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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

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

1.065  -0.06 (-5.75%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to IRWD. IRWD was compared to 549 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 bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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6

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.
Each year in the past 5 years IRWD had a positive operating cash flow.
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 -9.88% is amongst the best of the industry. IRWD outperforms 83.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.86%, IRWD belongs to the top of the industry, outperforming 97.27% 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 16.16%.
The 3 year average ROIC (36.95%) for IRWD is well above the current ROIC(20.86%). The reason for the recent decline needs to be investigated.
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

IRWD's Profit Margin has declined in the last couple of years.
IRWD has a Operating Margin of 23.20%. This is amongst the best in the industry. IRWD outperforms 95.81% of its industry peers.
IRWD's Operating Margin has been stable in the last couple of years.
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

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.
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 -5.13, we must say that IRWD is in the distress zone and has some risk of bankruptcy.
IRWD has a worse Altman-Z score (-5.13) than 60.66% 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 has a Debt to FCF ratio of 7.45. This is amongst the best in the industry. IRWD outperforms 92.17% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.45
Altman-Z -5.13
ROIC/WACC3.13
WACC6.66%
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

A Current Ratio of 3.34 indicates that IRWD has no problem at all paying its short term obligations.
IRWD has a Current ratio (3.34) which is comparable to the rest of the industry.
A Quick Ratio of 3.34 indicates that IRWD has no problem at all paying its short term obligations.
IRWD has a Quick ratio (3.34) which is in line with 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 -33.33% in the last year.
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.
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)-33.33%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%N/A
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%

3.2 Future

The Earnings Per Share is expected to decrease by -58.99% on average over the next years. This is quite bad
The Revenue is expected to decrease by -15.53% on average over the next years. This is quite bad
EPS Next Y843.5%
EPS Next 2Y142.18%
EPS Next 3Y-92.2%
EPS Next 5Y-58.99%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.53%

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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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.62, the valuation of IRWD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 92.71% of the companies listed in the same industry.
IRWD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.08, the valuation of IRWD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 97.45% of the companies are valued more expensively.
IRWD is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.62
Fwd PE 9.08
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

IRWD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRWD is cheaper than 97.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 99.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.2
EV/EBITDA 8.7
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 -2

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 decrease with -92.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y142.18%
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 (8/19/2025, 2:32:19 PM)

1.065

-0.06 (-5.75%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners98.46%
Inst Owner Change-5.47%
Ins Owners2.82%
Ins Owner Change7.54%
Market Cap172.34M
Analysts50
Price Target0.97 (-8.92%)
Short Float %3.43%
Short Ratio2.89
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)-81.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 26.62
Fwd PE 9.08
P/S 0.54
P/FCF 2.2
P/OCF 2.19
P/B N/A
P/tB N/A
EV/EBITDA 8.7
EPS(TTM)0.04
EY3.76%
EPS(NY)0.12
Fwd EY11.01%
FCF(TTM)0.48
FCFY45.5%
OCF(TTM)0.49
OCFY45.56%
SpS1.96
BVpS-2.06
TBVpS-2.08
PEG (NY)0.03
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 -5.13
F-Score6
WACC6.66%
ROIC/WACC3.13
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)-33.33%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%N/A
EPS Next Y843.5%
EPS Next 2Y142.18%
EPS Next 3Y-92.2%
EPS Next 5Y-58.99%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.53%
EBIT growth 1Y-38.42%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year22.54%
EBIT Next 3Y-42.29%
EBIT Next 5Y-15.55%
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%