Itaconix (ITX) AI Stock Analysis

• Market Cap: £14.16M
• Dividend Yield: N/A
• Average Volume (3M): 8.44K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 25.56%
• EPS Growth: 35.12%
• Country: UK
• Employees: 22
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 13,486,122
• 10 Day Avg. Volume: 5,573
• 30 Day Avg. Volume: 8,435
• PEG Ratio: -0.24
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 3.42
• P/FCF Ratio: -6.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £325.00
• Price Target Upside: 209.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ―

Itaconix's overall score is driven by its financial performance and technical analysis. While the company shows revenue growth and a path to profitability, it faces significant challenges with profitability and bearish market momentum. The optimistic earnings call provides some positive outlook, but valuation concerns persist.

Itaconix Business Overview & Revenue Model

Company Description

Itaconix (ITX) is a sustainable materials company that specializes in the development and production of innovative biopolymers derived from renewable resources. Operating primarily in the specialty chemicals sector, Itaconix focuses on delivering eco-friendly alternatives for various applications, including personal care, household products, and industrial uses. The company's core products include biodegradable polymers that serve as thickeners, binders, and film-forming agents, offering a sustainable solution to traditional petrochemical-based materials.

How the Company Makes Money

Itaconix generates revenue through the sale of its biopolymer products to manufacturers in various industries, including personal care, cleaning, and agriculture. The company utilizes a business-to-business (B2B) sales model, where it partners with manufacturers looking to incorporate sustainable ingredients into their formulations. Key revenue streams include direct sales of their proprietary products and licensing agreements with partners who wish to utilize Itaconix's technology in their own production processes. Additionally, Itaconix may benefit from strategic partnerships with larger companies seeking to enhance their sustainability efforts, which can lead to increased sales volume and market penetration.

Itaconix Financial Statement Overview

Summary

Itaconix shows revenue growth and a solid equity base, but faces challenges with profitability and cash flow sustainability. Despite low leverage, the company struggles to achieve positive net income and free cash flow, impacting long-term financial stability.

Income Statement

The company shows a modest revenue growth from $6.22M in 2023 to $6.50M in 2024, indicating a positive trend. However, the net income remains negative, with a net profit margin of -28.68% in 2024, suggesting ongoing profitability challenges. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects strong equity with a debt-to-equity ratio of 0.21, implying low financial leverage and reduced risk. The equity ratio is 70.80%, indicating a stable capital structure. However, the company has negative net income, which impacts return on equity calculations.

Cash Flow

The free cash flow is negative, showing a decline, which is a concern for liquidity. However, the operating cash flow to net income ratio is unavailable due to negative values, complicating cash flow assessment. The company has managed to secure substantial financing cash flows in 2023, improving liquidity temporarily.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.28M	6.50M	6.17M	4.57M	2.60M	2.42M
Gross Profit	3.04M	2.26M	1.93M	1.49M	518.89K	847.62K
EBITDA	-1.31M	-1.52M	-1.06M	-1.78M	-58.17K	-885.54K
Net Income	-1.59M	-1.86M	-1.54M	-2.01M	-330.83K	-1.28M
Balance Sheet
Total Assets	10.12M	13.18M	11.98M	2.06M	2.43M	3.32M
Cash, Cash Equivalents and Short-Term Investments	4.12M	6.73M	6.86M	493.85K	506.29K	1.06M
Total Debt	1.36M	1.97M	2.24M	247.34K	366.19K	651.51K
Total Liabilities	3.22M	3.85M	3.10M	2.69M	1.95M	3.78M
Stockholders Equity	6.91M	9.33M	8.88M	-631.78K	481.09K	-459.07K
Cash Flow
Free Cash Flow	-1.95M	-3.34M	-2.18M	-226.62K	-1.55M	-849.83K
Operating Cash Flow	-1.61M	-2.75M	-1.38M	―	-1.50M	-849.83K
Investing Cash Flow	2.70M	5.95M	-6.20M	―	-34.90K	15.60K
Financing Cash Flow	-441.15K	-279.00K	9.16M	156.52K	968.11K	1.34M

Itaconix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITX, the sentiment is Negative. The current price of 105 is below the 20-day moving average (MA) of 107.85, below the 50-day MA of 119.85, and below the 200-day MA of 122.08, indicating a bearish trend. The MACD of -4.07 indicates Negative momentum. The RSI at 29.46 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ITX.

