4.57 USD
+0.1 (+2.24%)
We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 528 industry peers in the Biotechnology industry. IRWD scores excellent on profitability, but there are concerns on its financial health. IRWD is valued quite cheap, but it does not seem to be growing.
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.
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.
1.2 Ratios
With an excellent Return On Assets value of 7.21%, IRWD belongs to the best of the industry, outperforming 92.80% of the companies in the same industry.
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 18.28%.
The last Return On Invested Capital (73.91%) for IRWD is above the 3 year average (36.95%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
IRWD has a better Profit Margin (8.42%) than 90.53% of its industry peers.
In the last couple of years the Profit Margin of IRWD has declined.
IRWD's Operating Margin of 42.38% is amongst the best of the industry. IRWD outperforms 98.86% of its industry peers.
IRWD's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 is higher compared to a year ago.
2.2 Solvency
IRWD has an Altman-Z score of -3.10. 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 of -3.10. This is comparable to the rest of the industry: IRWD outperforms 46.02% 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 91.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.1 |
ROIC/WACC9.16
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
The Current ratio of IRWD (1.13) is worse than 85.42% of its industry peers.
A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
The Quick ratio of IRWD (1.13) is worse than 84.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
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.
The Revenue has been decreasing by -3.88% on average over the past years.
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 Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
EPS Next 5Y99.52%
Revenue Next Year-13.42%
Revenue Next 2Y-5.11%
Revenue Next 3Y-1.82%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.58, which indicates a rather expensive current valuation of IRWD.
IRWD's Price/Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 95.08% of the companies in the same industry.
IRWD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 9.24 indicates a reasonable valuation of IRWD.
IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. IRWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
97.92% of the companies in the same industry are more expensive than IRWD, based on the Enterprise Value to EBITDA ratio.
98.30% of the companies in the same industry are more expensive than IRWD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 8.05 |
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.
The decent profitability rating of IRWD may justify a higher PE ratio.
IRWD's earnings are expected to grow with 219.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y397.34%
EPS Next 3Y219.58%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:IRWD (1/13/2026, 10:24:50 AM)
4.57
+0.1 (+2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners93.44%
Inst Owner Change0.01%
Ins Owners2.66%
Ins Owner Change-0.32%
Market Cap743.45M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-44.2%)
Short Float %4.64%
Short Ratio2.76
Dividend
| Industry Rank | Sector 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)163.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.52%
EPS NY rev (1m)0%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 9.24 | ||
| P/S | 2.19 | ||
| P/FCF | 10.99 | ||
| P/OCF | 10.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.05 |
EPS(TTM)0.26
EY5.69%
EPS(NY)0.49
Fwd EY10.82%
FCF(TTM)0.42
FCFY9.1%
OCF(TTM)0.42
OCFY9.1%
SpS2.08
BVpS-1.62
TBVpS-1.64
PEG (NY)0.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -3.1 |
F-Score6
WACC8.07%
ROIC/WACC9.16
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 Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
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-13.42%
Revenue Next 2Y-5.11%
Revenue Next 3Y-1.82%
Revenue Next 5Y-4.08%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year80.51%
EBIT Next 3Y31.13%
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 8 / 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 1404.5% in the next year.