IRTC (iRhythm Holdings) Financial Strength: 4 (As of Jun. 2026) — 43% Below Median

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IRTC iRhythm Holdings Inc IRTC
77 GF Score
Price $128.59
GF Value $154.02
Valuation Modestly Undervalued
! 1 Warning Sign
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What is iRhythm Holdings Financial Strength?

iRhythm Holdings IRTC +0.45% 77 Financial Strength is 4 as of Jun. 2026, which is 43% below its 10-year median of 7.00. GuruFocus rates IRTC with a GF Score™ of 77/100 and a GF Value™ of $154.02 (Modestly Undervalued). The stock has 1 warning sign investors should review.

iRhythm Holdings has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

iRhythm Holdings's Interest Coverage for the quarter that ended in Jun. 2026 was 3.46. iRhythm Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.81. As of today, iRhythm Holdings's Altman Z-Score is 3.13.


iRhythm Holdings  (NAS:IRTC) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

iRhythm Holdings has the Financial Strength Rank of 4.


iRhythm Holdings Financial Strength Related Terms


IRTC vs HAE, ITGR, LIVN: Financial Strength Comparison

For the Medical Devices subindustry, iRhythm Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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.


iRhythm Holdings Financial Strength vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, iRhythm Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where iRhythm Holdings's Financial Strength falls into.


IRTC
77GF Score
iRhythm Holdings Inc IRTC
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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iRhythm Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

iRhythm Holdings's Interest Expense for the months ended in Jun. 2026 was $-3.3 Mil. Its Operating Income for the months ended in Jun. 2026 was $11.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $710.4 Mil.

iRhythm Holdings's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*11.408/-3.294
=3.46

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

iRhythm Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(16.912 + 710.437) / 896.688
=0.81

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

iRhythm Holdings has a Z-score of 3.13, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.13 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
iRhythm Holdings (IRTC) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on iRhythm Holdings and its competitors. This is 43% below median its historical median of 7.00. Over the past decade, iRhythm Holdings' Financial Strength has ranged from 3.00 to 8.00.
Is iRhythm Holdings' Financial Strength too high?
iRhythm Holdings' current Financial Strength of 4 is 43% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, iRhythm Holdings has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does iRhythm Holdings' Financial Strength compare to HAE and ITGR?
iRhythm Holdings' Financial Strength of 4 can be compared against companies in the Medical Devices & Instruments industry. Historically, iRhythm Holdings' own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Medical Devices & Instruments company?
A good Financial Strength depends on the Medical Devices & Instruments industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on iRhythm Holdings and its competitors. iRhythm Holdings's current Financial Strength is 4, which is 43% below median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is iRhythm Holdings stock overvalued right now?
Based on GuruFocus' analysis, iRhythm Holdings (IRTC) is currently considered Modestly Undervalued. The stock's GF Value™ is $154.02, compared to a current price of $128.59 — trading 16.5% below its estimated fair value. The current Financial Strength is 4, which is 43% below median its 10-year median of 7.00. iRhythm Holdings' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For iRhythm Holdings (IRTC), the current Financial Strength is 4 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 iRhythm Holdings (IRTC) Overvalued in 2026?

Based on GuruFocus' analysis, iRhythm Holdings stock appears to be undervalued. The current stock price of $128.59 is trading 16.5% below its estimated GF Value™ of $154.02. GuruFocus considers iRhythm Holdings to be Modestly Undervalued.

Key valuation signals for IRTC:

  • Financial Strength: 4 (43% below median its 10-year median of 7.00)
  • GF Value™: $154.02 vs. price of $128.59 (16.5% below fair value)
  • GF Score™: 77/100 with 1 warning sign

No single metric tells the full story. See the IRTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


iRhythm Holdings Business Description

Other Exchanges 0A7L:UK
Address 699 8th Street, Suite 600, San Francisco, CA, USA, 94103
iRhythm Holdings Inc is a digital healthcare company that creates trusted solutions that detect, predict, and prevent disease. Its principal business is the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services that it believes allow clinicians to diagnose certain arrhythmias quicker and with greater efficiency than other services that rely on traditional technology. Each Zio System combines an FDA-cleared and CE-marked, wire-free, patch-based, 14-day wearable biosensor that continuously records electrocardiogram (ECG) data with a proprietary, FDA-cleared, CE-marked cloud-based data analytic software to help physicians monitor patients and diagnose arrhythmias.
77GF Score

Get the complete analysis for IRTC

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$128.59
Price
$154.02
GF Value