ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Ironwood Pharmaceuticals, Inc. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.99 times
2
With a growth in Net Sales of 107.18%, the company declared Very Positive results in Jun 25
- The company has declared positive results in Jan 70 after 8 consecutive negative quarters
- RAW MATERIAL COST(Y) Fallen by 0.01% (YoY)
- OPERATING PROFIT(Q) Highest at USD 45.54 MM
- OPERATING PROFIT MARGIN(Q) Highest at 53.42 %
3
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -6.57%, its profits have fallen by -127.2%
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.57% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Ironwood Pharmaceuticals, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ironwood Pharmaceuticals, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ironwood Pharmaceuticals, Inc.
5.37%
-0.44
118.55%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-6.29%
EBIT Growth (5y)
-8.35%
EBIT to Interest (avg)
12.02
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
-1.43
Sales to Capital Employed (avg)
1.10
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
82.56%
ROE (avg)
67.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-0.29
EV to EBIT
6.88
EV to EBITDA
6.72
EV to Capital Employed
3.99
EV to Sales
1.82
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
57.96%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.01% (YoY
OPERATING PROFIT(Q)
Highest at USD 45.54 MM
OPERATING PROFIT MARGIN(Q)
Highest at 53.42 %
PRE-TAX PROFIT(Q)
Highest at USD 37.57 MM
NET PROFIT(Q)
Highest at USD 23.44 MM
EPS(Q)
Highest at USD 0.14
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 29.97 MM
NET SALES(HY)
At USD 126.38 MM has Grown at -25.34%
CASH AND EQV(HY)
Lowest at USD 201.33 MM
DEBT-EQUITY RATIO
(HY)
Highest at -164.14 %
Here's what is working for Ironwood Pharmaceuticals, Inc.
Pre-Tax Profit
At USD 37.57 MM has Grown at 176.94%
over average net sales of the previous four periods of USD 13.57 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 23.44 MM has Grown at 941.06%
over average net sales of the previous four periods of USD -2.79 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Profit
Highest at USD 45.54 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 53.42 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 37.57 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 23.44 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.14
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 0.01% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Ironwood Pharmaceuticals, Inc.
Net Sales
At USD 126.38 MM has Grown at -25.34%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (USD MM)
Operating Cash Flow
Lowest at USD 29.97 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 201.33 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -164.14 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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