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iRhythm Holdings, Inc. (IRTC) stock analysis

IRTCNasdaqSurgical & Medical Instruments & ApparatusFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 9/300% below fair value
$93.56+4.88 (+5.50%)

Close on Nov 12, 2026Market cap $3.08BP/E –Yield –

StockData Score

Prices as of Nov 12, 2026How the score works

Value1Growth4Performance3Health1Dividend0

Mixed9 of 30 checks passed

iRhythm passes 9 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
4/6
Past performance
3/6
Financial health
1/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $93.56 is below our fair value estimate of $93.67.

  • Revenue growing 10%+ a year

    Revenue grew 22.1% a year over the last three fiscal years.

  • Guidance raised

    iRhythm raised its full year 2026 revenue outlook on Apr 30, 2026.

  • Growing faster than the industry

    Revenue grew 21.6% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 10.6%.

What to watch

  • Margin of safety under 20%

    The price is 0.1% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was -25.8% over the last twelve months and averaged -48.8% over five years; we look for 15% on both.

  • Interest not well covered

    Operating income covers interest expense -3.7 times; we look for at least 5.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.15; above 3 is the safe zone and below 1.8 the distress zone.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    iRhythm's price-to-book of 17.41 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.41.

  • Trading below fair value

    The share price of $93.56 is below our fair value estimate of $93.67.

  • Margin of safety under 20%

    The price is 0.1% below fair value, less than the 20% cushion we look for.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 22.1% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 21.6% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 10.6%.

  • Guidance raised

    iRhythm raised its full year 2026 revenue outlook on Apr 30, 2026.

  • Gross margin improving

    Gross margin was 72.3% over the last twelve months, against 70.4% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was -25.8% over the last twelve months and averaged -48.8% over five years; we look for 15% on both.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity above the industry

    iRhythm's return on equity of -25.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -30.2%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -4.5% over the last twelve months, against a 5-year average of -22.0%.

  • Net margin above the industry

    iRhythm's net margin of -4.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -13.5%.

Financial health1/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest not well covered

    Operating income covers interest expense -3.7 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 3.57 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.15; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    iRhythm has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$93.67

The share price is 0% below this estimate.

20%+ below
Near fair value
20%+ above
$93.56Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B11.1×18.7×3.4×$59.6550%
P/S4.9×7.1×2.7×$127.6850%
Fair value$93.67100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/B at month end
  • Own 5-year median 18.7
  • Surgical, Medical, and Dental Instruments and Supplies median 3.4

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$85.35M
Value traded per 1% price move
$33.62M

Downside

Medium risk

Typical loss in a bad month
22.7%
Volatility (annualized)
54%
Sharpe ratio, 1 year
-0.95
Beta to the S&P 500 (5Y)
1.20

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2013 to 2025

Gross margin

70.6%−2.9 pts over 5 years

Operating margin

-7.7%+8.8 pts over 5 years

Net margin

-6.0%+10.6 pts over 5 years

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