Ironwood Pharmaceuticals (IRWD) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Ironwood Pharmaceuticals (IRWD) including an updated stock price target for October 2021. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Updated October 2021
Ironwood Pharmaceuticals Fundamentals
Stock Price Target: $18.23
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Ironwood Pharmaceuticals in comparison to the Biotechnology industry and the S&P 500.
Ironwood Pharmaceuticals is a Small Cap company with a Market Cap of $2.27B.
| Ironwood Pharma. | Biotechnology | S&P 500 | T-Bill (10Y) |
|---|---|---|---|
| 8.53% | 1.78% | 2.94% | 1.51% |
The current earnings yield for Ironwood Pharma. is 8.53%, in comparison to 2.94% for the S&P 500 and 1.51% for the 10-year treasury bond. The median earnings yield for the Biotechnology industry is 1.78%.
| Ironwood Pharma. | Biotechnology | S&P 500 |
|---|---|---|
| 4.46 | 75.43 | 34.01 |
Ironwood Pharma. is currently trading at a P/E of 4.46. The P/E for the Biotechnology industry is 75.43 and the P/E for the S&P 500 is 34.01.
| Ironwood Pharma. | Biotechnology | S&P 500 |
|---|---|---|
| 5.74 | 8.09 | 3.09 |
Ironwood Pharma. is currently trading at a P/S of 5.74. The P/S for the Biotechnology industry is 8.09 and the P/S for the S&P 500 is 3.09.
| Ironwood Pharma. | Biotechnology | S&P 500 |
|---|---|---|
| 35.71 | 7.18 | 4.58 |
Ironwood Pharma. is currently trading at a P/B of 35.71. The P/B for the Biotechnology industry is 7.18 and the P/B for the S&P 500 is 4.58.
Return on Invested Capital (ROIC)
| Ironwood Pharma. | Biotechnology | S&P 500 |
|---|---|---|
| 80.54% | 6.22% | 8.6% |
Ironwood Pharma. ROIC is currently 80.54% in comparison to 6.22% for the Biotechnology industry and 8.6% for the S&P 500.
| Ironwood Pharma. | Biotechnology | S&P 500 |
|---|---|---|
| 22.48% | 1.17% | 17.14% |
The YTD performance for Ironwood Pharma. is 22.48%. The Biotechnology industry has a YTD performance of 1.17% in comparison to the YTD S&P 500 performance of 17.14%.
Recent Financial Results
- Total revenues in Q2 2021 of $104M, compared to $89.4M YoY, an increase of 16%
- Operating expenses of $38.9M, compared to $56.7M YoY
- Net interest expenses of $7.6M (primarily in connection to company’s convertible senior notes)
- EBITDA of $65.2M in Q2 2021, compared to $33.4M YoY
- Cash and cash equivalents of $492.7M
- Generated $48.6M in cash in Q2 2021, in comparison $20.1M in prior year quarter
Stock Price Target: $18.23
Company Overview
Ironwood Pharmaceuticals is a healthcare company focused on the development and commercialization of gastrointestinal (GI) products. The company’s marquee product, Linzess (US) / Constella (European), focuses on treatment for adults suffering from irritable bowel syndrome with constipation (IBS-C) and other GI complications. The company is also in the process of developing a treatment for visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis.
Ironwood has strategic international partnerships with AstraZeneca, AbbVie and Astellas Pharma, for the development and commercialization of linaclotide, an additional IBS treatment product.
The current CEO of Ironwood is Mark Mallon. The company was incorporated in 1998 and is headquartered in Boston, Massachusetts.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.