Navigating Intra-Cellular Therapies (ITCI) Stock – A Comprehensive Guide

It's been a great morning session for Intra-Cellular Therapies investors, who saw their shares rise 2.9% to a price of $74.11 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.

Intra-Cellular Therapies's Valuation Is in Line With Its Sector Averages:

Intra-Cellular Therapies, Inc., a biopharmaceutical company, focuses on the discovery, clinical development, and commercialization of small molecule drugs that address medical needs primarily in neuropsychiatric and neurological disorders by targeting intracellular signaling mechanisms in the central nervous system (CNS) in the United States. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 30.21 and an average price to book (P/B) ratio of 4.08. In contrast, Intra-Cellular Therapies has a trailing 12 month P/E ratio of -50.8 and a P/B ratio of 12.08.

When we divide Intra-Cellular Therapies's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -1.05. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.

Negative Cash Flows:

2018 2019 2020 2021 2022 2023
Revenue (k) n/a $61 $22,813 $83,803 $250,314 $464,370
Operating Margins n/a -254090.0% -1014.0% -341.0% -105.0% -34.0%
Net Margins n/a -243714.0% -994.0% -339.0% -102.0% -30.0%
Net Income (k) -$155,127 -$147,722 -$227,006 -$284,126 -$256,256 -$139,674
Diluted Shares (k) 54,708 55,186 70,365 81,253 94,047 95,882
Earnings Per Share -$2.84 -$2.68 -$3.23 -$3.5 -$2.72 -$1.46
EPS Growth n/a 5.63% -20.52% -8.36% 22.29% 46.32%
Avg. Price $19.21 $11.78 $22.78 $37.14 $54.41 $73.545
P/E Ratio -6.76 -4.4 -7.05 -10.61 -20.0 -50.37
Free Cash Flow (k) -$118,560 -$128,684 -$230,340 -$259,869 -$270,964 -$124,468
CAPEX (k) $391 $700 $267 $325 $778 $269
Current Ratio 9.79 6.36 18.75 8.76 8.87 5.41

Intra-Cellular Therapies has an excellent current ratio of 5.41, rapidly growing revenues and decreasing reinvestment in the business, and a strong EPS growth trend. However, the firm has negative cash flows. Finally, we note that Intra-Cellular Therapies has weak operating margins with a positive growth rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.