Logo image of IRWD

IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

NASDAQ:IRWD - Nasdaq - US46333X1081 - Common Stock - Currency: USD

1.61  -0.01 (-0.62%)

After market: 1.61 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 571 industry peers in the Biotechnology industry. IRWD has only an average score on both its financial health and profitability. IRWD is valued quite cheap, but it does not seem to be growing. With these ratings, IRWD could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

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.
In multiple years IRWD reported negative net income over the last 5 years.
Of the past 5 years IRWD 4 years had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

1.2 Ratios

With an excellent Return On Assets value of -0.63%, IRWD belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
The Return On Invested Capital of IRWD (21.89%) is better than 98.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 14.23%.
The 3 year average ROIC (30.90%) for IRWD is well above the current ROIC(21.89%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -0.63%
ROE N/A
ROIC 21.89%
ROA(3y)-49.99%
ROA(5y)-25.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.9%
ROIC(5y)27.12%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K

1.3 Margins

IRWD has a Operating Margin of 28.37%. This is amongst the best in the industry. IRWD outperforms 97.68% of its industry peers.
IRWD's Operating Margin has improved in the last couple of years.
The Profit Margin and Gross Margin are not available for IRWD so they could not be analyzed.
Industry RankSector Rank
OM 28.37%
PM (TTM) N/A
GM N/A
OM growth 3Y-1.82%
OM growth 5Y56.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
IRWD Yearly Profit, Operating, Gross MarginsIRWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 -200

More info and screens

5

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.
There is no outstanding debt for IRWD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
IRWD Yearly Total Debt VS Total AssetsIRWD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -3.61, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IRWD (-3.61) is comparable to the rest of the industry.
IRWD has a debt to FCF ratio of 5.00. This is a neutral value as IRWD would need 5.00 years to pay back of all of its debts.
IRWD has a Debt to FCF ratio of 5.00. This is amongst the best in the industry. IRWD outperforms 93.39% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5
Altman-Z -3.61
ROIC/WACC3.5
WACC6.26%
IRWD Yearly LT Debt VS Equity VS FCFIRWD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

2.3 Liquidity

IRWD has a Current Ratio of 3.62. This indicates that IRWD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IRWD (3.62) is comparable to the rest of the industry.
A Quick Ratio of 3.62 indicates that IRWD has no problem at all paying its short term obligations.
The Quick ratio of IRWD (3.62) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 3.62
Quick Ratio 3.62
IRWD Yearly Current Assets VS Current LiabilitesIRWD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

More info and screens

3

3. Growth

3.1 Past

The earnings per share for IRWD have decreased strongly by -96.88% 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.
EPS 1Y (TTM)-96.87%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%300%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-22.97%

3.2 Future

Based on estimates for the next years, IRWD will show a very strong growth in Earnings Per Share. The EPS will grow by 133.98% on average per year.
Based on estimates for the next years, IRWD will show a quite strong growth in Revenue. The Revenue will grow by 8.46% on average per year.
EPS Next Y1080.14%
EPS Next 2Y403.63%
EPS Next 3Y294.08%
EPS Next 5Y133.98%
Revenue Next Year-18.93%
Revenue Next 2Y-2.91%
Revenue Next 3Y14.54%
Revenue Next 5Y8.46%

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.
IRWD Yearly Revenue VS EstimatesIRWD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100M 200M 300M 400M 500M
IRWD Yearly EPS VS EstimatesIRWD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -2 -4 -6

More info and screens

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 80.50, IRWD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
IRWD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.98.
With a Price/Forward Earnings ratio of 6.82, the valuation of IRWD can be described as very cheap.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.57% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (22.66), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE 80.5
Fwd PE 6.82
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaper than 98.57% of the companies in the same industry.
IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.15
EV/EBITDA 7.02
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.
A more expensive valuation may be justified as IRWD's earnings are expected to grow with 294.08% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y403.63%
EPS Next 3Y294.08%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for IRWD!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (2/28/2025, 8:00:02 PM)

