* Note: Prices are in Million (M) USD.
Description:
iRhythm Technologies, Inc. is a leading digital healthcare company based in San Francisco, California, specializing in advanced ambulatory electrocardiogram (ECG) monitoring solutions tailored for patients at risk of arrhythmias. Leveraging cutting-edge technology and proprietary algorithms, iRhythm delivers timely and accurate cardiac monitoring that enhances patient care and improves clinical outcomes. With a robust product portfolio and a steadfast commitment to innovation, the company is strategically positioned to transform cardiovascular diagnostics and streamline cardiac health management in the United States, solidifying its status as a vital contributor in the dynamic healthcare sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $256 M
Debt : $665 M
EBITDA : $-15 M
Net Debt (Debt - Cash): $410 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Medical devices
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 12 overlapping fiscal years (max 20).Average Free Cash Flow: $-36 M
Average Revenue: $223 M
Revenue Converted To Free Cash Flow (%): -16.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $592 M
Revenue 5 Years Ago (2019-12-31): $215 M
Total Growth over 5 Years: 175.8%
5-Year Revenue CAGR (Historical): 22.5%
Forward 5-Year CAGR (Tapered): 15.7%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $31 M
Share Count 5 Years Ago (2020-12-31): $28 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.28
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.28
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 11 valid ROE years (max 20).Average ROE: -89.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $177.82
52-Week Low: $74.31
Threshold Price (15% Above 52-Week Low): $85.46
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,729 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-09-30): $1.04
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 11 points to above iRhythm Technologies Inc (IRTC) stock.
Fair Value PE 12, Industry Based PE 18, Growth Based PE 15.75, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 4 values, average assigned is 16.06. The fair value of iRhythm Technologies Inc (IRTC) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
