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 Analysis

Excellent balance sheet with high growth potential.


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

Stable Share Price: IRTC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

IRTC

0.08%

US Medical Equipment

-2.0%

US Market


1 Year Return

0.9%

IRTC

-7.1%

US Medical Equipment

-15.1%

US Market

Return vs Industry: IRTC exceeded the US Medical Equipment industry which returned -8.2% over the past year.

Return vs Market: IRTC exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

IRTCIndustryMarket
7 Day-11.8%0.08%-2.0%
30 Day-28.9%-13.7%-19.7%
90 Day5.7%-18.1%-23.2%
1 Year0.9%0.9%-6.3%-7.1%-13.4%-15.1%
3 Year97.9%97.9%42.4%38.5%10.9%3.7%
5 Yearn/a71.1%53.4%28.4%14.4%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRTC ($74.89) is trading below our estimate of fair value ($476.66)

Significantly Below Fair Value: IRTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRTC is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: IRTC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IRTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IRTC is overvalued based on its PB Ratio (14.8x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

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

53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRTC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: IRTC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IRTC's is expected to become profitable in the next 3 years.

Revenue vs Market: IRTC's revenue (23.3% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: IRTC's revenue (23.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRTC's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has iRhythm Technologies performed over the past 5 years?

-25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRTC is currently unprofitable.

Growing Profit Margin: IRTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRTC is unprofitable, and losses have increased over the past 5 years at a rate of -25.2% per year.

Accelerating Growth: Unable to compare IRTC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IRTC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1%).


Return on Equity

High ROE: IRTC has a negative Return on Equity (-40.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is iRhythm Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: IRTC's short term assets ($172.8M) exceed its short term liabilities ($52.1M).

Long Term Liabilities: IRTC's short term assets ($172.8M) exceed its long term liabilities ($118.7M).


Debt to Equity History and Analysis

Debt Level: IRTC's debt to equity ratio (25.8%) is considered satisfactory.

Reducing Debt: IRTC's debt to equity ratio has reduced from 86.2% to 25.8% over the past 5 years.


Balance Sheet

Inventory Level: IRTC has a high level of physical assets or inventory.

Debt Coverage by Assets: IRTC's debt is covered by short term assets (assets are 4.9x 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.

Stable Cash Runway: IRTC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if IRTC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IRTC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IRTC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IRTC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IRTC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IRTC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Kevin King (63yo)

7.75s

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

Compensation vs Market: Kevin's total compensation ($USD5.14M) is about average for companies of similar size in the US market ($USD4.70M).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin King
President7.75yrsUS$5.14m0.66% $12.8m
Matthew Garrett
Chief Financial Officer7.25yrsUS$1.85m0.030% $579.4k
David Vort
Executive Vice President of Sales6.25yrsUS$1.70m0.0013% $25.9k
Mark Day
Executive Vice President of Research & Development8.25yrsUS$1.29m0.16% $3.1m
Marga Ortigas-Wedekind
Executive Vice President of Marketing4.75yrsno datano data
Kaja Odegard
Vice President of Human Resources5.08yrsno datano data
Judith Lenane
Chief Clinical Officer & Executive VP of Operations1.75yrsno datano data
Allan Wilsker
Executive Vice President of Information Technology & Customer Serviceno datano datano data
Mark Topash
Executive Vice President of Payer Relations and Market Access2.83yrsno datano data

5.7yrs

Average Tenure

55yo

Average Age

Experienced Management: IRTC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin King
President7.75yrsUS$5.14m0.66% $12.8m
Raymond Scott
Independent Director6.33yrsUS$198.50kno data
Ralph Snyderman
Independent Director2.75yrsUS$132.92k0.0078% $151.0k
Michael Mirro
Member of Scientific Advisory Boardno datano datano data
Bruce Bodaken
Independent Director2.75yrsUS$139.92k0.0024% $47.0k
Abhijit Talwalkar
Independent Chairman3.92yrsUS$198.49k0.0053% $103.4k
R. Mead
Member of Scientific Advisory Boardno datano datano data
James Quinn
Member of Scientific Advisory Boardno datano datano data
Cathleen Noel Merz
Independent Director2yrsUS$235.37kno data
Mark Rubash
Independent Director4.08yrsUS$176.10k0.0051% $98.2k

3.9yrs

Average Tenure

65yo

Average Age

Experienced Board: IRTC's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IRTC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

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$1.933b
  • Shares outstanding: 26.80m
  • 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 service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. Its Zio XT monitor, a single-use, wire-free, and wearable patch-based biosensor, records patient’s heartbeats and ECG data. The company has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was founded in 2006 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 08:05
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.