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Ironwood PharmaceuticalsFRA:I76 -0.54%65 Operating Margin % is 70.16% as of Jun. 2026, which is 115% above its 10-year median of 32.67. GuruFocus rates FRA:I76 with a GF Score™ of 65/100 and a GF Value™ of €3.81 (Fairly Valued). The stock has 6 warning signs investors should review. Among 957 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks better than 99.69% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ironwood Pharmaceuticals Operating Margin % Related Terms
Ironwood Pharmaceuticals Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:I76 vs TLRY, AQST, ELTP: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ironwood Pharmaceuticals Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ironwood Pharmaceuticals's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ironwood Pharmaceuticals (FRA:I76) has a Operating Margin % of 70.16% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ironwood Pharmaceuticals and its competitors. This is 115% above median its historical median of 32.67. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #3 out of 957 companies in the Drug Manufacturers industry, placing it in the top 0.3%.
Is Ironwood Pharmaceuticals' Operating Margin % too high?
Ironwood Pharmaceuticals' current Operating Margin % of 70.16% is 115% above median its 10-year median of 32.67. The Drug Manufacturers industry median Operating Margin % is 7.59. Ironwood Pharmaceuticals' value of 70.16% is 824.4% above this industry median. Based on the distribution chart, Ironwood Pharmaceuticals ranks #3 out of 957 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Ironwood Pharmaceuticals has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ironwood Pharmaceuticals' Operating Margin % compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #3 out of 957 companies for Operating Margin %. This places Ironwood Pharmaceuticals in the top 0% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.59. Ironwood Pharmaceuticals' value of 70.16% is 824.4% above this benchmark. While the company's 10-year median is 32.67 vs. the industry median of 7.59, Ironwood Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.59, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ironwood Pharmaceuticals's current Operating Margin % of 70.16% is 824.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ironwood Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current Operating Margin % is 70.16%, which is 115% above median its own 10-year median of 32.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ironwood Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals (FRA:I76) is currently considered Fairly Valued. The stock's GF Value™ is €3.81, compared to a current price of €3.66 — trading 3.9% below its estimated fair value. The current Operating Margin % is 70.16%, which is 115% above median its 10-year median of 32.67 and 824.4% above the Drug Manufacturers industry median of 7.59. Ironwood Pharmaceuticals' overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ironwood Pharmaceuticals (FRA:I76), the current Operating Margin % is 70.16% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ironwood Pharmaceuticals (FRA:I76) Overvalued in 2026?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals stock appears to be undervalued.
The current stock price of €3.66 is trading 3.9% below its estimated GF Value™ of €3.81.
GuruFocus considers Ironwood Pharmaceuticals to be Fairly Valued.
Key valuation signals for FRA:I76:
Operating Margin %: 70.16% (115% above median its 10-year median of 32.67)
GF Value™: €3.81 vs. price of €3.66 (3.9% below fair value)
Industry Position: 824.4% above the Drug Manufacturers median (#3 of 957)
No single metric tells the full story. See the FRA:I76 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ironwood Pharmaceuticals Inc is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal, or GI, and rare diseases. It is focused on the development and commercialization of inventive product opportunities in areas of unmet need, leveraging its demonstrated expertise and capabilities in GI and rare diseases. LINZESS is its commercial product. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years old with FC in Canada, and to adults with IBS-C in certain European countries.
65GF Score
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