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Itaconix PLC (GB:ITX)
LSE:ITX
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Itaconix
(LSE:ITX)
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Rating:54Neutral
Price Target:
109.00p
▲(1.40% Upside)
The overall score reflects Itaconix's strong revenue growth and improved financial performance as highlighted in the earnings call. However, ongoing profitability challenges, bearish technical indicators, and a negative valuation score due to unprofitability weigh down the overall assessment.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and successful product adoption, enhancing the company's market position and long-term growth potential.
Strong North American Performance
Robust sales in North America highlight the company's competitive advantage and ability to capture market share in a key region, supporting sustained revenue streams.
Path to Profitability
The proximity to profitability suggests effective cost management and strategic growth initiatives, which could lead to improved financial stability and investor confidence.
Negative Factors
Low Gross Profit Margin for SPARX
The low profit margin in the SPARX segment indicates potential challenges in achieving sustainable profitability, which could impact overall financial performance.
Customer Concentration Risk
High dependence on a few key customers poses a risk to revenue stability, as losing any of these customers could significantly impact financial results.
Negative Net Income
Ongoing negative net income reflects operational inefficiencies and profitability challenges, which could hinder long-term financial health and growth prospects.
Itaconix (ITX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£14.50M
Dividend YieldN/A
Average Volume (3M)8.23K
Price to Earnings (P/E)―
Beta (1Y)-0.24
Revenue Growth25.56%
EPS Growth35.12%
CountryUK
Employees22
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.03
Shares Outstanding13,486,122
10 Day Avg. Volume5,692
30 Day Avg. Volume8,228
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Itaconix Business Overview & Revenue Model
Company DescriptionItaconix (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 MoneyItaconix 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 Earnings Call Summary
Earnings Call Date:Sep 15, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jun 09, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and improved financial performance, with a path to profitability in sight. However, challenges remain, including low profit margins for certain segments and customer concentration risks. Overall, the company's outlook is optimistic with plans for future expansion.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Sales reached $4.8 million, a 73% increase from H1 2024, marking a record half for the business.
Improved Financial Performance
Gross profit increased to $1.7 million, maintaining a gross profit margin of 35%. EBITDA losses improved from $800,000 in H1 2024 to $200,000 in H1 2025.
Strong Performance in North America
Sales in North America were $3.3 million, comprising 68% of total sales, driven by the recovery in the North American detergent market.
SPARX Formulation Solutions Growth
Revenue from SPARX formulation solutions grew to $1.5 million, a 156% increase from H1 2024.
Path to Profitability
Company is one major revenue step away from reaching profitability, with a focus on expanding existing customers and new opportunities.
Negative Updates
Low Gross Profit Margin for SPARX
SPARX formulation solutions have a low gross profit margin of 13%, indicating limited profitability from this segment.
Dependence on a Few Key Customers
Three customers accounted for 49% of turnover, posing a risk if any of these customers are lost.
Limited Commercial Volume from BIO*Asterix
BIO*Asterix generated small e-commerce sales with no significant commercial volumes expected in the near term.
Company Guidance
During the recent call, Itaconix plc provided an optimistic outlook based on their performance in the first half of 2025. The company reported record sales of $4.8 million, marking a 73% increase from H1 2024, and a record gross profit of $1.7 million, maintaining a gross profit margin of 35%. Adjusted EBITDA losses were reduced to $200,000 from $800,000 in H1 2024. They ended the period with $6.6 million in net working capital, indicating strong resources for future growth. Their Performance Ingredients unit contributed $3.3 million in revenue, a 51% increase from the previous year, and the SPARX program's revenue grew by 156% to $1.5 million. The company is focused on expanding their scale inhibitors and odor neutralizers, with strategic initiatives like the SPARX and Bio*Asterix programs driving future growth. Despite a subdued share price, the company remains confident in their path to profitability, supported by a robust technology platform and a diversified customer base across North America and Europe.Itaconix Financial Statement Overview
Summary
Itaconix shows revenue growth and a strong equity base, but faces challenges with profitability and cash flow sustainability. Despite low leverage, achieving positive net income and free cash flow is crucial for long-term 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 | 2.45M | 428.08K | 366.19K | 745.37K |
| 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
Positive
107.50
Price Trends
113.83
Positive
114.70
Positive
114.18
Positive
Market Momentum
-1.14
Negative
75.22
Negative
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITX, the sentiment is Positive. The current price of 107.5 is below the 20-day moving average (MA) of 110.42, below the 50-day MA of 113.83, and below the 200-day MA of 114.18, indicating a bullish trend. The MACD of -1.14 indicates Negative momentum. The RSI at 75.22 is Negative, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITX.
Itaconix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £3.80B | 27.09 | 6.17% | 3.45% | 2.36% | -13.99% | |
64 Neutral | £969.41M | -16.97 | 3.37% | 1.34% | -11.78% | -92.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | £39.26M | -1.32 | ― | ― | -27.64% | 35.09% | |
54 Neutral | £14.50M | -16.78 | -12.88% | ― | 25.56% | 35.12% | |
53 Neutral | £13.57M | -3.60 | -78.76% | ― | -24.85% | 40.28% | |
51 Neutral | £99.77M | -1.22 | -7.26% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
GB:ITX
Itaconix
120.00
-42.50
-26.15%
GB:CRDA
Croda International
2,715.00
-270.15
-9.05%
GB:DCTA
Directa Plus
12.50
6.25
100.00%
GB:ELM
Elementis
168.00
35.64
26.92%
GB:HAYD
Haydale Graphene
0.49
0.37
318.80%
GB:SYNT
Synthomer
62.50
-70.50
-53.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.