IRONWOOD PHARMACEUTICALS INC (IRWD) Fundamental Analysis & Valuation

NASDAQ:IRWD • US46333X1081

Current stock price

3.06 USD
-0.09 (-2.86%)
At close:
3.078 USD
+0.02 (+0.59%)
After Hours:

This IRWD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. IRWD Profitability Analysis

1.1 Basic Checks

  • IRWD had positive earnings in the past year.
  • IRWD had a positive operating cash flow in the past year.
  • Of the past 5 years IRWD 4 years were profitable.
  • In the past 5 years IRWD always reported a positive cash flow from operatings.
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 2025 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.05%, IRWD belongs to the top of the industry, outperforming 91.52% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 60.60%, IRWD belongs to the best of the industry, outperforming 99.42% 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 18.95%.
  • The 3 year average ROIC (51.03%) for IRWD is below the current ROIC(60.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROIC 60.6%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -500 -1K

1.3 Margins

  • IRWD's Profit Margin of 8.11% is amongst the best of the industry. IRWD outperforms 89.98% of its industry peers.
  • In the last couple of years the Profit Margin of IRWD has declined.
  • IRWD has a Operating Margin of 40.07%. This is amongst the best in the industry. IRWD outperforms 98.27% of its industry peers.
  • In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
Industry RankSector Rank
OM 40.07%
PM (TTM) 8.11%
GM N/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
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 2025 0 100 -100 -200

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4

2. IRWD Health Analysis

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.
  • IRWD has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for IRWD has been reduced compared to a year ago.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • IRWD has an Altman-Z score of -3.61. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of IRWD (-3.61) is comparable to the rest of the industry.
  • IRWD has a debt to FCF ratio of 4.60. This is a neutral value as IRWD would need 4.60 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.60, IRWD belongs to the top of the industry, outperforming 91.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Altman-Z -3.61
ROIC/WACC7.03
WACC8.62%
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 2025 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.
  • Looking at the Current ratio, with a value of 1.13, IRWD is doing worse than 85.16% of the companies in the same industry.
  • A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.13, IRWD is not doing good in the industry: 84.59% of the companies in the same industry are doing better.
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 2025 200M 400M 600M

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

1

3. IRWD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 1050.00% over the past year.
  • Measured over the past years, IRWD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.87% on average per year.
  • IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.72%.
  • Measured over the past years, IRWD shows a decrease in Revenue. The Revenue has been decreasing by -5.33% on average per year.
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%

3.2 Future

  • The Earnings Per Share is expected to decrease by -25.82% on average over the next years. This is quite bad
  • IRWD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.75% yearly.
EPS Next Y412.22%
EPS Next 2Y141.49%
EPS Next 3Y85.74%
EPS Next 5Y-25.82%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%

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 stable.
  • 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 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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9

4. IRWD Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.30, IRWD is valued correctly.
  • Based on the Price/Earnings ratio, IRWD is valued cheaper than 95.76% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. IRWD is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 2.60, which indicates a rather cheap valuation of IRWD.
  • 99.04% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. IRWD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.3
Fwd PE 2.6
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 97.50% of the companies listed in the same industry.
  • IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 99.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.93
EV/EBITDA 7.32
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1

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.
  • IRWD's earnings are expected to grow with 85.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y141.49%
EPS Next 3Y85.74%

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

0

5. IRWD Dividend Analysis

5.1 Amount

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

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IRWD Fundamentals: All Metrics, Ratios and Statistics

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (3/27/2026, 8:26:39 PM)

After market: 3.078 +0.02 (+0.59%)

3.06

-0.09 (-2.86%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners95.14%
Inst Owner Change2.11%
Ins Owners2.43%
Ins Owner Change6.18%
Market Cap498.96M
Revenue(TTM)296.15M
Net Income(TTM)24.02M
Analysts78
Price Target5.46 (78.43%)
Short Float %8.14%
Short Ratio2.66
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)1
Avg EPS beat(2)-31.37%
Min EPS beat(2)-198.04%
Max EPS beat(2)135.29%
EPS beat(4)2
Avg EPS beat(4)-3.43%
Min EPS beat(4)-198.04%
Max EPS beat(4)243.14%
EPS beat(8)2
Avg EPS beat(8)-46.82%
EPS beat(12)4
Avg EPS beat(12)-41.59%
EPS beat(16)5
Avg EPS beat(16)-34.18%
Revenue beat(2)1
Avg Revenue beat(2)26.01%
Min Revenue beat(2)-8.17%
Max Revenue beat(2)60.19%
Revenue beat(4)2
Avg Revenue beat(4)19.31%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)60.19%
Revenue beat(8)2
Avg Revenue beat(8)3.27%
Revenue beat(12)4
Avg Revenue beat(12)2.18%
Revenue beat(16)5
Avg Revenue beat(16)0.74%
PT rev (1m)0%
PT rev (3m)94%
EPS NQ rev (1m)585.71%
EPS NQ rev (3m)1100%
EPS NY rev (1m)44.38%
EPS NY rev (3m)138.14%
Revenue NQ rev (1m)6.95%
Revenue NQ rev (3m)87.55%
Revenue NY rev (1m)11.69%
Revenue NY rev (3m)43.58%
Valuation
Industry RankSector Rank
PE 13.3
Fwd PE 2.6
P/S 1.68
P/FCF 3.93
P/OCF 3.93
P/B N/A
P/tB N/A
EV/EBITDA 7.32
EPS(TTM)0.23
EY7.52%
EPS(NY)1.18
Fwd EY38.5%
FCF(TTM)0.78
FCFY25.45%
OCF(TTM)0.78
OCFY25.46%
SpS1.82
BVpS-1.61
TBVpS-1.62
PEG (NY)0.03
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROCE 76.71%
ROIC 60.6%
ROICexc N/A
ROICexgc N/A
OM 40.07%
PM (TTM) 8.11%
GM N/A
FCFM 42.89%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)64.6%
ROCE(5y)48.22%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Debt/EBITDA 3.19
Cap/Depr 1.81%
Cap/Sales 0.01%
Interest Coverage 3.91
Cash Conversion 105.4%
Profit Quality 528.83%
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z -3.61
F-Score6
WACC8.62%
ROIC/WACC7.03
Cap/Depr(3y)21724%
Cap/Depr(5y)13039.8%
Cap/Sales(3y)77.29%
Cap/Sales(5y)46.39%
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 Y412.22%
EPS Next 2Y141.49%
EPS Next 3Y85.74%
EPS Next 5Y-25.82%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%
EBIT growth 1Y23.97%
EBIT growth 3Y-22.01%
EBIT growth 5Y-5.37%
EBIT Next Year202.12%
EBIT Next 3Y50.56%
EBIT Next 5Y-20.7%
FCF growth 1Y22.83%
FCF growth 3Y-22.57%
FCF growth 5Y-5.33%
OCF growth 1Y22.69%
OCF growth 3Y-22.58%
OCF growth 5Y-5.53%

IRONWOOD PHARMACEUTICALS INC / IRWD Fundamental Analysis 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 412.22% in the next year.