IRWD Stock Analysis: Ironwood Pharmaceuticals | NASDAQ
Drug Manufacturers - Specialty & Generic | NASDAQ, USA | Market Cap: 674m USD | 12M Return: 230.5% | US46333X1081 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.93M
Qual. Beats: 0
Rev. Trend: -65.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 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: 129.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.65 > 0.02 and ΔFCF/TA 56.35 > 1.0 |
| NWC/Revenue: -9.53% < 20% (prev -13.22%; Δ 3.68% < -1%) |
| CFO/TA 0.65 > 3% & CFO 185.6m > Net Income 129.9m |
| Net Debt (329.6m) to EBITDA (237.9m): 1.39 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (165.5m) vs 12m ago 2.31% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 124.0% > 50% (prev 89.96%; Δ 34.01% > 0%) |
| Interest Coverage Ratio: 7.23 > 6 (EBIT TTM 236.1m / Interest Expense TTM 32.7m) |
| A: -0.13 (Total Current Assets 199.2m - Total Current Liabilities 236.3m) / Total Assets 285.1m |
| B: -5.55 (Retained Earnings -1.58b / Total Assets 285.1m) |
| C: 0.75 (EBIT TTM 236.1m / Avg Total Assets 314.0m) |
| D: -0.36 (Book Value of Equity -161.8m / Total Liabilities 447.0m) |
| Altman-Z'' = -14.27 = D |
| DSRI: 1.04 (Receivables 112.7m/86.2m, Revenue 389.3m/308.5m) |
| GMI: 0.56 (GM 55.85% / 99.52%) |
| AQI: 0.65 (AQ_t 0.26 / AQ_t-1 0.40) |
| SGI: 1.26 (Revenue 389.3m / 308.5m) |
| TATA: -0.20 (NI 129.9m - CFO 185.6m) / TA 285.1m) |
| Beneish M = -3.43 (Cap -4..+1) = AA |
As of September 18, 2026, the stock is trading at USD 4.23 with a total of 3,486,905 shares traded. Over the past week, the price has changed by +6.55%, over one month by -2.98%, over three months by +20.17% and over the past year by +230.47%.
Current recommended Stop Loss: 3.80 (which is 10.2% or 2.3 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 | 44.2% |
P/E Trailing = 5.037
P/E Forward = 12.3305
P/S = 1.7317
P/B = 2.5899
P/EG = -0.26
Revenue TTM = 389.3m USD
EBIT TTM = 236.1m USD
EBITDA TTM = 237.9m USD
Long Term Debt = 385.0m USD (from longTermDebt, last quarter)
Short Term Debt = 3.29m USD (from shortTermDebt, last quarter)
Debt = 408.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 11.9m
Net Debt = 329.6m USD (calculated: Debt 408.7m - CCE 79.1m)
Enterprise Value = 1.00b USD (674.2m + Debt 408.7m - CCE 79.1m)
Interest Coverage Ratio = 7.23 (Ebit TTM 236.1m / Interest Expense TTM 32.7m)
EV/FCF = 5.41x (Enterprise Value 1.00b / FCF TTM 185.6m)
FCF Yield = 18.49% (FCF TTM 185.6m / Enterprise Value 1.00b)
FCF Margin = 47.66% (FCF TTM 185.6m / Revenue TTM 389.3m)
Net Margin = 33.36% (Net Income TTM 129.9m / Revenue TTM 389.3m)
Gross Margin = unknown ((Revenue TTM 389.3m - Cost of Revenue TTM 1.88m) / Revenue TTM)
Tobins Q-Ratio = 3.52 (Enterprise Value 1.00b / Total Assets 285.1m)
Interest Expense / Debt = 7.99% (Interest Expense 32.7m / Debt 408.7m)
Taxrate = 37.38% (77.5m / 207.4m)
NOPAT = 147.8m (EBIT 236.1m * (1 - 37.38%))
Current Ratio = 0.84 (Total Current Assets 199.2m / Total Current Liabilities 236.3m)
Debt / Equity = -2.53 (negative equity) (Debt 408.7m / totalStockholderEquity, last quarter -161.8m)
Debt / EBITDA = 1.39 (Net Debt 329.6m / EBITDA 237.9m)
Debt / FCF = 1.78 (Net Debt 329.6m / FCF TTM 185.6m)
Total Stockholder Equity = -226.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 41.35% (Net Income 129.9m / Total Assets 285.1m)
RoE = -57.40% (negative equity) (Net Income TTM 129.9m / Total Stockholder Equity -226.2m)
RoCE = 148.7% (EBIT 236.1m / Capital Employed (Equity -226.2m + L.T.Debt 385.0m))
RoIC = 62.62% (NOPAT 147.8m / Invested Capital 236.1m)
WACC = 10.21% (E(674.2m)/V(1.08b) * Re(13.36%) + D(408.7m)/V(1.08b) * Rd(7.99%) * (1-Tc(0.37)))
Discount Rate = 13.36% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 65.77 | Cagr: 2.16%
[DCF] Terminal Value 72.21% ; FCFF base≈123.3m ; Y1≈141.4m ; Y5≈208.0m
[DCF] Fair Price = 12.27 (EV 2.36b - Net Debt 329.6m = Equity 2.03b / Shares 165.2m; r=10.21% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.46 | # QB: 0
Revenue Correlation: -65.20 | Revenue CAGR: -9.15% | SUE: -0.08 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.31 | Chg30d=+0.00% | Revisions=+25% | Analysts=2
EPS current Year (2026-12-31): EPS=1.21 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+384.0% | GrowthRev=+59.2%
EPS next Year (2027-12-31): EPS=1.50 | Chg30d=+0.00% | Revisions=-25% | GrowthEPS=+24.0% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: +17% (up=2, down=1)