Ironwood Pharmaceuticals

IRWD

Drug Manufacturers - Specialty & Generic · Healthcare

Price

$3.86

-0.01 (-0.26%)

Market Cap

$635.4M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+8.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 164.4M (2021) → 177.8M (2025)

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

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+158.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+208.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$95M/ year

↓ Declining (-15% vs prior year)

32.1% of revenue

1.8x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.7%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$220M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Ironwood Pharmaceuticals grew revenue 159% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

99.6%

Premium pricing power — 99.6% gross margin

Operating Margin

68.1%

Excellent — 68.1% operating margin

ROCE

19.6%

Strong — 19.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY

+13.8%

Fast-growing sales (13.8% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

110%

Turns 110% of profit into real cash

FCF Margin

31.0%

Converts sales into free cash efficiently (31.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

5.97x

Adequate interest coverage (6.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

6.1x

Attractive valuation — P/E 6.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+3.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (6.1 → 2.9)

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Dividends

Not applicable for this business.

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