Ironwood Pharmaceuticals Stock Fair Value – IRONWOOD PHARMACEUTICALS Reports Second Quarter Earnings Results for FY2023
August 12, 2023
🌥️Earnings Overview
On August 8 2023, IRONWOOD PHARMACEUTICALS ($NASDAQ:IRWD) revealed their financial results for the second quarter of the fiscal year 2023, which concluded on June 30 2023. The total revenue of the company saw a rise of 10.4% to USD 107.4 million when compared to the same quarter of the prior year. Unfortunately, their net income was a USD -1062.2 million, substantially lower than the 37.1 million reported during the same time in the previous year.
Market Price
The stock opened at $10.9 and closed at $10.3, which was a drop of 9.2% from the previous closing price of 11.4. This drastic decrease in stock value reflects investor doubts over the pharmaceutical giant’s ability to remain profitable in the coming years. Analysts have noted that Ironwood Pharmaceuticals have seen a marked decline in sales numbers over the past year, which could attribute to the drop in stock value. Despite this, the company has remained committed to their ongoing research and development projects as well as their commitment to providing quality services to their customers.
The outlook for IRONWOOD PHARMACEUTICALS does not necessarily look positive, but the company is still dedicated to delivering their best possible medical services and treatments to the public. With their current research projects and initiatives, Ironwood is well-positioned to remain successful in the future. It is important for investors to remain aware of the potential risks associated with stock purchase decisions, but IRONWOOD PHARMACEUTICALS remains an attractive candidate for those looking to invest in the medical industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ironwood Pharmaceuticals. More…
| Total Revenues | Net Income | Net Margin |
| 427.28 | -917.29 | -212.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ironwood Pharmaceuticals. More…
| Operations | Investing | Financing |
| 289.81 | -0.14 | -237.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ironwood Pharmaceuticals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 603.22 | 950 | 4.55 |
Key Ratios Snapshot
Some of the financial key ratios for Ironwood Pharmaceuticals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | 28.8% | -201.4% |
| FCF Margin | ROE | ROA |
| 67.8% | -76.1% | -89.2% |
Analysis – Ironwood Pharmaceuticals Stock Fair Value
GoodWhale has conducted an in-depth analysis of IRONWOOD PHARMACEUTICALS‘s financials. Our proprietary Valuation Line has determined that the intrinsic value of IRONWOOD PHARMACEUTICALS share is around $11.9. Currently, IRONWOOD PHARMACEUTICALS stock is traded at $10.3, which represents a 13.7% discount on the intrinsic value. Therefore, we would conclude that the stock is currently undervalued. More…
Peers
Its competitors are Sun Pharma Advanced Research Co Ltd, Strides Pharma Science Ltd, Glenmark Pharmaceuticals Ltd.
– Sun Pharma Advanced Research Co Ltd ($BSE:532872)
Sun Pharma Advanced Research Co Ltd has a market cap of 70.81B as of 2022. The company’s Return on Equity is -429.91%. Sun Pharma Advanced Research Co Ltd is a pharmaceutical company that specializes in the research and development of new drugs and therapies. The company’s products are sold in over 100 countries worldwide.
– Strides Pharma Science Ltd ($BSE:532531)
Strides Pharma Science Ltd is a pharmaceutical company with a market cap of 29.66B as of 2022. The company has a Return on Equity of -10.94%. The company’s main products are generic drugs and active pharmaceutical ingredients. The company operates in over 50 countries and has over 10,000 employees.
– Glenmark Pharmaceuticals Ltd ($BSE:532296)
Glenmark Pharmaceuticals is a pharmaceutical company headquartered in Mumbai, India. The company was founded in 1977 by Gracias Saldanha as a generic drug manufacturer. The company has over 8,000 employees and operates in over 40 countries. The company’s product portfolio includes drugs in the areas of cardiology, dermatology, diabetes, oncology, respiratory, and urology.
Summary
Ironwood Pharmaceuticals recently released their second quarter of FY2023 earnings results, which showed a 10.4% increase in total revenue compared to the same quarter last year.
However, their net income for the quarter was significantly lower at a loss of USD -1062.2 million, compared to the USD 37.1 million reported in the same quarter the year prior. This news caused their stock price to move down on the same day. Therefore, investors should be cautious when considering this stock as it may not be an ideal long-term investment at the moment. However, it could be a good short-term trading option, as the earnings results could recover in the future depending on how the company performs.
