-0.02 (-0.44%)
4.41 USD
-0.09 (-2%)
IRWD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. IRWD has an excellent profitability rating, but there are concerns on its financial health. IRWD is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year IRWD was profitable.
- In the past year IRWD had a positive cash flow from operations.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.21%, IRWD belongs to the top of the industry, outperforming 92.95% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 73.91%, IRWD belongs to the best of the industry, outperforming 99.81% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 18.07%.
- 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 Rank | Sector 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%
1.3 Margins
- IRWD has a Profit Margin of 8.42%. This is amongst the best in the industry. IRWD outperforms 90.67% of its industry peers.
- IRWD's Profit Margin has declined in the last couple of years.
- IRWD has a better Operating Margin (42.38%) than 99.05% of its industry peers.
- IRWD's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IRWD is creating value.
- IRWD has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IRWD has more shares outstanding
- IRWD has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -3.10, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
- IRWD's Altman-Z score of -3.10 is in line compared to the rest of the industry. IRWD outperforms 46.48% of its industry peers.
- 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.
- IRWD has a Debt to FCF ratio of 8.64. This is amongst the best in the industry. IRWD outperforms 91.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.1 |
ROIC/WACC9.05
WACC8.17%
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 85.33% 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.
- IRWD has a worse Quick ratio (1.13) than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- IRWD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2700.00%, which is quite impressive.
- Measured over the past years, IRWD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -48.27% on average per year.
- IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.42%.
- IRWD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.88% yearly.
EPS 1Y (TTM)2700%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%1100%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%33.26%
3.2 Future
- The Earnings Per Share is expected to grow by 99.52% on average over the next years. This is a very strong growth
- The Revenue is expected to decrease by -4.08% on average over the next years.
EPS Next Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
EPS Next 5Y99.52%
Revenue Next Year-15.64%
Revenue Next 2Y7.59%
Revenue Next 3Y10.33%
Revenue Next 5Y-4.08%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.31, the valuation of IRWD can be described as rather expensive.
- Based on the Price/Earnings ratio, IRWD is valued cheaper than 95.24% of the companies in the same industry.
- IRWD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- IRWD is valuated reasonably with a Price/Forward Earnings ratio of 9.10.
- IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.48% of the companies in the same industry.
- IRWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
- IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 97.90% of the companies in the same industry.
- 98.10% of the companies in the same industry are more expensive than IRWD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 8.08 |
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.
- IRWD's earnings are expected to grow with 219.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y397.34%
EPS Next 3Y219.58%
5. Dividend
5.1 Amount
- No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.5
-0.02 (-0.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-10 2025-11-10/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners93.44%
Inst Owner Change0.21%
Ins Owners2.66%
Ins Owner Change-0.32%
Market Cap732.06M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target4.95 (10%)
Short Float %4.64%
Short Ratio2.76
Dividend
| Industry Rank | Sector 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)94%
PT rev (3m)410.53%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-65.22%
EPS NY rev (1m)0%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)-12.84%
Revenue NQ rev (3m)-32.18%
Revenue NY rev (1m)-2.56%
Revenue NY rev (3m)9.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 9.1 | ||
| P/S | 2.16 | ||
| P/FCF | 10.82 | ||
| P/OCF | 10.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.08 |
EPS(TTM)0.26
EY5.78%
EPS(NY)0.49
Fwd EY10.99%
FCF(TTM)0.42
FCFY9.24%
OCF(TTM)0.42
OCFY9.25%
SpS2.08
BVpS-1.62
TBVpS-1.64
PEG (NY)0.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -3.1 |
F-Score6
WACC8.17%
ROIC/WACC9.05
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)2700%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%1100%
EPS Next Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
EPS Next 5Y99.52%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%33.26%
Revenue Next Year-15.64%
Revenue Next 2Y7.59%
Revenue Next 3Y10.33%
Revenue Next 5Y-4.08%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year80.51%
EBIT Next 3Y31.13%
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 8 / 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 7 / 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 1404.5% in the next year.