IRONWOOD PHARMACEUTICALS INC (IRWD) Fundamental Analysis & Valuation

NASDAQ:IRWD • US46333X1081

Current stock price

3.54 USD
-0.36 (-9.23%)
At close:
3.5112 USD
-0.03 (-0.81%)
After Hours:

This IRWD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. IRWD Profitability Analysis

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.
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 2025 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.05%, IRWD belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
  • IRWD's Return On Invested Capital of 60.60% is amongst the best of the industry. IRWD outperforms 99.42% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 27.17%.
  • The 3 year average ROIC (51.03%) for IRWD is below the current ROIC(60.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROIC 60.6%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -500 -1K

1.3 Margins

  • IRWD's Profit Margin of 8.11% is amongst the best of the industry. IRWD outperforms 89.94% of its industry peers.
  • In the last couple of years the Profit Margin of IRWD has declined.
  • IRWD has a better Operating Margin (40.07%) than 98.07% 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 RankSector Rank
OM 40.07%
PM (TTM) 8.11%
GM N/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
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 2025 0 100 -100 -200

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4

2. IRWD Health Analysis

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.
  • IRWD has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, IRWD has an improved debt to assets ratio.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • IRWD has an Altman-Z score of -3.50. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
  • IRWD has a Altman-Z score of -3.50. This is comparable to the rest of the industry: IRWD outperforms 43.91% of its industry peers.
  • The Debt to FCF ratio of IRWD is 4.60, which is a neutral value as it means it would take IRWD, 4.60 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.60, IRWD belongs to the top of the industry, outperforming 91.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Altman-Z -3.5
ROIC/WACC7.01
WACC8.64%
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 2025 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.
  • With a Current ratio value of 1.13, IRWD is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
  • 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: 84.72% 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 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. IRWD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 1050.00% over the past year.
  • Measured over the past years, IRWD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.87% on average per year.
  • The Revenue for IRWD has decreased by -15.72% in the past year. This is quite bad
  • The Revenue has been decreasing by -5.33% on average over the past years.
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%

3.2 Future

  • IRWD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.82% yearly.
  • The Revenue is expected to decrease by -10.75% on average over the next years. This is quite bad
EPS Next Y412.22%
EPS Next 2Y141.49%
EPS Next 3Y85.74%
EPS Next 5Y-25.82%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
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

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9

4. IRWD Valuation Analysis

4.1 Price/Earnings Ratio

  • IRWD is valuated correctly with a Price/Earnings ratio of 15.39.
  • Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 94.58% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.60. IRWD is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 3.00, which indicates a rather cheap valuation of IRWD.
  • 99.03% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (22.84), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE 15.39
Fwd PE 3
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 cheaper than 96.91% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 99.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.54
EV/EBITDA 8.34
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1

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 85.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y141.49%
EPS Next 3Y85.74%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. IRWD Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

IRWD Fundamentals: All Metrics, Ratios and Statistics

IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (4/2/2026, 8:00:02 PM)

After market: 3.5112 -0.03 (-0.81%)

3.54

-0.36 (-9.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners95.14%
Inst Owner Change2.11%
Ins Owners2.43%
Ins Owner Change6.18%
Market Cap577.23M
Revenue(TTM)296.15M
Net Income(TTM)24.02M
Analysts78
Price Target5.46 (54.24%)
Short Float %8.7%
Short Ratio4.35
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)1
Avg EPS beat(2)-31.37%
Min EPS beat(2)-198.04%
Max EPS beat(2)135.29%
EPS beat(4)2
Avg EPS beat(4)-3.43%
Min EPS beat(4)-198.04%
Max EPS beat(4)243.14%
EPS beat(8)2
Avg EPS beat(8)-46.82%
EPS beat(12)4
Avg EPS beat(12)-41.59%
EPS beat(16)5
Avg EPS beat(16)-34.18%
Revenue beat(2)1
Avg Revenue beat(2)26.01%
Min Revenue beat(2)-8.17%
Max Revenue beat(2)60.19%
Revenue beat(4)2
Avg Revenue beat(4)19.31%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)60.19%
Revenue beat(8)2
Avg Revenue beat(8)3.27%
Revenue beat(12)4
Avg Revenue beat(12)2.18%
Revenue beat(16)5
Avg Revenue beat(16)0.74%
PT rev (1m)10.31%
PT rev (3m)114%
EPS NQ rev (1m)60%
EPS NQ rev (3m)1100%
EPS NY rev (1m)44.38%
EPS NY rev (3m)138.14%
Revenue NQ rev (1m)6.95%
Revenue NQ rev (3m)141.07%
Revenue NY rev (1m)11.69%
Revenue NY rev (3m)43.58%
Valuation
Industry RankSector Rank
PE 15.39
Fwd PE 3
P/S 1.95
P/FCF 4.54
P/OCF 4.54
P/B N/A
P/tB N/A
EV/EBITDA 8.34
EPS(TTM)0.23
EY6.5%
EPS(NY)1.18
Fwd EY33.28%
FCF(TTM)0.78
FCFY22%
OCF(TTM)0.78
OCFY22.01%
SpS1.82
BVpS-1.61
TBVpS-1.62
PEG (NY)0.04
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 6.05%
ROE N/A
ROCE 76.71%
ROIC 60.6%
ROICexc N/A
ROICexgc N/A
OM 40.07%
PM (TTM) 8.11%
GM N/A
FCFM 42.89%
ROA(3y)-68.82%
ROA(5y)-28.73%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)51.03%
ROIC(5y)38.1%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)64.6%
ROCE(5y)48.22%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-13.03%
OM growth 5Y-0.04%
PM growth 3Y-42.49%
PM growth 5Y-21.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.6
Debt/EBITDA 3.19
Cap/Depr 1.81%
Cap/Sales 0.01%
Interest Coverage 3.91
Cash Conversion 105.4%
Profit Quality 528.83%
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z -3.5
F-Score6
WACC8.64%
ROIC/WACC7.01
Cap/Depr(3y)21724%
Cap/Depr(5y)13039.8%
Cap/Sales(3y)77.29%
Cap/Sales(5y)46.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1050%
EPS 3Y-38.11%
EPS 5Y-21.87%
EPS Q2Q%-150%
EPS Next Y412.22%
EPS Next 2Y141.49%
EPS Next 3Y85.74%
EPS Next 5Y-25.82%
Revenue 1Y (TTM)-15.72%
Revenue growth 3Y-10.32%
Revenue growth 5Y-5.33%
Sales Q2Q%-47.31%
Revenue Next Year53.26%
Revenue Next 2Y26.48%
Revenue Next 3Y17.87%
Revenue Next 5Y-10.75%
EBIT growth 1Y23.97%
EBIT growth 3Y-22.01%
EBIT growth 5Y-5.37%
EBIT Next Year202.12%
EBIT Next 3Y50.56%
EBIT Next 5Y-20.7%
FCF growth 1Y22.83%
FCF growth 3Y-22.57%
FCF growth 5Y-5.33%
OCF growth 1Y22.69%
OCF growth 3Y-22.58%
OCF growth 5Y-5.53%

IRONWOOD PHARMACEUTICALS INC / IRWD Fundamental Analysis 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.


What is the profitability of IRWD stock?

IRONWOOD PHARMACEUTICALS INC (IRWD) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for IRWD stock?

The Price/Earnings (PE) ratio for IRONWOOD PHARMACEUTICALS INC (IRWD) is 15.39 and the Price/Book (PB) ratio is -2.2.


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 412.22% in the next year.