iRhythm Technologies, Inc. Fundamental Analysis (NASDAQ: IRTC)
iRhythm Technologies, Inc. Fundamental Analysis (NASDAQ: IRTC)
iRhythm Technologies, Inc. (NASDAQ: IRTC) shows moderate financial fundamentals with a PE ratio of -299.42, profit margin of -1.69%, and ROE of -8.97%. The company generates $0.8B in annual revenue with strong year-over-year growth of 26.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRTC's fundamental strength across five key dimensions:
Efficiency Score
WeakIRTC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIRTC trades at attractive valuation levels.
Growth Score
ExcellentIRTC delivers strong and consistent growth momentum.
Financial Health Score
ModerateIRTC shows balanced financial health with some risks.
Profitability Score
WeakIRTC struggles to sustain strong margins.
Key Financial Metrics
Is IRTC Expensive or Cheap?
P/E Ratio
IRTC trades at -299.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IRTC's PEG of -1.24 indicates potential undervaluation.
Price to Book
The market values iRhythm Technologies, Inc. at 22.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 186.55 times EBITDA. This signals the market has high growth expectations.
How Well Does IRTC Make Money?
Net Profit Margin
For every $100 in sales, iRhythm Technologies, Inc. keeps $-1.69 as profit after all expenses.
Operating Margin
Core operations generate -1.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.97 in profit for every $100 of shareholder equity.
ROA
iRhythm Technologies, Inc. generates $-1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
iRhythm Technologies, Inc. produces operating cash flow of $85.92M, showing steady but balanced cash generation.
Free Cash Flow
iRhythm Technologies, Inc. produces free cash flow of $38.94M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
IRTC converts 0.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-299.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.09
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How IRTC Stacks Against Its Sector Peers
| Metric | IRTC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -299.42 | 30.97 | Better (Cheaper) |
| ROE | -8.97% | 515.00% | Weak |
| Net Margin | -1.69% | 30197.00% | Weak |
| Debt/Equity | 3.91 | 0.53 | Weak (High Leverage) |
| Current Ratio | 3.87 | 5.71 | Strong Liquidity |
| ROA | -1.28% | -16.00% (disorted) | Weak |
IRTC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews iRhythm Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
144.35%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
11.85%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
609.67%
Industry Style: Defensive, Growth, Innovation
High Growth