3.32 USD
+0.16 (+5.06%)
3.32 USD
0 (0%)
IRWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 533 industry peers in the Biotechnology industry. While IRWD has a great profitability rating, there are quite some concerns on its financial health. IRWD has a bad growth rate and is valued cheaply.
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.
IRWD had positive earnings in 4 of the past 5 years.
IRWD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IRWD (7.21%) is better than 92.87% 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.
IRWD had an Average Return On Invested Capital over the past 3 years of 36.95%. This is significantly above the industry average of 18.83%.
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
The Profit Margin of IRWD (8.42%) is better than 91.37% of its industry peers.
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 99.06% 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
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.
Compared to 1 year ago, IRWD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -3.27, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -3.27, IRWD is in line with its industry, outperforming 47.28% of the companies in the same industry.
IRWD has a debt to FCF ratio of 8.64. This is a slightly negative value and a sign of low solvency as IRWD would need 8.64 years to pay back of all of its debts.
IRWD has a Debt to FCF ratio of 8.64. This is amongst the best in the industry. IRWD outperforms 90.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.64 | ||
| Altman-Z | -3.27 |
ROIC/WACC9.25
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.13 indicates that IRWD should not have too much problems paying its short term obligations.
The Current ratio of IRWD (1.13) is worse than 86.68% 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.
IRWD has a Quick ratio of 1.13. This is amonst the worse of the industry: IRWD underperforms 86.30% 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.
Measured over the past years, IRWD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -48.27% on average per year.
IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.42%.
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
Based on estimates for the next years, IRWD will show a very negative growth in Earnings Per Share. The EPS will decrease by -52.02% on average per year.
The Revenue is expected to decrease by -18.19% on average over the next years. This is quite bad
EPS Next Y1115.48%
EPS Next 2Y273.59%
EPS Next 3Y90.24%
EPS Next 5Y-52.02%
Revenue Next Year-21.68%
Revenue Next 2Y-13.7%
Revenue Next 3Y-13.12%
Revenue Next 5Y-18.19%
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 stable.
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 12.77, IRWD is valued correctly.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 96.44% of the companies are valued more expensively.
IRWD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.65.
IRWD is valuated reasonably with a Price/Forward Earnings ratio of 11.89.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaper than 97.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. IRWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 98.31% of the companies are valued more expensively.
IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 6.75 |
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.
The decent profitability rating of IRWD may justify a higher PE ratio.
IRWD's earnings are expected to grow with 90.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y273.59%
EPS Next 3Y90.24%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.32
+0.16 (+5.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change1%
Ins Owners2.81%
Ins Owner Change3.08%
Market Cap539.27M
Revenue(TTM)338.99M
Net Income(TTM)28.55M
Analysts50
Price Target1.84 (-44.58%)
Short Float %3.02%
Short Ratio2.34
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)89.47%
PT rev (3m)89.47%
EPS NQ rev (1m)-15.94%
EPS NQ rev (3m)-12.12%
EPS NY rev (1m)12.16%
EPS NY rev (3m)13.49%
Revenue NQ rev (1m)-9.09%
Revenue NQ rev (3m)-9.36%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.89 | ||
| P/S | 1.59 | ||
| P/FCF | 7.97 | ||
| P/OCF | 7.97 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.75 |
EPS(TTM)0.26
EY7.83%
EPS(NY)0.28
Fwd EY8.41%
FCF(TTM)0.42
FCFY12.54%
OCF(TTM)0.42
OCFY12.55%
SpS2.09
BVpS-1.63
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 | -3.27 |
F-Score6
WACC7.99%
ROIC/WACC9.25
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 Y1115.48%
EPS Next 2Y273.59%
EPS Next 3Y90.24%
EPS Next 5Y-52.02%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%33.26%
Revenue Next Year-21.68%
Revenue Next 2Y-13.7%
Revenue Next 3Y-13.12%
Revenue Next 5Y-18.19%
EBIT growth 1Y33.82%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year31.18%
EBIT Next 3Y-26.99%
EBIT Next 5Y-15.55%
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 4 / 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 1115.48% in the next year.