ACADIA Pharmaceuticals Inc. Fundamental Analysis (NASDAQ: ACAD)
ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) shows strong financial fundamentals with a PE ratio of 12.02, profit margin of 34.30%, and ROE of 35.65%. The company generates $1.1B in annual revenue with strong year-over-year growth of 11.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ACAD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentACAD demonstrates superior asset utilization.
Valuation Score
ExcellentACAD trades at attractive valuation levels.
Growth Score
ExcellentACAD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentACAD maintains a strong and stable balance sheet.
Profitability Score
ExcellentACAD achieves industry-leading margins.
Key Financial Metrics
Is ACAD Expensive or Cheap?
P/E Ratio
ACAD trades at 12.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACAD's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values ACADIA Pharmaceuticals Inc. at 3.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 38.00 times EBITDA. This signals the market has high growth expectations.
How Well Does ACAD Make Money?
Net Profit Margin
For every $100 in sales, ACADIA Pharmaceuticals Inc. keeps $34.30 as profit after all expenses.
Operating Margin
Core operations generate 7.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.65 in profit for every $100 of shareholder equity.
ROA
ACADIA Pharmaceuticals Inc. generates $23.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ACADIA Pharmaceuticals Inc. produces operating cash flow of $124.01M, showing steady but balanced cash generation.
Free Cash Flow
ACADIA Pharmaceuticals Inc. generates strong free cash flow of $213.33M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.25 in free cash annually.
FCF Yield
ACAD converts 4.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ACAD Stacks Against Its Sector Peers
| Metric | ACAD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.02 | 30.56 | Better (Cheaper) |
| ROE | 35.65% | 454.00% | Weak |
| Net Margin | 34.30% | -14987.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 3.59 | 5.29 | Strong Liquidity |
| ROA | 23.40% | 2930105.00% | Weak |
ACAD outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ACADIA Pharmaceuticals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.36%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
229.01%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
174.95%
Industry Style: Defensive, Growth, Innovation
High Growth