Grace Therapeutics (GRCE) AI Stock Analysis

• Market Cap: $44.32M
• Dividend Yield: N/A
• Average Volume (3M): 70.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: 32.31%
• Country: US
• Employees: 4
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.21
• Shares Outstanding: 13,828,562
• 10 Day Avg. Volume: 78,739
• 30 Day Avg. Volume: 70,298
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 3.41K
• Enterprise Value/Gross Profit: 9.10K
• Enterprise Value/Ebitda: -2.33
• 1Y Price Target: $12.00
• Price Target Upside: 265.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: ―

Grace Therapeutics is navigating a challenging financial landscape, marked by no revenue and persistent operational losses, which are somewhat mitigated by a strong equity base and absence of debt. The stock shows positive technical momentum but is at risk of being overbought. The negative P/E ratio highlights the risk associated with the company's current financial performance and lack of earnings. Strategic management is required to improve operational viability and financial sustainability.

Positive Factors

Market Opportunity

GTx-104 represents a $300MM+ opportunity, with potential upside following real-world experience given KOL enthusiasm.

Treatment Efficacy

GTx-104 should be a meaningful improvement, especially for patients without enteral access, and those with more severe disease.

Negative Factors

Safety Concerns

There were more deaths in the GTX-104 arm compared to the oral nimodipine arm, but no deaths were attributed to nimodipine therapy.

Grace Therapeutics Business Overview & Revenue Model

Company Description

Grace Therapeutics (GRCE) is a biopharmaceutical company dedicated to the discovery, development, and commercialization of innovative therapies for rare and underserved diseases. The company operates within the healthcare sector, focusing on developing targeted treatments that address significant unmet medical needs. Grace Therapeutics leverages cutting-edge research and development capabilities to bring novel therapeutics to market, aiming to improve patient outcomes and quality of life.

How the Company Makes Money

Grace Therapeutics makes money primarily through the development and commercialization of its proprietary therapeutic products. The company generates revenue by selling its approved drugs to healthcare providers, hospitals, and specialty pharmacies. Key revenue streams include product sales, licensing agreements, and strategic partnerships with other pharmaceutical companies. These partnerships often involve collaboration on research and development efforts, as well as co-marketing and distribution agreements that expand the reach of Grace's products. Additionally, the company may receive milestone payments and royalties from out-licensed products and technologies that are successfully commercialized by its partners.

Grace Therapeutics Financial Statement Overview

Summary

Grace Therapeutics faces significant challenges with no revenue and persistent losses, raising sustainability concerns. The strong equity base and lack of debt provide some support, but the cash flow situation necessitates strategic financial management to secure future funding and ensure operational viability.

Income Statement

Grace Therapeutics shows no revenue generation over the past periods, which is concerning for financial health. The consistent negative EBIT and EBITDA margins indicate ongoing operational losses. The absence of revenue growth further exacerbates the situation, reflecting challenges in product development or market penetration.

Balance Sheet

The company maintains a strong equity position, with a favorable equity ratio above 85% in the latest TTM. The absence of debt reduces financial risk, but the declining total assets and equity could indicate potential liquidity pressures in the future.

Cash Flow

Negative operating and free cash flows highlight ongoing cash burn, typical in early-stage biotech firms. However, cash reserves have been managed to cover short-term needs, albeit with decreasing cash flow from financing activities, suggesting potential funding challenges ahead.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.00K	0.00	0.00	0.00	0.00	196.00K
Gross Profit	3.00K	-7.00K	0.00	0.00	0.00	120.00K
EBITDA	-11.71M	-12.76M	-11.33M	-18.12M	-15.34M	-9.79M
Net Income	-10.31M	-12.77M	-12.85M	-42.43M	-9.82M	-19.68M
Balance Sheet
Total Assets	69.81M	71.99M	73.30M	79.12M	128.62M	62.46M
Cash, Cash Equivalents and Short-Term Investments	20.00M	22.13M	23.00M	27.89M	43.66M	60.73M
Total Debt	0.00	0.00	0.00	485.00K	295.00K	86.00K
Total Liabilities	6.25M	5.38M	11.56M	11.17M	20.35M	6.80M
Stockholders Equity	63.55M	66.61M	61.74M	67.95M	108.27M	55.66M
Cash Flow
Free Cash Flow	-13.11M	-14.90M	-12.36M	-15.93M	-17.23M	-14.39M
Operating Cash Flow	-13.11M	-14.90M	-12.33M	-15.91M	-17.23M	-14.32M
Investing Cash Flow	15.00K	0.00	104.00K	13.15M	-3.52M	-9.86M
Financing Cash Flow	13.71M	14.03M	7.36M	304.00K	0.00	59.49M

Grace Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRCE, the sentiment is Positive. The current price of 3.28 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.06, and above the 200-day MA of 3.08, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRCE.

Grace Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%
GBIO	47 Neutral	$27.15M	―	-85.45%	―	61.15%	54.71%
GRCE	46 Neutral	$44.32M	―	-16.78%	―	―	32.31%
ALGS	44 Neutral	$45.74M	―	-87.74%	―	-60.16%	―
PYPD	41 Neutral	$34.85M	―	-312.77%	―	―	61.18%
INKT	38 Underperform	$56.60M	―	78.50%	―	―	58.00%
CVKD	32 Underperform	$22.33M	―	-340.31%	―	―	-40.70%