Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products.
Ironwood Pharmaceuticals Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$13.41|
|52 Week High||US$8.78|
|52 Week Low||US$14.27|
|1 Month Change||8.58%|
|3 Month Change||4.36%|
|1 Year Change||35.87%|
|3 Year Change||-20.56%|
|5 Year Change||-1.03%|
|Change since IPO||15.11%|
Recent News & Updates
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.
|IRWD||US Biotechs||US Market|
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.
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
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
|IRWD fundamental statistics|
Is IRWD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|IRWD income statement (TTM)|
|Cost of Revenue||US$66.50m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.12|
|Net Profit Margin||123.20%|
How did IRWD perform over the long term?See historical performance and comparison
Is Ironwood Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
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).
How is Ironwood Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has Ironwood Pharmaceuticals performed over the past 5 years?
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.
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 ($361.1M).
Debt to Equity History and Analysis
Debt Level: IRWD's debt to equity ratio (86.4%) is considered high.
Reducing Debt: IRWD's debt to equity ratio has reduced from 461.4% to 86.4% over the past 5 years.
Debt Coverage: IRWD's debt is well covered by operating cash flow (51.4%).
Interest Coverage: IRWD's interest payments on its debt are well covered by EBIT (7.6x coverage).
What is Ironwood Pharmaceuticals's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate IRWD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate IRWD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if IRWD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if IRWD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of IRWD's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom McCourt (64 yo)
Mr. Thomas A. McCourt, also known as Tom, serves as Chief Executive Officer and Director of Ironwood Pharmaceuticals, Inc. since June 04, 2021. He served as President of Ironwood Pharmaceuticals, Inc. sinc...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($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.
Experienced Management: IRWD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Experienced Board: IRWD's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Ironwood Pharmaceuticals, Inc.'s employee growth, exchange listings and data sources
- 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
- Ironwood Pharmaceuticals, Inc.
- 100 Summer Street
- Suite 2300
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/18 22:51|
|End of Day Share Price||2021/10/18 00:00|
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.