iRhythm Holdings Inc. Common Stock (IRTC)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $57 million in annual free cash flow (1.4% yield on market cap)
• Revenue growth of 27.1% demonstrates strong top-line momentum

Concerns

• High leverage at 4.52x debt-to-equity increases financial risk and interest expense burden

AI Analysis

iRhythm Holdings Inc. Common Stock is a small-cap healthcare company valued at $4.0 billion. The business generates $788 million in annual revenue with a 0.7% net margin and $57 million in free cash flow. From a quality standpoint, iRhythm shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is 0.4% FCF yield. Growth dynamics show revenue growing at 27.1% and profit growth of 518.5%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

iRhythm's 27% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $57 million in annual free cash flow (1.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 4.5x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer