3.23 USD
+0.1 (+3.19%)
3.37 USD
+0.14 (+4.33%)
Taking everything into account, IRWD scores 5 out of 10 in our fundamental rating. IRWD was compared to 530 industry peers in the Biotechnology industry. While IRWD has a great profitability rating, there are quite some 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
With an excellent Return On Assets value of 7.21%, IRWD belongs to the best of the industry, outperforming 92.64% of the companies in the same industry.
With an excellent Return On Invested Capital value of 73.91%, IRWD belongs to the best 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 18.22%.
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 90.57% of its industry peers.
In the last couple of years the Profit Margin of IRWD has declined.
IRWD has a better Operating Margin (42.38%) than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IRWD is creating value.
Compared to 1 year ago, IRWD has more shares outstanding
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
Based on the Altman-Z score of -3.28, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -3.28, IRWD perfoms like the industry average, outperforming 43.96% of the companies in the same industry.
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 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.28 |
ROIC/WACC9.25
WACC7.99%
2.3 Liquidity
IRWD has a Current 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.
The Current ratio of IRWD (1.13) is worse than 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 Quick ratio of 1.13. This is amonst the worse of the industry: IRWD underperforms 86.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2700.00% over the past year.
The earnings per share for IRWD have been decreasing by -48.27% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 82.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, IRWD will show a decrease in Revenue. The Revenue will decrease by -7.59% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.42, the valuation of IRWD can be described as correct.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 96.79% of the companies are valued more expensively.
IRWD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
IRWD is valuated cheaply with a Price/Forward Earnings ratio of 6.53.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaper than 99.43% of the companies in the same industry.
IRWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 6.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 98.30% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 98.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 6.66 |
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.
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
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3.23
+0.1 (+3.19%)
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 Cap525.46M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-21.05%)
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 | 12.42 | ||
| Fwd PE | 6.53 | ||
| P/S | 1.55 | ||
| P/FCF | 7.77 | ||
| P/OCF | 7.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)0.26
EY8.05%
EPS(NY)0.49
Fwd EY15.32%
FCF(TTM)0.42
FCFY12.87%
OCF(TTM)0.42
OCFY12.88%
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
WACC7.99%
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.