IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

NASDAQ:IRWD • US46333X1081

3.555 USD
+0.2 (+5.8%)
Last: Feb 26, 2026, 03:43 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

IRWD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 521 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.
  • The reported net income has been mixed in the past 5 years: IRWD reported negative net income in multiple years.
  • IRWD had a positive operating cash flow in 4 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 0 500M -500M -1B

1.2 Ratios

  • With an excellent Return On Assets value of 7.21%, IRWD belongs to the best of the industry, outperforming 92.51% of the companies in the same industry.
  • IRWD has a Return On Invested Capital of 73.91%. This is amongst the best in the industry. IRWD outperforms 99.81% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for IRWD is significantly above the industry average of 18.24%.
  • The 3 year average ROIC (36.95%) for IRWD is below the current ROIC(73.91%), indicating increased profibility in the last year.
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 has a better Profit Margin (8.42%) than 90.02% of its industry peers.
  • In the last couple of years the Profit Margin of IRWD has declined.
  • Looking at the Operating Margin, with a value of 42.38%, IRWD belongs to the top 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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

  • IRWD has an Altman-Z score of -3.26. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
  • IRWD's Altman-Z score of -3.26 is in line compared to the rest of the industry. IRWD outperforms 45.87% 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 better Debt to FCF ratio (8.64) than 90.79% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.64
Altman-Z -3.26
ROIC/WACC9.38
WACC7.88%
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

  • A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.13, IRWD is doing worse than 85.22% of the companies in the same industry.
  • 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 84.26% 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

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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

  • The Earnings Per Share is expected to decrease by -15.01% 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 -10.69% on average per year.
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

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.46 indicates a correct valuation of IRWD.
  • Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 96.16% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.05. IRWD is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 4.36 indicates a rather cheap valuation of IRWD.
  • Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.85% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (28.03), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE 15.46
Fwd PE 4.36
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

  • 98.46% of the companies in the same industry are more expensive than IRWD, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 99.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.55
EV/EBITDA 6.81
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 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

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

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Find the best dividend stocksShow peers with best dividend

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (2/26/2026, 3:43:04 PM)

3.555

+0.2 (+5.8%)

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-0.21%
Market Cap578.33M
Revenue(TTM)N/A
Net Income(TTM)28.55M
Analysts78
Price Target4.95 (39.24%)
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)-89.66%
EPS NY rev (1m)0%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.71%
Valuation
Industry RankSector Rank
PE 15.46
Fwd PE 4.36
P/S 1.71
P/FCF 8.55
P/OCF 8.54
P/B N/A
P/tB N/A
EV/EBITDA 6.81
EPS(TTM)0.23
EY6.47%
EPS(NY)0.82
Fwd EY22.95%
FCF(TTM)0.42
FCFY11.7%
OCF(TTM)0.42
OCFY11.7%
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 -3.26
F-Score6
WACC7.88%
ROIC/WACC9.38
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 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 254.78% in the next year.