SRx Health Solutions (SRXH)
XASE:SRXH
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SRx Health Solutions
(NYSE MKT:SRXH)
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Rating:43Neutral
Price Target:
$0.12
▼(-48.33% Downside)
Action:Reiterated
Date:04/23/26
The score is weighed down primarily by weak financial performance (large losses, high leverage, and cash burn) and a bearish technical setup (below major moving averages with negative MACD). Valuation is also unattractive due to loss-making results and no dividend. Corporate events provide some offset via capital-structure actions and financing, but are tempered by NYSE compliance risk and higher-risk strategic shifts.
Positive Factors
Specialty pharmacy business model
SRx operates a specialty pharmacy and patient-support services business, a durable model tied to long-term specialty therapies and payer relationships. These services generate recurring dispensing and manufacturer-paid support fees, creating stickiness and predictable demand as specialty drug use grows.
Negative Factors
Very high leverage
Extremely elevated debt-to-equity and a history of negative equity materially constrain financial flexibility. High leverage amplifies refinancing and interest-rate risk, limits ability to invest in operations, and increases the probability of distress if operating results or treasury returns falter over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty pharmacy business model
SRx operates a specialty pharmacy and patient-support services business, a durable model tied to long-term specialty therapies and payer relationships. These services generate recurring dispensing and manufacturer-paid support fees, creating stickiness and predictable demand as specialty drug use grows.
Read all positive factors
SRx Health Solutions (SRXH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.14M
Dividend YieldN/A
Average Volume (3M)695.52K
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees11
SectorConsumer Defensive
Sector Strength42
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)-1.76
Shares Outstanding590,254,760
10 Day Avg. Volume504,141
30 Day Avg. Volume695,518
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)16.44
Price to Sales (P/S)1.02
P/FCF Ratio-0.82
Enterprise Value/Market Cap0.08
Enterprise Value/Revenue-0.38
Enterprise Value/Gross Profit-1.34
Enterprise Value/Ebitda-0.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.32
Revenue Forecast (FY)$95.00M
SRx Health Solutions Business Overview & Revenue Model
Company Description
SRx Health Solutions Inc. is an integrated Canadian healthcare services provider operating within the specialty healthcare industry. The company offers comprehensive, integrated, and customized specialty healthcare services across all ten Canadian...
How the Company Makes Money
SRx Health Solutions primarily generates revenue through pharmacy and patient-support related healthcare services. Key revenue streams generally include (i) dispensing and distribution of prescription medications through its pharmacy operations, w...
SRx Health Solutions Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 20, 2027
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.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.
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.
Read all updates
Q4-2024 Updates
Positive
Negative
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.
Read all positive updates
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
24
Negative
Balance Sheet
22
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Sep 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -16.86M | 6.53M | 34.98M | 118.94M | 92.63M | 46.01M |
| Gross Profit | -4.76M | 1.50M | 12.86M | 23.61M | 13.31M | 13.70M |
| EBITDA | -37.48M | -11.50M | 438.00K | -7.05M | -539.40K | 8.30M |
| Net Income | -45.39M | -45.01M | -168.00K | -11.14M | -2.45M | 2.98M |
Balance Sheet | ||||||
| Total Assets | 43.36M | 8.40M | 15.80M | 64.51M | 34.79M | 77.42M |
| Cash, Cash Equivalents and Short-Term Investments | 26.07M | 1.31M | 3.07M | 2.07M | 1.66M | 28.94M |
| Total Debt | 22.62M | 4.47M | 45.31M | 39.38M | 17.85M | 10.33M |
| Total Liabilities | 25.08M | 8.00M | 7.15M | 70.80M | 33.86M | 19.55M |
| Stockholders Equity | 18.29M | 407.00K | -55.12M | -6.29M | 927.48K | 57.88M |
Cash Flow | ||||||
| Free Cash Flow | 1.06M | -8.14M | -4.40M | 1.58M | 3.13M | -12.21M |
| Operating Cash Flow | 1.06M | -8.14M | -4.36M | 2.85M | 3.38M | -11.86M |
| Investing Cash Flow | -22.87M | 5.91M | -2.25M | -19.78M | -6.83M | -353.00K |
| Financing Cash Flow | 53.29M | 12.17M | 5.22M | 16.43M | 3.80M | 37.16M |
SRx Health Solutions Technical Analysis
Positive
0.24
Price Trends
0.13
Positive
0.14
Negative
0.24
Negative
Market Momentum
<0.01
Negative
53.66
Neutral
21.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRXH, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRXH.
SRx Health Solutions Risk Analysis
SRx Health Solutions disclosed 96 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $3.52B | 2.67 | 29.87% | 4.80% | -2.08% | -67.52% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $6.76B | 15.91 | 7.88% | 1.56% | 8.91% | 129.84% | |
47 Neutral | $77.08M | -0.58 | -99.47% | ― | ― | ― | |
43 Neutral | $76.14M | -1.51 | 767.26% | ― | ― | ― |
* Consumer Defensive Sector Average
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SRx Health Solutions Corporate Events
Business Operations and StrategyM&A Transactions
SRx Health Shifts Capital Toward AI and Space Investments
Positive
Apr 22, 2026
On April 22, 2026, SRx Health Solutions announced that its wholly owned pet-focused subsidiary, Halo, Purely for Pets, invested more than 10% of the company’s investable capital in Astro Investment XVII, an affiliate of Astro Capital structu...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
SRx Health Updates Shareholders on EMJX Merger Progress
Positive
Apr 17, 2026
On April 17, 2026, SRx Health Solutions and EMJ Crypto Technologies released a shareholder letter detailing operational progress and the status of their proposed merger, which was first announced in December 2025. EMJX highlighted strong early per...
Private Placements and FinancingRegulatory Filings and Compliance
SRx Health Solutions Announces Series B Preferred Private Placement
Positive
Mar 18, 2026
On March 16, 2026, SRx Health Solutions entered into a Securities Purchase Agreement with accredited investors for a private placement of up to 10,000 shares of Series B convertible preferred stock and accompanying warrants, for potential gross pr...
Business Operations and StrategyPrivate Placements and Financing
SRx Health Plans New Series B Preferred Stock Financing
Positive
Mar 3, 2026
On July 7, 2025, SRx Health Solutions entered into a securities purchase agreement with accredited investors to issue $7.65 million in senior secured convertible notes and warrants for over 21.3 million common shares, followed by an October 27, 20...
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.