I’ve been keeping an eye on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ACAD has a lot to offer. Basically, it is a company with robust financial health as well as a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on ACADIA Pharmaceuticals here.
Flawless balance sheet with high growth potential
ACAD is an attractive stock for growth-seeking investors, with an expected earnings growth of 74% in the upcoming year. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. ACAD’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ACAD currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$2.7b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For ACADIA Pharmaceuticals, I’ve put together three essential aspects you should look at:
- Historical Performance: What has ACAD’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ACAD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ACAD is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACAD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.