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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

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

0.5699  -0.05 (-8.1%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IRWD. IRWD was compared to 561 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year IRWD has reported negative net income.
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.
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

IRWD's Return On Assets of 0.25% is amongst the best of the industry. IRWD outperforms 90.20% of its industry peers.
With an excellent Return On Invested Capital value of 24.23%, IRWD belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 15.87%.
The 3 year average ROIC (36.95%) for IRWD is well above the current ROIC(24.23%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 0.25%
ROE N/A
ROIC 24.23%
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

With an excellent Profit Margin value of 0.25%, IRWD belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
IRWD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.24%, IRWD belongs to the top of the industry, outperforming 96.79% of the companies in the same industry.
IRWD's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.24%
PM (TTM) 0.25%
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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5

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
Compared to 5 years ago, IRWD has more shares outstanding
The debt/assets ratio for IRWD is higher compared to a year ago.
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

IRWD has an Altman-Z score of -4.29. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -4.29, IRWD perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
IRWD has a debt to FCF ratio of 5.65. This is a neutral value as IRWD would need 5.65 years to pay back of all of its debts.
IRWD has a Debt to FCF ratio of 5.65. This is amongst the best in the industry. IRWD outperforms 93.05% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.65
Altman-Z -4.29
ROIC/WACC4.28
WACC5.66%
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

IRWD has a Current Ratio of 4.69. This indicates that IRWD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IRWD (4.69) is comparable to the rest of the industry.
IRWD has a Quick Ratio of 4.69. This indicates that IRWD is financially healthy and has no problem in meeting its short term obligations.
IRWD has a Quick ratio of 4.69. This is comparable to the rest of the industry: IRWD outperforms 53.48% of its industry peers.
Industry RankSector Rank
Current Ratio 4.69
Quick Ratio 4.69
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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3

3. Growth

3.1 Past

IRWD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.03%.
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 -20.63% 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)-20.63%
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 strong growth in Earnings Per Share. The EPS will grow by 102.64% on average per year.
Based on estimates for the next years, IRWD will show a decrease in Revenue. The Revenue will decrease by -1.17% on average per year.
EPS Next Y869%
EPS Next 2Y271.08%
EPS Next 3Y-92.2%
EPS Next 5Y102.64%
Revenue Next Year-23.71%
Revenue Next 2Y-16.31%
Revenue Next 3Y-20.24%
Revenue Next 5Y-1.17%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

IRWD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 2.07, the valuation of IRWD can be described as very cheap.
98.57% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
IRWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 2.07
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.57% of the companies in the same industry.
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 0.89
EV/EBITDA 6.1
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.
The decent profitability rating of IRWD may justify a higher PE ratio.
IRWD's earnings are expected to decrease with -92.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y271.08%
EPS Next 3Y-92.2%

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0

5. Dividend

5.1 Amount

No dividends for IRWD!.
Industry RankSector Rank
Dividend Yield N/A

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IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (5/23/2025, 2:29:00 PM)

0.5699

-0.05 (-8.1%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners104.57%
Inst Owner Change-5.96%
Ins Owners2.04%
Ins Owner Change4.56%
Market Cap92.22M
Analysts73.33
Price Target5.24 (819.46%)
Short Float %5.57%
Short Ratio2.63
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)-75.31%
Min EPS beat(2)-75.67%
Max EPS beat(2)-74.94%
EPS beat(4)0
Avg EPS beat(4)-90.22%
Min EPS beat(4)-110.27%
Max EPS beat(4)-74.94%
EPS beat(8)2
Avg EPS beat(8)-60.67%
EPS beat(12)3
Avg EPS beat(12)-44.43%
EPS beat(16)6
Avg EPS beat(16)-30.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.49%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-12.78%
Min Revenue beat(4)-30.62%
Max Revenue beat(4)-1.59%
Revenue beat(8)2
Avg Revenue beat(8)-6.39%
Revenue beat(12)3
Avg Revenue beat(12)-5.46%
Revenue beat(16)5
Avg Revenue beat(16)-3.92%
PT rev (1m)-40.77%
PT rev (3m)-57.81%
EPS NQ rev (1m)-599.7%
EPS NQ rev (3m)-370.55%
EPS NY rev (1m)16.8%
EPS NY rev (3m)-17.89%
Revenue NQ rev (1m)-28.31%
Revenue NQ rev (3m)-31.74%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)-5.9%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 2.07
P/S 0.26
P/FCF 0.89
P/OCF 0.89
P/B N/A
P/tB N/A
EV/EBITDA 6.1
EPS(TTM)-0.1
EYN/A
EPS(NY)0.28
Fwd EY48.32%
FCF(TTM)0.64
FCFY112.13%
OCF(TTM)0.64
OCFY112.28%
SpS2.17
BVpS-1.86
TBVpS-1.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.25%
ROE N/A
ROCE 30.67%
ROIC 24.23%
ROICexc 33.83%
ROICexgc 34.27%
OM 27.24%
PM (TTM) 0.25%
GM N/A
FCFM 29.43%
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-Score7
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.65
Debt/EBITDA 5.98
Cap/Depr 7.06%
Cap/Sales 0.04%
Interest Coverage 2.94
Cash Conversion 105.96%
Profit Quality 11750.8%
Current Ratio 4.69
Quick Ratio 4.69
Altman-Z -4.29
F-Score7
WACC5.66%
ROIC/WACC4.28
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 Y869%
EPS Next 2Y271.08%
EPS Next 3Y-92.2%
EPS Next 5Y102.64%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-45.05%
Revenue Next Year-23.71%
Revenue Next 2Y-16.31%
Revenue Next 3Y-20.24%
Revenue Next 5Y-1.17%
EBIT growth 1Y-43.14%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year0.35%
EBIT Next 3Y-26.54%
EBIT Next 5Y8.99%
FCF growth 1Y112.27%
FCF growth 3Y-26.61%
FCF growth 5Y96.83%
OCF growth 1Y-43.55%
OCF growth 3Y-26.6%
OCF growth 5Y57.45%