After market: 1.61 0 (0%)

1.61

-0.01 (-0.62%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-27 2025-02-27/bmo
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners104.57%
Inst Owner Change-0.49%
Ins Owners2.04%
Ins Owner Change4.45%
Market Cap257.65M
Analysts81.67
Price Target9.01 (459.63%)
Short Float %6.87%
Short Ratio3.27
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-87.84%
Min EPS beat(2)-100%
Max EPS beat(2)-75.67%
EPS beat(4)0
Avg EPS beat(4)-97.68%
Min EPS beat(4)-110.27%
Max EPS beat(4)-75.67%
EPS beat(8)2
Avg EPS beat(8)-51.55%
EPS beat(12)3
Avg EPS beat(12)-40.28%
EPS beat(16)7
Avg EPS beat(16)-24.84%
Revenue beat(2)0
Avg Revenue beat(2)-7.55%
Min Revenue beat(2)-13.51%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-11.9%
Min Revenue beat(4)-30.62%
Max Revenue beat(4)-1.59%
Revenue beat(8)2
Avg Revenue beat(8)-6.37%
Revenue beat(12)4
Avg Revenue beat(12)-4.63%
Revenue beat(16)6
Avg Revenue beat(16)-3.45%
PT rev (1m)-27.4%
PT rev (3m)-29.33%
EPS NQ rev (1m)49.76%
EPS NQ rev (3m)49.76%
EPS NY rev (1m)-19.35%
EPS NY rev (3m)-19.35%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 80.5
Fwd PE 6.82
P/S 0.68
P/FCF 2.15
P/OCF 2.07
P/B N/A
P/tB N/A
EV/EBITDA 7.02
EPS(TTM)0.02
EY1.24%
EPS(NY)0.24
Fwd EY14.66%
FCF(TTM)0.75
FCFY46.51%
OCF(TTM)0.78
OCFY48.19%
SpS2.36
BVpS-1.95
TBVpS-1.96
PEG (NY)0.07
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.63%
ROE N/A
ROCE 31.56%
ROIC 21.89%
ROICexc 29.56%
ROICexgc 29.92%
OM 28.37%
PM (TTM) N/A
GM N/A
FCFM 31.67%
ROA(3y)-49.99%
ROA(5y)-25.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.9%
ROIC(5y)27.12%
ROICexc(3y)67.22%
ROICexc(5y)62.26%
ROICexgc(3y)68.62%
ROICexgc(5y)63.15%
ROCE(3y)44.56%
ROCE(5y)39.1%
ROICexcg growth 3Y21.28%
ROICexcg growth 5Y36.37%
ROICexc growth 3Y19.81%
ROICexc growth 5Y35.93%
OM growth 3Y-1.82%
OM growth 5Y56.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5
Debt/EBITDA 5.47
Cap/Depr 212.46%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 113.5%
Profit Quality N/A
Current Ratio 3.62
Quick Ratio 3.62
Altman-Z -3.61
F-Score6
WACC6.26%
ROIC/WACC3.5
Cap/Depr(3y)21730%
Cap/Depr(5y)13073.7%
Cap/Sales(3y)77.3%
Cap/Sales(5y)46.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-96.87%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%300%
EPS Next Y1080.14%
EPS Next 2Y403.63%
EPS Next 3Y294.08%
EPS Next 5Y133.98%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-22.97%
Revenue Next Year-18.93%
Revenue Next 2Y-2.91%
Revenue Next 3Y14.54%
Revenue Next 5Y8.46%
EBIT growth 1Y-44.51%
EBIT growth 3Y2.46%
EBIT growth 5Y64.68%
EBIT Next Year112.2%
EBIT Next 3Y29.84%
EBIT Next 5Y19.45%
FCF growth 1Y-53.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.09%
OCF growth 3Y2.81%
OCF growth 5YN/A