IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis
USA - NASDAQ:IRWD - US46333X1081 - Common Stock
1.92 USD
+0.42 (+28%)
1.8501 USD
-0.07 (-3.64%)
Taking everything into account, IRWD scores 3 out of 10 in our fundamental rating. IRWD was compared to 534 industry peers in the Biotechnology industry. While IRWD is still in line with the averages on profitability rating, there are concerns on its financial health. IRWD has a bad growth rate and is valued cheaply.
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
With an excellent Return On Assets value of -2.30%, IRWD belongs to the best of the industry, outperforming 88.02% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for IRWD is significantly above the industry average of 15.51%.
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
In the last couple of years the Profit Margin of IRWD has declined.
With an excellent Operating Margin value of 29.70%, IRWD belongs to the best of the industry, outperforming 96.63% of the companies in the same industry.
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 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.
The number of shares outstanding for IRWD has been increased compared to 5 years ago.
IRWD has a worse debt/assets ratio than last year.
2.2 Solvency
IRWD has an Altman-Z score of -5.06. 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 -5.06, IRWD is not doing good in the industry: 60.67% of the companies in the same industry are doing better.
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 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Altman-Z | -5.06 |
ROIC/WACC8.48
WACC7.73%
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.
With a Quick ratio value of 0.82, IRWD is not doing good in the industry: 89.14% of the companies in the same industry are doing better.
| 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
IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.98%.
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
Based on estimates for the next years, IRWD will show a very negative growth in Earnings Per Share. The EPS will decrease by -58.99% on average per year.
The Revenue is expected to decrease by -15.53% on average over the next years. This is quite bad
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 48.00, IRWD can be considered very expensive at the moment.
92.32% of the companies in the same industry are more expensive than IRWD, based on the Price/Earnings ratio.
IRWD is valuated expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.16, the valuation of IRWD can be described as reasonable.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaper than 97.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (22.55), we can say IRWD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaper than 97.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaper than 98.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| EV/EBITDA | 8.58 |
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.
A cheap valuation may be justified as IRWD's earnings are expected to decrease with -87.48% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y223.74%
EPS Next 3Y-87.48%
5. Dividend
5.1 Amount
No dividends for IRWD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.92
+0.42 (+28%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-0.74%
Ins Owners2.81%
Ins Owner Change7.4%
Market Cap311.87M
Revenue(TTM)308.52M
Net Income(TTM)-7885000
Analysts50
Price Target0.97 (-49.48%)
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)0%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)1.19%
EPS NY rev (3m)14.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48 | ||
| Fwd PE | 9.16 | ||
| P/S | 1.01 | ||
| P/FCF | 10.42 | ||
| P/OCF | 10.4 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.58 |
EPS(TTM)0.04
EY2.08%
EPS(NY)0.21
Fwd EY10.92%
FCF(TTM)0.18
FCFY9.6%
OCF(TTM)0.18
OCFY9.61%
SpS1.9
BVpS-1.9
TBVpS-1.91
PEG (NY)0.05
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 | -5.06 |
F-Score3
WACC7.73%
ROIC/WACC8.48
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.