(IRWD) Ironwood Pharmaceuticals - Overview
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NASDAQ (USA) | Market Cap: 589m USD | Total Return: 500.9% in 12m
Industry Rotation: -0.5
Avg Turnover: 8.79M
Qual. Beats: 1
Rev. Trend: -84.7%
Qual. Beats: 0
Warnings
Altman Z'' -9.84 < 1.0 - financial distress zone
Tailwinds
Leader, Tailwind, Pullback Swing
Ironwood Pharmaceuticals (IRWD) is a Boston-based biotechnology company specializing in gastrointestinal (GI) health and rare diseases. Its primary commercial asset is linaclotide, marketed as LINZESS and CONSTELLA, which serves adult and pediatric patients with chronic constipation and irritable bowel syndrome. The company operates through a collaborative business model, sharing development and commercialization costs with major industry partners including AbbVie and AstraZeneca.
The biotechnology sector often relies on such strategic partnerships to mitigate high R&D costs and leverage established global distribution networks. Ironwood is currently expanding its clinical pipeline with candidates like Apraglutide, targeting short bowel syndrome, and IW-3300 for visceral pain conditions. Investors may find it useful to evaluate these pipeline milestones and partnership structures on ValueRay.
- LINZESS prescription volume growth and market share expansion drive primary revenue
- Clinical trial outcomes for Apraglutide determine long-term valuation and pipeline viability
- Collaboration revenue and profit sharing with AbbVie impact quarterly earnings volatility
- Expansion into pediatric functional constipation markets creates new patient revenue streams
- Research and development spending on visceral pain therapies affects operating margins
| 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 (376.9m) to EBITDA (205.5m): 1.83 < 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: 6.02 > 6 (EBITDA TTM 205.5m / 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: 0.53 (EBIT TTM 203.6m / Avg Total Assets 380.9m) |
| D: -2.51 (Book Value of Equity -1.63b / Total Liabilities 651.7m) |
| Altman-Z'' Score: -9.84 = D |
| DSRI: 2.34 (Receivables 105.8m/39.8m, Revenue 361.5m/317.7m) |
| GMI: 0.57 (GM 99.49% / 57.11%) |
| 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-Score: -2.56 (Cap -4..+1) = A |
Over the past week, the price has changed by +6.52%, over one month by -11.31%, over three months by -1.01% and over the past year by +500.86%.
- StrongBuy: 0
- Buy: 0
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.1 | 55.6% |
P/E Forward = 12.3305
P/S = 1.6301
P/B = 2.5899
P/EG = -0.26
Revenue TTM = 361.5m USD
EBIT TTM = 203.6m USD
EBITDA TTM = 205.5m USD
Long Term Debt = 385.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 203.1m USD (from shortTermDebt, last quarter)
Debt = 597.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 376.9m USD (from netDebt column, last quarter)
Enterprise Value = 966.2m USD (589.3m + Debt 597.4m - CCE 220.5m)
Interest Coverage Ratio = 6.02 (Ebit TTM 203.6m / Interest Expense TTM 33.8m)
EV/FCF = 8.61x (Enterprise Value 966.2m / FCF TTM 112.2m)
FCF Yield = 11.61% (FCF TTM 112.2m / Enterprise Value 966.2m)
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 = 2.22 (Enterprise Value 966.2m / Total Assets 434.6m)
Interest Expense / Debt = 1.53% (Interest Expense 9.14m / Debt 597.4m)
Taxrate = 37.44% (24.4m / 65.2m)
NOPAT = 127.4m (EBIT 203.6m * (1 - 37.44%))
Current Ratio = 1.41 (Total Current Assets 332.3m / Total Current Liabilities 236.3m)
Debt / Equity = -2.75 (negative equity) (Debt 597.4m / totalStockholderEquity, last quarter -217.1m)
Debt / EBITDA = 1.83 (Net Debt 376.9m / EBITDA 205.5m)
Debt / FCF = 3.36 (Net Debt 376.9m / 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 = 166.7% (EBIT 203.6m / Capital Employed (Equity -262.8m + L.T.Debt 385.0m))
RoIC = 41.57% (NOPAT 127.4m / Invested Capital 306.5m)
WACC = 6.35% (E(589.3m)/V(1.19b) * Re(11.82%) + D(597.4m)/V(1.19b) * Rd(1.53%) * (1-Tc(0.37)))
Discount Rate = 11.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 80.90 | Cagr: 3.37%
[DCF] Terminal Value 78.91% ; FCFF base≈98.7m ; Y1≈64.8m ; Y5≈29.6m
[DCF] Fair Price = 2.86 (EV 848.1m - Net Debt 376.9m = Equity 471.2m / Shares 164.6m; r=6.35% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.84 | # QB: 1
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=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.29 | Chg30d=-25.01% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=1.09 | Chg30d=-19.26% | Revisions=-20% | GrowthEPS=+336.0% | GrowthRev=+55.1%
EPS next Year (2027-12-31): EPS=1.44 | Chg30d=-1.15% | Revisions=-20% | GrowthEPS=+32.1% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: -20%