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Edesa Biotech (EDSA)
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Edesa Biotech (EDSA) AI Stock Analysis

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EDSA

Edesa Biotech

(NASDAQ:EDSA)

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Underperform 35 (OpenAI - 4o)
Rating:35Underperform
Price Target:
Edesa Biotech exhibits significant financial challenges, reflected in zero revenue and persistent losses, severely impacting its overall score. Technical indicators show a stable market position, but poor valuation metrics further weigh down the stock's attractiveness. The lack of revenue and cash flow sustainability poses significant risks.
Positive Factors
Leadership Change
The appointment of a new CFO with extensive biotech experience is expected to enhance strategic financial management, potentially improving financial decision-making and supporting the advancement of Edesa's drug development pipeline.
Debt-Free Balance Sheet
A debt-free balance sheet provides Edesa Biotech with financial flexibility and reduces the risk of financial distress, allowing the company to focus resources on advancing its clinical-stage drug candidates.
Innovative Drug Pipeline
Edesa's focus on developing innovative treatments for unmet medical needs positions it well in the biotechnology sector, potentially leading to breakthrough therapies that can drive future revenue growth and market differentiation.
Negative Factors
Zero Revenue
The lack of revenue generation is a significant concern, as it indicates an inability to monetize its drug pipeline, which could impact long-term financial sustainability and necessitate continued reliance on external financing.
Negative Cash Flow
Persistent negative cash flow highlights operational inefficiencies and a reliance on external financing, which may limit Edesa's ability to invest in R&D and delay the commercialization of its drug candidates.
Persistent Losses
Ongoing losses and negative margins suggest operational challenges and an inability to achieve profitability, which could hinder Edesa's capacity to sustain its business and invest in future growth opportunities.

Edesa Biotech (EDSA) vs. SPDR S&P 500 ETF (SPY)

Edesa Biotech Business Overview & Revenue Model

Company DescriptionEdesa Biotech (EDSA) is a clinical-stage biopharmaceutical company that focuses on the development of innovative treatments for inflammatory and immune-related diseases. Operating primarily in the biotechnology sector, the company aims to address unmet medical needs by advancing its pipeline of novel drug candidates. Edesa Biotech's core products include monoclonal antibodies and other biologics designed to modulate the immune response and provide therapeutic solutions for conditions such as allergic and inflammatory diseases.
How the Company Makes MoneyEdesa Biotech generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company earns money by securing funding through public offerings, partnerships, and collaborations with other pharmaceutical and biotechnology firms. These partnerships often involve licensing agreements, where Edesa may receive upfront payments, milestone payments, and royalties based on the commercial success of its products. Additionally, Edesa Biotech may engage in research grants and government funding initiatives as part of its revenue model, leveraging these resources to advance its clinical trials and drug development programs.

Edesa Biotech Financial Statement Overview

Summary
Edesa Biotech faces substantial financial challenges, with zero revenue and persistent losses. The balance sheet shows no significant debt, but the company is heavily reliant on financing activities due to negative cash flows and operating cash burn.
Income Statement
15
Very Negative
Edesa Biotech has consistently reported zero revenue, highlighting a concerning lack of sales growth. The company has maintained negative gross, EBIT, and EBITDA margins over the past years, emphasizing its ongoing struggle with profitability. Net income has also remained negative, suggesting persistent losses without signs of improvement.
Balance Sheet
40
Negative
The company's balance sheet shows a relatively stable equity position, with no significant debt reported in the recent TTM period. The equity ratio is moderate, indicating some reliance on equity financing. However, the lack of revenue generation poses risks to long-term solvency and financial health.
Cash Flow
25
Negative
Edesa Biotech's cash flow statements reveal negative operating cash flow and free cash flow, indicating ongoing cash burn. The company has been reliant on financing activities to supplement its cash needs. The lack of revenue and positive cash flows presents a significant challenge to sustaining operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00328.80K
Gross Profit-93.41K-186.05K-183.47K-118.19K-118.79K311.20K
EBITDA-5.83M-5.98M-8.19M-17.43M-13.22M-6.35M
Net Income-5.92M-6.17M-17.55M-13.34M-6.36M
Balance Sheet
Total Assets14.80M3.81M8.89M11.58M14.58M10.76M
Cash, Cash Equivalents and Short-Term Investments12.36M1.04M5.36M7.09M7.84M7.21M
Total Debt0.0019.87K94.49K18.98K99.32K164.19K
Total Liabilities672.67K1.83M1.84M2.18M1.53M4.13M
Stockholders Equity14.13M1.98M7.05M9.39M13.06M6.63M
Cash Flow
Free Cash Flow-6.57M-4.89M-6.64M-12.28M-13.67M-5.02M
Operating Cash Flow-6.57M-4.89M-6.64M-12.28M-13.66M-4.99M
Investing Cash Flow0.000.000.00-5.66K-6.15K19.07K
Financing Cash Flow17.03M592.03K4.83M11.63M14.17M7.09M

Edesa Biotech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.49
Price Trends
50DMA
2.35
Positive
100DMA
2.19
Positive
200DMA
2.17
Positive
Market Momentum
MACD
0.03
Positive
RSI
56.77
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDSA, the sentiment is Positive. The current price of 2.49 is above the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.35, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDSA.

Edesa Biotech Risk Analysis

Edesa Biotech disclosed 55 risk factors in its most recent earnings report. Edesa Biotech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Edesa Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
47.17M35.630.86%21.16%
52
Neutral
14.79M-3.240.04%-45.78%47.33%
46
Neutral
9.78M-0.27-100.00%64.00%
37
Underperform
25.00>-0.0189.30%-2.99%59.87%
35
Underperform
33.56M-2.19
35
Underperform
$17.52M-69.64%22.63%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EDSA
Edesa Biotech
2.49
-1.80
-41.96%
ERNA
Eterna Therapeutics
1.14
-16.11
-93.39%
LPCN
Lipocine
2.73
-1.71
-38.51%
XTLB
XTL Biopharmaceuticals Sponsored ADR
1.17
-1.39
-54.30%
COCP
Cocrystal Pharma
1.25
-0.52
-29.38%
BIVI
BioVie
1.86
-10.14
-84.50%

Edesa Biotech Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Edesa Biotech Appoints New CFO Amid Leadership Change
Neutral
Apr 4, 2025

On April 3, 2025, Edesa Biotech announced the resignation of Stephen Lemieux as Chief Financial Officer, effective May 1, 2025, to pursue other opportunities. He will continue as a senior financial advisor on a consulting basis. Peter J. Weiler has been appointed as the new CFO, bringing extensive experience from his previous roles in the biotechnology and pharmaceutical sectors. This transition is expected to enhance Edesa’s strategic financial management as the company advances its drug development pipeline.

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.Date of analysis: May 02, 2025