U.S. Markets open in 8 hrs 13 mins
  • S&P Futures

    3,834.50
    +9.00 (+0.24%)
     
  • Dow Futures

    30,990.00
    +57.00 (+0.18%)
     
  • Nasdaq Futures

    11,717.75
    +43.50 (+0.37%)
     
  • Russell 2000 Futures

    1,742.60
    +4.30 (+0.25%)
     
  • Crude Oil

    111.30
    -0.46 (-0.41%)
     
  • Gold

    1,822.00
    +0.80 (+0.04%)
     
  • Silver

    20.73
    -0.08 (-0.37%)
     
  • EUR/USD

    1.0513
    -0.0012 (-0.1156%)
     
  • 10-Yr Bond

    3.2060
    0.0000 (0.00%)
     
  • Vix

    28.36
    +1.41 (+5.23%)
     
  • GBP/USD

    1.2198
    +0.0014 (+0.1134%)
     
  • USD/JPY

    136.1030
    -0.0250 (-0.0184%)
     
  • BTC-USD

    20,278.82
    -477.99 (-2.30%)
     
  • CMC Crypto 200

    439.64
    -10.43 (-2.32%)
     
  • FTSE 100

    7,323.41
    +65.09 (+0.90%)
     
  • Nikkei 225

    26,747.40
    -302.07 (-1.12%)
     

Those who invested in Intra-Cellular Therapies (NASDAQ:ITCI) five years ago are up 457%

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. Just think about the savvy investors who held Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) shares for the last five years, while they gained 457%. If that doesn't get you thinking about long term investing, we don't know what will. It's also up 13% in about a month. We note that Intra-Cellular Therapies reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for Intra-Cellular Therapies

Intra-Cellular Therapies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

For the last half decade, Intra-Cellular Therapies can boast revenue growth at a rate of 87% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 41% per year in that time. It's never too late to start following a top notch stock like Intra-Cellular Therapies, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

Intra-Cellular Therapies is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

It's good to see that Intra-Cellular Therapies has rewarded shareholders with a total shareholder return of 48% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 41% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for Intra-Cellular Therapies that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.