Ironwood Pharmaceuticals Inc.
Find Ratings ReportsIRONWOOD PHARMACEUTICALS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. IRONWOOD PHARMACEUTICALS INC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 153.08% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 117.55 | 107.2 |
EBITDA ($mil) | 44.9 | 68.7 |
EBIT ($mil) | 44.38 | 68.36 |
Net Income ($mil) | -1.09 | 48.87 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 92.15 | 657.45 |
Total Assets ($mil) | 471.07 | 1100.52 |
Total Debt ($mil) | 715.54 | 415.92 |
Equity ($mil) | -346.3 | 652.38 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 38.19 | 64.09 |
EBITDA Margin | 38.19 | 64.08 |
Operating Margin | 37.76 | 63.77 |
Sales Turnover | 0.94 | 0.37 |
Return on Assets | -212.75 | 15.9 |
Return on Equity | 0.0 | 26.83 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.84 | 30.58 |
Debt/Capital | 1.94 | 0.39 |
Interest Expense | 8.42 | 1.53 |
Interest Coverage | 5.27 | 44.8 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 156.35 | 154.03 |
Div / share | 0.0 | 0.0 |
EPS | -0.01 | 0.27 |
Book value / share | -2.21 | 4.24 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4328708.0 | 2347697.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is above the S&P 500 average, but well below the subsector average.
Price/Earnings |
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Price/Cash Flow |
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IRWD NM | Peers 85.83 | IRWD 7.65 | Peers 38.76 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. IRWD's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IRWD is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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IRWD 10.62 | Peers 18.08 | IRWD NA | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. IRWD is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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IRWD NM | Peers 19.07 | IRWD -771.13 | Peers 12.58 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IRWD's P/B is negative making this valuation measure meaningless. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, IRWD is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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IRWD 3.17 | Peers 84.44 | IRWD 7.82 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IRWD is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. IRWD significantly trails its peers on the basis of sales growth. |
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