Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $124.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 85.7
• Beta (1Y): 0.55
• Revenue Growth: -23.18%
• EPS Growth: 97.12%
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.23
• Shares Outstanding: 161,819,850
• 10 Day Avg. Volume: 1,279,302
• 30 Day Avg. Volume: 1,491,509
• PEG Ratio: <0.01
• Price to Book (P/B): -0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.45
• Enterprise Value/Market Cap: 4.82
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: $1.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $0.50 ▼(-35.06%Downside)

Ironwood Pharma's overall stock score is heavily impacted by its challenging financial performance, highlighted by declining revenues, profitability issues, and a heavily debt-laden balance sheet. The technical analysis offers mixed signals, with some upward momentum offset by bearish trends. Valuation remains a substantial risk factor, exacerbated by a negative P/E ratio and the absence of dividends. The potential delisting due to Nasdaq's deficiency letter further compounds the negative outlook.

Positive Factors

Financial Guidance

IRWD raised FY25 Adjusted EBITDA guidance by approximately $20 million to over $105 million, driven by expectation of lower commercial spend related to the Apra launch.

Prescription Demand

Prescription demand growth continues to be strong with IRWD highlighting 8% year-over-year volume growth.

Negative Factors

Financial Uncertainty

An additional confirmatory Phase 3 trial for apraglutide in short bowel syndrome is needed for approval, adding financial uncertainty to the company.

Pricing Headwinds

Pricing headwinds will continue to impact the Linzess brand until generic entry in 2029.

Stock Downgrade

The company has been downgraded to a HOLD rating due to the need for further clarification on the path forward and additional trials.

Ironwood Pharma Business Overview & Revenue Model

Company Description

Ironwood Pharmaceuticals, Inc. (IRWD) is a healthcare company primarily focused on the development and commercialization of innovative gastrointestinal (GI) therapies. The company's core product, LINZESS (linaclotide), is a leading prescription medication used for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). Ironwood operates within the pharmaceutical sector and is dedicated to advancing the treatment of GI disorders through novel drug development and strategic partnerships.

How the Company Makes Money

Ironwood Pharmaceuticals generates revenue primarily through the sale of its flagship product, LINZESS, which is co-promoted in the U.S. with AbbVie. The company receives a share of the net sales from this collaboration, which constitutes the bulk of its income. Additionally, Ironwood earns revenue from royalties and milestone payments associated with licensing agreements for its product in international markets. The collaboration with AbbVie is a significant factor in Ironwood's earnings, providing both a steady revenue stream and an opportunity to expand its market reach.

Ironwood Pharma Financial Statement Overview

Summary

Ironwood Pharma faces a challenging financial landscape with declining revenues and profitability issues. The debt-laden balance sheet and negative equity highlight financial risk, while the cash flow provides a silver lining with positive free cash flow. Improvements in revenue generation and equity would be crucial for enhancing long-term financial health.

Income Statement

The income statement reveals a mixed performance for Ironwood Pharma. Despite a high gross profit margin in TTM (99.69%), the company experienced a negative net profit margin (-9.89%) and revenue contraction compared to the previous year (-9.60%). The EBIT margin was moderate at 17.24%, reflecting some operational efficiency, but the negative net income indicates profitability challenges.

Balance Sheet

Ironwood Pharma's balance sheet shows significant financial stress. The company has a negative stockholders' equity (-$334 million) and an alarmingly high debt-to-equity ratio, indicating heavy reliance on debt financing. The equity ratio is negative, which poses a risk to financial stability.

Cash Flow

The cash flow statement is relatively strong, with a positive free cash flow of $78.4 million in TTM, although the free cash flow growth rate is negative when compared to the previous annual period. The operating cash flow to net income ratio is positive, indicating that cash operations are healthier than income figures suggest.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	351.41M	442.74M	410.60M	413.75M	389.52M
Gross Profit	351.41M	337.95M	409.18M	412.23M	382.82M
EBITDA	100.24M	-924.87M	261.44M	233.33M	141.90M
Net Income	880.00K	-1.00B	175.06M	528.45M	106.18M
Balance Sheet
Total Assets	350.91M	471.07M	1.10B	1.13B	559.24M
Cash, Cash Equivalents and Short-Term Investments	88.56M	92.15M	656.20M	620.13M	362.56M
Total Debt	599.48M	715.54M	415.92M	475.80M	453.70M
Total Liabilities	652.24M	817.37M	448.14M	521.02M	496.60M
Stockholders Equity	-301.33M	-346.30M	652.38M	605.91M	62.64M
Cash Flow
Free Cash Flow	103.41M	183.15M	273.63M	261.63M	166.99M
Operating Cash Flow	103.55M	183.43M	273.76M	261.89M	168.84M
Investing Cash Flow	-142.00K	-1.03B	-136.00K	-265.00K	-1.84M
Financing Cash Flow	-106.97M	277.16M	-237.55M	-4.55M	18.55M

Ironwood Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.71, and below the 200-day MA of 2.16, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRWD.

Ironwood Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	£5.17B	5.82	-64.95%	2.28%	32.38%	-7.27%
DERM	57 Neutral	$162.84M	―	-48.14%	―	-29.69%	-105.88%
ESPR	55 Neutral	$277.48M	―	23.44%	―	12.99%	17.78%
ASRT	54 Neutral	$68.24M	―	-25.19%	―	-16.23%	91.83%
CPIX	53 Neutral	$52.66M	―	-11.67%	―	5.82%	59.86%
AQST	48 Neutral	$379.43M	―	77.48%	―	5.29%	-37.31%
IRWD	45 Neutral	$124.83M	85.74	-8.02%	―	-23.18%	97.12%

Ironwood Pharma Corporate Events

Ironwood Pharma Elects Directors at Annual Meeting

On June 10, 2025, Ironwood Pharmaceuticals held its Annual Meeting of Stockholders, where nine directors were elected to serve a one-year term on the board. Additionally, stockholders approved executive compensation and ratified Ernst & Young LLP as the independent public accounting firm for 2025.

The most recent analyst rating on (IRWD) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Ironwood Pharma stock, see the IRWD Stock Forecast page.

Ironwood Pharma Receives Nasdaq Deficiency Letter

On May 28, 2025, Ironwood Pharmaceuticals received a deficiency letter from Nasdaq indicating that its Class A common stock had closed below the $1.00 minimum bid price requirement for 30 consecutive business days. The company has until November 24, 2025, to regain compliance, failing which it may face delisting or need to transfer its listing to the Nasdaq Capital Market. Ironwood intends to monitor its stock price and consider options to meet the requirement, though there is no assurance of success.

The most recent analyst rating on (IRWD) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Ironwood Pharma stock, see the IRWD Stock Forecast page.