IRONWOOD PHARMACEUTICALS INC (IRWD)
US46333X1081 - Common Stock
IRWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 588 industry peers in the Biotechnology industry. IRWD has a medium profitability rating, but doesn't score so well on its financial health evaluation. IRWD has a decent growth rate and is not valued too expensively.
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
IRWD's Return On Assets of -212.76% is on the low side compared to the rest of the industry. IRWD is outperformed by 89.90% of its industry peers.
IRWD's Return On Invested Capital of 59.88% is amongst the best of the industry. IRWD outperforms 100.00% of its industry peers.
IRWD had an Average Return On Invested Capital over the past 3 years of 30.90%. This is significantly above the industry average of 13.85%.
The last Return On Invested Capital (59.88%) for IRWD is above the 3 year average (30.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -212.76% | ||
| ROE | N/A | ||
| ROIC | 59.88% |
ROA(3y)-49.99%
ROA(5y)-25.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.9%
ROIC(5y)27.12%
1.3 Margins
With an excellent Operating Margin value of 38.02%, IRWD belongs to the best of the industry, outperforming 98.97% of the companies in the same industry.
In the last couple of years the Operating Margin of IRWD has grown nicely.
The Profit Margin and Gross Margin are not available for IRWD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.02% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-1.82%
OM growth 5Y56.81%
PM growth 3YN/A
PM growth 5YN/A
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 reduced compared to 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 -2.14, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -2.14, IRWD perfoms like the industry average, outperforming 50.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -2.14 |
ROIC/WACC8.57
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.84 indicates that IRWD may have some problems paying its short term obligations.
IRWD has a worse Current ratio (0.84) than 90.58% of its industry peers.
IRWD has a Quick Ratio of 0.84. This is a bad value and indicates that IRWD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.84, IRWD is doing worse than 90.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for IRWD have decreased strongly by -34.02% in the last year.
IRWD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.78% yearly.
Looking at the last year, IRWD shows a small growth in Revenue. The Revenue has grown by 7.83% in the last year.
Measured over the past years, IRWD shows a small growth in Revenue. The Revenue has been growing by 5.02% on average per year.
EPS 1Y (TTM)-34.02%
EPS 3Y-6.78%
EPS 5YN/A
EPS growth Q2Q-103.7%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y4.36%
Revenue growth 5Y5.02%
Revenue growth Q2Q9.66%
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 29.10% on average per year.
The Revenue is expected to grow by 22.20% on average over the next years. This is a very strong growth
EPS Next Y8.64%
EPS Next 2Y13.48%
EPS Next 3Y25.02%
EPS Next 5Y29.1%
Revenue Next Year1.21%
Revenue Next 2Y4.99%
Revenue Next 3Y7.67%
Revenue Next 5Y22.2%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.22, the valuation of IRWD can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 97.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.84. IRWD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.25, which indicates a very decent valuation of IRWD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 98.12% of the companies listed in the same industry.
IRWD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 97.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
IRWD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IRWD's earnings are expected to grow with 25.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y13.48%
EPS Next 3Y25.02%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IRONWOOD PHARMACEUTICALS INC
NASDAQ:IRWD (4/26/2024, 7:00:02 PM)
After market: 7.82 0 (0%)7.82
-0.26 (-3.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 11.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -212.76% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.02% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-34.02%
EPS 3Y-6.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.83%
Revenue growth 3Y4.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y