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Ironwood Pharmaceuticals

DB:I76
Snowflake Description

Reasonable growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
I76
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. The last earnings update was 55 days ago. More info.


Add to Portfolio Compare Print
  • Ironwood Pharmaceuticals has significant price volatility in the past 3 months.
I76 Share Price and Events
7 Day Returns
-1.7%
DB:I76
5.2%
DE Biotechs
4.3%
DE Market
1 Year Returns
-18.1%
DB:I76
-7.4%
DE Biotechs
-14.2%
DE Market
I76 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ironwood Pharmaceuticals (I76) -1.7% -11.5% -25% -18.1% -40.9% -37%
DE Biotechs 5.2% -3.3% -20.3% -7.4% 19.5% -9.4%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • I76 underperformed the Biotechs industry which returned -7.4% over the past year.
  • I76 underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
I76
Industry
5yr Volatility vs Market

Value

 Is Ironwood Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ironwood Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ironwood Pharmaceuticals.

DB:I76 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:I76
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.048 (1 + (1- 21%) (27.7%))
1.186
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.186 * 5.44%)
6.06%

Discounted Cash Flow Calculation for DB:I76 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ironwood Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:I76 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.06%)
2020 137.90 Analyst x3 130.02
2021 158.67 Analyst x3 141.05
2022 160.80 Analyst x2 134.78
2023 162.00 Est @ 0.74% 128.02
2024 162.65 Est @ 0.4% 121.19
2025 162.92 Est @ 0.17% 114.45
2026 162.92 Est @ -0% 107.91
2027 162.72 Est @ -0.12% 101.62
2028 162.40 Est @ -0.2% 95.63
2029 161.98 Est @ -0.26% 89.93
Present value of next 10 years cash flows $1,164.00
DB:I76 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $161.98 × (1 + -0.39%) ÷ (6.06% – -0.39%)
$2,501.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,501.08 ÷ (1 + 6.06%)10
$1,388.54
DB:I76 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,164.00 + $1,388.54
$2,552.54
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,552.54 / 158.21
$16.13
DB:I76 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:I76 represents 0.89939x of NasdaqGS:IRWD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89939x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 16.13 x 0.89939
€14.51
Value per share (EUR) From above. €14.51
Current discount Discount to share price of €8.85
= -1 x (€8.85 - €14.51) / €14.51
39%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ironwood Pharmaceuticals is available for.
Intrinsic value
39%
Share price is €8.85 vs Future cash flow value of €14.51
Current Discount Checks
For Ironwood Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ironwood Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ironwood Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ironwood Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ironwood Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:I76 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.38
NasdaqGS:IRWD Share Price ** NasdaqGS (2020-04-08) in USD $9.84
Europe Biotechs Industry PE Ratio Median Figure of 24 Publicly-Listed Biotechs Companies 43.07x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ironwood Pharmaceuticals.

DB:I76 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IRWD Share Price ÷ EPS (both in USD)

= 9.84 ÷ 0.38

26.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ironwood Pharmaceuticals is good value based on earnings compared to the Europe Biotechs industry average.
  • Ironwood Pharmaceuticals is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Ironwood Pharmaceuticals's expected growth come at a high price?
Raw Data
DB:I76 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
17.5%per year
Europe Biotechs Industry PEG Ratio Median Figure of 19 Publicly-Listed Biotechs Companies 1.71x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:I76 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.05x ÷ 17.5%

1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ironwood Pharmaceuticals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ironwood Pharmaceuticals's assets?
Raw Data
DB:I76 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-0.59
NasdaqGS:IRWD Share Price * NasdaqGS (2020-04-08) in USD $9.84
Germany Biotechs Industry PB Ratio Median Figure of 14 Publicly-Listed Biotechs Companies 3.37x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
DB:I76 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IRWD Share Price ÷ Book Value per Share (both in USD)

