Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $121.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 85.7
• Beta (1Y): 0.54
• Revenue Growth: -23.18%
• EPS Growth: 97.12%
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.23
• Shares Outstanding: 161,819,850
• 10 Day Avg. Volume: 1,199,715
• 30 Day Avg. Volume: 2,304,262
• PEG Ratio: <0.01
• Price to Book (P/B): -0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.52
• Enterprise Value/Market Cap: 5.01
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 1.58
• 1Y Price Target: $1.00
• Price Target Upside: 35.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 47 Neutral
• Price Target: $0.50 ▼(-32.43%Downside)

The overall stock score for Ironwood Pharma is primarily impacted by its weak financial performance and poor valuation metrics. The company's technical analysis shows mixed signals, while the negative corporate event regarding Nasdaq compliance further dampens the outlook. Financial improvements and addressing the compliance issue are critical for enhancing the stock's attractiveness.

Positive Factors

Financial Guidance

IRWD also raised FY25 Adjusted EBITDA guidance by approximately $20 million to $105 million plus, 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 in 1Q25.

Strategic Alternatives

IRWD reiterated that they are exploring strategic alternatives, which is viewed as a necessary step given the balance sheet challenges and delay of the apraglutide launch as the next growth driver.

Negative Factors

Debt and Revenue Challenges

The high debt load and delay in apraglutide's revenue contribution mean there will likely be no meaningful revenue contribution until after Linzess' loss of exclusivity and debt maturity.

Drug Development

The launch of Apraglutide has been delayed to 2029, reflecting setbacks in the drug's development and approval process.

Stock Rating

The company's stock is downgraded to HOLD due to uncertainty and the need for more clarity on the path forward.

Ironwood Pharma Business Overview & Revenue Model

Company Description

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	317.68M	351.41M	442.74M	410.60M	413.75M	389.52M
Gross Profit	316.69M	351.41M	337.95M	409.18M	412.23M	382.82M
EBITDA	59.52M	100.24M	-924.87M	261.44M	233.33M	141.90M
Net Income	-31.41M	880.00K	-1.00B	175.06M	528.45M	106.18M
Balance Sheet
Total Assets	327.21M	350.91M	471.07M	1.10B	1.13B	559.24M
Cash, Cash Equivalents and Short-Term Investments	108.48M	88.56M	92.15M	656.20M	620.13M	362.56M
Total Debt	599.08M	599.48M	715.54M	415.92M	475.80M	453.70M
Total Liabilities	661.27M	652.24M	817.37M	448.14M	521.02M	496.60M
Stockholders Equity	-334.05M	-301.33M	-346.30M	652.38M	605.91M	62.64M
Cash Flow
Free Cash Flow	78.41M	103.41M	183.15M	273.63M	261.63M	166.99M
Operating Cash Flow	78.52M	103.55M	183.43M	273.76M	261.89M	168.84M
Investing Cash Flow	-121.00K	-142.00K	-1.03B	-136.00K	-265.00K	-1.84M
Financing Cash Flow	-91.41M	-106.97M	277.16M	-237.55M	-4.55M	18.55M

Ironwood Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.74 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.70, and below the 200-day MA of 2.39, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.74 is Neutral, 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
DERM	63 Neutral	$166.56M	―	-48.14%	―	-29.69%	-105.88%
CPIX	56 Neutral	$44.88M	―	-11.67%	―	5.82%	59.86%
ASRT	55 Neutral	$66.18M	―	-25.19%	―	-16.23%	91.83%
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%
AQST	51 Neutral	$398.31M	―	77.48%	―	5.29%	-37.31%
ESPR	50 Neutral	$235.86M	―	23.44%	―	12.99%	17.78%
IRWD	47 Neutral	$121.74M	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.