3.26 USD
+0.05 (+1.56%)
3.21 USD
-0.05 (-1.53%)
IRWD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 530 industry peers in the Biotechnology industry. While IRWD has a great profitability rating, there are quite some concerns on its financial health. IRWD has a bad growth rate and is valued cheaply.
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.
In the past 5 years IRWD always reported a positive cash flow from operatings.
1.2 Ratios
IRWD has a Return On Assets of 7.21%. This is amongst the best in the industry. IRWD outperforms 92.64% of its industry peers.
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 18.22%.
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
The Profit Margin of IRWD (8.42%) is better than 90.57% 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 98.87% of the companies in the same industry.
In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
| 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
IRWD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
IRWD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IRWD has been increased compared to 5 years ago.
Compared to 1 year ago, IRWD has a worse debt to assets ratio.
2.2 Solvency
IRWD has an Altman-Z score of -3.28. 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 (-3.28) which 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 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.28 |
ROIC/WACC9.26
WACC7.98%
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 87.17% of its industry peers.
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 worse Quick ratio (1.13) than 86.23% 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.
The Revenue for IRWD has decreased by -10.42% in the past year. This is quite bad
IRWD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.88% yearly.
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
Based on estimates for the next years, IRWD will show a very strong growth in Earnings Per Share. The EPS will grow by 82.78% on average per year.
The Revenue is expected to decrease by -7.59% on average over the next years.
EPS Next Y1404.5%
EPS Next 2Y397.34%
EPS Next 3Y219.58%
EPS Next 5Y82.78%
Revenue Next Year-13.42%
Revenue Next 2Y-5.11%
Revenue Next 3Y-1.82%
Revenue Next 5Y-7.59%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.54, which indicates a correct valuation of IRWD.
IRWD's Price/Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 96.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. IRWD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.59 indicates a rather cheap valuation of IRWD.
99.43% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (24.03), we can say IRWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 98.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.84 | ||
| EV/EBITDA | 6.69 |
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 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
IRWD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3.26
+0.05 (+1.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners93.59%
Inst Owner Change1%
Ins Owners2.66%
Ins Owner Change-0.03%
Market Cap530.34M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price TargetN/A
Short Float %4.73%
Short Ratio3.14
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)163.16%
PT rev (3m)163.16%
EPS NQ rev (1m)-48.28%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)23.78%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)-14.42%
Revenue NQ rev (3m)-22.43%
Revenue NY rev (1m)10.54%
Revenue NY rev (3m)11.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.56 | ||
| P/FCF | 7.84 | ||
| P/OCF | 7.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)0.26
EY7.98%
EPS(NY)0.49
Fwd EY15.17%
FCF(TTM)0.42
FCFY12.76%
OCF(TTM)0.42
OCFY12.76%
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 | -3.28 |
F-Score6
WACC7.98%
ROIC/WACC9.26
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 5Y82.78%
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-7.59%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year80.51%
EBIT Next 3Y31.13%
EBIT Next 5Y4.35%
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.
What is the valuation status for IRWD stock?
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.
Can you provide the financial health for IRWD stock?
The financial health rating of IRONWOOD PHARMACEUTICALS INC (IRWD) is 3 / 10.
What is the expected EPS growth for IRONWOOD PHARMACEUTICALS INC (IRWD) stock?
The Earnings per Share (EPS) of IRONWOOD PHARMACEUTICALS INC (IRWD) is expected to grow by 1404.5% in the next year.