IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

NASDAQ:IRWD • US46333X1081

4.5 USD
-0.11 (-2.39%)
At close: Feb 13, 2026
4.51 USD
+0.01 (+0.22%)
After Hours: 2/13/2026, 8:17:58 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 523 industry peers in the Biotechnology industry. IRWD scores excellent on profitability, but there are concerns on its financial health. IRWD is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year IRWD was profitable.
  • IRWD had a positive operating cash flow in the past year.
  • 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.
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

  • IRWD has a Return On Assets of 7.21%. This is amongst the best in the industry. IRWD outperforms 92.73% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 73.91%, IRWD belongs to the top of the industry, outperforming 99.81% of the companies in the same industry.
  • IRWD had an Average Return On Invested Capital over the past 3 years of 36.95%. This is significantly above the industry average of 18.27%.
  • 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's Profit Margin of 8.42% is amongst the best of the industry. IRWD outperforms 90.44% of its industry peers.
  • IRWD's Profit Margin has declined in the last couple of years.
  • IRWD has a better Operating Margin (42.38%) than 99.04% 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 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

3

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.
  • Compared to 1 year ago, IRWD has more shares outstanding
  • The number of shares outstanding for IRWD has been increased compared to 5 years ago.
  • The debt/assets ratio for IRWD is higher compared to a year ago.
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

  • Based on the Altman-Z score of -3.08, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of IRWD (-3.08) 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.
  • IRWD has a better Debt to FCF ratio (8.64) than 91.01% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.64
Altman-Z -3.08
ROIC/WACC7.22
WACC10.24%
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.
  • IRWD has a Current ratio of 1.13. This is amonst the worse of the industry: IRWD underperforms 84.89% of its industry peers.
  • A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
  • IRWD has a worse Quick ratio (1.13) than 83.94% 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

3

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.
  • IRWD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.27% yearly.
  • Looking at the last year, IRWD shows a very negative growth in Revenue. The Revenue has decreased by -10.42% in the last year.
  • 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 99.52% on average over the next years. This is a very strong growth
  • The Revenue is expected to decrease by -4.08% on average over the next years.
EPS Next Y1353.5%
EPS Next 2Y538.75%
EPS Next 3Y265.83%
EPS Next 5Y99.52%
Revenue Next Year-15.64%
Revenue Next 2Y7.59%
Revenue Next 3Y10.33%
Revenue Next 5Y-4.08%

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 stable.
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

  • Based on the Price/Earnings ratio of 17.31, the valuation of IRWD can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 95.22% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.97. IRWD is valued slightly cheaper when compared to this.
  • IRWD is valuated cheaply with a Price/Forward Earnings ratio of 5.51.
  • IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 99.04% of the companies in the same industry.
  • IRWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.31
Fwd PE 5.51
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

  • Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 98.09% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 98.47% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.82
EV/EBITDA 8.2
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

4.3 Compensation for Growth

  • IRWD's 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 265.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y538.75%
EPS Next 3Y265.83%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (2/13/2026, 8:17:58 PM)

After market: 4.51 +0.01 (+0.22%)

4.5

-0.11 (-2.39%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-05
Inst Owners93.44%
Inst Owner Change-0.43%
Ins Owners2.66%
Ins Owner Change-0.32%
Market Cap732.06M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts78
Price Target4.95 (10%)
Short Float %5.7%
Short Ratio2.02
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)94%
PT rev (3m)410.53%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-67.57%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)-12.84%
Revenue NQ rev (3m)-33.75%
Revenue NY rev (1m)-2.56%
Revenue NY rev (3m)7.71%
Valuation
Industry RankSector Rank
PE 17.31
Fwd PE 5.51
P/S 2.16
P/FCF 10.82
P/OCF 10.82
P/B N/A
P/tB N/A
EV/EBITDA 8.2
EPS(TTM)0.26
EY5.78%
EPS(NY)0.82
Fwd EY18.13%
FCF(TTM)0.42
FCFY9.24%
OCF(TTM)0.42
OCFY9.25%
SpS2.08
BVpS-1.62
TBVpS-1.64
PEG (NY)0.01
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 -3.08
F-Score6
WACC10.24%
ROIC/WACC7.22
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 Y1353.5%
EPS Next 2Y538.75%
EPS Next 3Y265.83%
EPS Next 5Y99.52%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%33.26%
Revenue Next Year-15.64%
Revenue Next 2Y7.59%
Revenue Next 3Y10.33%
Revenue Next 5Y-4.08%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year69.33%
EBIT Next 3Y44.12%
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 1353.5% in the next year.