NasdaqGS:ACAD

Stock Analysis Report

Executive Summary

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders.

Rewards

Trading at 70.1% below its fair value

Earnings are forecast to grow 73.47% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

How has ACADIA Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACAD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

ACAD

0.1%

US Biotechs

1.1%

US Market


1 Year Return

149.1%

ACAD

14.7%

US Biotechs

17.8%

US Market

Return vs Industry: ACAD exceeded the US Biotechs industry which returned 14.7% over the past year.

Return vs Market: ACAD exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

ACADIndustryMarket
7 Day2.9%0.1%1.1%
30 Day8.6%9.0%1.4%
90 Day11.8%15.2%3.9%
1 Year149.1%149.1%15.7%14.7%20.3%17.8%
3 Year86.0%86.0%28.4%24.3%44.8%35.4%
5 Year54.1%54.1%10.2%5.0%71.3%52.4%

Price Volatility Vs. Market

How volatile is ACADIA Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ACADIA Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACAD ($46.26) is trading below our estimate of fair value ($154.6)

Significantly Below Fair Value: ACAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACAD is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: ACAD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACAD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACAD is overvalued based on its PB Ratio (10.3x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is ACADIA Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

73.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACAD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ACAD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACAD's is expected to become profitable in the next 3 years.

Revenue vs Market: ACAD's revenue (41.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ACAD's revenue (41.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACAD's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has ACADIA Pharmaceuticals performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACAD is currently unprofitable.

Growing Profit Margin: ACAD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACAD is unprofitable, and losses have increased over the past 5 years at a rate of -16.9% per year.

Accelerating Growth: Unable to compare ACAD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACAD is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: ACAD has a negative Return on Equity (-35.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ACADIA Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: ACAD's short term assets ($742.3M) exceed its short term liabilities ($67.7M).

Long Term Liabilities: ACAD's short term assets ($742.3M) exceed its long term liabilities ($8.6M).


Debt to Equity History and Analysis

Debt Level: ACAD is debt free.

Reducing Debt: ACAD has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ACAD has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACAD's debt is covered by short term assets (assets are 4.1789463892323E+17x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ACAD has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ACAD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is ACADIA Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ACAD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ACAD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACAD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACAD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACAD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ACADIA Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Steve Davis (58yo)

4.3yrs

Tenure

US$6,508,032

Compensation

Mr. Stephen R. Davis, also known as Steve, J.D., serves as the Director at Heron Therapeutics Inc. since October 2019. He has been the Chief Executive Officer of ACADIA Pharmaceuticals, Inc. since Septembe ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD6.51M) is about average for companies of similar size in the US market ($USD6.70M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ACAD's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: ACAD's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: ACAD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$62,500,00020 Sep 19
Baker Bros. Advisors LP
EntityCompany
Shares1,562,500
Max PriceUS$40.00
SellUS$191,28111 Sep 19
Eric Miller
EntityIndividual
Shares4,645
Max PriceUS$41.18

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.5%.


Management Team

  • Steve Davis (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$6.51m
  • Eliseo Salinas (63yo)

    Senior VP

    • Tenure: 1.3yrs
  • Elena Ridloff (39yo)

    Executive VP

    • Tenure: 1.2yrs
  • Serge Stankovic (62yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$5.68m
  • Ryan Brown

    Chief Compliance Officer & VP

    • Tenure: 4.3yrs
  • Bob Mischler

    Senior Vice President of Strategy & Technology Operations

    • Tenure: 0yrs
  • Mark Johnson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Michael Yang (57yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 2.8yrs
    • Compensation: US$3.18m
  • Austin Kim (55yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$2.13m
  • Charmaine Lykins

    Senior Vice President of Marketing

    • Tenure: 0.6yrs

Board Members

  • Laura Brege (61yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$793.63k
  • Steve Davis (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$6.51m
  • Jim Baker (52yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$231.28k
  • Paul Anderson (80yo)

    Member of the Scientific and Clinical Advisory Board

    • Tenure: 0yrs
  • Ed Harrigan (66yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$394.55k
  • Dan Soland (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$412.57k
  • Arvid Carlsson (96yo)

    Member of the Scientific and Clinical Advisory Board

    • Tenure: 0yrs
  • Carol Tamminga

    Member of the Scientific and Clinical Advisory Board

    • Tenure: 0yrs
  • Herb Meltzer

    Member of the Scientific and Clinical Advisory Board

    • Tenure: 0yrs
  • Stephen Biggar (48yo)

    Independent Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$276.28k

Company Information

ACADIA Pharmaceuticals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ACADIA Pharmaceuticals Inc.
  • Ticker: ACAD
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$7.124b
  • Shares outstanding: 154.03m
  • Website: https://www.acadia-pharm.com

Number of Employees


Location

  • ACADIA Pharmaceuticals Inc.
  • 3611 Valley Centre Drive
  • Suite 300
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACADNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2004
DR6DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:55
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.