NasdaqGS:IRTC

Stock Analysis Report

Executive Summary

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has iRhythm Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

NasdaqGS:IRTC

-1.2%

US Medical Equipment

1.2%

US Market


1 Year Return

-18.9%

NasdaqGS:IRTC

8.7%

US Medical Equipment

1.7%

US Market

IRTC underperformed the Medical Equipment industry which returned 8.7% over the past year.

IRTC underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

IRTCIndustryMarket
7 Day3.6%-1.2%1.2%
30 Day7.5%1.4%4.9%
90 Day1.3%4.8%3.7%
1 Year-18.9%-18.9%9.6%8.7%3.9%1.7%
3 Yearn/a70.8%65.5%47.2%37.7%
5 Yearn/a130.4%104.1%60.0%42.4%

Price Volatility Vs. Market

How volatile is iRhythm Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

iRhythm Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).

iRhythm Technologies's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

iRhythm Technologies is loss making, we can't compare its value to the US Medical Equipment industry average.

iRhythm Technologies is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for iRhythm Technologies, we can't assess if its growth is good value.


Price Based on Value of Assets

iRhythm Technologies is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is iRhythm Technologies expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

77.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

iRhythm Technologies's revenue is expected to grow significantly at over 20% yearly.

iRhythm Technologies's earnings are expected to grow significantly at over 20% yearly.

iRhythm Technologies's revenue growth is expected to exceed the United States of America market average.

iRhythm Technologies's earnings growth is expected to exceed the United States of America market average.

iRhythm Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if iRhythm Technologies will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has iRhythm Technologies performed over the past 5 years?

-25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

iRhythm Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare iRhythm Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare iRhythm Technologies's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if iRhythm Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if iRhythm Technologies has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if iRhythm Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is iRhythm Technologies's financial position?


Financial Position Analysis

iRhythm Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

iRhythm Technologies's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

iRhythm Technologies's level of debt (71.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (102% vs 71.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.7x debt.


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.

iRhythm Technologies has sufficient cash runway for 1.8 years based on current free cash flow.

Unable to confirm if iRhythm Technologies has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is iRhythm Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate iRhythm Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate iRhythm Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as iRhythm Technologies has not reported any payouts.

Unable to verify if iRhythm Technologies's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as iRhythm Technologies has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Kevin King (63yo)

7.2yrs

Tenure

US$5,139,072

Compensation

Mr. Kevin M. King has been Chief Executive Officer and President at iRhythm Technologies, Inc. since July 30, 2012. Mr. King served as the Chief Executive Officer of Affymetrix Inc., from January 1, 2009 t ...


CEO Compensation Analysis

Kevin's remuneration is about average for companies of similar size in United States of America.

Kevin's compensation has increased whilst company is loss making.


Management Age and Tenure

4.5yrs

Average Tenure

53yo

Average Age

The tenure for the iRhythm Technologies management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

65yo

Average Age

The tenure for the iRhythm Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$92,36817 Jun 19
Cathleen Noel Merz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,209
Max PriceUS$76.40
SellUS$49,55810 Dec 18
David Vort
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares676
Max PriceUS$73.31

Ownership Breakdown


Management Team

  • Kevin King (63yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$5.14m
  • Marga Ortigas-Wedekind (57yo)

    Executive Vice President of Marketing

    • Tenure: 4.2yrs
  • Judy Lenane (60yo)

    Chief Clinical Officer & Executive VP of Operations

    • Tenure: 1.2yrs
  • Mark Day (48yo)

    Executive Vice President of Research & Development

    • Tenure: 7.7yrs
    • Compensation: US$1.29m
  • Karim Karti (50yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$5.06m
  • Matt Garrett (51yo)

    Chief Financial Officer

    • Tenure: 6.7yrs
    • Compensation: US$1.85m
  • Allan Wilsker (60yo)

    Executive Vice President of Information Technology & Customer Service

    • Tenure: 0yrs
  • Dave Vort (53yo)

    Executive Vice President of Sales

    • Tenure: 5.7yrs
    • Compensation: US$1.70m
  • Kaja Odegard (37yo)

    Vice President of Human Resources

    • Tenure: 4.5yrs
  • Mark Topash

    Executive Vice President of Payer Relations and Market Access

    • Tenure: 2.3yrs

Board Members

  • Ray Scott (72yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$198.50k
  • Ralph Snyderman (79yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$132.92k
  • Michael Mirro (70yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Bruce Bodaken (67yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$139.92k
  • Abhi Talwalkar (55yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$198.49k
  • Kevin King (63yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$5.14m
  • R. Mead

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • James Quinn

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Cathleen Noel Merz (63yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$235.37k
  • Mark Rubash (61yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$176.10k

Company Information

iRhythm Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: iRhythm Technologies, Inc.
  • Ticker: IRTC
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$2.076b
  • Shares outstanding: 26.41m
  • Website: https://www.iRhythmTech.com

Number of Employees


Location

  • iRhythm Technologies, Inc.
  • 650 Townsend Street
  • Suite 500
  • San Francisco
  • California
  • 94103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2016
I25DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company offers Zio s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:38
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.