= 9.84 ÷ -0.59

-16.62x

* Primary Listing of Ironwood Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ironwood Pharmaceuticals has negative assets, we can't compare the value of its assets to the DE Biotechs industry average.
X
Value checks
We assess Ironwood Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Ironwood Pharmaceuticals has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ironwood Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ironwood Pharmaceuticals expected to grow at an attractive rate?
  • Ironwood Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Ironwood Pharmaceuticals's earnings growth is expected to exceed the Germany market average.
  • Ironwood Pharmaceuticals's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:I76 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:I76 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 17.5%
DB:I76 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6.4%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 38.2%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 26.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:I76 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:I76 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 610 154 2
2023-12-31 519 109 2
2022-12-31 460 168 102 5
2021-12-31 411 163 110 7
2020-12-31 373 142 66 7
2020-04-08
DB:I76 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 428 11 59
2019-09-30 433 -8 -69
2019-06-30 367 -69 -241
2019-03-31 346 -82 -299
2018-12-31 347 -71 -194
2018-09-30 310 -89 -190
2018-06-30 331 -94 -71
2018-03-31 315 -104 -108
2017-12-31 298 -101 -55
2017-09-30 292 -110 -143
2017-06-30 271 -80 -143
2017-03-31 260 -53 -121

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ironwood Pharmaceuticals's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • Ironwood Pharmaceuticals's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:I76 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:I76 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.70 0.70 0.70 1.00
2023-12-31 0.50 0.50 0.50 1.00
2022-12-31 0.65 0.78 0.33 4.00
2021-12-31 0.67 1.34 0.17 6.00
2020-12-31 0.43 0.67 0.07 6.00
2020-04-08
DB:I76 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.38
2019-09-30 -0.44
2019-06-30 -1.56
2019-03-31 -1.94
2018-12-31 -1.27
2018-09-30 -1.26
2018-06-30 -0.47
2018-03-31 -0.72
2017-12-31 -0.37
2017-09-30 -0.96
2017-06-30 -0.98
2017-03-31 -0.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ironwood Pharmaceuticals is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Ironwood Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ironwood Pharmaceuticals has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ironwood Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ironwood Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ironwood Pharmaceuticals's year on year earnings growth rate has been positive over the past 5 years.
  • Ironwood Pharmaceuticals has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Ironwood Pharmaceuticals has become profitable in the last year making it difficult to compare the Europe Biotechs industry average.
Earnings and Revenue History
Ironwood Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:I76 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 428.41 58.94 169.55
2019-09-30 432.80 -68.76 205.30
2019-06-30 367.32 -241.24 214.42
2019-03-31 346.21 -298.51 246.03
2018-12-31 346.64 -194.15 217.48
2018-09-30 310.16 -190.43 227.21
2018-06-30 331.29 -70.91 238.44
2018-03-31 315.27 -107.58 237.02
2017-12-31 298.28 -54.92 230.28
2017-09-30 291.53 -142.53 228.78
2017-06-30 270.81 -143.43 211.99
2017-03-31 260.08 -120.91 191.12
2016-12-31 273.96 -81.71 173.28
2016-09-30 239.81 -82.24 149.58
2016-06-30 213.27 -96.43 135.03
2016-03-31 186.67 -122.74 131.07
2015-12-31 149.56 -142.67 125.25
2015-09-30 134.32 -166.28 124.32
2015-06-30 111.67 -160.88 122.41
2015-03-31 90.76 -173.21 118.76
2014-12-31 76.44 -189.62 117.13
2014-09-30 43.39 -203.96 115.28
2014-06-30 31.41 -223.74 117.01
2014-03-31 34.23 -228.54 118.58
2013-12-31 22.88 -272.81 123.23
2013-09-30 44.83 -264.68 127.78
2013-06-30 136.31 -155.27 120.36

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ironwood Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Ironwood Pharmaceuticals used its assets more efficiently than the Europe Biotechs industry average last year based on Return on Assets.
  • Ironwood Pharmaceuticals has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Ironwood Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ironwood Pharmaceuticals has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ironwood Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ironwood Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ironwood Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ironwood Pharmaceuticals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ironwood Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Ironwood Pharmaceuticals has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ironwood Pharmaceuticals Company Filings, last reported 3 months ago.

