Ironwood Pharmaceuticals, Inc.
Ironwood Pharmaceuticals, Inc. Fundamental Analysis
Ironwood Pharmaceuticals, Inc. (IRWD) shows weak financial fundamentals with a PE ratio of 26.34, profit margin of 8.11%, and ROE of -8.22%. The company generates $0.3B in annual revenue with weak year-over-year growth of -15.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRWD's fundamental strength across five key dimensions:
Efficiency Score
WeakIRWD struggles to generate sufficient returns from assets.
Valuation Score
ModerateIRWD shows balanced valuation metrics.
Growth Score
ModerateIRWD shows steady but slowing expansion.
Financial Health Score
ExcellentIRWD maintains a strong and stable balance sheet.
Profitability Score
WeakIRWD struggles to sustain strong margins.
Key Financial Metrics
Is IRWD Expensive or Cheap?
P/E Ratio
IRWD trades at 26.34 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IRWD's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Ironwood Pharmaceuticals, Inc. at -2.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.07 times EBITDA. This is generally considered low.
How Well Does IRWD Make Money?
Net Profit Margin
For every $100 in sales, Ironwood Pharmaceuticals, Inc. keeps $8.11 as profit after all expenses.
Operating Margin
Core operations generate 33.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.22 in profit for every $100 of shareholder equity.
ROA
Ironwood Pharmaceuticals, Inc. generates $6.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ironwood Pharmaceuticals, Inc. generates strong operating cash flow of $127.70M, reflecting robust business health.
Free Cash Flow
Ironwood Pharmaceuticals, Inc. generates strong free cash flow of $127.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.78 in free cash annually.
FCF Yield
IRWD converts 19.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.64
vs 25 benchmark
How IRWD Stacks Against Its Sector Peers
| Metric | IRWD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.34 | 28.81 | Neutral |
| ROE | -8.22% | 643.00% | Weak |
| Net Margin | 8.11% | -44312.00% (disorted) | Weak |
| Debt/Equity | -2.28 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 1.13 | 4.50 | Neutral |
| ROA | 6.05% | -17799.00% (disorted) | Weak |
IRWD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ironwood Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
Declining