(IRTC) iRhythm Technologies - Overview
Sector: Healthcare | Industry: Medical Devices | Exchange: NASDAQ (USA) | Market Cap: 3.743m USD | Total Return: -22.4% in 12m
Avg Turnover: 60.4M
Qual. Beats: 1
Rev. Trend: 99.7%
Qual. Beats: 6
Warnings
High Debt/EBITDA (53.9) with thin interest coverage (-1.6)
Interest Coverage Ratio -1.6 is critical
Altman Z'' -0.24 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
iRhythm Holdings, Inc. (IRTC) is a digital healthcare firm specializing in ambulatory cardiac monitoring solutions. The company designs and commercializes the Zio suite, which utilizes wearable patch sensors and proprietary software to record and analyze continuous electrocardiogram (ECG) data for periods of up to 14 days.
The business operates within the medical device sector, utilizing a service-based model where clinical data is processed through cloud-based algorithms to assist physicians in diagnosing arrhythmias. This remote monitoring approach reduces the need for traditional, bulkier Holter monitors and relies on high-volume data capture to improve diagnostic yield.
Further analysis of the company’s competitive positioning and valuation metrics can be found on ValueRay. The firm’s product portfolio includes the Zio XT, Zio AT, and Zio Monitor systems, which integrate wireless gateways and specialized software to facilitate long-term patient monitoring and clinical reporting.
- Medicare reimbursement rate adjustments impact Zio service profit margins and revenue
- FDA regulatory clearance timelines for next-generation Zio monitor hardware drive volatility
- Expansion into international markets and primary care channels accelerates long-term volume growth
- Competitive pressure from traditional cardiac monitoring providers threatens ambulatory market share
- Operational scaling and manufacturing efficiencies dictate path toward GAAP profitability and cash flow
| Net Income: -27.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 7.40 > 1.0 |
| NWC/Revenue: 69.66% < 20% (prev 84.82%; Δ -15.16% < -1%) |
| CFO/TA 0.06 > 3% & CFO 62.6m > Net Income -27.8m |
| Net Debt (258.6m) to EBITDA (4.80m): 53.87 < 3 |
| Current Ratio: 5.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (32.5m) vs 12m ago 2.90% < -2% |
| Gross Margin: 71.00% > 18% (prev 0.69%; Δ 7.03k% > 0.5%) |
| Asset Turnover: 81.54% > 50% (prev 66.79%; Δ 14.74% > 0%) |
| Interest Coverage Ratio: -1.64 > 6 (EBITDA TTM 4.80m / Interest Expense TTM 13.2m) |
| A: 0.55 (Total Current Assets 680.6m - Total Current Liabilities 131.8m) / Total Assets 1.01b |
| B: -0.81 (Retained Earnings -817.4m / Total Assets 1.01b) |
| C: -0.02 (EBIT TTM -21.6m / Avg Total Assets 966.2m) |
| D: -0.97 (Book Value of Equity -817.3m / Total Liabilities 845.2m) |
| Altman-Z'' = -0.24 = B |
| DSRI: 0.79 (Receivables 80.9m/80.6m, Revenue 787.9m/618.6m) |
| GMI: 0.98 (GM 71.00% / 69.39%) |
| AQI: 1.05 (AQ_t 0.13 / AQ_t-1 0.12) |
| SGI: 1.27 (Revenue 787.9m / 618.6m) |
| TATA: -0.09 (NI -27.8m - CFO 62.6m) / TA 1.01b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of June 02, 2026, the stock is trading at USD 109.17 with a total of 421,223 shares traded.
Over the past week, the price has changed by -6.34%,
over one month by -9.63%,
over three months by -15.02% and
over the past year by -22.38%.
iRhythm Technologies has received a consensus analysts rating of 4.62. Therefore, it is recommended to buy IRTC.
- StrongBuy: 9
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 180.9 | 65.7% |
P/E Forward = 769.2308
P/S = 4.7349
P/B = 22.7077
Revenue TTM = 787.9m USD
EBIT TTM = -21.6m USD
EBITDA TTM = 4.80m USD
Long Term Debt = 650.3m USD (from longTermDebt, last quarter)
Short Term Debt = 16.8m USD (from shortTermDebt, last quarter)
Debt = 808.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 79.0m
Net Debt = 258.6m USD (calculated: Debt 808.3m - CCE 549.6m)
Enterprise Value = 4.00b USD (3.74b + Debt 808.3m - CCE 549.6m)
Interest Coverage Ratio = -1.64 (Ebit TTM -21.6m / Interest Expense TTM 13.2m)
EV/FCF = 108.4x (Enterprise Value 4.00b / FCF TTM 36.9m)
FCF Yield = 0.92% (FCF TTM 36.9m / Enterprise Value 4.00b)
FCF Margin = 4.69% (FCF TTM 36.9m / Revenue TTM 787.9m)
Net Margin = -3.53% (Net Income TTM -27.8m / Revenue TTM 787.9m)
Gross Margin = 71.00% ((Revenue TTM 787.9m - Cost of Revenue TTM 228.5m) / Revenue TTM)
Gross Margin QoQ = 70.89% (prev 70.88%)
Tobins Q-Ratio = 3.98 (Enterprise Value 4.00b / Total Assets 1.01b)
Interest Expense / Debt = 1.63% (Interest Expense 13.2m / Debt 808.3m)
Taxrate = 21.0% (US default 21%)
NOPAT = -17.1m (EBIT -21.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 4.85 (Total Current Assets 680.6m / Total Current Liabilities 140.3m)
Debt / Equity = 5.01 (Debt 808.3m / totalStockholderEquity, last quarter 161.2m)
Debt / EBITDA = 53.87 (Net Debt 258.6m / EBITDA 4.80m)
Debt / FCF = 7.00 (Net Debt 258.6m / FCF TTM 36.9m)
Total Stockholder Equity = 134.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.88% (Net Income -27.8m / Total Assets 1.01b)
RoE = -2.92% (Net Income TTM -27.8m / Total Stockholder Equity 952.3m)
RoCE = -1.35% (EBIT -21.6m / Capital Employed (Equity 952.3m + L.T.Debt 650.3m))
RoIC = -1.99% (negative operating profit) (NOPAT -17.1m / Invested Capital 858.3m)
WACC = 8.50% (E(3.74b)/V(4.55b) * Re(10.06%) + D(808.3m)/V(4.55b) * Rd(1.63%) * (1-Tc(0.21)))
Discount Rate = 10.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 2.57%
[DCF] Terminal Value 74.90% ; FCFF base≈36.9m ; Y1≈37.1m ; Y5≈39.3m
[DCF] Fair Price = 10.25 (EV 595.5m - Net Debt 258.6m = Equity 336.9m / Shares 32.9m; r=8.50% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.87 | # QB: 1
Revenue Correlation: 99.66 | Revenue CAGR: 22.36% | SUE: 1.40 | # QB: 6
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=+100.57% | Revisions=N/A | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.09 | Chg30d=+8.11% | Revisions=N/A | Analysts=10
EPS current Year (2026-12-31): EPS=0.13 | Chg30d=+147.95% | Revisions=-20% | GrowthEPS=+112.4% | GrowthRev=+17.9%
EPS next Year (2027-12-31): EPS=1.05 | Chg30d=+25.71% | Revisions=+14% | GrowthEPS=+722.7% | GrowthRev=+15.7%
[Analyst] Revisions Ratio: -20%