IRONWOOD PHARMACEUTICALS INC (IRWD) Fundamental Analysis & Valuation

NASDAQ:IRWD • US46333X1081

Current stock price

3.04 USD
-0.19 (-5.88%)
At close:
3.2397 USD
+0.2 (+6.57%)
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.
  • In the past year IRWD had a positive cash flow from operations.
  • 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

  • The Return On Assets of IRWD (6.05%) is better than 91.94% of its industry peers.
  • IRWD's Return On Invested Capital of 60.60% is amongst the best of the industry. IRWD outperforms 99.42% 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 18.89%.
  • The last Return On Invested Capital (60.60%) for IRWD is above the 3 year average (51.03%), which is a sign of increasing profitability.
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 89.64% of its industry peers.
  • IRWD's Profit Margin has declined in the last couple of years.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. IRWD Health Analysis

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.
  • Compared to 5 years ago, IRWD has more shares outstanding
  • 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 -3.62. 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 (-3.62) which is in line with its industry peers.
  • The Debt to FCF ratio of IRWD is 4.60, which is a neutral value as it means it would take IRWD, 4.60 years of fcf income to pay off all of its debts.
  • IRWD has a Debt to FCF ratio of 4.60. This is amongst the best in the industry. IRWD outperforms 91.75% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Altman-Z -3.62
ROIC/WACC7.59
WACC7.98%
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.
  • With a Current ratio value of 1.13, IRWD is not doing good in the industry: 85.41% of the companies in the same industry are doing better.
  • 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 Quick ratio of 1.13. This is amonst the worse of the industry: IRWD underperforms 84.64% 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 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.
  • IRWD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.87% yearly.
  • The Revenue for IRWD has decreased by -15.72% 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 -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
  • The Revenue is expected to decrease by -10.75% on average over the next years. This is quite bad
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

  • IRWD is valuated correctly with a Price/Earnings ratio of 13.22.
  • 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 25.23. IRWD is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 2.58, the valuation of IRWD can be described as very cheap.
  • 99.04% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
  • IRWD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.42.
Industry RankSector Rank
PE 13.22
Fwd PE 2.58
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 97.31% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 99.62% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.9
EV/EBITDA 7.18
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.
  • A more expensive valuation may be justified as IRWD's earnings are expected to grow with 85.74% in the coming years.
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

  • IRWD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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IRWD Fundamentals: All Metrics, Ratios and Statistics

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (3/20/2026, 8:02:10 PM)

After market: 3.2397 +0.2 (+6.57%)

3.04

-0.19 (-5.88%)

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 Cap495.70M
Revenue(TTM)296.15M
Net Income(TTM)24.02M
Analysts78
Price Target4.95 (62.83%)
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 13.22
Fwd PE 2.58
P/S 1.67
P/FCF 3.9
P/OCF 3.9
P/B N/A
P/tB N/A
EV/EBITDA 7.18
EPS(TTM)0.23
EY7.57%
EPS(NY)1.18
Fwd EY38.75%
FCF(TTM)0.78
FCFY25.62%
OCF(TTM)0.78
OCFY25.63%
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 -3.62
F-Score6
WACC7.98%
ROIC/WACC7.59
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.