Ironwood Pharmaceuticals Inc. Class A Common Stock (IRWD)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I seek understandable businesses with durable advantages and a margin of safety. Ironwood is a small GI-focused drug company that sells linaclotide, a product for constipation-related conditions. With only 100 employees and heavy reliance on one main therapy, I cannot call the moat wide, though the specialty-pharma niche may have some staying power. The numbers are mixed but intriguing. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $113.0M and net income was $51.3M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $106.5M and net income was $40.8M. Yet for FY2025, the year ended 2025-12-31, revenue was $296.2M and net income was $24.0M, compared with FY2024, the year ended 2024-12-31, revenue of $351.4M and net income of $880,000. FY2023, the year ended 2023-12-31, produced a $1.0B net loss. The Lynch category is TURNAROUND, and that fits. At the close on 2026-10-13, the price was $3.59 and market cap $593.2M. FairStock calculations show a P/E of 4.60, FCF yield of 31.3%, EV/EBITDA of 3.77, ROCE of 47.02%, and Piotroski score of 6/9. Those are cheap-looking numbers if sustainable. But FairStock's Altman Z-score of -4.96 warns of balance-sheet risk, and revenue growth of -47.31% is ugly. I like the cash generation and recent profitability. But I want evidence that linaclotide revenue can stabilize and that the balance sheet is sound. Without that, a low multiple can be a value trap.

In plain English: Ironwood sells a gastrointestinal drug called linaclotide for constipation-related conditions. The latest quarters show solid profits and cash, but annual sales have shrunk and the company lost a lot of money in 2023. At $3.59 on 2026-10-13, the stock looks cheap compared with recent profits and cash flow, though the business risks are real.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer