3.13 USD
-0.13 (-3.99%)
3.14 USD
+0.01 (+0.32%)
We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 530 industry peers in the Biotechnology industry. IRWD has an excellent profitability rating, but there are concerns on its financial health. IRWD is valued quite cheap, but it does not seem to be growing.
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.
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 92.67% 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.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 18.22%.
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 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 has a better Profit Margin (8.42%) than 90.60% of its industry peers.
In the last couple of years the Profit Margin of IRWD has declined.
The Operating Margin of IRWD (42.38%) is better 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
IRWD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IRWD has more shares outstanding
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 -3.30, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IRWD (-3.30) is comparable to the rest of the 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.
IRWD has a better Debt to FCF ratio (8.64) than 90.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.3 |
ROIC/WACC9.32
WACC7.93%
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 87.03% of its industry peers.
A Quick Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
IRWD's Quick ratio of 1.13 is on the low side compared to the rest of the industry. IRWD is outperformed by 86.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
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.
IRWD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.27% yearly.
Looking at the last year, IRWD shows a very negative growth in Revenue. The Revenue has decreased by -10.42% in the last year.
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)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
IRWD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 82.78% yearly.
The Revenue is expected to decrease by -7.59% on average over the next years.
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
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.
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
The Price/Earnings ratio is 12.04, which indicates a correct valuation of IRWD.
96.80% of the companies in the same industry are more expensive than IRWD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IRWD to the average of the S&P500 Index (26.39), we can say IRWD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.33, 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 99.44% of the companies are valued more expensively.
IRWD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
98.31% of the companies in the same industry are more expensive than IRWD, based on the Enterprise Value to EBITDA ratio.
IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 6.55 |
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.
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% |
3.13
-0.13 (-3.99%)
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 Cap509.19M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-18.53%)
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 | 12.04 | ||
| Fwd PE | 6.33 | ||
| P/S | 1.5 | ||
| P/FCF | 7.53 | ||
| P/OCF | 7.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.55 |
EPS(TTM)0.26
EY8.31%
EPS(NY)0.49
Fwd EY15.81%
FCF(TTM)0.42
FCFY13.29%
OCF(TTM)0.42
OCFY13.29%
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 | -3.3 |
F-Score6
WACC7.93%
ROIC/WACC9.32
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.