Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Ironwood PharmaceuticalsIRWD -3.20%65 Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 2026. GuruFocus rates IRWD with a GF Score™ of 65/100 and a GF Value™ of $4.55 (Fairly Valued). The stock has 6 warning signs investors should review. Among 894 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks better than 99.89% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ironwood Pharmaceuticals's annualized net income for the quarter that ended in Jun. 2026 was $205.2 Mil. Ironwood Pharmaceuticals's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $-191.2 Mil. Therefore, Ironwood Pharmaceuticals's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Ironwood Pharmaceuticals's Return-on-Tangible-Equity or its related term are showing as below:
IRWD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -662.85 Med: 27.83 Max: 158.09
Current: Negative Tangible Equity
During the past 13 years, Ironwood Pharmaceuticals's highest Return-on-Tangible-Equity was 158.09%. The lowest was -662.85%. And the median was 27.83%.
IRWD's Return-on-Tangible-Equity is ranked better than 99.89% of 894
companies
in the Drug Manufacturers industry
Industry Median: 7.895
vs IRWD: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ironwood Pharmaceuticals Return-on-Tangible-Equity Related Terms
Ironwood Pharmaceuticals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ironwood Pharmaceuticals's Return-on-Tangible-Equity can be seen below:
* 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.
IRWD vs TLRY, AQST, ELTP: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Ironwood Pharmaceuticals (IRWD) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ironwood Pharmaceuticals and its competitors. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #1 out of 894 companies in the Drug Manufacturers industry, placing it in the top 0.099999999999994%.
Is Ironwood Pharmaceuticals' Return-on-Tangible-Equity too high?
Ironwood Pharmaceuticals' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Ironwood Pharmaceuticals ranks #1 out of 894 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' Return-on-Tangible-Equity compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #1 out of 894 companies for Return-on-Tangible-Equity. This places Ironwood Pharmaceuticals in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.90, based on 894 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ironwood Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 (IRWD) is currently considered Fairly Valued. The stock's GF Value™ is $4.55, compared to a current price of $4.23 — trading 7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ironwood Pharmaceuticals (IRWD), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (IRWD) Overvalued in 2026?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals stock appears to be undervalued.
The current stock price of $4.23 is trading 7% below its estimated GF Value™ of $4.55.
GuruFocus considers Ironwood Pharmaceuticals to be Fairly Valued.
No single metric tells the full story. See the IRWD 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
Get the complete analysis for IRWD
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
IRWD has been successfully added to your 
