IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis
USA - NASDAQ:IRWD - US46333X1081 - Common Stock
1.405 USD
-0.01 (-1.06%)
Overall IRWD gets a fundamental rating of 3 out of 10. We evaluated IRWD against 536 industry peers in the Biotechnology industry. IRWD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
Looking at the Return On Assets, with a value of -2.30%, IRWD belongs to the top of the industry, outperforming 88.25% of the companies in the same industry.
The Return On Invested Capital of IRWD (65.56%) is better than 99.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IRWD is significantly above the industry average of 16.17%.
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 96.64% of its industry peers.
IRWD's Operating Margin has been stable in the last couple of years.
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
The debt/assets ratio for IRWD is higher compared to a year ago.
2.2 Solvency
IRWD has an Altman-Z score of -5.14. 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 -5.14, IRWD is not doing good in the industry: 60.82% 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 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.52 | ||
| Altman-Z | -5.14 |
ROIC/WACC9.2
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.82 indicates that IRWD may have some problems paying its short term obligations.
IRWD's Current ratio of 0.82 is on the low side compared to the rest of the industry. IRWD is outperformed by 89.74% 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 89.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
IRWD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
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.
IRWD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.98%.
IRWD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.88% yearly.
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.
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 Y971%
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
EPS Next 5Y-58.99%
Revenue Next Year-22.66%
Revenue Next 2Y-15.72%
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
IRWD is valuated quite expensively with a Price/Earnings ratio of 35.13.
Based on the Price/Earnings ratio, IRWD is valued cheaply inside the industry as 92.35% of the companies are valued more expensively.
IRWD is valuated rather expensively when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.13 | ||
| Fwd PE | N/A |
4.2 Price Multiples
97.39% of the companies in the same industry are more expensive than IRWD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 98.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 7.72 |
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.
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)0.04
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y-87.48%
5. Dividend
5.1 Amount
IRWD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:IRWD (9/30/2025, 11:03:14 AM)
1.405
-0.01 (-1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-5.38%
Ins Owners2.81%
Ins Owner Change7.48%
Market Cap228.21M
Analysts50
Price Target0.97 (-30.96%)
Short Float %3.62%
Short Ratio4.16
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)-30.77%
EPS NY rev (1m)0%
EPS NY rev (3m)13.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.13 | ||
| Fwd PE | N/A | ||
| P/S | 0.74 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)0.04
EY2.85%
EPS(NY)0
Fwd EYN/A
FCF(TTM)0.18
FCFY13.12%
OCF(TTM)0.18
OCFY13.14%
SpS1.9
BVpS-1.9
TBVpS-1.91
PEG (NY)0.04
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 | -5.14 |
F-Score3
WACC7.13%
ROIC/WACC9.2
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-15.72%
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%