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Ironwood Pharmaceuticals

DB:I76
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
I76
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Ironwood Pharmaceuticals, Inc., a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The last earnings update was 58 days ago. More info.


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  • Ironwood Pharmaceuticals has significant price volatility in the past 3 months.
I76 Share Price and Events
7 Day Returns
6.4%
DB:I76
-0.1%
DE Biotechs
1%
DE Market
1 Year Returns
-23.1%
DB:I76
-7.4%
DE Biotechs
-5.6%
DE Market
I76 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ironwood Pharmaceuticals (I76) 6.4% -11.5% -4.6% -23.1% 11.9% 30.4%
DE Biotechs -0.1% 6% -6.7% -7.4% 53.2% 11.6%
DE Market 1% 6.1% 8.4% -5.6% 10.9% 13.8%
1 Year Return vs Industry and Market
  • I76 underperformed the Biotechs industry which returned -7.4% over the past year.
  • I76 underperformed the Market in Germany which returned -5.6% over the past year.
Price Volatility
I76
Industry
5yr Volatility vs Market

Value

 Is Ironwood Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ironwood Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ironwood Pharmaceuticals.

DB:I76 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:I76
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.453 (1 + (1- 21%) (22.16%))
1.474
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.47
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.474 * 5.96%)
9.01%

Discounted Cash Flow Calculation for DB:I76 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ironwood Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:I76 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.01%)
2019 73.61 Analyst x3 67.52
2020 105.75 Analyst x2 88.99
2021 287.17 Analyst x2 221.67
2022 47.80 Analyst x1 33.85
2023 68.30 Analyst x1 44.37
2024 55.12 Est @ -19.29% 32.85
2025 47.72 Est @ -13.44% 26.08
2026 43.26 Est @ -9.34% 21.69
2027 40.46 Est @ -6.47% 18.61
2028 38.66 Est @ -4.46% 16.31
Present value of next 10 years cash flows $571.94
DB:I76 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $38.66 × (1 + 0.23%) ÷ (9.01% – 0.23%)
$441.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $441.11 ÷ (1 + 9.01%)10
$186.12
DB:I76 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $571.94 + $186.12
$758.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $758.06 / 155.63
$4.87
DB:I76 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:I76 represents 0.87772x of NasdaqGS:IRWD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87772x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 4.87 x 0.87772
€4.28
Value per share (EUR) From above. €4.28
Current discount Discount to share price of €10.48
= -1 x (€10.48 - €4.28) / €4.28
-145.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ironwood Pharmaceuticals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ironwood Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ironwood Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:I76 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.85
NasdaqGS:IRWD Share Price ** NasdaqGS (2019-04-24) in USD $11.94
Europe Biotechs Industry PE Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 22.73x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ironwood Pharmaceuticals.

DB:I76 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IRWD Share Price ÷ EPS (both in USD)

= 11.94 ÷ -1.85

-6.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ironwood Pharmaceuticals is loss making, we can't compare its value to the Europe Biotechs industry average.
  • Ironwood Pharmaceuticals is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Ironwood Pharmaceuticals's expected growth come at a high price?
Raw Data
DB:I76 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
61.8%per year
Europe Biotechs Industry PEG Ratio Median Figure of 22 Publicly-Listed Biotechs Companies 1.3x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ironwood Pharmaceuticals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ironwood Pharmaceuticals's assets?
Raw Data
DB:I76 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-1.27
NasdaqGS:IRWD Share Price * NasdaqGS (2019-04-24) in USD $11.94
Germany Biotechs Industry PB Ratio Median Figure of 15 Publicly-Listed Biotechs Companies 3.72x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:I76 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IRWD Share Price ÷ Book Value per Share (both in USD)

