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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

NASDAQ:IRWD - Nasdaq - US46333X1081 - Common Stock - Currency: USD

2.3  -1.42 (-38.17%)

After market: 2.3601 +0.06 (+2.61%)

Fundamental Rating

5

Overall IRWD gets a fundamental rating of 5 out of 10. We evaluated IRWD against 572 industry peers in the Biotechnology industry. IRWD has only an average score on both its financial health and profitability. IRWD has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

IRWD had negative earnings in the past year.
In the past year IRWD had a positive cash flow from operations.
Of the past 5 years IRWD 4 years were profitable.
Each year in the past 5 years IRWD 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

1.2 Ratios

IRWD has a better Return On Assets (-0.63%) than 92.21% of its industry peers.
IRWD's Return On Invested Capital of 21.89% is amongst the best of the industry. IRWD outperforms 98.94% of its industry peers.
IRWD had an Average Return On Invested Capital over the past 3 years of 30.90%. This is significantly above the industry average of 13.83%.
The 3 year average ROIC (30.90%) for IRWD is well above the current ROIC(21.89%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -0.63%
ROE N/A
ROIC 21.89%
ROA(3y)-49.99%
ROA(5y)-25.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.9%
ROIC(5y)27.12%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K

1.3 Margins

IRWD has a Operating Margin of 28.37%. This is amongst the best in the industry. IRWD outperforms 97.88% of its industry peers.
IRWD's Operating Margin has improved in the last couple of years.
The Profit Margin and Gross Margin are not available for IRWD so they could not be analyzed.
Industry RankSector Rank
OM 28.37%
PM (TTM) N/A
GM N/A
OM growth 3Y-1.82%
OM growth 5Y56.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
IRWD Yearly Profit, Operating, Gross MarginsIRWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 -200

5

2. Health

2.1 Basic Checks

IRWD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for IRWD has been increased compared to 1 year ago.
The number of shares outstanding for IRWD has been reduced compared to 5 years ago.
Compared to 1 year ago, IRWD has a worse debt to assets ratio.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
IRWD Yearly Total Debt VS Total AssetsIRWD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

IRWD has an Altman-Z score of -3.32. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -3.32, IRWD is in line with its industry, outperforming 45.66% of the companies in the same industry.
The Debt to FCF ratio of IRWD is 5.00, which is a neutral value as it means it would take IRWD, 5.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.00, IRWD belongs to the top of the industry, outperforming 93.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5
Altman-Z -3.32
ROIC/WACC2.91
WACC7.52%
IRWD Yearly LT Debt VS Equity VS FCFIRWD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

2.3 Liquidity

A Current Ratio of 3.62 indicates that IRWD has no problem at all paying its short term obligations.
With a Current ratio value of 3.62, IRWD perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
A Quick Ratio of 3.62 indicates that IRWD has no problem at all paying its short term obligations.
IRWD's Quick ratio of 3.62 is in line compared to the rest of the industry. IRWD outperforms 44.25% of its industry peers.
Industry RankSector Rank
Current Ratio 3.62
Quick Ratio 3.62
IRWD Yearly Current Assets VS Current LiabilitesIRWD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

3

3. Growth

3.1 Past

The earnings per share for IRWD have decreased strongly by -101.09% in the last year.
Measured over the past years, IRWD shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.78% on average per year.
The Revenue for IRWD has decreased by -12.48% in the past year. This is quite bad
The Revenue has been growing slightly by 5.02% on average over the past years.
EPS 1Y (TTM)-101.09%
EPS 3Y-6.78%
EPS 5YN/A
EPS Q2Q%-77.78%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.36%
Revenue growth 5Y5.02%
Sales Q2Q%-19.47%

3.2 Future

Based on estimates for the next years, IRWD will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.14% on average per year.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y-81.67%
EPS Next 2Y-29.94%
EPS Next 3Y6.44%
EPS Next 5Y15.14%
Revenue Next Year-20.22%
Revenue Next 2Y-11.55%
Revenue Next 3Y-2.05%
Revenue Next 5Y3.71%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
IRWD Yearly Revenue VS EstimatesIRWD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100M 200M 300M 400M 500M
IRWD Yearly EPS VS EstimatesIRWD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -2 -4 -6

