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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

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

0.89  +0.09 (+11.4%)

After market: 0.89 0 (0%)

Fundamental Rating

4

IRWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 553 industry peers in the Biotechnology industry. IRWD has an average financial health and profitability rating. IRWD has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year IRWD has reported negative net income.
In the past year IRWD had a positive cash flow from operations.
IRWD had positive earnings in 4 of the past 5 years.
IRWD had a positive operating cash flow in each of the past 5 years.
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 84.27% of its industry peers.
With an excellent Return On Invested Capital value of 20.86%, IRWD belongs to the best of the industry, outperforming 97.65% 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 14.97%.
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.
Looking at the Operating Margin, with a value of 23.20%, IRWD belongs to the top of the industry, outperforming 96.20% 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.
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.
Compared to 1 year ago, IRWD has more shares outstanding
The number of shares outstanding for IRWD has been increased compared to 5 years ago.
Compared to 1 year ago, IRWD has a worse debt to assets ratio.
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

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.
IRWD has a Altman-Z score of -5.18. This is in the lower half of the industry: IRWD underperforms 60.58% 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 92.41% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.45
Altman-Z -5.18
ROIC/WACC3.35
WACC6.22%
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

IRWD has a Current Ratio of 3.34. This indicates that IRWD is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.34, IRWD is not doing good in the industry: 61.48% of the companies in the same industry are doing better.
IRWD has a Quick Ratio of 3.34. This indicates that IRWD is financially healthy and has no problem in meeting its short term obligations.
IRWD has a Quick ratio of 3.34. This is in the lower half of the industry: IRWD underperforms 60.04% of 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 -127.03% in the last year.
IRWD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.27% yearly.
The Revenue for IRWD has decreased by -23.18% 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)-127.03%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%-600%
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-45.05%

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 -60.56% on average per year.
The Revenue is expected to decrease by -15.48% 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-60.56%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.48%

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.
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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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for IRWD. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 7.59 indicates a rather cheap valuation of IRWD.
Based on the Price/Forward Earnings ratio, IRWD is valued cheaply inside the industry as 98.19% of the companies are valued more expensively.
IRWD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.11.
Industry RankSector Rank
PE N/A
Fwd PE 7.59
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IRWD is valued cheaper than 97.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRWD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.84
EV/EBITDA 7.99
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)N/A
PEG (5Y)N/A
EPS Next 2Y142.18%
EPS Next 3Y-92.2%

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0

5. Dividend

5.1 Amount

IRWD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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IRONWOOD PHARMACEUTICALS INC

NASDAQ:IRWD (7/29/2025, 6:28:22 PM)

After market: 0.89 0 (0%)

0.89

+0.09 (+11.4%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners97.48%
Inst Owner Change0.59%
Ins Owners2.59%
Ins Owner Change7.74%
Market Cap144.02M
Analysts50
Price Target0.97 (8.99%)
Short Float %4.16%
Short Ratio2.8
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)-81.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.08%
EPS NY rev (1m)0%
EPS NY rev (3m)13.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 7.59
P/S 0.45
P/FCF 1.84
P/OCF 1.83
P/B N/A
P/tB N/A
EV/EBITDA 7.99
EPS(TTM)-0.1
EYN/A
EPS(NY)0.12
Fwd EY13.18%
FCF(TTM)0.48
FCFY54.45%
OCF(TTM)0.49
OCFY54.52%
SpS1.96
BVpS-2.06
TBVpS-2.08
PEG (NY)N/A
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 -5.18
F-Score6
WACC6.22%
ROIC/WACC3.35
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)-127.03%
EPS 3Y-74.31%
EPS 5Y-48.27%
EPS Q2Q%-600%
EPS Next Y843.5%
EPS Next 2Y142.18%
EPS Next 3Y-92.2%
EPS Next 5Y-60.56%
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y-5.3%
Revenue growth 5Y-3.88%
Sales Q2Q%-45.05%
Revenue Next Year-23.71%
Revenue Next 2Y-14.82%
Revenue Next 3Y-20.24%
Revenue Next 5Y-15.48%
EBIT growth 1Y-38.42%
EBIT growth 3Y-25.57%
EBIT growth 5Y-3.82%
EBIT Next Year13.33%
EBIT Next 3Y-27.49%
EBIT Next 5Y-15.42%
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%