ACADIA Pharmaceuticals Inc. (ACAD) Fundamental Analysis: Bull vs. Bear Case

ACAD

ACADIA Pharmaceuticals Inc.

Fundamental data last updated:June 10, 2026

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company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/05/2026

Business 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. The company offers NUPLAZID (pimavanserin) for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis. It's pipeline include, pimavanserin, under phase 3 development for the treatment of Alzheimer's disease psychosis, and negative symptoms of schizophrenia; Trofinetide, a novel synthetic analog, under phase 3 development for the treatment of Rett syndrome; ACP-044, a novel first-in-class orally administered non-opioid analgesic, under phase 2 development for treating acute and chronic pain; and ACP-319, a positive allosteric modulator of the muscarinic receptor, under phase 1 development for treating schizophrenia and cognition in Alzheimer's. ACADIA Pharmaceuticals Inc. was founded in 1993 and is headquartered in San Diego, California.

VALUATION

P/E

9.82 Market Cap ($M USD)

$3.70B

Forward P/E

9.14 PEG

1.23 PRICE TO SALES

3.38 PRICE TO BOOK

2.96 EV / EBITDA

33.21 5-Year Average P/E

Free Cash Flow Yield

5.74%

DCF Value

$-38.12

Graham Number

$19.05

Price to FCF

17.44 EV to FCF

16.35 Earnings Yield

10.18%

FCF Yield

5.74%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.20

Next Year EPS Growth Estimate

$2.37

Next Year Revenue Growth Estimate

$179.70B

Return on Equity (ROE)

35.65%

FREE CASH FLOW

Operating Margin

7.39%

Debt-to-Equity

0.04 Piotroski F-Score

4 Altman Z-Score

5.99 Return on Invested Capital (ROIC)

6.22%

Current Ratio

3.59 Quick Ratio

3.48 Net Debt to EBITDA

-2.21

Interest Coverage

0.00 Gross Profit margin

91.47%

FCF PER SHARE

$1.25

REVENUE PER SHARE

$6.42

Gainseekers Quantitative Analysis

Summary

ACADIA Pharmaceuticals Inc. presents a perplexing valuation scenario. Despite a robust Altman Z-score of 6.34 indicating financial stability, the stock’s market price has been trading below its DCF value, suggesting potential undervaluation. The Forward P/E of 9.44 and an Earnings Yield of 9.83% further reinforce its appeal as a value play. However, the Graham Number of 19.05 implies a more conservative intrinsic value, hinting at possible overvaluation. The market seems to be pricing in significant growth, yet the company’s fundamentals suggest a cautious approach.

AI Exposure / Tech Reliance

Operating within the biotechnology sector, ACADIA is well-positioned to leverage AI and tech advancements. The industry’s inherent focus on innovation and research provides a fertile ground for integrating cutting-edge technologies. This adaptability is crucial for maintaining competitive advantage in a rapidly evolving landscape.

The Bull Case

For the discerning GARP investor, ACADIA offers compelling reasons to buy. With a Return on Equity of 35.65%, the company demonstrates exceptional capital efficiency, translating into strong shareholder returns. The Free Cash Flow Yield of 5.54% and a Piotroski F-Score of 4 indicate solid financial health and operational efficiency. Coupled with a Gross Profit Margin of 91.47%, ACADIA showcases impressive pricing power, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, ACADIA is not without risks. The EV to EBITDA ratio of 34.47 suggests a potentially overextended valuation, raising concerns about its ability to generate sufficient earnings relative to its enterprise value. Additionally, the Price to Sales ratio of 3.50 and Price to Book ratio of 3.06 indicate a premium valuation that may not be justified by its current earnings trajectory. Investors should be wary of these high multiples, which could signal vulnerability if growth expectations are not met.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$34.78

Institutional Ownership %

1-Year Beta

0.86 Insider Buying % (6 Mo)

Distance to 52-Week High

31.07%

Distance to 52-Week Low

8.97%

EARNINGS SURPRISE %

-50.00%

50-DAY SMA

$21.73

200-DAY SMA

$23.59

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.