Those who invested in Intra-Cellular Therapies (NASDAQ:ITCI) three years ago are up 230%

By
Simply Wall St
Published
January 20, 2022
NasdaqGS:ITCI
Source: Shutterstock

Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) shareholders have seen the share price descend 15% over the month. But in three years the returns have been great. In fact, the share price is up a full 230% compared to three years ago. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

View our latest analysis for Intra-Cellular Therapies

Intra-Cellular Therapies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last 3 years Intra-Cellular Therapies saw its revenue grow at 134% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 49% compound over three years. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:ITCI Earnings and Revenue Growth January 20th 2022

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Intra-Cellular Therapies shareholders have received a total shareholder return of 20% over the last year. However, that falls short of the 23% TSR per annum it has made for shareholders, each year, over five years. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Intra-Cellular Therapies has 2 warning signs we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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