Intra-Cellular Therapies Inc (ITCI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization that now stands at $6.83 billion. The current price of the stock is $70.94, reflecting a 2.10% gain over the past week and an impressive 26.71% gain over the past three months. Despite these gains, the GF Value of the stock is $223.02, which is significantly higher than the current price, suggesting that the stock might be undervalued. However, the GF Valuation status remains as a "Possible Value Trap, Think Twice," both currently and in the past, indicating that investors should approach with caution.
Introduction to Intra-Cellular Therapies Inc
Intra-Cellular Therapies Inc, operating within the drug manufacturers industry, is a biopharmaceutical company dedicated to developing innovative treatments for central nervous system diseases. The company's focus on neuropsychiatric and neurological disorders, supported by proprietary chemistry platforms, positions it at the forefront of addressing unmet medical needs in neurodegenerative diseases. Intra-Cellular's primary business segment involves the discovery and development of drugs for neurological and psychiatric disorders, a field that is both challenging and potentially rewarding.
Assessing Profitability
Despite the promising stock performance, Intra-Cellular Therapies Inc's Profitability Rank is low at 1/10. The company's operating margin stands at a negative 41.31%, which, while better than 19.02% of 1,036 companies in the industry, indicates significant room for improvement. The Return on Equity (ROE) is also in the negative at -24.41%, surpassing only 21.5% of its peers. Similarly, the Return on Assets (ROA) and Return on Invested Capital (ROIC) are at -21.02% and -139.46%, respectively, suggesting that the company is currently struggling to generate profit relative to its assets and invested capital.
Growth Prospects and Industry Comparison
When it comes to growth, Intra-Cellular Therapies Inc's figures are less than ideal. The 3-Year EPS without NRI Growth Rate is at -0.50%, which is better than 33.45% of 846 companies in the same industry. The 5-Year EPS without NRI Growth Rate is even lower at -6.10%, outperforming only 23.78% of 614 companies. These growth rates, while not the lowest in the industry, indicate that Intra-Cellular has struggled to increase its earnings over the past few years.
Notable Shareholders
Among the notable holders of Intra-Cellular Therapies Inc stock, Jim Simons (Trades, Portfolio) leads with 264,000 shares, representing a 0.27% share percentage. Following him is Paul Tudor Jones (Trades, Portfolio), holding 36,279 shares, which translates to a 0.04% share percentage. Jefferies Group (Trades, Portfolio) holds a minimal stake with only 160 shares, amounting to a 0% share percentage. These investors' involvement may provide some confidence in the stock, but their relatively small share percentages also suggest a cautious approach to the company's future prospects.
Competitive Landscape
In comparison to its competitors, Intra-Cellular Therapies Inc holds its own with a market cap of $6.83 billion. Elanco Animal Health Inc (ELAN, Financial) has a slightly higher market cap at $7.22 billion, while Lantheus Holdings Inc (LNTH, Financial) and Alkermes PLC (ALKS, Financial) have lower market caps of $4.07 billion and $4.68 billion, respectively. This places Intra-Cellular in a competitive position within the industry, with room to grow and potentially surpass its closest rivals.
Conclusion
In summary, Intra-Cellular Therapies Inc has seen a significant stock price increase over the past three months, but its financial health and profitability raise concerns. The company's growth prospects are not particularly strong when compared to industry standards, and its significant shareholders hold relatively small percentages of the stock. When considering the competitive landscape, Intra-Cellular's market cap is competitive, but its performance must be carefully monitored in the context of its financial metrics and industry position. Investors should weigh these factors and the GF Valuation status before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
