4.3 USD
-0.29 (-6.32%)
4.2113 USD
-0.09 (-2.06%)
Overall IRWD gets a fundamental rating of 5 out of 10. We evaluated IRWD against 530 industry peers in the Biotechnology industry. While IRWD has a great profitability rating, there are quite some concerns on its financial health. IRWD is cheap, but on the other hand it scores bad on growth.
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
IRWD has a Return On Assets of 7.21%. This is amongst the best in the industry. IRWD outperforms 92.83% of its industry peers.
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 18.28%.
The 3 year average ROIC (36.95%) for IRWD is below the current ROIC(73.91%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 8.42%, IRWD belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
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 98.87% 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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRWD is creating value.
Compared to 1 year ago, IRWD has more shares outstanding
IRWD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
IRWD has an Altman-Z score of -3.08. 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 (-3.08) which is comparable to the rest of the 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 90.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.08 |
ROIC/WACC9.14
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, IRWD is not doing good in the industry: 85.47% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
IRWD has a Quick ratio of 1.13. This is amonst the worse of the industry: IRWD underperforms 84.53% 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.
The Revenue for IRWD has decreased by -10.42% in the past year. This is quite bad
Measured over the past years, IRWD shows a decrease in Revenue. The Revenue has been decreasing by -3.88% on average per year.
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 82.78% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -7.59% on average over the next years.
EPS Next Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
EPS Next 5Y82.78%
Revenue Next Year-13.42%
Revenue Next 2Y-5.11%
Revenue Next 3Y-1.82%
Revenue Next 5Y-7.59%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IRWD is valuated correctly with a Price/Earnings ratio of 16.54.
IRWD's Price/Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 95.09% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, IRWD is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.69 indicates a reasonable valuation of IRWD.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.46. IRWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 97.55% of the companies in the same industry.
98.30% 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 | 10.34 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The 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 219.58% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y397.34%
EPS Next 3Y219.58%
5. Dividend
5.1 Amount
IRWD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.3
-0.29 (-6.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners93.44%
Inst Owner Change0%
Ins Owners2.66%
Ins Owner Change-0.03%
Market Cap699.52M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-40.7%)
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)38.89%
PT rev (3m)163.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.52%
EPS NY rev (1m)0%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 8.69 | ||
| P/S | 2.06 | ||
| P/FCF | 10.34 | ||
| P/OCF | 10.34 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.26
EY6.05%
EPS(NY)0.49
Fwd EY11.5%
FCF(TTM)0.42
FCFY9.67%
OCF(TTM)0.42
OCFY9.68%
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 | -3.08 |
F-Score6
WACC8.09%
ROIC/WACC9.14
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 5Y82.78%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%33.26%
Revenue Next Year-13.42%
Revenue Next 2Y-5.11%
Revenue Next 3Y-1.82%
Revenue Next 5Y-7.59%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year80.51%
EBIT Next 3Y31.13%
EBIT Next 5Y4.35%
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.