IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis
NASDAQ:IRWD - US46333X1081 - Common Stock
1.11 USD
-0.04 (-3.9%)
1.11 USD
0 (0%)
Taking everything into account, IRWD scores 3 out of 10 in our fundamental rating. IRWD was compared to 541 industry peers in the Biotechnology industry. There are concerns on the financial health of IRWD while its profitability can be described as average. IRWD is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years IRWD 4 years were profitable.
Each year in the past 5 years IRWD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of -2.30%, IRWD belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
IRWD has a Return On Invested Capital of 65.56%. This is amongst the best in the industry. IRWD outperforms 99.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 15.95%.
The last Return On Invested Capital (65.56%) for IRWD is above the 3 year average (36.95%), which is a sign of increasing profitability.
| 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.
IRWD has a Operating Margin of 29.70%. This is amongst the best in the industry. IRWD outperforms 96.67% of its industry peers.
In the last couple of years the Operating Margin of IRWD has remained more or less at the same level.
IRWD does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| 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.
The number of shares outstanding for IRWD has been increased compared to 1 year ago.
Compared to 5 years ago, IRWD has more shares outstanding
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
IRWD has an Altman-Z score of -5.18. 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 -5.18, IRWD is doing worse than 61.37% of the companies in the same industry.
The Debt to FCF ratio of IRWD is 19.52, which is on the high side as it means it would take IRWD, 19.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 19.52, IRWD belongs to the best of the industry, outperforming 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Altman-Z | -5.18 |
ROIC/WACC9.95
WACC6.59%
2.3 Liquidity
A Current Ratio of 0.82 indicates that IRWD may have some problems paying its short term obligations.
IRWD has a worse Current ratio (0.82) than 90.02% of its industry peers.
A Quick Ratio of 0.82 indicates that IRWD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, IRWD is doing worse than 89.46% of the companies in the same industry.
| 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.
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 -22.98% in the past year. This is quite bad
Measured over the past years, IRWD shows a decrease in Revenue. The Revenue has been decreasing by -3.88% on average per year.
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.
IRWD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -15.53% yearly.
EPS Next Y971%
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue Next Year-22.66%
Revenue Next 2Y-15.78%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.75 indicates a quite expensive valuation of IRWD.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 92.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.02, IRWD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaply inside the industry as 97.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 99.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 7.19 |
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.
A cheap valuation may be justified as IRWD's earnings are expected to decrease with -87.48% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.11
-0.04 (-3.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.46%
Inst Owner Change-5.38%
Ins Owners2.82%
Ins Owner Change7.54%
Market Cap180.30M
Analysts50
Price Target0.97 (-12.61%)
Short Float %3.85%
Short Ratio4.05
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)-30.77%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)13.51%
EPS NY rev (3m)10.53%
Revenue NQ rev (1m)-8.9%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | N/A | ||
| P/S | 0.58 | ||
| P/FCF | 6.02 | ||
| P/OCF | 6.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.04
EY3.6%
EPS(NY)0
Fwd EYN/A
FCF(TTM)0.18
FCFY16.6%
OCF(TTM)0.18
OCFY16.63%
SpS1.9
BVpS-1.9
TBVpS-1.91
PEG (NY)0.03
PEG (5Y)N/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%
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-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 | -5.18 |
F-Score3
WACC6.59%
ROIC/WACC9.95
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 Y971%
EPS Next 2Y-41.42%
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-22.66%
Revenue Next 2Y-15.78%
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 Year22.54%
EBIT Next 3Y-42.29%
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%