IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis
USA - NASDAQ:IRWD - US46333X1081 - Common Stock
1.66 USD
+0.03 (+1.84%)
1.6799 USD
+0.02 (+1.2%)
IRWD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 534 industry peers in the Biotechnology industry. There are concerns on the financial health of IRWD while its profitability can be described as average. IRWD is valued correctly, but it does not seem to be growing.
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 Return On Assets of -2.30%. This is amongst the best in the industry. IRWD outperforms 88.02% of its industry peers.
With an excellent Return On Invested Capital value of 65.56%, IRWD belongs to the best of the industry, outperforming 99.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 15.49%.
The 3 year average ROIC (36.95%) for IRWD is below the current ROIC(65.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.3% | ||
| ROE | N/A | ||
| ROIC | 65.56% |
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 has declined in the last couple of years.
Looking at the Operating Margin, with a value of 29.70%, IRWD belongs to the top of the industry, outperforming 96.63% of the companies in the same industry.
IRWD's Operating Margin has been stable in the last couple of years.
The Profit Margin and Gross Margin are not available for IRWD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.7% | ||
| PM (TTM) | N/A | ||
| 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.
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
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -5.10, 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 -5.10, IRWD is doing worse than 61.80% of the companies in the same industry.
The Debt to FCF ratio of IRWD is 19.52, which is on the high side as it means it would take IRWD, 19.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 19.52, IRWD belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Altman-Z | -5.1 |
ROIC/WACC8.8
WACC7.45%
2.3 Liquidity
A Current Ratio of 0.82 indicates that IRWD may have some problems paying its short term obligations.
IRWD has a Current ratio of 0.82. This is amonst the worse of the industry: IRWD underperforms 89.33% of its industry peers.
IRWD has a Quick Ratio of 0.82. This is a bad value and indicates that IRWD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, IRWD is doing worse than 89.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for IRWD have decreased strongly by -33.33% in the last year.
Measured over the past years, IRWD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -48.27% on average per year.
The Revenue for IRWD has decreased by -22.98% in the past year. This is quite bad
Measured over the past years, IRWD shows a decrease in Revenue. The Revenue has been decreasing by -3.88% on average per year.
EPS 1Y (TTM)-33.33%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%2572.22%
Revenue 1Y (TTM)-22.98%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%
3.2 Future
Based on estimates for the next years, IRWD will show a very negative growth in Earnings Per Share. The EPS will decrease by -58.99% on average per year.
Based on estimates for the next years, IRWD will show a very negative growth in Revenue. The Revenue will decrease by -15.53% on average per year.
EPS Next Y971%
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue Next Year-22.86%
Revenue Next 2Y-15.21%
Revenue Next 3Y-20.39%
Revenue Next 5Y-15.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 41.50, the valuation of IRWD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 92.51% of the companies listed in the same industry.
IRWD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 97.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 98.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | 8.08 |
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 cheap valuation may be justified as IRWD's earnings are expected to decrease with -87.48% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.66
+0.03 (+1.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-0.44%
Ins Owners2.81%
Ins Owner Change7.4%
Market Cap269.63M
Revenue(TTM)308.52M
Net Income(TTM)-7885000
Analysts50
Price Target0.97 (-41.57%)
Short Float %3.28%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)24.52%
Min EPS beat(2)-194.1%
Max EPS beat(2)243.14%
EPS beat(4)1
Avg EPS beat(4)-25.39%
Min EPS beat(4)-194.1%
Max EPS beat(4)243.14%
EPS beat(8)1
Avg EPS beat(8)-57.57%
EPS beat(12)4
Avg EPS beat(12)-36.22%
EPS beat(16)5
Avg EPS beat(16)-31.55%
Revenue beat(2)1
Avg Revenue beat(2)12.61%
Min Revenue beat(2)-12.28%
Max Revenue beat(2)37.5%
Revenue beat(4)1
Avg Revenue beat(4)4.56%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)37.5%
Revenue beat(8)1
Avg Revenue beat(8)-3.63%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)5
Avg Revenue beat(16)-2.45%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)0%
EPS NY rev (3m)13.51%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-9.59%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.5 | ||
| Fwd PE | N/A | ||
| P/S | 0.87 | ||
| P/FCF | 9.01 | ||
| P/OCF | 8.99 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.08 |
EPS(TTM)0.04
EY2.41%
EPS(NY)0
Fwd EYN/A
FCF(TTM)0.18
FCFY11.1%
OCF(TTM)0.18
OCFY11.12%
SpS1.9
BVpS-1.9
TBVpS-1.91
PEG (NY)0.04
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.3% | ||
| ROE | N/A | ||
| ROCE | 82.99% | ||
| ROIC | 65.56% | ||
| ROICexc | 412.06% | ||
| ROICexgc | 478.93% | ||
| OM | 29.7% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 9.7% |
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-Score3
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 2.53% | ||
| Cap/Sales | 0.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | -5.1 |
F-Score3
WACC7.45%
ROIC/WACC8.8
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)-33.33%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%2572.22%
EPS Next Y971%
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue 1Y (TTM)-22.98%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%
Revenue Next Year-22.86%
Revenue Next 2Y-15.21%
Revenue Next 3Y-20.39%
Revenue Next 5Y-15.53%
EBIT growth 1Y-27.51%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year31.18%
EBIT Next 3Y-26.99%
EBIT Next 5Y-15.55%
FCF growth 1Y104.07%
FCF growth 3Y-26.61%
FCF growth 5Y96.83%
OCF growth 1Y-88.62%
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 3 / 10 to IRWD.
What is the valuation status for IRWD stock?
ChartMill assigns a valuation rating of 5 / 10 to IRONWOOD PHARMACEUTICALS INC (IRWD). This can be considered as Fairly Valued.
Can you provide the profitability details for IRONWOOD PHARMACEUTICALS INC?
IRONWOOD PHARMACEUTICALS INC (IRWD) has a profitability rating of 6 / 10.
Can you provide the financial health for IRWD stock?
The financial health rating of IRONWOOD PHARMACEUTICALS INC (IRWD) is 2 / 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 971% in the next year.