= 11.94 ÷ -1.27

-9.39x

* Primary Listing of Ironwood Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ironwood Pharmaceuticals has negative assets, we can't compare the value of its assets to the DE Biotechs industry average.
X
Value checks
We assess Ironwood Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Ironwood Pharmaceuticals has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ironwood Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ironwood Pharmaceuticals expected to grow at an attractive rate?
  • Ironwood Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Ironwood Pharmaceuticals's earnings growth is expected to exceed the Germany market average.
  • Ironwood Pharmaceuticals's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:I76 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:I76 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 61.8%
DB:I76 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 11.4%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 47.6%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 26.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:I76 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:I76 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 623 82 294 5
2022-12-31 559 62 262 5
2021-12-31 475 185 187 8
2020-12-31 431 99 74 11
2019-12-31 388 69 10 11
DB:I76 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 347 -71 -282
2018-09-30 310 -88 -255
2018-06-30 331 -93 -113
2018-03-31 315 -103 -108
2017-12-31 298 -101 -117
2017-09-30 292 -110 -143
2017-06-30 271 -80 -143
2017-03-31 260 -53 -121
2016-12-31 274 -26 -82
2016-09-30 240 -26 -82
2016-06-30 213 -52 -96
2016-03-31 187 -71 -123

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ironwood Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Ironwood Pharmaceuticals's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:I76 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:I76 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.73 2.35 1.11 2.00
2022-12-31 1.24 1.61 0.87 2.00
2021-12-31 0.76 0.96 0.50 4.00
2020-12-31 0.32 0.39 0.20 4.00
2019-12-31 -0.02 0.18 -0.22 8.00
DB:I76 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.85
2018-09-30 -1.68
2018-06-30 -0.75
2018-03-31 -0.72
2017-12-31 -0.78
2017-09-30 -0.96
2017-06-30 -0.98
2017-03-31 -0.83
2016-12-31 -0.56
2016-09-30 -0.57
2016-06-30 -0.67
2016-03-31 -0.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ironwood Pharmaceuticals is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Ironwood Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ironwood Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ironwood Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ironwood Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ironwood Pharmaceuticals does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Ironwood Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ironwood Pharmaceuticals's 1-year growth to the Europe Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Ironwood Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:I76 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 346.64 -282.37 241.29
2018-09-30 310.16 -254.79 241.07
2018-06-30 331.29 -112.74 247.59
2018-03-31 315.27 -107.58 237.02
2017-12-31 298.28 -116.94 233.12
2017-09-30 291.53 -142.53 228.78
2017-06-30 270.81 -143.43 211.99
2017-03-31 260.08 -120.91 191.12
2016-12-31 273.96 -81.71 173.28
2016-09-30 239.81 -82.24 149.58
2016-06-30 213.27 -96.43 135.03
2016-03-31 186.67 -122.74 131.07
2015-12-31 149.56 -142.67 125.25
2015-09-30 134.32 -166.28 124.32
2015-06-30 111.67 -160.88 122.41
2015-03-31 90.76 -173.21 118.76
2014-12-31 76.44 -189.62 117.13
2014-09-30 43.39 -203.96 115.28
2014-06-30 31.41 -223.74 117.01
2014-03-31 34.23 -228.54 118.58
2013-12-31 22.88 -272.81 123.23
2013-09-30 44.83 -264.68 127.78
2013-06-30 136.31 -155.27 120.36
2013-03-31 141.25 -130.93 109.59
2012-12-31 150.25 -72.62 92.54
2012-09-30 155.42 -35.74 74.23
2012-06-30 71.22 -104.01 62.31

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ironwood Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Ironwood Pharmaceuticals has efficiently used its assets last year compared to the Europe Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Ironwood Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ironwood Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ironwood Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ironwood Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ironwood Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ironwood Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ironwood Pharmaceuticals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ironwood Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Ironwood Pharmaceuticals has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago.

