While growth is established for NASDAQ:ACAD, the stock's valuation remains reasonable.

Last update: Feb 17, 2025

Consider ACADIA PHARMACEUTICALS INC (NASDAQ:ACAD) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ACAD is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

A Closer Look at Growth for NASDAQ:ACAD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ACAD, the assigned 7 reflects its growth potential:

The Earnings Per Share has grown by an impressive 184.78% over the past year.
The Revenue has grown by 47.05% in the past year. This is a very strong growth!
The Revenue has been growing by 26.55% on average over the past years. This is a very strong growth!
Based on estimates for the next years, ACAD will show a very strong growth in Earnings Per Share. The EPS will grow by 53.74% on average per year.
Based on estimates for the next years, ACAD will show a quite strong growth in Revenue. The Revenue will grow by 14.36% on average per year.

Unpacking NASDAQ:ACAD's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:ACAD was assigned a score of 7 for valuation:

Based on the Price/Earnings ratio, ACAD is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
ACAD's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACAD is cheaper than 92.72% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, ACAD is valued cheaper than 95.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACAD indicates a rather cheap valuation: ACAD is cheaper than 96.98% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ACAD may justify a higher PE ratio.
A more expensive valuation may be justified as ACAD's earnings are expected to grow with 70.84% in the coming years.

Evaluating Health: NASDAQ:ACAD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ACAD scores a 7 out of 10:

ACAD has an Altman-Z score of 3.52. This indicates that ACAD is financially healthy and has little risk of bankruptcy at the moment.
ACAD has a better Altman-Z score (3.52) than 76.73% of its industry peers.
There is no outstanding debt for ACAD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ACAD has a Current Ratio of 2.29. This indicates that ACAD is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.11 indicates that ACAD has no problem at all paying its short term obligations.

Assessing Profitability for NASDAQ:ACAD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ACAD, the assigned 6 is a significant indicator of profitability:

With an excellent Return On Assets value of 13.15%, ACAD belongs to the best of the industry, outperforming 97.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.26%, ACAD belongs to the top of the industry, outperforming 97.51% of the companies in the same industry.
ACAD's Return On Invested Capital of 14.01% is amongst the best of the industry. ACAD outperforms 97.16% of its industry peers.
The Profit Margin of ACAD (13.83%) is better than 96.09% of its industry peers.
ACAD has a better Operating Margin (12.08%) than 95.38% of its industry peers.
ACAD has a better Gross Margin (91.61%) than 93.78% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ACAD

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.