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Ironwood PharmaceuticalsSTU:I76 +0.54%74 ROA % is 57.13% as of Jun. 2026, which is 1785% above its 10-year median of 3.03. GuruFocus rates STU:I76 with a GF Score™ of 74/100 and a GF Value™ of €3.85 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks better than 98.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ironwood Pharmaceuticals's annualizedNet Income for the quarter that ended in Jun. 2026 was €178.1 Mil.
Ironwood Pharmaceuticals's average Total Assets over the quarter that ended in Jun. 2026 was €311.7 Mil. Therefore, Ironwood Pharmaceuticals's annualized ROA % for the quarter that ended in Jun. 2026 was 57.13%.
The historical rank and industry rank for Ironwood Pharmaceuticals's ROA % or its related term are showing as below:
STU:I76'
s ROA % Range Over the Past 10 Years
Min: -127.54 Med: 3.03 Max: 62.68
Current: 34.99
During the past 13 years, Ironwood Pharmaceuticals's highest ROA % was 62.68%. The lowest was -127.54%. And the median was 3.03%.
STU:I76's ROA % is ranked better than 98.51% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.69
vs STU:I76: 34.99
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's ROA % distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Ironwood Pharmaceuticals (STU:I76) has a ROA % of 57.13% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ironwood Pharmaceuticals and its competitors. This is 1785% above median its historical median of 3.03. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #15 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 1.5%.
Is Ironwood Pharmaceuticals' ROA % too high?
Ironwood Pharmaceuticals' current ROA % of 57.13% is 1785% above median its 10-year median of 3.03. The Drug Manufacturers industry median ROA % is 2.69. Ironwood Pharmaceuticals' value of 57.13% is 2023.8% above this industry median. Based on the distribution chart, Ironwood Pharmaceuticals ranks #15 out of 1006 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 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ironwood Pharmaceuticals' ROA % compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #15 out of 1006 companies for ROA %. This places Ironwood Pharmaceuticals in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Ironwood Pharmaceuticals' value of 57.13% is 2023.8% above this benchmark. While the company's 10-year median is 3.03 vs. the industry median of 2.69, 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ironwood Pharmaceuticals's current ROA % of 57.13% is 2023.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ironwood Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current ROA % is 57.13%, which is 1785% above median its own 10-year median of 3.03. 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 (STU:I76) is currently considered Fairly Valued. The stock's GF Value™ is €3.85, compared to a current price of €3.70 — trading 3.9% below its estimated fair value. The current ROA % is 57.13%, which is 1785% above median its 10-year median of 3.03 and 2023.8% above the Drug Manufacturers industry median of 2.69. Ironwood Pharmaceuticals' overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Ironwood Pharmaceuticals (STU:I76), the current ROA % is 57.13% 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 (STU:I76) Overvalued in 2026?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals stock appears to be undervalued.
The current stock price of €3.70 is trading 3.9% below its estimated GF Value™ of €3.85.
GuruFocus considers Ironwood Pharmaceuticals to be Fairly Valued.
Key valuation signals for STU:I76:
ROA %: 57.13% (1785% above median its 10-year median of 3.03)
GF Value™: €3.85 vs. price of €3.70 (3.9% below fair value)
Industry Position: 2023.8% above the Drug Manufacturers median (#15 of 1006)
No single metric tells the full story. See the STU: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.
74GF Score
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