DB:I76 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -196.37 413.92 173.17
2018-09-30 -197.30 409.31 161.40
2018-06-30 -43.95 407.15 181.25
2018-03-31 -18.05 403.69 194.45
2017-12-31 9.85 400.17 221.42
2017-09-30 -17.58 396.34 225.42
2017-06-30 4.87 392.96 272.90
2017-03-31 29.64 389.41 295.34
2016-12-31 66.72 372.80 305.22
2016-09-30 59.46 374.73 319.87
2016-06-30 81.38 377.12 325.37
2016-03-31 90.94 379.52 434.45
2015-12-31 95.13 381.49 439.39
2015-09-30 100.46 382.70 462.31
2015-06-30 140.28 382.82 493.32
2015-03-31 68.16 174.81 215.87
2014-12-31 88.55 173.13 248.33
2014-09-30 108.15 178.74 264.96
2014-06-30 141.83 178.98 301.98
2014-03-31 188.94 178.69 332.27
2013-12-31 38.23 178.95 197.60
2013-09-30 84.21 179.19 242.39
2013-06-30 139.42 175.05 300.54
2013-03-31 58.52 175.10 242.03
2012-12-31 144.05 0.57 168.23
2012-09-30 182.11 0.64 193.32
2012-06-30 128.78 0.64 157.65
  • Ironwood Pharmaceuticals has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Ironwood Pharmaceuticals's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Ironwood Pharmaceuticals has sufficient cash runway for 2.2 years based on current free cash flow.
  • Ironwood Pharmaceuticals has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 14.5% each year.
X
Financial health checks
We assess Ironwood Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ironwood Pharmaceuticals has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ironwood Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ironwood Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought €2,000 of Ironwood Pharmaceuticals shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ironwood Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ironwood Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:I76 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 0.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:I76 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ironwood Pharmaceuticals has not reported any payouts.
  • Unable to verify if Ironwood Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ironwood Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ironwood Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Ironwood Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Ironwood Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ironwood Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ironwood Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ironwood Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Hecht
COMPENSATION $5,995,456
AGE 54
TENURE AS CEO 21.3 years
CEO Bio

Dr. Peter M. Hecht, Ph.D., has been the Chief Executive Officer of Ironwood Pharmaceuticals, Inc. since 1998. Dr. Hecht is Chief Executive Officer and Director of Cyclerion Therapeutics, Inc. since April 1, 2019. Dr. Hecht Co-Founded Ironwood Pharmaceuticals, Inc. (Formerly Microbia, Inc.) in 1998. He serves on the Director's Council for the MIT Center for Cancer Research and the advisory board of Infante Sano. He serves as Director at Microbia Precision Engineering, Inc. He has been a Director of Ironwood Pharmaceuticals, Inc. since 1998. He is an inventor of four of the patents licensed to Microbia. He was a Fellow in the laboratory of Dr. Gerald Fink at the Whitehead Institute for Biomedical Research. He has been a Director of Ironwood Pharmaceuticals, Inc. since 1998. He received his Ph.D. in Molecular Biology from the University of California at Berkeley. He was awarded a B.S. in Mathematics and a M.S. in Biology from Stanford University.

CEO Compensation
  • Peter's compensation has increased whilst company is loss making.
  • Peter's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ironwood Pharmaceuticals management team in years:

2
Average Tenure
57.5
Average Age
  • The tenure for the Ironwood Pharmaceuticals management team is about average.
Management Team

Peter Hecht

TITLE
Co-Founder
COMPENSATION
$6M
AGE
54
TENURE
21.3 yrs

Thomas McCourt

TITLE
President
COMPENSATION
$2M
AGE
61
TENURE
0.3 yrs

Gina Consylman

TITLE
CFO, Senior VP & Treasurer
COMPENSATION
$968K
AGE
45

Halley Gilbert

TITLE
Senior VP
COMPENSATION
$2M
AGE
48

Chris Wright

TITLE
Chief Development Officer & Senior VP of Global Development
COMPENSATION
$4K
TENURE
2 yrs

