NasdaqGS:IRTC

Stock Analysis Report

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Market Cap

US$1.9b

Last Updated

2021/06/20 14:36 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Flawless balance sheet with concerning outlook.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: IRTC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

1.6%

IRTC

0.9%

US Medical Equipment

-1.9%

US Market


1 Year Return

-49.2%

IRTC

33.7%

US Medical Equipment

38.2%

US Market

Return vs Industry: IRTC underperformed the US Medical Equipment industry which returned 34.1% over the past year.

Return vs Market: IRTC underperformed the US Market which returned 39.4% over the past year.


Shareholder returns

IRTCIndustryMarket
7 Day1.6%0.9%-1.9%
30 Day-12.3%2.3%1.1%
90 Day-54.5%7.8%4.3%
1 Year-49.2%-49.2%34.7%33.7%40.4%38.2%
3 Year-17.5%-17.5%65.0%61.2%57.5%47.8%
5 Yearn/a154.4%136.1%127.2%101.7%

Long-Term 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?

6.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IRTC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IRTC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IRTC is unprofitable, so we can't compare its PE Ratio to the US 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 (6x) compared to the US Medical Equipment industry average (4.7x).


Future Growth

How is iRhythm Technologies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRTC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IRTC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IRTC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IRTC's revenue (10.4% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: IRTC's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRTC is forecast to be unprofitable in 3 years.


Past Performance

How has iRhythm Technologies performed over the past 5 years?

-21.7%

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 21.7% 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 (11.1%).


Return on Equity

High ROE: IRTC has a negative Return on Equity (-20.2%), as it is currently unprofitable.


Financial Health

How is iRhythm Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: IRTC's short term assets ($336.1M) exceed its short term liabilities ($59.4M).

Long Term Liabilities: IRTC's short term assets ($336.1M) exceed its long term liabilities ($109.5M).


Debt to Equity History and Analysis

Debt Level: IRTC's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: IRTC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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: IRTC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 18.7% each year


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 recent payouts.

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

4.0yrs

Average management tenure


CEO

Doug Devine (50 yo)

no data

Tenure

US$3,657,644

Compensation

Mr. Douglas J. Devine, also known as Doug, has been the Chief Financial Officer and Secretary at iRhythm Technologies, Inc. since June 22, 2020 and also serves as its Interim Chief Executive Officer since ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.66M) is about average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Insufficient data to compare Doug's compensation with company performance.


Leadership Team

Experienced Management: IRTC's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: IRTC's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.4%.


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$1.902b
  • Shares outstanding: 29.30m
  • Website: https://www.irhythmtech.com

Number of Employees


Location

  • iRhythm Technologies, Inc.
  • 699 8th Street
  • Suite 600
  • San Francisco
  • California
  • 94103
  • United States

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 14:36
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.