Itaconix (ITX) AI Stock Analysis

• Market Cap: £14.50M
• Dividend Yield: N/A
• Average Volume (3M): 8.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• 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: 5,692
• 30 Day Avg. Volume: 8,228
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• 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 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 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

• Technical Analysis Sentiment: Negative
• Last Price: 107.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 107.5 is below the 20-day moving average (MA) of 116.33, below the 50-day MA of 112.84, and below the 200-day MA of 115.09, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 21.96 is Positive, neither overbought nor oversold. The STOCH value of 32.61 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	72 Outperform	£45.57M	12.89	10.25%	―	8.48%	29.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HAYD	55 Neutral	£23.23M	-1.31	―	―	-27.64%	35.09%
ITX	54 Neutral	£14.50M	-15.03	-12.88%	―	25.56%	35.12%
HDD	53 Neutral	£14.58M	-32.27	-11.10%	―	14.51%	77.27%
DCTA	51 Neutral	£7.05M	-1.95	-78.76%	―	-24.85%	40.28%
GEX	31 Underperform	£3.76M	-0.43	―	―	―	―

Itaconix Corporate Events

Itaconix Achieves Record Half-Year Revenues and Expands Product Offerings

Itaconix plc reported record half-year revenues of $4.8 million for the period ending June 30, 2025, marking a significant milestone in establishing its products as core ingredients in sustainable consumer products. The company has launched BIO*Asterix® and expanded its SPARX™ collaborations, resulting in three distinct revenue streams. Itaconix has also extended its partnership with Croda and mitigated international trade risks, while investing in marketing and supply chain resilience. With a strong balance sheet and a growing pipeline of opportunities, Itaconix is well-positioned for sustained growth and long-term shareholder value.