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for IRWD. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 7.32, which indicates a rather cheap valuation of IRWD.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 93.88. IRWD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 7.32
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 97.70% of the companies are valued more expensively.
99.29% 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 3.07
EV/EBITDA 10.11
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

4.3 Compensation for Growth

The decent profitability rating of IRWD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-29.94%
EPS Next 3Y6.44%

0

5. Dividend

5.1 Amount

No dividends for IRWD!.
Industry RankSector Rank
Dividend Yield N/A

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (1/30/2025, 8:00:02 PM)

After market: 2.3601 +0.06 (+2.61%)

2.3

-1.42 (-38.17%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners110.41%
Inst Owner Change0.03%
Ins Owners1.78%
Ins Owner Change2.03%
Market Cap368.07M
Analysts81.67
Price Target12.75 (454.35%)
Short Float %5.86%
Short Ratio4.4
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)0
Avg EPS beat(2)-87.84%
Min EPS beat(2)-100%
Max EPS beat(2)-75.67%
EPS beat(4)0
Avg EPS beat(4)-97.68%
Min EPS beat(4)-110.27%
Max EPS beat(4)-75.67%
EPS beat(8)2
Avg EPS beat(8)-51.55%
EPS beat(12)3
Avg EPS beat(12)-40.28%
EPS beat(16)7
Avg EPS beat(16)-24.84%
Revenue beat(2)0
Avg Revenue beat(2)-7.55%
Min Revenue beat(2)-13.51%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-11.9%
Min Revenue beat(4)-30.62%
Max Revenue beat(4)-1.59%
Revenue beat(8)2
Avg Revenue beat(8)-6.37%
Revenue beat(12)4
Avg Revenue beat(12)-4.63%
Revenue beat(16)6
Avg Revenue beat(16)-3.45%
PT rev (1m)0%
PT rev (3m)8.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.79%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 7.32
P/S 0.97
P/FCF 3.07
P/OCF 2.96
P/B N/A
P/tB N/A
EV/EBITDA 10.11
EPS(TTM)-0.01
EYN/A
EPS(NY)0.31
Fwd EY13.66%
FCF(TTM)0.75
FCFY32.56%
OCF(TTM)0.78
OCFY33.74%
SpS2.36
BVpS-1.95
TBVpS-1.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.63%
ROE N/A
ROCE 31.56%
ROIC 21.89%
ROICexc 29.56%
ROICexgc 29.92%
OM 28.37%
PM (TTM) N/A
GM N/A
FCFM 31.67%
ROA(3y)-49.99%
ROA(5y)-25.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.9%
ROIC(5y)27.12%
ROICexc(3y)67.22%
ROICexc(5y)62.26%
ROICexgc(3y)68.62%
ROICexgc(5y)63.15%
ROCE(3y)44.56%
ROCE(5y)39.1%
ROICexcg growth 3Y21.28%
ROICexcg growth 5Y36.37%
ROICexc growth 3Y19.81%
ROICexc growth 5Y35.93%
OM growth 3Y-1.82%
OM growth 5Y56.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5
Debt/EBITDA 5.47
Cap/Depr 212.46%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 113.5%
Profit Quality N/A
Current Ratio 3.62
Quick Ratio 3.62
Altman-Z -3.32
F-Score6
WACC7.52%
ROIC/WACC2.91
Cap/Depr(3y)21730%
Cap/Depr(5y)13073.7%
Cap/Sales(3y)77.3%
Cap/Sales(5y)46.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-101.09%
EPS 3Y-6.78%
EPS 5YN/A
EPS Q2Q%-77.78%
EPS Next Y-81.67%
EPS Next 2Y-29.94%
EPS Next 3Y6.44%
EPS Next 5Y15.14%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.36%
Revenue growth 5Y5.02%
Sales Q2Q%-19.47%
Revenue Next Year-20.22%
Revenue Next 2Y-11.55%
Revenue Next 3Y-2.05%
Revenue Next 5Y3.71%
EBIT growth 1Y-44.51%
EBIT growth 3Y2.46%
EBIT growth 5Y64.68%
EBIT Next Year111.65%
EBIT Next 3Y31.26%
EBIT Next 5Y19.45%
FCF growth 1Y-53.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.09%
OCF growth 3Y2.81%
OCF growth 5YN/A