3.21 USD
+0.01 (+0.31%)
3.22 USD
+0.01 (+0.31%)
Overall IRWD gets a fundamental rating of 5 out of 10. We evaluated IRWD against 530 industry peers in the Biotechnology industry. While IRWD belongs to the best of the industry regarding profitability, there are concerns on its financial health. IRWD is cheap, but on the other hand it scores bad on growth.
1. Profitability
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.
Each year in the past 5 years IRWD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IRWD (7.21%) is better than 92.64% of its industry peers.
IRWD has a better Return On Invested Capital (73.91%) than 99.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
IRWD has a Profit Margin of 8.42%. This is amongst the best in the industry. IRWD outperforms 90.57% of its industry peers.
IRWD's Profit Margin has declined in the last couple of years.
IRWD has a Operating Margin of 42.38%. This is amongst the best in the industry. IRWD outperforms 98.87% 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 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.
Compared to 1 year ago, IRWD has more shares outstanding
Compared to 5 years ago, IRWD has more shares outstanding
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -3.29, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -3.29, IRWD is in line with its industry, outperforming 44.53% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 8.64, IRWD belongs to the top of the industry, outperforming 90.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.29 |
ROIC/WACC9.25
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, IRWD is doing worse than 86.98% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.13, IRWD is doing worse than 86.04% of the companies in the same industry.
| 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.
The earnings per share for IRWD have been decreasing by -48.27% on average. This is quite bad
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
IRWD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 82.78% yearly.
IRWD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.59% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
IRWD is valuated correctly with a Price/Earnings ratio of 12.35.
Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 96.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. IRWD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.49 indicates a rather cheap valuation of IRWD.
IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 99.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (23.40), we can say IRWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 6.49 |
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 99.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 6.64 |
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.
A more expensive valuation may be justified as IRWD's earnings are expected to grow with 219.58% in the coming years.
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% |
3.21
+0.01 (+0.31%)
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 Cap522.20M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-20.56%)
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)38.89%
PT rev (3m)163.16%
EPS NQ rev (1m)66.67%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)23.78%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)-22.43%
Revenue NY rev (1m)10.54%
Revenue NY rev (3m)11.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 6.49 | ||
| P/S | 1.54 | ||
| P/FCF | 7.72 | ||
| P/OCF | 7.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)0.26
EY8.1%
EPS(NY)0.49
Fwd EY15.41%
FCF(TTM)0.42
FCFY12.95%
OCF(TTM)0.42
OCFY12.96%
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 | -3.29 |
F-Score6
WACC7.99%
ROIC/WACC9.25
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.