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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

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

0.78  +0.02 (+2.17%)

After market: 0.7945 +0.01 (+1.86%)

Fundamental Rating

4

Overall IRWD gets a fundamental rating of 4 out of 10. We evaluated IRWD against 556 industry peers in the Biotechnology industry. Both the profitability and the financial health of IRWD get a neutral evaluation. Nothing too spectacular is happening here. IRWD is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

IRWD had negative 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.
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 2024 0 500M -500M -1B

1.2 Ratios

The Return On Assets of IRWD (-9.88%) is better than 84.35% of its industry peers.
The Return On Invested Capital of IRWD (20.86%) is better than 97.66% of its industry peers.
IRWD had an Average Return On Invested Capital over the past 3 years of 36.95%. This is significantly above the industry average of 14.97%.
The last Return On Invested Capital (20.86%) for IRWD is well below the 3 year average (36.95%), which needs to be investigated, but indicates that IRWD had better years and this may not be a problem.
Industry RankSector Rank
ROA -9.88%
ROE N/A
ROIC 20.86%
ROA(3y)-65.53%
ROA(5y)-26.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)36.95%
ROIC(5y)30.66%
IRWD Yearly ROA, ROE, ROICIRWD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K

1.3 Margins

In the last couple of years the Profit Margin of IRWD has declined.
The Operating Margin of IRWD (23.20%) is better than 96.22% of its industry peers.
In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
IRWD does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 23.2%
PM (TTM) N/A
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
IRWD Yearly Profit, Operating, Gross MarginsIRWD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRWD is creating value.
Compared to 1 year ago, IRWD has more shares outstanding
IRWD has more shares outstanding than it did 5 years ago.
IRWD has a worse debt/assets ratio than last year.
IRWD Yearly Shares OutstandingIRWD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -5.18, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
IRWD has a Altman-Z score of -5.18. This is in the lower half of the industry: IRWD underperforms 60.43% of its industry peers.
The Debt to FCF ratio of IRWD is 7.45, which is on the high side as it means it would take IRWD, 7.45 years of fcf income to pay off all of its debts.
IRWD's Debt to FCF ratio of 7.45 is amongst the best of the industry. IRWD outperforms 92.45% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.45
Altman-Z -5.18
ROIC/WACC3.49
WACC5.98%
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 2024 0 500M -500M

2.3 Liquidity

A Current Ratio of 3.34 indicates that IRWD has no problem at all paying its short term obligations.
IRWD has a Current ratio of 3.34. This is in the lower half of the industry: IRWD underperforms 61.15% of its industry peers.
A Quick Ratio of 3.34 indicates that IRWD has no problem at all paying its short term obligations.
IRWD has a Quick ratio of 3.34. This is comparable to the rest of the industry: IRWD outperforms 40.29% of its industry peers.
Industry RankSector Rank
Current Ratio 3.34
Quick Ratio 3.34
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 2024 200M 400M 600M

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0

3. Growth

3.1 Past

The earnings per share for IRWD have decreased strongly by -127.03% in the last 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 -23.18% 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)-127.03%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%-600%
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-45.05%

3.2 Future

Based on estimates for the next years, IRWD will show a very negative growth in Earnings Per Share. The EPS will decrease by -60.56% on average per year.
IRWD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -15.48% yearly.
EPS Next Y843.5%
EPS Next 2Y142.18%
EPS Next 3Y-92.2%
EPS Next 5Y-60.56%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.48%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
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

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for IRWD. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 6.65, the valuation of IRWD can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 98.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.71. IRWD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 6.65
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

97.66% of the companies in the same industry are more expensive than IRWD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.61
EV/EBITDA 7.92
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 -2

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 cheap valuation may be justified as IRWD's earnings are expected to decrease with -92.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y142.18%
EPS Next 3Y-92.2%

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0

5. Dividend

5.1 Amount

IRWD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (7/22/2025, 8:21:10 PM)

After market: 0.7945 +0.01 (+1.86%)

0.78

+0.02 (+2.17%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners97.48%
Inst Owner Change0.19%
Ins Owners2.59%
Ins Owner Change9.78%
Market Cap126.22M
Analysts50
Price Target0.97 (24.36%)
Short Float %4.76%
Short Ratio2.95
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)-134.52%
Min EPS beat(2)-194.1%
Max EPS beat(2)-74.94%
EPS beat(4)0
Avg EPS beat(4)-111.18%
Min EPS beat(4)-194.1%
Max EPS beat(4)-74.94%
EPS beat(8)1
Avg EPS beat(8)-85.06%
EPS beat(12)3
Avg EPS beat(12)-59%
EPS beat(16)5
Avg EPS beat(16)-43.94%
Revenue beat(2)0
Avg Revenue beat(2)-8.83%
Min Revenue beat(2)-12.28%
Max Revenue beat(2)-5.38%
Revenue beat(4)0
Avg Revenue beat(4)-8.19%
Min Revenue beat(4)-13.51%
Max Revenue beat(4)-1.59%
Revenue beat(8)1
Avg Revenue beat(8)-8.12%
Revenue beat(12)2
Avg Revenue beat(12)-6.59%
Revenue beat(16)5
Avg Revenue beat(16)-4.15%
PT rev (1m)0%
PT rev (3m)-89.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.08%
EPS NY rev (1m)0%
EPS NY rev (3m)13.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 6.65
P/S 0.4
P/FCF 1.61
P/OCF 1.61
P/B N/A
P/tB N/A
EV/EBITDA 7.92
EPS(TTM)-0.1
EYN/A
EPS(NY)0.12
Fwd EY15.04%
FCF(TTM)0.48
FCFY62.12%
OCF(TTM)0.49
OCFY62.21%
SpS1.96
BVpS-2.06
TBVpS-2.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.88%
ROE N/A
ROCE 26.41%
ROIC 20.86%
ROICexc 34.13%
ROICexgc 34.67%
OM 23.2%
PM (TTM) N/A
GM N/A
FCFM 24.68%
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%
ROICexcg growth 3Y-13.6%
ROICexcg 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 Turnover0.97
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.45
Debt/EBITDA 7.72
Cap/Depr 5.31%
Cap/Sales 0.03%
Interest Coverage 250
Cash Conversion 103.74%
Profit Quality N/A
Current Ratio 3.34
Quick Ratio 3.34
Altman-Z -5.18
F-Score6
WACC5.98%
ROIC/WACC3.49
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)-127.03%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%-600%
EPS Next Y843.5%
EPS Next 2Y142.18%
EPS Next 3Y-92.2%
EPS Next 5Y-60.56%
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-45.05%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.48%
EBIT growth 1Y-38.42%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year13.33%
EBIT Next 3Y-27.49%
EBIT Next 5Y-15.42%
FCF growth 1Y-72.93%
FCF growth 3Y-26.61%
FCF growth 5Y96.83%
OCF growth 1Y-72.91%
OCF growth 3Y-26.6%
OCF growth 5Y57.45%