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IRWD

Ironwood PharmaceuticalsNasdaqGS:IRWD Stock Report

Market Cap

US$2.2b

7D

-2.6%

1Y

35.9%

Updated

18 Oct, 2021

Data

Company Financials +
IRWD fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

IRWD Overview

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products.

Ironwood Pharmaceuticals Competitors

Acorda Therapeutics

NasdaqGS:ACOR

US$52.4m

AstraZeneca

LSE:AZN

UK£134.8b

Takeda Pharmaceutical

TSE:4502

JP¥5.0t

Nektar Therapeutics

NasdaqGS:NKTR

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Ironwood Pharmaceuticals
Historical stock prices
Current Share PriceUS$13.41
52 Week HighUS$8.78
52 Week LowUS$14.27
Beta1.31
1 Month Change8.58%
3 Month Change4.36%
1 Year Change35.87%
3 Year Change-20.56%
5 Year Change-1.03%
Change since IPO15.11%

Recent News & Updates

Sep 27

Ironwood Pharmaceuticals: Undervalued Company With Steady Growth

P/E (5.61), EV/EBITDA (9.28), and Price/Sales (5.37) are 30-80% lower than the sector medians. Balance sheet of IRWD has been steadily improving over the past several years. Revenue has grown since 2016 (CAGR of 21.10%). I don’t believe this low valuation is justified, and Ironwood Pharmaceuticals presents upside with little risk.

Shareholder Returns

IRWDUS BiotechsUS Market
7D-2.6%1.0%2.0%
1Y35.9%12.5%27.6%

Return vs Industry: IRWD exceeded the US Biotechs industry which returned 12.5% over the past year.

Return vs Market: IRWD exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is IRWD's price volatile compared to industry and market?
IRWD volatility
IRWD Beta1.31
Industry Beta0.98
Market Beta1

Stable Share Price: IRWD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IRWD's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998232Tom McCourthttps://www.ironwoodpharma.com

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It 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 Mexico, as well as under the CONSTELLA name in the Canada and European Union. The company is also developing IW-3300, a GC-C agonist, which is in pre-clinical development for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis.

Ironwood Pharmaceuticals Fundamentals Summary

How do Ironwood Pharmaceuticals's earnings and revenue compare to its market cap?
IRWD fundamental statistics
Market CapUS$2.18b
Earnings (TTM)US$508.86m
Revenue (TTM)US$413.02m

4.3x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRWD income statement (TTM)
RevenueUS$413.02m
Cost of RevenueUS$66.50m
Gross ProfitUS$346.52m
Expenses-US$162.33m
EarningsUS$508.86m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.12
Gross Margin83.90%
Net Profit Margin123.20%
Debt/Equity Ratio86.4%

How did IRWD perform over the long term?

See historical performance and comparison

Valuation

Is Ironwood Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRWD ($13.41) is trading below our estimate of fair value ($25.26)

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


Price To Earnings Ratio

PE vs Industry: IRWD is good value based on its PE Ratio (4.3x) compared to the US Biotechs industry average (23.6x).

PE vs Market: IRWD is good value based on its PE Ratio (4.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: IRWD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IRWD is overvalued based on its PB Ratio (4.3x) compared to the US Biotechs industry average (2.9x).


Future Growth

How is Ironwood Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRWD's earnings are forecast to decline over the next 3 years (-18.5% per year).

Earnings vs Market: IRWD's earnings are forecast to decline over the next 3 years (-18.5% per year).

High Growth Earnings: IRWD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IRWD's revenue (3.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: IRWD's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRWD's Return on Equity is forecast to be very high in 3 years time (50.7%).


Past Performance

How has Ironwood Pharmaceuticals performed over the past 5 years?

57.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRWD has a high level of non-cash earnings.

Growing Profit Margin: IRWD's current net profit margins are higher than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: IRWD has become profitable over the past 5 years, growing earnings by 57.6% per year.

Accelerating Growth: IRWD's earnings growth over the past year (424.3%) exceeds its 5-year average (57.6% per year).

Earnings vs Industry: IRWD earnings growth over the past year (424.3%) exceeded the Biotechs industry 4.9%.


Return on Equity

High ROE: IRWD's Return on Equity (99.4%) is considered outstanding.


Financial Health

How is Ironwood Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: IRWD's short term assets ($620.3M) exceed its short term liabilities ($134.4M).

Long Term Liabilities: IRWD's short term assets ($620.3M) exceed its long term liabilities ($361.1M).


Debt to Equity History and Analysis

Debt Level: IRWD's debt to equity ratio (86.4%) is considered high.

Reducing Debt: IRWD's debt to equity ratio has reduced from 461.4% to 86.4% over the past 5 years.

Debt Coverage: IRWD's debt is well covered by operating cash flow (51.4%).

Interest Coverage: IRWD's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IRWD'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 IRWD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IRWD'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 IRWD'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?

0.7yrs

Average management tenure


CEO

Tom McCourt (64 yo)

0.58

Tenure

US$3,409,896

Compensation

Mr. Thomas A. McCourt, also known as Tom, serves as Chief Executive Officer and Director of Ironwood Pharmaceuticals, Inc. since June 04, 2021. He served as President of Ironwood Pharmaceuticals, Inc. sinc...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.41M) is about average for companies of similar size in the US market ($USD3.61M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IRWD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: IRWD's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ironwood Pharmaceuticals, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ironwood Pharmaceuticals, Inc.
  • Ticker: IRWD
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.184b
  • Shares outstanding: 162.90m
  • Website: https://www.ironwoodpharma.com

Number of Employees


Location

  • Ironwood Pharmaceuticals, Inc.
  • 100 Summer Street
  • Suite 2300
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 22:51
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
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.