Edesa Biotech (EDSA)
NASDAQ:EDSA
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Edesa Biotech
(NASDAQ:EDSA)
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Rating:48Neutral
Price Target:
$5.00
▲(237.84% Upside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by weak financial performance (minimal revenue, persistent losses, and material cash burn) alongside bearish technical momentum. Offsetting factors include a low-debt balance sheet and positive corporate events (fresh PIPE capital and supportive exploratory clinical data), with valuation difficult to assess due to negative earnings and no dividend.
Positive Factors
Low debt and equity cushion
Effectively zero debt and a ~$12.4M equity base materially reduce solvency and leverage risk for a clinical-stage biotech. This durable balance-sheet strength lengthens runway flexibility, supports continued R&D spending, and lowers the probability of distress-driven fire sales or unfavorable financing over the next 2-6 months.
Negative Factors
Sustained cash burn
Persistent negative operating cash flow of roughly -$7.6M TTM indicates ongoing funding requirements typical of R&D-stage biotechs. This structural cash burn necessitates recurring capital raises, which can dilute shareholders or force prioritization of programs, limiting strategic optionality over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low debt and equity cushion
Effectively zero debt and a ~$12.4M equity base materially reduce solvency and leverage risk for a clinical-stage biotech. This durable balance-sheet strength lengthens runway flexibility, supports continued R&D spending, and lowers the probability of distress-driven fire sales or unfavorable financing over the next 2-6 months.
Read all positive factors
Edesa Biotech (EDSA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.82M
Dividend YieldN/A
Average Volume (3M)346.83K
Price to Earnings (P/E)―
Beta (1Y)-0.52
Revenue GrowthN/A
EPS Growth16.07%
CountryUS
Employees16
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.34
Shares Outstanding8,891,951
10 Day Avg. Volume291,437
30 Day Avg. Volume346,835
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio-1.91
Enterprise Value/Market Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-496.89
Enterprise Value/Ebitda-4.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.64
Revenue Forecast (FY)N/A
Edesa Biotech Business Overview & Revenue Model
Company Description
Edesa Biotech, Inc. is a biopharmaceutical firm focused on discovering, developing, and commercializing clinical-stage treatments for inflammatory and immune system disorders where current medical options are inadequate. The company's key pipeline...
How the Company Makes Money
Edesa Biotech does not have a stable, product-sales-based revenue model typical of commercial-stage pharmaceutical companies. As a clinical-stage biotechnology company, it generally funds operations through external capital rather than recurring o...
Edesa Biotech Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
68
Positive
Cash Flow
20
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -102.99K | -119.27K | -186.05K | -183.47K | -118.19K | -118.79K |
| EBITDA | -10.48M | -7.07M | -5.98M | -8.19M | -17.43M | -13.22M |
| Net Income | -10.44M | -7.19M | -6.17M | -8.37M | -17.55M | -13.34M |
Balance Sheet | ||||||
| Total Assets | 12.38M | 13.53M | 3.81M | 8.89M | 11.58M | 14.58M |
| Cash, Cash Equivalents and Short-Term Investments | 10.00M | 10.79M | 1.04M | 5.36M | 7.09M | 7.84M |
| Total Debt | 0.00 | 0.00 | 19.87K | 94.49K | 18.98K | 99.32K |
| Total Liabilities | 2.19M | 1.08M | 1.83M | 1.84M | 2.18M | 1.53M |
| Stockholders Equity | 10.20M | 12.45M | 1.98M | 7.05M | 9.39M | 13.06M |
Cash Flow | ||||||
| Free Cash Flow | -7.65M | -7.32M | -4.89M | -6.64M | -12.28M | -13.67M |
| Operating Cash Flow | -7.65M | -7.32M | -4.89M | -6.64M | -12.28M | -13.66M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | -5.66K | -6.15K |
| Financing Cash Flow | 3.84M | 17.03M | 592.03K | 4.83M | 11.63M | 14.17M |
Edesa Biotech Technical Analysis
Neutral
1.48
Price Trends
9.47
Negative
6.53
Negative
4.26
Positive
Market Momentum
-1.40
Positive
40.80
Neutral
46.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDSA, the sentiment is Neutral. The current price of 1.48 is below the 20-day moving average (MA) of 7.45, below the 50-day MA of 9.47, and below the 200-day MA of 4.26, indicating a neutral trend. The MACD of -1.40 indicates Positive momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $52.82M | -4.96 | -82.34% | ― | ― | 16.07% | |
45 Neutral | $18.88M | -1.37 | -66.69% | ― | -45.52% | -94.82% | |
| ― | $5.52M | -3.82 | ― | ― | ― | ― | |
45 Neutral | $13.65M | -1.48 | -94.94% | ― | ― | 53.06% | |
| ― | $12.52M | -0.67 | -94.79% | ― | ― | 79.70% |
* Healthcare Sector Average
EDSA
Edesa Biotech
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Edesa Biotech Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Edesa Biotech Announces Insider-Led PIPE Financing Agreement
Positive
Jun 11, 2026
On June 10, 2026, Edesa Biotech, Inc. entered into a securities purchase agreement for a private placement of 729,241 common shares expected to raise approximately $3.5 million in gross proceeds. The financing, structured as a PIPE and led by the ...
Business Operations and StrategyProduct-Related Announcements
Edesa Biotech Reports Exploratory Kidney Outcomes Data in ARDS
Positive
Jun 5, 2026
On June 5, 2026, Edesa Biotech reported new exploratory data showing that its anti-TLR4 monoclonal antibody paridiprubart, combined with standard of care, reduced mortality and improved kidney-specific outcomes in hospitalized patients with acute ...
Executive/Board ChangesShareholder Meetings
Edesa Biotech Shareholders Approve Directors and Compensation Plans
Positive
May 29, 2026
On May 27, 2026, Edesa Biotech shareholders held their 2026 Annual General and Special Meeting, with approximately 55% of outstanding common shares represented, and elected seven directors to serve until the 2027 annual meeting or until successors...
Business Operations and StrategyExecutive/Board Changes
Edesa Biotech Boosts CEO Equity-Based Compensation Structure
Positive
May 15, 2026
On May 13, 2026, Edesa Biotech’s board approved a change to Chief Executive Officer Pardeep Nijhawan’s compensation structure, allowing 90% of his monthly base salary to be paid in fully vested restricted share units under the company&...
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.