DB:I76 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -93.25 407.99 177.02
2019-09-30 -153.05 402.68 139.23
2019-06-30 -219.37 401.52 98.91
2019-03-31 -237.18 406.05 119.05
2018-12-31 -196.37 413.69 173.17
2018-09-30 -197.30 409.14 161.40
2018-06-30 -43.95 404.68 181.25
2018-03-31 -18.05 400.33 194.45
2017-12-31 9.85 396.09 221.42
2017-09-30 -17.58 391.93 225.42
2017-06-30 4.87 387.86 272.90
2017-03-31 29.64 383.89 295.34
2016-12-31 66.72 366.49 305.22
2016-09-30 59.46 371.07 319.87
2016-06-30 81.38 374.47 325.37
2016-03-31 90.94 376.82 434.45
2015-12-31 95.13 378.55 439.39
2015-09-30 100.46 379.31 462.31
2015-06-30 140.28 379.66 493.32
2015-03-31 68.16 171.37 215.87
2014-12-31 88.55 169.41 248.33
2014-09-30 108.15 174.74 264.96
2014-06-30 141.83 174.72 301.98
2014-03-31 188.94 174.69 332.27
2013-12-31 38.23 174.67 197.60
2013-09-30 84.21 174.65 242.39
2013-06-30 139.42 174.63 300.54
  • Ironwood Pharmaceuticals has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Ironwood Pharmaceuticals's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (2.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
X
Financial health checks
We assess Ironwood Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ironwood Pharmaceuticals has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ironwood Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ironwood Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought €2,000 of Ironwood Pharmaceuticals shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ironwood Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ironwood Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:I76 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:I76 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ironwood Pharmaceuticals has not reported any payouts.
  • Unable to verify if Ironwood Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ironwood Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ironwood Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Ironwood Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Ironwood Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ironwood Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ironwood Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ironwood Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Mallon
AGE 56
TENURE AS CEO 1 years
CEO Bio

Mr. Mark Mallon has been chief executive officer at Ironwood Pharmaceuticals, Inc. since April 01, 2019 and serves as its Director and served as its Executive Senior Adviser since January 4, 2019. Mr. Mallon joined Ironwood following a distinguished 24-year career at AstraZeneca where he held a variety of senior executive positions. He has a strong track record of success building industry-leading businesses in the U.S. and globally. He is also widely renowned for building leading GI franchises, earned from his time leading the U.S. commercial and drug development programs for all AstraZeneca GI products. Mr. Mallon was an Executive Senior Adviser of AstraZeneca PLC. He was an Executive Vice-President of Global Product & Portfolio Strategy, Global Medical Affairs and Corporate Affairs at AstraZeneca PLC since August 2016. Mr. Mallon served as Executive Vice President of International at AstraZeneca PLC since January 2013 until August 2016. Mr. Mallon served as the President at AstraZeneca China Limited. He served as Executive Vice President, Chief Executive Officer and Representative Director at AstraZeneca (Japan), having taken charge of all affairs in Japan market. He served as a Vice President of Marketing & Sales Operations of AstraZeneca Pharmaceuticals LP and led the marketing, sales, commercial operations and commercial managed markets organizations. He was responsible for the AZ Healthcare Innovation Center and for identifying, developing and implementing new practices within the US business. He served as Marketing Company President for Italy and a member of AstraZeneca Pharmaceuticals LP's European Management Team. Since joining Zeneca, he has held many senior sales and marketing roles, including Regional Vice-President for Asia Pacific, President of Chinese and Italian subsidiaries, Chief Operating Officer of Japanese subsidiary and Vice-President of US gastrointestinal and respiratory businesses. Mr. Mallon began his career here in 1994, as a Promotions Team Leader at Astra Merck. Over the years, he held many key positions in marketing and sales. As the original leader of AstraZeneca Pharmaceuticals LP's GI/respiratory area, he was instrumental in the launch of three new products - Entocort EC, Prilosec OTC and NEXIUM® (esomeprazole magnesium). Mr. Mallon has a B.S. in chemical engineering from the University of Pennsylvania and an M.B.A. in marketing and finance from the Wharton School of Business, University of Pennsylvania.

