3.47 USD
-0.01 (-0.29%)
3.47 USD
0 (0%)
Taking everything into account, IRWD scores 5 out of 10 in our fundamental rating. IRWD was compared to 531 industry peers in the Biotechnology industry. IRWD has an excellent profitability rating, but there are concerns on its financial health. IRWD is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IRWD was profitable.
In the past year IRWD had a positive cash flow from operations.
IRWD had positive earnings in 4 of the past 5 years.
In the past 5 years IRWD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.21%, IRWD belongs to the best of the industry, outperforming 92.66% of the companies in the same industry.
IRWD has a better Return On Invested Capital (73.91%) 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 18.22%.
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
With an excellent Profit Margin value of 8.42%, IRWD belongs to the best of the industry, outperforming 90.58% of the companies in the same industry.
In the last couple of years the Profit Margin of IRWD has declined.
IRWD has a better Operating Margin (42.38%) than 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
IRWD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for IRWD has been increased compared to 1 year ago.
The number of shares outstanding for IRWD has been increased compared to 5 years ago.
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
IRWD has an Altman-Z score of -3.25. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -3.25, IRWD is in line with its industry, outperforming 43.88% of the companies in the same 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's Debt to FCF ratio of 8.64 is amongst the best of the industry. IRWD outperforms 90.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.25 |
ROIC/WACC9.26
WACC7.98%
2.3 Liquidity
IRWD has a Current 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 Current ratio of IRWD (1.13) is worse than 87.01% 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 has a worse Quick ratio (1.13) than 86.06% 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.
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
The Revenue has been decreasing by -3.88% on average over the past years.
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
IRWD is valuated correctly with a Price/Earnings ratio of 13.35.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 96.80% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. IRWD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 7.01, the valuation of IRWD can be described as very cheap.
99.62% 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 (23.56), we can say IRWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.31% of the companies in the same industry.
98.68% of the companies in the same industry are more expensive than IRWD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.34 | ||
| EV/EBITDA | 6.94 |
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 219.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y397.34%
EPS Next 3Y219.58%
5. Dividend
5.1 Amount
IRWD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.47
-0.01 (-0.29%)
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 Change3.08%
Market Cap564.50M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts48.89
Price Target2.55 (-26.51%)
Short Float %4.53%
Short Ratio3.2
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)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)-59.46%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)23.78%
EPS NY rev (3m)40.48%
Revenue NQ rev (1m)-24%
Revenue NQ rev (3m)-22.43%
Revenue NY rev (1m)10.54%
Revenue NY rev (3m)11.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.67 | ||
| P/FCF | 8.34 | ||
| P/OCF | 8.34 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)0.26
EY7.49%
EPS(NY)0.49
Fwd EY14.26%
FCF(TTM)0.42
FCFY11.98%
OCF(TTM)0.42
OCFY11.99%
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 | -3.25 |
F-Score6
WACC7.98%
ROIC/WACC9.26
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.