Itaconix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOF	70 Neutral	£47.48M	12.63	10.25%	―	8.48%	29.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HAYD	55 Neutral	£29.61M	―	-92.35%	―	-27.64%	35.09%
ITX	50 Neutral	£14.16M	―	-12.88%	―	25.56%	35.12%
DCTA	49 Neutral	£9.01M	―	-78.76%	―	-24.85%	40.28%
HDD	46 Neutral	£5.81M	―	-11.10%	―	14.51%	77.27%
GEX	31 Underperform	£6.06M	―	―	―	―	―

Itaconix Corporate Events

Itaconix Releases 2024 Accounts and Announces AGM

Itaconix has announced the availability of its statutory accounts for the year ended December 31, 2024, along with a Notice of Annual General Meeting (AGM) on its website. The AGM is scheduled for May 8, 2025, in London, providing shareholders with an opportunity to engage with the company’s performance and future direction.

Spark’s Take on GB:ITX Stock

According to Spark, TipRanks’ AI Analyst, GB:ITX is a Neutral.

Itaconix faces significant profitability and cash flow challenges despite revenue growth and a strong equity base. Technical indicators show bearish trends, and valuation metrics are weak. However, strategic initiatives and product innovations offer a positive future outlook, slightly boosting the overall score.

To see Spark’s full report on GB:ITX stock, click here.

Itaconix Navigates US Tariffs with Strategic Adjustments

Itaconix plc has announced that recent US trade actions are expected to increase production costs but positively impact US and European revenues. The company is implementing price increases and supply chain cost reductions to maintain profit margins. Despite potential tariff impacts, Itaconix remains confident in sustaining demand growth and profit margins, benefiting from the Euro’s rise against the US dollar and geographic shifts in US detergent supply.

Spark’s Take on GB:ITX Stock

According to Spark, TipRanks’ AI Analyst, GB:ITX is a Neutral.

Itaconix’s overall score is driven by modest revenue growth and a strong equity position. However, substantial profitability and cash flow issues weigh heavily on the score. Despite weak technical indicators and poor valuation metrics, recent strategic initiatives and product innovations offer a positive outlook, potentially enhancing future performance.

To see Spark’s full report on GB:ITX stock, click here.

Itaconix Announces Grant of Share Options to Key Executives

Itaconix has announced the grant of 66,500 options over ordinary shares under its employee share option plan, with 26,500 options allocated to key managerial personnel. This move is part of Itaconix’s strategy to incentivize its leadership team, potentially strengthening its market position in the sustainable consumer product sector.

Itaconix Strengthens Market Position with Strategic Shifts and Innovation

Itaconix announced its preliminary results for 2024, highlighting a strategic shift towards a more profitable customer base and improved gross margins. Despite a decrease in total revenue due to exiting a low-margin North American contract, the company saw significant growth in its remaining revenue base, particularly in Europe and non-cleaning segments. The launch of the SPARX™ innovation program and new products like Itaconix® TSI™ 422 have positioned the company for future growth. With a strong cash position and expanded regulatory approvals, Itaconix is poised to enhance its market presence and profitability in the specialty ingredients sector.

Itaconix to Announce 2024 Preliminary Results with Live Presentation

Itaconix announced that its Preliminary Results for the year ended 31 December 2024 will be released on 31 March 2025. The company will hold a live presentation on the same day, open to all interested parties, to discuss these results, allowing stakeholders to submit questions before and during the event.