CEO Compensation
  • Insufficient data for Mark to compare compensation growth.
  • Insufficient data for Mark to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ironwood Pharmaceuticals management team in years:

3
Average Tenure
52.5
Average Age
  • The tenure for the Ironwood Pharmaceuticals management team is about average.
Management Team

Thomas McCourt

TITLE
President
COMPENSATION
$2M
AGE
62
TENURE
1.3 yrs

Gina Consylman

TITLE
CFO, Senior VP & Treasurer
COMPENSATION
$2M
AGE
46

Mark Mallon

TITLE
CEO & Director
AGE
56
TENURE
1 yrs

Brian Cali

TITLE
Co-Founder and Senior VP of R&D Strategy & External Innovation
TENURE
3 yrs

G. Milne

TITLE
Co-Founder and VP of sGC R&D
TENURE
22.3 yrs

Kelly MacDonald

TITLE
Chief Accounting Officer & VP of Finance
TENURE
0.8 yrs

Halley Gilbert

TITLE
Senior VP of Corporate Development & Chief Administrative Officer
COMPENSATION
$2M
AGE
49

Meredith Kaya

TITLE
Vice President of Investor Relations & Corporate Communications

Jonathan Rosin

TITLE
Senior Vice President of Human Resources
TENURE
8.3 yrs

Chris Wright

TITLE
Chief Development Officer & Senior VP of Global Development
COMPENSATION
$4K
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the Ironwood Pharmaceuticals board of directors in years:

2.2
Average Tenure
60
Average Age
  • The average tenure for the Ironwood Pharmaceuticals board of directors is less than 3 years, this suggests a new board.
Board of Directors

Julie McHugh

TITLE
Chairman of the Board
COMPENSATION
$311K
AGE
55

Mark Mallon

TITLE
CEO & Director
AGE
56
TENURE
1.3 yrs

Larry Olanoff

TITLE
Independent Director
COMPENSATION
$308K
AGE
67
TENURE
5 yrs

Andrew Dreyfus

TITLE
Independent Director
COMPENSATION
$301K
AGE
60
TENURE
4 yrs

Catherine Moukheibir

TITLE
Independent Director
AGE
60
TENURE
1 yrs

Perry Halushka

TITLE
Member of Pharmaceuticals Advisory Committee

Mark Currie

TITLE
Director
COMPENSATION
$2M
AGE
64
TENURE
1 yrs

Ed Owens

TITLE
Independent Director
COMPENSATION
$311K
AGE
72
TENURE
7.1 yrs

Mike Mendelsohn

TITLE
Member of Pharmaceutical Advisory Committee
AGE
63
TENURE
3.2 yrs

Jon Duane

TITLE
Independent Director
AGE
59
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Feb 20 Buy Sarissa Capital Management LP Company 30. Jan 20 26. Feb 20 2,186,000 €11.35 €22,776,025
16. May 19 Buy Sarissa Capital Management LP Company 26. Apr 19 16. May 19 1,950,000 €10.94 €3,141,773
X
Management checks
We assess Ironwood Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ironwood Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. The company 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 CONSTELLA name in the Canada and European Union; MD-7246, an oral, intestinal, non-opioid, pain-relieving agent for patients suffering from abdominal pain associated with GI diseases; and IW 3718, a gastric retentive formulation of a bile acid sequestrant, which is in Phase III clinical trials for the treatment of GERD. Ironwood Pharmaceuticals, Inc. has collaboration agreements with Allergan plc and AstraZeneca AB to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other gastrointestinal (GI) conditions in North America, China, Hong Kong, Macau, and Japan, as well as a license agreement with Astellas Pharma Inc. to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other GI conditions in Japan. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Boston, Massachusetts.

Details
Name: Ironwood Pharmaceuticals, Inc.
I76
Exchange: DB
Founded: 1998
$1,431,592,830
158,206,912
Website: http://www.ironwoodpharma.com
Address: Ironwood Pharmaceuticals, Inc.
100 Summer Street,
Suite 2300,
Boston,
Massachusetts, 02110,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IRWD Class A Common Stock Nasdaq Global Select US USD 03. Feb 2010
DB I76 Class A Common Stock Deutsche Boerse AG DE EUR 03. Feb 2010
Number of employees
Current staff
Staff numbers
317
Ironwood Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 23:19
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.