Mark Currie

TITLE
Director
COMPENSATION
$3M
AGE
63

Brian Cali

TITLE
Co-Founder and Senior VP of R&D Strategy & External Innovation
TENURE
2 yrs

G. Milne

TITLE
Co-Founder and VP of sGC R&D
TENURE
21.3 yrs

Bill Huyett

TITLE
Chief Operating Officer
AGE
62
TENURE
1.4 yrs

Meredith Kaya

TITLE
Vice President of Investor Relations & Corporate Communications
Board of Directors Tenure

Average tenure and age of the Ironwood Pharmaceuticals board of directors in years:

5
Average Tenure
62
Average Age
  • The tenure for the Ironwood Pharmaceuticals board of directors is about average.
Board of Directors

Terry McGuire

TITLE
Chairman
COMPENSATION
$287K
AGE
62
TENURE
4.3 yrs

Peter Hecht

TITLE
Co-Founder
COMPENSATION
$6M
AGE
54
TENURE
21.3 yrs

Mark Currie

TITLE
Director
COMPENSATION
$3M
AGE
63

Marsha Fanucci

TITLE
Director
COMPENSATION
$287K
AGE
64
TENURE
9.5 yrs

Ed Owens

TITLE
Director
COMPENSATION
$287K
AGE
71
TENURE
6.1 yrs

Julie McHugh

TITLE
Director
COMPENSATION
$283K
AGE
54
TENURE
5.2 yrs

Perry Halushka

TITLE
Member of Pharmaceuticals Advisory Committee

Doug Williams

TITLE
Director
COMPENSATION
$277K
AGE
60
TENURE
4.8 yrs

Larry Olanoff

TITLE
Director
COMPENSATION
$289K
AGE
66
TENURE
4 yrs

Andrew Dreyfus

TITLE
Director
COMPENSATION
$277K
AGE
59
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • Ironwood Pharmaceuticals insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
08. Mar 19 Sell Mark Currie Individual 07. Mar 19 08. Mar 19 -275,000 €11.82 €-3,244,371
22. Feb 19 Sell Gina Consylman Individual 20. Feb 19 21. Feb 19 -5,677 €12.63 €-71,677
X
Management checks
We assess Ironwood Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ironwood Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ironwood Pharmaceuticals, Inc., a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The company markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and CONSTELLA name in the European Union; MD-7246, an oral, intestinal, non-opioid, pain-relieving agent for patients suffering from IBS with diarrhea; and IW 3718, a gastric retentive formulation of a bile acid sequestrant, which is in Phase III clinical trials for the treatment of GERD. The company pipeline products also include olinciguat, an oral and once-daily vascular sGC stimulator, which is in Phase II trials for the treatment of patients suffering from sickle cell diseases; praliciguat, an oral, once daily systemic sGC stimulator that is in Phase II trials for the treatment of heart failure and for diabetic nephropathy; IW 6463, a central nervous system penetrant oral sGC stimulator in clinical development for serious neurodegenerative diseases; and two organ targeted programs for the treatment of liver and lung. Ironwood Pharmaceuticals, Inc. has collaboration agreements with Allergan plc and AstraZeneca AB to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other gastrointestinal (GI) conditions in North America, China, Hong Kong, Macau, and Japan, as well as a license agreement with Astellas Pharma Inc. to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other GI conditions in Japan. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Details
Name: Ironwood Pharmaceuticals, Inc.
I76
Exchange: DB
Founded: 1998
$1,668,702,098
155,633,473
Website: http://www.ironwoodpharma.com
Address: Ironwood Pharmaceuticals, Inc.
301 Binney Street,
Cambridge,
Massachusetts, 02142,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IRWD Class A Common Stock Nasdaq Global Select US USD 03. Feb 2010
DB I76 Class A Common Stock Deutsche Boerse AG DE EUR 03. Feb 2010
Number of employees
Current staff
Staff numbers
515
Ironwood Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 21:49
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.