IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:IRWD • US46333X1081

4.56 USD
+0.11 (+2.47%)
At close: Feb 6, 2026
4.73 USD
+0.17 (+3.73%)
After Hours: 2/6/2026, 8:00:02 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 524 industry peers in the Biotechnology industry. IRWD scores excellent on profitability, but there are concerns on its financial health. IRWD has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

7

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.
  • 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.
IRWD Yearly Net Income VS EBIT VS OCF VS FCFIRWD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.21%, IRWD belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
  • IRWD has a better Return On Invested Capital (73.91%) than 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 18.12%.
  • 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 RankSector 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%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.42%, IRWD belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
  • IRWD's Profit Margin has declined in the last couple of years.
  • IRWD has a better Operating Margin (42.38%) than 99.05% of its industry peers.
  • IRWD's Operating Margin has been stable in the last couple of years.
Industry RankSector 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
IRWD Yearly Profit, Operating, Gross MarginsIRWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200

3

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.
  • IRWD has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, IRWD has more shares outstanding
  • IRWD has a worse debt/assets ratio than last year.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
IRWD Yearly Total Debt VS Total AssetsIRWD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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.
  • Looking at the Altman-Z score, with a value of -3.10, IRWD is in line with its industry, outperforming 48.28% 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.
  • IRWD's Debt to FCF ratio of 8.64 is amongst the best of the industry. IRWD outperforms 91.03% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.64
Altman-Z -3.1
ROIC/WACC9.1
WACC8.12%
IRWD Yearly LT Debt VS Equity VS FCFIRWD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

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 84.92% of its industry peers.
  • A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.13, IRWD is not doing good in the industry: 83.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13
IRWD Yearly Current Assets VS Current LiabilitesIRWD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

3

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
  • Looking at the last year, IRWD shows a very negative growth in Revenue. The Revenue has decreased by -10.42% in the last year.
  • 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 99.52% 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 -4.08% on average per year.
EPS Next Y1353.5%
EPS Next 2Y538.75%
EPS Next 3Y265.83%
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

  • 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 stable.
IRWD Yearly Revenue VS EstimatesIRWD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100M 200M 300M 400M
IRWD Yearly EPS VS EstimatesIRWD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 -2 -4 -6

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 17.54, which indicates a rather expensive current valuation of IRWD.
  • Based on the Price/Earnings ratio, IRWD is valued cheaper than 95.61% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of IRWD to the average of the S&P500 Index (27.92), we can say IRWD is valued slightly cheaper.
  • IRWD is valuated cheaply with a Price/Forward Earnings ratio of 5.59.
  • Based on the Price/Forward Earnings ratio, IRWD is valued cheaper than 99.24% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, IRWD is valued rather cheaply.
Industry RankSector Rank
PE 17.54
Fwd PE 5.59
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 98.09% of the companies are valued more expensively.
  • IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.47% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.97
EV/EBITDA 8.02
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

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 265.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y538.75%
EPS Next 3Y265.83%

0

5. Dividend

5.1 Amount

  • IRWD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (2/6/2026, 8:00:02 PM)

After market: 4.73 +0.17 (+3.73%)

4.56

+0.11 (+2.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-10
Earnings (Next)02-12
Inst Owners93.44%
Inst Owner Change-0.59%
Ins Owners2.66%
Ins Owner Change-0.32%
Market Cap741.82M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target4.95 (8.55%)
Short Float %5.7%
Short Ratio2.02
Dividend
Industry RankSector 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)94%
PT rev (3m)410.53%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-65.22%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)34.12%
Revenue NQ rev (1m)-12.84%
Revenue NQ rev (3m)-32.18%
Revenue NY rev (1m)-2.56%
Revenue NY rev (3m)9.36%
Valuation
Industry RankSector Rank
PE 17.54
Fwd PE 5.59
P/S 2.19
P/FCF 10.97
P/OCF 10.96
P/B N/A
P/tB N/A
EV/EBITDA 8.02
EPS(TTM)0.26
EY5.7%
EPS(NY)0.82
Fwd EY17.89%
FCF(TTM)0.42
FCFY9.12%
OCF(TTM)0.42
OCFY9.12%
SpS2.08
BVpS-1.62
TBVpS-1.64
PEG (NY)0.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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
WACC8.12%
ROIC/WACC9.1
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 Y1353.5%
EPS Next 2Y538.75%
EPS Next 3Y265.83%
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-15.64%
Revenue Next 2Y7.59%
Revenue Next 3Y10.33%
Revenue Next 5Y-4.08%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year69.33%
EBIT Next 3Y44.12%
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 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.


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 1353.5% in the next year.