Epsilon Healthcare Limited (EPN) AI Stock Analysis

• Market Cap: $7.21M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -5.67
• Revenue Growth: -15.81%
• EPS Growth: -358.33%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 379,104,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.02
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -2.56
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 37 Underperform
• Price Target: AU$0.02 ▲(10.00% Upside)

Epsilon Healthcare Limited's overall stock score is significantly impacted by poor financial performance, including declining revenues and negative cash flows. Technical analysis indicates a lack of momentum, and valuation metrics highlight unprofitability, resulting in a low overall score.

Positive Factors

Strong Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, providing a buffer to improve net profitability over time.

Manageable Leverage

Moderate leverage suggests the company has room to maneuver financially, potentially allowing for strategic investments or debt restructuring.

Product Innovation

Continuous R&D and product innovation can drive long-term growth by meeting evolving consumer needs and expanding market reach.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential challenges in market demand or competitive positioning, impacting future profitability.

Negative Cash Flows

Negative cash flows can limit the company's ability to invest in growth opportunities and may necessitate external financing, affecting financial stability.

Poor Profitability

Sustained poor profitability can erode shareholder value and limit the company's ability to reinvest in its business, affecting long-term growth prospects.

Epsilon Healthcare Limited Business Overview & Revenue Model

Company Description

Epsilon Healthcare Limited operates as a healthcare and pharmaceuticals company primarily in Australia and Canada. It engages in the manufacture and distribution of hydroponics equipment, materials, and nutrients; and development and delivery of medicinal cannabis, as well as provides turnkey cannabis cultivation solutions. The company was formerly known as THC Global Group Limited and changed its name to Epsilon Healthcare Limited in February 2021. Epsilon Healthcare Limited was incorporated in 2016 and is based in Sydney, Australia.

How the Company Makes Money

Epsilon Healthcare Limited generates revenue through multiple streams, primarily by selling its proprietary health and wellness products directly to consumers and through retail partnerships. The company also engages in business-to-business (B2B) sales, supplying its products to pharmacies, health stores, and online retailers. Additionally, EPN may leverage partnerships with healthcare providers and institutions to promote its products and expand its market reach. Their revenue is further bolstered by ongoing research and development efforts that lead to the introduction of new products and innovations tailored to meet consumer needs in the ever-evolving healthcare landscape.

Epsilon Healthcare Limited Financial Statement Overview

Summary

Epsilon Healthcare Limited faces significant financial challenges, with declining revenues, poor profitability, and negative cash flows. Despite a strong gross profit margin, the overall financial health is weakened by substantial losses at the net income level and negative growth trends.

Income Statement

Epsilon Healthcare Limited has experienced a significant decline in revenue growth, with a negative growth rate of -15.81% in the most recent year. The company also faces challenges with profitability, as indicated by negative net profit and EBIT margins. Despite a strong gross profit margin of 74.52%, the overall financial health is weakened by substantial losses at the net income level.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.74, indicating manageable leverage. However, the company has a negative return on equity of -30.35%, reflecting poor profitability and efficiency in using shareholder funds. The equity ratio is not explicitly calculated, but the company's equity position appears relatively stable compared to its total assets.

Cash Flow

Epsilon Healthcare's cash flow statement reveals a concerning trend with negative operating and free cash flows. Despite a positive free cash flow to net income ratio of 1.03, indicating some ability to cover net losses, the overall cash flow position is weak, with significant negative operating cash flow coverage.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.60M	6.65M	7.11M	5.50M	7.36M
Gross Profit	4.17M	4.81M	-3.09M	2.06M	2.66M
EBITDA	-2.13M	-1.31M	-10.86M	-8.09M	-9.20M
Net Income	-3.25M	-1.09M	-13.29M	-8.91M	-10.95M
Balance Sheet
Total Assets	22.26M	14.41M	20.50M	30.55M	37.26M
Cash, Cash Equivalents and Short-Term Investments	1.57M	343.01K	861.99K	2.34M	6.97M
Total Debt	7.88M	3.45M	3.20M	4.33M	5.11M
Total Liabilities	11.57M	6.87M	11.23M	10.98M	11.94M
Stockholders Equity	10.70M	7.54M	9.27M	19.57M	25.32M
Cash Flow
Free Cash Flow	-3.50M	-803.47K	-3.10M	-6.18M	-9.93M
Operating Cash Flow	-3.41M	-703.37K	-2.57M	-5.43M	-8.69M
Investing Cash Flow	-97.73K	-99.12K	-529.40K	-737.59K	-1.73M
Financing Cash Flow	4.73M	335.91K	1.61M	1.47M	14.60M

Epsilon Healthcare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BOD	39 Underperform	AU$4.26M	16.00	―	―	69.59%	―
EPN	37 Underperform	$7.21M	―	―	―	-15.81%	-358.33%