Acadia Pharmaceuticals Inc (NASDAQ: ACAD)

Sector: Healthcare Industry: Biotechnology CIK: 0001070494
Market Cap 4.48 Bn
P/B 4.88
P/E 17.14
P/S 4.28
ROIC (Qtr) 42.44
Div Yield % 0.00
Rev 1y % (Qtr) 11.27
Total Debt (Qtr) 43.03 Mn
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 198.95M provides robust 4.62x coverage of total debt 43.03M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 1.22B provides 28.34x coverage of total debt 43.03M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 197.81M exceeds capital expenditure of 1.14M by 173.82x, indicating strong organic growth funding capability.
  • Short-term investments of 589.02M provide solid 1.76x coverage of other current liabilities 334.84M, indicating strong liquidity.
  • Operating cash flow of 198.95M fully covers other non-current liabilities 13.89M by 14.32x, showing strong long-term stability.

Bear case

  • Operating cash flow of 198.95M barely covers its investment activities of (124.55M), with a coverage ratio of -1.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (124.55M) provide weak support for R&D spending of 344.78M, which is -0.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 198.95M shows concerning coverage of stock compensation expenses of 49.35M, with a 4.03 ratio indicating potential earnings quality issues.
  • Operating cash flow of 198.95M barely covers operating expenses of (146.51M) with a -1.36 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of (2.09B) provide limited buffer against comprehensive income items of 989000, which is -2110.17x, indicating elevated exposure to market risks.

Customer Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.20 12.96
EV to Cash from Ops. EV/CFO 21.40 23.73
EV to Debt EV to Debt 98.96 772.65
EV to EBIT EV/EBIT 15.56 -11.30
EV to EBITDA EV/EBITDA 16.70 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 21.53 22.12
EV to Market Cap EV to Market Cap 0.95 68.89
EV to Revenue EV/Rev 4.07 199.70
Price to Book Value [P/B] P/B 4.88 22.62
Price to Earnings [P/E] P/E 17.14 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,525.71 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 63.17 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 103.24 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 104.73 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 100.21 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 100.21 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 101.28 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -2.39 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.07 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.79 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.75 3.79
Current Ratio Curr Ratio (Qtr) 3.02 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.50 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 26.14 -18,862.18
EBT Margin % EBT Margin % (Qtr) 26.14 -19,783.19
Gross Margin % Gross Margin % (Qtr) 91.90 -8.62
Net Profit Margin % Net Margin % (Qtr) 24.90 -19,732.60