IRWD Stock Analysis: Ironwood Pharmaceuticals | NASDAQ
Drug Manufacturers - Specialty & Generic | NASDAQ, USA | Market Cap: 736m USD | 12M Return: 470.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 10.5M
Qual. Beats: 0
Rev. Trend: -84.7%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Ironwood Pharmaceuticals (IRWD) is a Boston-based biotechnology company founded in 1998 that develops and commercializes therapies for gastrointestinal (GI) and rare diseases. Its lead commercial product is linaclotide, marketed as LINZESS in the United States and CONSTELLA internationally, a guanylate cyclase type-C (GC-C) agonist approved for adults with irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation, and for pediatric patients with functional constipation. The company is advancing two pipeline candidates: IW-3300, a GC-C agonist targeting visceral pain conditions such as interstitial cystitis/bladder pain syndrome and endometriosis, and Apraglutide, a GLP-2 analog in development for short bowel syndrome and acute graft-versus-host disease.
Ironwood operates a partnership-driven business model, relying on strategic collaborations with larger pharmaceutical companies-including AbbVie, AstraZeneca, and Astellas-to develop and commercialize linaclotide across various geographies. As a small-cap healthcare stock listed on NASDAQ since its 2010 IPO, the company sits within the biotechnology sub-industry, where commercial revenue is typically concentrated in a small number of approved products that fund ongoing R&D across the pipeline.
- LINZESS collaboration revenue growth with AbbVie partnership
- Apraglutide Phase 3 data and FDA approval for short bowel syndrome
- Linaclotide patent cliff raises generic competition and revenue erosion risk
| Net Income: 102.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.26 > 0.02 and ΔFCF/TA 1.86 > 1.0 |
| NWC/Revenue: 26.55% < 20% (prev 35.41%; Δ -8.86% < -1%) |
| CFO/TA 0.26 > 3% & CFO 112.2m > Net Income 102.2m |
| Net Debt (389.4m) to EBITDA (207.1m): 1.88 < 3 |
| Current Ratio: 1.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (166.7m) vs 12m ago 3.55% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 94.91% > 50% (prev 97.09%; Δ -2.17% > 0%) |
| Interest Coverage Ratio: 6.07 > 6 (EBIT TTM 205.3m / Interest Expense TTM 33.8m) |
| A: 0.22 (Total Current Assets 332.3m - Total Current Liabilities 236.3m) / Total Assets 434.6m |
| B: -3.76 (Retained Earnings -1.63b / Total Assets 434.6m) |
| C: 0.54 (EBIT TTM 205.3m / Avg Total Assets 380.9m) |
| D: -0.33 (Book Value of Equity -217.1m / Total Liabilities 651.7m) |
| Altman-Z'' = -7.53 = D |
| DSRI: 2.34 (Receivables 105.8m/39.8m, Revenue 361.5m/317.7m) |
| GMI: 0.57 (GM 57.11% / 99.49%) |
| AQI: 0.45 (AQ_t 0.21 / AQ_t-1 0.46) |
| SGI: 1.14 (Revenue 361.5m / 317.7m) |
| TATA: -0.02 (NI 102.2m - CFO 112.2m) / TA 434.6m) |
| Beneish M = -2.54 (Cap -4..+1) = A |
As of July 14, 2026, the stock is trading at USD 4.21 with a total of 2,267,380 shares traded. Over the past week, the price has changed by -3.88%, over one month by +14.09%, over three months by +15.34% and over the past year by +470.38%.
Current recommended Stop Loss: 3.60 (which is 14.5% or 2.4 ATR below the current price).
Ironwood Pharmaceuticals has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold IRWD.
- StrongBuy: 0
- Buy: 0
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.1 | 44.9% |
P/E Trailing = 7.2097
P/E Forward = 12.3305
P/S = 2.0354
P/B = 2.5899
P/EG = -0.26
Revenue TTM = 361.5m USD
EBIT TTM = 205.3m USD
EBITDA TTM = 207.1m USD
Long Term Debt = 385.0m USD (from longTermDebt, last quarter)
Short Term Debt = 203.1m USD (from shortTermDebt, last quarter)
Debt = 609.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 12.5m
Net Debt = 389.4m USD (calculated: Debt 609.9m - CCE 220.5m)
Enterprise Value = 1.13b USD (735.8m + Debt 609.9m - CCE 220.5m)
Interest Coverage Ratio = 6.07 (Ebit TTM 205.3m / Interest Expense TTM 33.8m)
EV/FCF = 10.03x (Enterprise Value 1.13b / FCF TTM 112.2m)
FCF Yield = 9.97% (FCF TTM 112.2m / Enterprise Value 1.13b)
FCF Margin = 31.04% (FCF TTM 112.2m / Revenue TTM 361.5m)
Net Margin = 28.26% (Net Income TTM 102.2m / Revenue TTM 361.5m)
Gross Margin = unknown ((Revenue TTM 361.5m - Cost of Revenue TTM 1.84m) / Revenue TTM)
Tobins Q-Ratio = 2.59 (Enterprise Value 1.13b / Total Assets 434.6m)
Interest Expense / Debt = 5.55% (Interest Expense 33.8m / Debt 609.9m)
Taxrate = 40.41% (69.3m / 171.5m)
NOPAT = 122.3m (EBIT 205.3m * (1 - 40.41%))
Current Ratio = 1.41 (Total Current Assets 332.3m / Total Current Liabilities 236.3m)
Debt / Equity = -2.81 (negative equity) (Debt 609.9m / totalStockholderEquity, last quarter -217.1m)
Debt / EBITDA = 1.88 (Net Debt 389.4m / EBITDA 207.1m)
Debt / FCF = 3.47 (Net Debt 389.4m / FCF TTM 112.2m)
Total Stockholder Equity = -262.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 26.83% (Net Income 102.2m / Total Assets 434.6m)
RoE = -38.88% (negative equity) (Net Income TTM 102.2m / Total Stockholder Equity -262.8m)
RoCE = 168.0% (EBIT 205.3m / Capital Employed (Equity -262.8m + L.T.Debt 385.0m))
RoIC = 31.91% (NOPAT 122.3m / Invested Capital 383.3m)
WACC = 7.70% (E(735.8m)/V(1.35b) * Re(11.34%) + D(609.9m)/V(1.35b) * Rd(5.55%) * (1-Tc(0.40)))
Discount Rate = 11.34% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 78.31 | Cagr: 2.99%
[DCF] Terminal Value 77.97% ; FCFF base≈98.7m ; Y1≈113.1m ; Y5≈166.5m
[DCF] Fair Price = 12.86 (EV 2.51b - Net Debt 389.4m = Equity 2.12b / Shares 164.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: -84.69 | Revenue CAGR: -12.26% | SUE: 0.59 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.28 | Chg30d=-15.82% | Revisions=-25% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.29 | Chg30d=-25.01% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=1.09 | Chg30d=-19.26% | Revisions=-25% | GrowthEPS=+336.0% | GrowthRev=+55.1%
EPS next Year (2027-12-31): EPS=1.44 | Chg30d=-1.15% | Revisions=-25% | GrowthEPS=+32.1% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: -57% (up=0, down=4)