We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 525 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years IRWD 4 years were profitable.
IRWD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

IRWD has a better Return On Assets (7.21%) than 92.95% 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.
IRWD had an Average Return On Invested Capital over the past 3 years of 36.95%. This is significantly above the industry average of 18.07%.
The 3 year average ROIC (36.95%) for IRWD is below the current ROIC(73.91%), indicating increased profibility in the last year.

		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's Profit Margin of 8.42% is amongst the best of the industry. IRWD outperforms 90.67% of its industry peers.
IRWD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 42.38%, IRWD belongs to the best of the industry, outperforming 99.05% 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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRWD 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
Compared to 1 year ago, IRWD has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -2.96, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
IRWD has a Altman-Z score (-2.96) which is in line with its industry peers.
The Debt to FCF ratio of IRWD is 8.64, which is on the high side as it means it would take IRWD, 8.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IRWD (8.64) is better than 91.05% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	8.64
Altman-Z	-2.96

ROIC/WACC8.98

WACC8.23%

2.3 Liquidity

A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, IRWD is not doing good in the industry: 85.33% of the companies in the same industry are doing better.
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 84.38% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.13
Quick Ratio	1.13

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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

The Earnings Per Share is expected to grow by 99.52% on average over the next years. This is a very strong growth
IRWD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.08% yearly.

EPS Next Y1404.5%

EPS Next 2Y397.34%

EPS Next 3Y219.58%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

IRWD is valuated rather expensively with a Price/Earnings ratio of 20.12.
94.86% of the companies in the same industry are more expensive than IRWD, based on the Price/Earnings ratio.
IRWD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.57, the valuation of IRWD can be described as very reasonable.
98.29% 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 (24.26), we can say IRWD is valued rather cheaply.

		Industry Rank	Sector Rank
PE	20.12
Fwd PE	10.57

4.2 Price Multiples

IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 97.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 97.52% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	12.58
EV/EBITDA	9.07

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 219.58% in the coming years.