Taking everything into account, ACAD scores 5 out of 10 in our fundamental rating. ACAD was compared to 525 industry peers in the Biotechnology industry. ACAD has an excellent financial health rating, but there are some minor concerns on its profitability. ACAD is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ACAD had positive earnings in the past year.
In the past year ACAD had a positive cash flow from operations.
ACAD had negative earnings in each of the past 5 years.
In the past 5 years ACAD always reported negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 19.63%, ACAD belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
ACAD has a better Return On Equity (28.47%) than 97.52% of its industry peers.
ACAD has a Return On Invested Capital of 7.66%. This is amongst the best in the industry. ACAD outperforms 93.90% of its industry peers.

		Industry Rank	Sector Rank
ROA	19.63%
ROE	28.47%
ROIC	7.66%

ROA(3y)-13.43%

ROA(5y)-20.05%

ROE(3y)-13.54%

ROE(5y)-23.31%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

ACAD has a better Profit Margin (24.94%) than 95.05% of its industry peers.
ACAD's Operating Margin of 9.02% is amongst the best of the industry. ACAD outperforms 91.24% of its industry peers.
With an excellent Gross Margin value of 91.92%, ACAD belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
ACAD's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	9.02%
PM (TTM)	24.94%
GM	91.92%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.57%

GM growth 5Y2.57%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACAD is destroying value.
ACAD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACAD has more shares outstanding
There is no outstanding debt for ACAD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 6.06 indicates that ACAD is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACAD (6.06) is better than 75.24% of its industry peers.
ACAD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	6.06

ROIC/WACC0.86

WACC8.88%

2.3 Liquidity

ACAD has a Current Ratio of 3.02. This indicates that ACAD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.02, ACAD is doing worse than 63.81% of the companies in the same industry.
ACAD has a Quick Ratio of 2.94. This indicates that ACAD is financially healthy and has no problem in meeting its short term obligations.
ACAD's Quick ratio of 2.94 is on the low side compared to the rest of the industry. ACAD is outperformed by 62.48% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.02
Quick Ratio	2.94

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ACAD have decreased strongly by -14.10% in the last year.
The Revenue has grown by 121.75% in the past year. This is a very strong growth!

EPS 1Y (TTM)-14.1%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%110%

Revenue 1Y (TTM)121.75%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%11.27%

3.2 Future

The Earnings Per Share is expected to grow by 39.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, ACAD will show a quite strong growth in Revenue. The Revenue will grow by 10.47% on average per year.

EPS Next Y72.27%

EPS Next 2Y29.66%

EPS Next 3Y34.82%

EPS Next 5Y39.4%

Revenue Next Year11.07%

Revenue Next 2Y11.43%

Revenue Next 3Y11.27%

Revenue Next 5Y10.47%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

ACAD is valuated quite expensively with a Price/Earnings ratio of 40.06.
Based on the Price/Earnings ratio, ACAD is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACAD to the average of the S&P500 Index (27.21), we can say ACAD is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.26, which means the current valuation is very expensive for ACAD.
Based on the Price/Forward Earnings ratio, ACAD is valued cheaper than 91.81% of the companies in the same industry.
ACAD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	40.06
Fwd PE	33.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ACAD is valued cheaply inside the industry as 92.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACAD indicates a rather cheap valuation: ACAD is cheaper than 95.24% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.86
EV/EBITDA	28.63

4.3 Compensation for Growth

ACAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACAD has a very decent profitability rating, which may justify a higher PE ratio.
ACAD's earnings are expected to grow with 34.82% in the coming years. This may justify a more expensive valuation.