IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis
USA - NASDAQ:IRWD - US46333X1081 - Common Stock
1.5 USD
-0.01 (-0.66%)
1.5 USD
0 (0%)
Overall IRWD gets a fundamental rating of 3 out of 10. We evaluated IRWD against 534 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 bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year IRWD was profitable.
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.
1.2 Ratios
The Return On Assets of IRWD (-2.30%) is better than 88.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 65.56%, IRWD belongs to the top of the industry, outperforming 99.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IRWD is significantly above the industry average of 15.49%.
The 3 year average ROIC (36.95%) for IRWD is below the current ROIC(65.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.3% | ||
| ROE | N/A | ||
| ROIC | 65.56% |
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
IRWD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 29.70%, IRWD belongs to the top of the industry, outperforming 96.63% of the companies in the same industry.
In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
The Profit Margin and Gross Margin are not available for IRWD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.7% | ||
| 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
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.
IRWD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IRWD has more shares outstanding
IRWD has a worse debt/assets ratio than last year.
2.2 Solvency
IRWD has an Altman-Z score of -5.12. This is a bad value and indicates that IRWD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -5.12, IRWD is doing worse than 61.80% of the companies in the same industry.
IRWD has a debt to FCF ratio of 19.52. This is a negative value and a sign of low solvency as IRWD would need 19.52 years to pay back of all of its debts.
IRWD has a better Debt to FCF ratio (19.52) than 90.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Altman-Z | -5.12 |
ROIC/WACC9.08
WACC7.22%
2.3 Liquidity
IRWD has a Current Ratio of 0.82. This is a bad value and indicates that IRWD is not financially healthy enough and could expect problems in meeting its short term obligations.
IRWD has a Current ratio of 0.82. This is amonst the worse of the industry: IRWD underperforms 89.33% of its industry peers.
IRWD has a Quick Ratio of 0.82. This is a bad value and indicates that IRWD is not financially healthy enough and could expect problems in meeting its short term obligations.
IRWD has a Quick ratio of 0.82. This is amonst the worse of the industry: IRWD underperforms 89.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
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.
Looking at the last year, IRWD shows a very negative growth in Revenue. The Revenue has decreased by -22.98% in the last year.
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%2572.22%
Revenue 1Y (TTM)-22.98%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%
3.2 Future
IRWD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -58.99% yearly.
Based on estimates for the next years, IRWD will show a very negative growth in Revenue. The Revenue will decrease by -15.53% on average per year.
EPS Next Y983.75%
EPS Next 2Y223.74%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue Next Year-22.86%
Revenue Next 2Y-15.21%
Revenue Next 3Y-20.39%
Revenue Next 5Y-15.53%
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 decreasing.
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 37.50, IRWD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 92.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.76, IRWD is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 7.16, the valuation of IRWD can be described as very cheap.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.63. IRWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaper than 97.57% of the companies in the same industry.
IRWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRWD is cheaper than 98.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 7.87 |
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.
IRWD has a very decent profitability rating, which may justify a higher PE ratio.
IRWD's earnings are expected to decrease with -87.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y223.74%
EPS Next 3Y-87.48%
5. Dividend
5.1 Amount
IRWD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.5
-0.01 (-0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-0.49%
Ins Owners2.81%
Ins Owner Change7.4%
Market Cap243.65M
Revenue(TTM)308.52M
Net Income(TTM)-7885000
Analysts50
Price Target0.97 (-35.33%)
Short Float %2.98%
Short Ratio3.77
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)1
Avg EPS beat(2)24.52%
Min EPS beat(2)-194.1%
Max EPS beat(2)243.14%
EPS beat(4)1
Avg EPS beat(4)-25.39%
Min EPS beat(4)-194.1%
Max EPS beat(4)243.14%
EPS beat(8)1
Avg EPS beat(8)-57.57%
EPS beat(12)4
Avg EPS beat(12)-36.22%
EPS beat(16)5
Avg EPS beat(16)-31.55%
Revenue beat(2)1
Avg Revenue beat(2)12.61%
Min Revenue beat(2)-12.28%
Max Revenue beat(2)37.5%
Revenue beat(4)1
Avg Revenue beat(4)4.56%
Min Revenue beat(4)-12.28%
Max Revenue beat(4)37.5%
Revenue beat(8)1
Avg Revenue beat(8)-3.63%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)5
Avg Revenue beat(16)-2.45%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)1.19%
EPS NY rev (3m)14.86%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-9.59%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.79 | ||
| P/FCF | 8.14 | ||
| P/OCF | 8.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)0.04
EY2.67%
EPS(NY)0.21
Fwd EY13.97%
FCF(TTM)0.18
FCFY12.29%
OCF(TTM)0.18
OCFY12.31%
SpS1.9
BVpS-1.9
TBVpS-1.91
PEG (NY)0.04
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.3% | ||
| ROE | N/A | ||
| ROCE | 82.99% | ||
| ROIC | 65.56% | ||
| ROICexc | 412.06% | ||
| ROICexgc | 478.93% | ||
| OM | 29.7% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 9.7% |
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-Score3
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 2.53% | ||
| Cap/Sales | 0.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | -5.12 |
F-Score3
WACC7.22%
ROIC/WACC9.08
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%2572.22%
EPS Next Y983.75%
EPS Next 2Y223.74%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue 1Y (TTM)-22.98%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-9.7%
Revenue Next Year-22.86%
Revenue Next 2Y-15.21%
Revenue Next 3Y-20.39%
Revenue Next 5Y-15.53%
EBIT growth 1Y-27.51%
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 1Y104.07%
FCF growth 3Y-26.61%
FCF growth 5Y96.83%
OCF growth 1Y-88.62%
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 3 / 10 to IRWD.
What is the valuation status for IRWD stock?
ChartMill assigns a valuation rating of 7 / 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 6 / 10.
Can you provide the financial health for IRWD stock?
The financial health rating of IRONWOOD PHARMACEUTICALS INC (IRWD) is 2 / 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 983.75% in the next year.