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Srx Health Solutions Inc. (SRXH)
:SRXH
US Market

SRx Health Solutions (SRXH) AI Stock Analysis

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SRx Health Solutions

(NYSE MKT:SRXH)

Rating:48Neutral
Price Target:
$0.50
▼(-15.25%Downside)
SRXH faces significant financial challenges, with declining revenues and negative cash flows being major concerns. Technical indicators also suggest bearish momentum. However, the recent earnings call provided some optimism with improved profitability measures and strategic growth plans. Valuation metrics are weak, showing financial distress. Overall, while there are positive signs from recent strategic moves, substantial risks remain.

SRx Health Solutions (SRXH) vs. SPDR S&P 500 ETF (SPY)

SRx Health Solutions Business Overview & Revenue Model

Company DescriptionBetter Choice Company (BTTR) is a pet health and wellness company specializing in providing premium pet food and nutritional products. The company operates in the pet care sector, offering a range of products that focus on improving and maintaining the health and wellness of pets through high-quality ingredients and innovative formulations.
How the Company Makes MoneyThe company makes money primarily through the sale of its premium pet food and nutritional products. Better Choice Company generates revenue by distributing its products through various channels, including direct-to-consumer sales via its online platform, as well as partnerships with retail chains and specialty pet stores. Key revenue streams include product sales in both domestic and international markets. The company's earnings are bolstered by strategic partnerships with distributors and retailers, as well as by leveraging its brand reputation and product quality to capture a loyal customer base seeking healthier options for their pets.

SRx Health Solutions Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q4-2024)
|
% Change Since: 3.51%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in profitability measures, including gross profit margins, net loss, and EBITDA. Revenue growth, particularly in the fourth quarter and international markets, was strong. However, there were challenges such as a decline in annual net revenues and ongoing EBITDA losses. Overall, the company's strategic pivots and financial health improvements contributed to a positive outlook.
Q4-2024 Updates
Positive Updates
Improved Gross Profit Margin
The company reported a gross profit margin of 37% for the full year, representing an increase of over 600 basis points.
Significant Improvement in Adjusted EBITDA
Adjusted EBITDA loss improved by 78% year-over-year to $1.9 million.
Fourth Quarter Revenue Growth
Fourth quarter revenue grew by 26% year-over-year, driven by 32% growth across Amazon and Chewy.
Debt Extinguishment and Financial Health
The company achieved a $6.2 million gain from extinguishing debt and accounts payable, contributing to a healthier balance sheet with a working capital position of $7.9 million.
International Growth
International revenue grew by 18%, with significant contributions from the Asia Pacific market.
Improved Net Loss and EPS
Year-to-date GAAP net loss improved by 99% year-over-year, with EPS improving to a $0.11 loss per share from a $32 loss per share in 2023.
Negative Updates
Decline in Annual Net Revenues
Annual net revenues were down 9% due to strategic exits from non-core sales channels and the closure of an unprofitable direct-to-consumer business.
Ongoing Adjusted EBITDA Loss
Despite improvements, the company still reported an adjusted EBITDA loss of approximately $700,000 for the fourth quarter.
Company Guidance
In the fourth quarter of 2024, Better Choice Company reported notable financial achievements and strategic advancements. The company delivered a gross profit margin of 37%, improving by over 600 basis points year-over-year, and adjusted EBITDA loss was reduced by 78% to approximately $1.9 million on annual net revenues of $35 million. The company experienced a 26% increase in fourth-quarter revenue, driven by 32% growth on platforms like Amazon and Chewy, and 18% international growth. Key operational improvements included a 22% reduction in SG&A expenses and a more than 40% reduction in inventory, leading to a working capital position of $7.9 million. Additionally, Better Choice successfully negotiated a $6.2 million gain from extinguishing debt and accounts payable. The company's focus on e-commerce channels is expected to continue propelling growth into 2025, as evidenced by the profitability improvements and strategic exits from non-core sales channels. Looking forward, Better Choice is poised for expanded growth through its acquisition of SRx Health Solutions, which is anticipated to close in April, further solidifying its position as a leader in the pet health and wellness sector.

SRx Health Solutions Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

SRx Health Solutions Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.59
Price Trends
50DMA
0.92
Negative
100DMA
1.34
Negative
200DMA
1.71
Negative
Market Momentum
MACD
-0.07
Negative
RSI
41.10
Neutral
STOCH
65.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRXH, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.92, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRXH.

SRx Health Solutions Risk Analysis

SRx Health Solutions disclosed 44 risk factors in its most recent earnings report. SRx Health Solutions 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

SRx Health Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$26.91B15.06-4.01%3.23%1.02%2.12%
50
Neutral
$9.49M6.01-31.05%-15.45%-100.03%
48
Neutral
$2.28M1.27-2.80%-41.89%-195.61%
48
Neutral
$7.04M-2.87%-9.37%97.75%
33
Underperform
$1.19M-286.71%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRXH
SRx Health Solutions
0.57
-3.14
-84.64%
FAMI
Farmmi
1.82
-5.58
-75.41%
SOWG
Sow Good
0.83
-18.72
-95.75%
STKH
Steakholder Foods
1.48
-16.92
-91.96%

SRx Health Solutions Corporate Events

Other
SRx Health Solutions Releases Investor Presentation Update
Neutral
May 7, 2025

On May 6, 2025, SRx Health Solutions released an updated presentation for investors and analysts, which is available on their website. The company clarified that this presentation does not constitute material information for investment decisions and will not be updated in the future.

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 20, 2025