4.27 USD
+0.9 (+26.71%)
4.2564 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 scores excellent on profitability, 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
In the past year IRWD was profitable.
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 92.83% of its industry peers.
The Return On Invested Capital of IRWD (73.91%) is better 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 18.28%.
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
Looking at the Profit Margin, with a value of 8.42%, IRWD belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
IRWD's Profit Margin has declined in the last couple of years.
IRWD has a Operating Margin of 42.38%. This is amongst the best in the industry. IRWD outperforms 98.87% of its industry peers.
IRWD's Operating Margin has been stable in the last couple of years.
| 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.
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
IRWD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -3.13, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
IRWD's Altman-Z score of -3.13 is in line compared to the rest of the industry. IRWD outperforms 45.28% of its industry peers.
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 90.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.13 |
ROIC/WACC9.16
WACC8.07%
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 85.47% 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.
The Quick ratio of IRWD (1.13) is worse than 84.53% 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
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
Based on estimates for the next years, IRWD will show a very strong growth in Earnings Per Share. The EPS will grow by 82.78% on average per year.
IRWD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.59% yearly.
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
With a Price/Earnings ratio of 16.42, IRWD is valued correctly.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 95.47% of the companies are valued more expensively.
IRWD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 8.63, the valuation of IRWD can be described as very reasonable.
IRWD's Price/Forward Earnings ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. IRWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaper than 97.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 98.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 7.82 |
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.
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% |
4.27
+0.9 (+26.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners93.44%
Inst Owner Change0%
Ins Owners2.66%
Ins Owner Change-0.03%
Market Cap694.64M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-40.28%)
Short Float %4.64%
Short Ratio2.76
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)38.89%
PT rev (3m)163.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.52%
EPS NY rev (1m)0%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 8.63 | ||
| P/S | 2.05 | ||
| P/FCF | 10.27 | ||
| P/OCF | 10.26 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.82 |
EPS(TTM)0.26
EY6.09%
EPS(NY)0.49
Fwd EY11.59%
FCF(TTM)0.42
FCFY9.74%
OCF(TTM)0.42
OCFY9.74%
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 | -3.13 |
F-Score6
WACC8.07%
ROIC/WACC9.16
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.
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 1404.5% in the next year.