Hydration Pharmaceuticals Co. Ltd. (HPC) AI Stock Analysis

• Market Cap: AU$2.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.97
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): >-0.01
• Shares Outstanding: 430,800,930
• 10 Day Avg. Volume: 3,315,133
• 30 Day Avg. Volume: 1,207,806
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -0.46
• 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: 45 Neutral
• Price Target: AU$0.01 ▲(0.00% Upside)

The score is held down primarily by persistently negative operating profitability and ongoing negative operating/free cash flow, which signal continued cash burn and a fragile turnaround. Balance-sheet repair (zero debt and positive equity) helps offset risk, but valuation signals are weak/unclear due to a negative P/E and no dividend data, and technical momentum cannot be evaluated with the missing indicators.

Positive Factors

Product Innovation

The launch of Hydralyte Plus Brain Support positions the company in the growing hydration and nootropics markets, enhancing market presence and growth opportunities.

Balance Sheet Improvement

Zero debt and positive equity reduce financial risk, providing a more stable capital structure and potentially improving financial flexibility.

Net Profit Margin

A strong net profit margin and positive net income in 2024 indicate improved profitability, although sustainability remains a concern.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing cash burn, raising concerns about liquidity and the need for external funding.

Revenue Decline

A sharp revenue decline in 2024 suggests instability in top-line growth, potentially impacting long-term business sustainability.

Shareholder Structure Changes

Changes in substantial shareholders may impact market perception and influence, potentially affecting strategic decisions and stability.

Hydration Pharmaceuticals Co. Ltd. Business Overview & Revenue Model

Company Description

Hydration Pharmaceuticals Co. Ltd. (HPC) is a company specializing in the development, manufacturing, and distribution of innovative hydration solutions. Operating within the health and wellness sector, HPC focuses on providing high-quality, scientifically-backed products designed to improve hydration and overall well-being. Their core product offerings include electrolyte-infused beverages, hydration powders, and supplements tailored to meet the needs of diverse consumer groups, including athletes, health enthusiasts, and individuals seeking enhanced hydration solutions.

How the Company Makes Money

HPC generates revenue primarily through the sale of its hydration products, which are distributed across various channels including retail stores, e-commerce platforms, and direct-to-consumer sales. Key revenue streams include wholesale partnerships with retailers, online sales through the company's website and other online marketplaces, and subscriptions for regular product deliveries. Additionally, HPC may engage in strategic partnerships or collaborations with health and wellness brands to expand its market reach and enhance product offerings, contributing to its earnings.

Hydration Pharmaceuticals Co. Ltd. Financial Statement Overview

Summary

Operating performance and cash generation are very weak: EBIT/EBITDA margins are deeply negative and free cash flow is negative every year, including 2024, indicating ongoing cash burn. Balance-sheet risk improved (zero debt and equity back to positive in 2024), but the sharp 2024 revenue decline and the gap between positive net income and negative operating cash flow raise earnings-quality and sustainability concerns.

Income Statement

Profitability is very weak on an operating basis: EBIT and EBITDA margins are deeply negative across the period, including 2024 (annual). Revenue also fell sharply in 2024 (annual) after prior growth, highlighting an unstable top-line trajectory. The key positive is that 2024 (annual) shows a strong net profit margin and positive net income versus large losses in 2021–2023, but the disconnect versus negative EBIT suggests earnings quality is less durable and operating performance is still under pressure.

Balance Sheet

Leverage has improved meaningfully: total debt is zero in 2024 (annual) and equity has swung back to positive, reducing financial risk versus 2023 when equity was negative and debt was material. Total assets are steady-to-lower versus prior peaks, and while the capital structure looks cleaner today, the balance sheet has shown volatility (including a year of negative equity), which tempers the score.

Cash Flow

Cash generation is a clear weak point. Operating cash flow and free cash flow are negative every year shown, including 2024 (annual), and free cash flow deterioration in 2024 (annual) signals continued cash burn. With cash flow not covering reported earnings (given positive net income but negative operating cash flow in 2024), liquidity reliance on external funding or balance sheet resources remains a key risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-235.84K	3.20M	10.04M	9.10M	6.13M	3.76M
Gross Profit	-248.26K	1.62M	5.39M	4.70M	2.79M	1.34M
EBITDA	-3.91M	-3.91M	-7.46M	-10.52M	-6.08M	-3.28M
Net Income	4.34M	2.67M	-8.10M	-10.61M	-8.97M	-743.66K
Balance Sheet
Total Assets	3.93M	5.00M	6.69M	10.39M	15.31M	4.45M
Cash, Cash Equivalents and Short-Term Investments	2.11M	3.22M	1.84M	4.69M	10.67M	1.64M
Total Debt	0.00	0.00	3.89M	3.71M	0.00	0.00
Total Liabilities	1.22M	2.25M	7.05M	6.41M	2.08M	2.44M
Stockholders Equity	2.71M	2.74M	-358.25K	3.98M	13.23M	2.00M
Cash Flow
Free Cash Flow	-1.64M	-3.02M	-5.73M	-9.75M	-8.08M	-3.88M
Operating Cash Flow	-1.64M	-3.02M	-5.73M	-9.75M	-8.08M	-3.86M
Investing Cash Flow	0.00	9.44M	0.00	0.00	-2.15K	2.73M
Financing Cash Flow	514.25K	-3.63M	2.72M	4.08M	17.03M	0.00

Hydration Pharmaceuticals Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HPC	45 Neutral	AU$2.15M	―	―	―	―	―
LDX	45 Neutral	AU$182.26M	-12.73	-111.23%	―	12.96%	40.81%
HXL	40 Underperform	AU$2.17M	-4.33	-28.49%	―	―	46.43%

Hydration Pharmaceuticals Co. Ltd. Corporate Events

Hydration Pharmaceuticals Director Karafili Sees 500,000 Options Expire

The Hydration Pharmaceuticals Company Limited has reported a change in director Adem Karafili’s relevant interests following the expiry and cancellation of 500,000 unlisted options held indirectly through Ankara Holdings Pty Ltd as trustee structures he controls. After the expiry-driven cancellation, Karafili’s indirect holdings remain substantial, comprising 2,562,389 fully paid ordinary shares and a suite of unlisted options with varying exercise prices and maturities through 2029, signalling a modest simplification of his equity-linked incentives without altering his underlying shareholding base.

The most recent analyst rating on (AU:HPC) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Hydration Pharmaceuticals Co. Ltd. stock, see the AU:HPC Stock Forecast page.

Hydration Pharmaceuticals Options Lapse, Simplifying Capital Structure

Hydration Pharmaceuticals has announced the lapse of 46,612,138 listed options (HPCAU), which expired unexercised on 31 December 2025 and were scheduled to convert at an exercise price of A$0.07. The expiry of this large block of options results in a simplification of the company’s capital structure, removing a potential source of future equity dilution for existing shareholders and providing greater clarity on the current issued capital base.

The most recent analyst rating on (AU:HPC) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Hydration Pharmaceuticals Co. Ltd. stock, see the AU:HPC Stock Forecast page.