U.S. Markets closed

Is Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) Potentially Underrated?

Simply Wall St

Intra-Cellular Therapies, Inc. ( NASDAQ:ITCI ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ITCI, it is a company with robust financial health as well as a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Intra-Cellular Therapies here .

Flawless balance sheet with high growth potential

One reason why investors are attracted to ITCI is its notable earnings growth potential in the near future of 56%. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. ITCI's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ITCI manages its cash and cost levels well, which is a key determinant of the company’s health. ITCI currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGS:ITCI Past and Future Earnings, July 22nd 2019

Next Steps:

For Intra-Cellular Therapies, I've compiled three important aspects you should further examine:

  1. Historical Performance : What has ITCI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation : What is ITCI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ITCI is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ITCI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.