iRhythm Technologies, Inc.
$104.56
+1.5%iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data. It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -75.2).
Valuation inputs: P/E -75.2, earnings yield N/A, momentum +1.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -29.2%, ROIC -4.2%).
Profitability stack: net margin -6.0%, ROE -29.2%, ROIC -4.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +85.0%, momentum +1.5%, net margin -6.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
iRhythm Technologies, Inc. Market vs Earnings Trajectory
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iRhythm Technologies, Inc. Fair Value Envelope
iRhythm Technologies, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
iRhythm Technologies, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
iRhythm Technologies, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
iRhythm Technologies, Inc. Street Expectations Map
Wall Street analysts project that IRTC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 188.75, with estimates ranging from a low of 152.00 to a high of 255.00.
The consensus 1-year price target stands at 188.75, with estimates ranging from a low of 152.00 to a high of 255.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
iRhythm Technologies, Inc. Insider Positioning
During the last 12 months, insiders have purchased $57K and sold $18.57M worth of IRTC shares, resulting in $18.51M of net selling activity.
3 Months
5.3K
56.89K
3.6K
417.96K
-361K
-$361K
3-6 Months
0
0.00
74.2K
10.06M
-10.1M
-$10.06M
6-9 Months
0
0.00
24.9K
4.76M
-4.8M
-$4.76M
9-12 Months
0
0.00
20.6K
3.34M
-3.3M
-$3.34M
Top Buyers
Talwalkar Abhijit Y
Director
$57K
Top Sellers
Blackford Quentin S.
Director, Officer: President And Ceo
$6.08M
Wilson Daniel G.
Officer: Chief Financial Officer
$3.81M
Patterson Chad
Officer: Chief Comm & Product Officer
$2.31M
Murphy Patrick Michael
Officer: Cbo And Clo
$1.51M
Turakhia Minang
Officer: Chief Med/Sci Ofcr Evp Advtech
$1.45M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $18.51M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
IRTC has not reported any dividend yield values in the available annual periods.
irtc Dividend History
Learning Layer
Related Guides
Build conviction on IRTC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.