Ironwood Pharmaceuticals, Inc.
$3.24
-1.2%Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and Mexico, as well as under the CONSTELLA name in the Canada and European Union. The company is also developing IW-3300, a GC-C agonist for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis; and CNP-104, an immune nanoparticle for the treatment of biliary cholangitis. The company has strategic partnerships with AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc. for the development and commercialization of linaclotide. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was incorporated in 1998 and is headquartered in Boston, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 21.6).
Valuation inputs: P/E 21.6, earnings yield +4.6%, momentum -1.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -9.2%, ROIC +11.4%).
Profitability stack: net margin +8.1%, ROE -9.2%, ROIC +11.4%.
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 +166.0%, momentum -1.2%, net margin +8.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Ironwood Pharmaceuticals, Inc. Market vs Earnings Trajectory
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Ironwood Pharmaceuticals, Inc. Fair Value Envelope
Ironwood Pharmaceuticals, 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
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Ironwood Pharmaceuticals, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Ironwood Pharmaceuticals, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Ironwood Pharmaceuticals, Inc. Street Expectations Map
Wall Street analysts project that IRWD stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 4.80, with estimates ranging from a low of 3.70 to a high of 5.70.
The consensus 1-year price target stands at 4.80, with estimates ranging from a low of 3.70 to a high of 5.70.
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
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Ironwood Pharmaceuticals, Inc. Insider Positioning
During the last 12 months, insiders have purchased $62K and sold $21.89M worth of IRWD shares, resulting in $21.83M of net selling activity.
3 Months
0
0.00
6.7M
20.51M
-20.5M
-$20.51M
3-6 Months
17.0K
62.26K
353.4K
1.35M
-1.3M
-$1.29M
6-9 Months
0
0.00
6.0K
19.97K
-20K
-$20K
9-12 Months
0
0.00
13.2K
11.07K
-11K
-$11K
Top Buyers
Shetzline Michael
Officer: Svp, Cmo, Head-Res&Drug
$62K
Top Sellers
Denner Alexander J
Director
$20.51M
Mccourt Thomas A
Director, Officer: Chief Executive Officer
$740K
Silver Ronald
Officer: Principal Accounting Officer
$256K
John Minardo
Officer: Chief Legal Officer
$143K
Gaskins Tammi L
Officer: Chief Commercial Officer
$101K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $21.83M 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
IRWD has not reported any dividend yield values in the available annual periods.
irwd Dividend History
Learning Layer
Related Guides
Build conviction on IRWD 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.