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IRONWOOD PHARMACEUTICALS INC (IRWD) Stock Fundamental Analysis

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

0.7004  +0 (+0.06%)

Fundamental Rating

4

Overall IRWD gets a fundamental rating of 4 out of 10. We evaluated IRWD against 557 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 it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

IRWD had negative 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.
In the past 5 years IRWD always reported a positive cash flow from operatings.
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 has a Return On Assets of -9.88%. This is amongst the best in the industry. IRWD outperforms 84.20% of its industry peers.
IRWD's Return On Invested Capital of 20.86% is amongst the best of the industry. IRWD outperforms 97.67% 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 14.78%.
The last Return On Invested Capital (20.86%) for IRWD is well below the 3 year average (36.95%), which needs to be investigated, but indicates that IRWD had better years and this may not be a problem.
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

In the last couple of years the Profit Margin of IRWD has declined.
Looking at the Operating Margin, with a value of 23.20%, IRWD belongs to the top of the industry, outperforming 96.23% 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.
The number of shares outstanding for IRWD has been increased compared to 1 year ago.
IRWD has more shares outstanding than it did 5 years ago.
IRWD has a worse debt/assets ratio than last year.
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 -5.19. 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 -5.19, IRWD is doing worse than 61.22% of the companies in the same industry.
IRWD has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as IRWD would need 7.45 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 7.45, IRWD belongs to the best of the industry, outperforming 92.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.45
Altman-Z -5.19
ROIC/WACC3.59
WACC5.81%
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.
IRWD has a Current ratio of 3.34. This is in the lower half of the industry: IRWD underperforms 61.94% of its industry peers.
A Quick Ratio of 3.34 indicates that IRWD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.34, IRWD is doing worse than 60.50% of the companies in the same industry.
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.
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 -23.18% in the last year.
IRWD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.88% yearly.
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

The Earnings Per Share is expected to decrease by -60.56% on average over the next years. This is quite bad
The Revenue is expected to decrease by -15.48% on average over the next years. This is quite bad
EPS Next Y869%
EPS Next 2Y271.08%
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

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.
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

IRWD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 2.54, the valuation of IRWD can be described as very cheap.
98.74% of the companies in the same industry are more expensive than IRWD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IRWD to the average of the S&P500 Index (22.19), we can say IRWD is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 2.54
IRWD Price Earnings VS Forward Price EarningsIRWD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 98.03% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRWD indicates a rather cheap valuation: IRWD is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1.45
EV/EBITDA 7.78
IRWD Per share dataIRWD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 -2

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.
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 2Y271.08%
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 (6/20/2025, 12:51:28 PM)

0.7004

+0 (+0.06%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners97.48%
Inst Owner Change-4.85%
Ins Owners2.59%
Ins Owner Change11.95%
Market Cap113.34M
Analysts50
Price Target0.97 (38.49%)
Short Float %5.22%
Short Ratio2.29
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)-81.49%
PT rev (3m)-89.04%
EPS NQ rev (1m)9.08%
EPS NQ rev (3m)9.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.89%
Revenue NQ rev (1m)-2.01%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.71%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 2.54
P/S 0.36
P/FCF 1.45
P/OCF 1.44
P/B N/A
P/tB N/A
EV/EBITDA 7.78
EPS(TTM)-0.1
EYN/A
EPS(NY)0.28
Fwd EY39.32%
FCF(TTM)0.48
FCFY69.18%
OCF(TTM)0.49
OCFY69.28%
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 -5.19
F-Score6
WACC5.81%
ROIC/WACC3.59
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 Y869%
EPS Next 2Y271.08%
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%