Aequus Pharmaceuticals (AQS) AI Stock Analysis

• Market Cap: C$663.17K
• Dividend Yield: N/A
• Average Volume (3M): 65.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.46
• Revenue Growth: 129.21%
• EPS Growth: 26.79%
• Country: CA
• Employees: 12
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.02
• Shares Outstanding: 132,634,430
• 10 Day Avg. Volume: 54,393
• 30 Day Avg. Volume: 65,797
• PEG Ratio: -0.07
• Price to Book (P/B): -0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Aequus Pharmaceuticals is experiencing severe financial difficulties with declining revenues, negative net income, and cash flow issues. These problems significantly impact the stock's attractiveness. The lack of technical analysis data and poor valuation metrics further contribute to a low overall stock score. The company may require drastic strategic measures to improve its financial health.

Aequus Pharmaceuticals Business Overview & Revenue Model

Company Description

Aequus Pharmaceuticals Inc., a specialty pharmaceutical company, develops and commercializes drugs in Canada. It focuses on various therapeutic areas, including neurology, ophthalmology, and transplantation. The company markets Vistitan, an ophthalmology product to reduce elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; Tacrolimus IR, an immunosuppressant for the treatment and prevention of acute rejection following organ transplantation; Evolve dry eye products for various symptoms involved with dry eye disease and blepharitis, including discomfort, stinging, burning, and dryness; and preservative free ophthalmic product. Its development stage product includes Topiramate XR and Oxcarbazepine XR extended-release oral tablets for the treatment of epilepsy; AQS1303, a transdermal pyridoxine/doxylamine for the treatment of nausea and vomiting of pregnancy; and AQS1304, a cannabinoid based therapeutics for neurological disorders. The company has collaboration agreements with Sandoz Canada, Inc. for the promotion of Vistitan; Supernus Pharmaceuticals, Inc. for marketing of extended-release anti-epileptic drugs; and Medicom Healthcare Ltd. to focus on preservative free therapies in ophthalmology. Aequus Pharmaceuticals Inc. was incorporated in 2013 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Aequus Pharmaceuticals generates revenue primarily through the sale of its developed and commercialized pharmaceutical products, particularly in the fields of ophthalmology and transplant therapy. Key revenue streams include direct sales of branded and partnered products, as well as potential royalty and milestone payments from collaboration agreements with other pharmaceutical companies. These partnerships often involve licensing agreements that allow Aequus to expand its market reach and leverage additional resources for product development and distribution. The company’s focus on improving existing therapies and targeting niche markets helps in maintaining a steady revenue flow while addressing critical healthcare needs.

Aequus Pharmaceuticals Financial Statement Overview

Summary

Aequus Pharmaceuticals faces significant financial challenges, with declining revenues and increasing losses posing risks. The balance sheet is weakened by high leverage and negative equity, while cash flows are strained. Strategic financial restructuring is essential for stability.

Income Statement

The company has experienced declining revenue from previous years, with a significant drop in gross profit margin from strong levels in prior years to just 37.2% in TTM. The net profit margin remains negative due to consistent losses, reflecting operational challenges. Revenue growth is negative, indicating a need for strategic shifts.

Balance Sheet

The balance sheet is concerning with a negative stockholders' equity, resulting in an unsustainable debt-to-equity situation. Total debt has increased significantly, creating a high leverage risk. Equity ratio is not meaningful due to negative equity, indicating financial instability.

Cash Flow

The cash flow statement shows negative free cash flow with a declining trend, highlighting cash management issues. The ratio of operating cash flow to net income is negative, reflecting inefficiencies in converting earnings into cash. Financing activities are heavily relied upon for sustaining operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
413.17K	254.90K	1.38M	2.71M	2.59M	1.63M
	Gross Profit
153.83K	5.50K	1.15M	2.69M	2.59M	1.63M
	EBIT
-2.49M	-2.82M	-2.50M	-1.35M	-521.57K	-2.21M
	EBITDA
-2.31M	-2.68M	-2.87M	-1.23M	-314.80K	-2.38M
	Net Income Common Stockholders
-2.68M	-2.96M	-3.21M	-1.81M	-1.05M	-3.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
369.89K	170.20K	294.67K	2.39M	1.72M	484.51K
	Total Assets
2.00M	1.09M	1.69M	4.35M	3.13M	1.67M
	Total Debt
0.00	5.06M	782.92K	2.18M	2.32M	2.22M
	Net Debt
-369.89K	4.89M	533.10K	-211.31K	604.74K	1.73M
	Total Liabilities
314.90K	5.38M	3.07M	2.56M	2.56M	2.55M
	Stockholders Equity
1.68M	-4.29M	-1.38M	1.79M	573.95K	-877.09K
Cash Flow		Free Cash Flow
-2.48M	-2.29M	-1.95M	-1.18M	-817.23K	-1.63M
	Operating Cash Flow
-2.48M	-2.29M	-1.95M	-1.17M	-804.91K	-1.63M
	Investing Cash Flow
0.00	0.00	0.00	-507.96K	-12.32K	-2.68K
	Financing Cash Flow
2.39M	2.21M	-189.19K	2.40M	2.05M	1.75M

Aequus Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AQS, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AQS.

Aequus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	71 Outperform	C$80.65M	13.50	11.27%	―	-3.82%	-50.36%
Sector *	52 Neutral	$5.15B	3.05	-44.13%	2.84%	16.42%	-0.48%
TGIF	44 Neutral	C$2.45M	―		―	-9.20%	93.62%
MVMD	35 Underperform	C$8.81M	―	-44.58%	―	-48.33%	47.56%
PHRX	29 Underperform	C$1.07M	―	-405.57%	―	―	-2291.11%
AQS	21 Underperform	C$663.17K	―	43.02%	―	129.21%	26.79%

Aequus Pharmaceuticals Corporate Events

Aequus Pharmaceuticals Reports Fiscal 2024 Results and Director Changes

Aequus Pharmaceuticals reported a decrease in operating loss for Fiscal 2024, attributed to increased revenue from the launch of ZIMED® PF and cost-cutting measures. Despite a net loss, the company saw a significant revenue increase and reduced general and administrative expenses, though sales and marketing costs rose due to advertising and consulting expenses. Additionally, Anne Stevens and Chris Clark resigned from the board of directors, marking a change in leadership.

Spark’s Take on TSE:AQS Stock

According to Spark, TipRanks’ AI Analyst, TSE:AQS is a Underperform.

Aequus Pharmaceuticals is currently struggling with financial instability, as reflected in its low financial performance score. Technical analysis indicates a bearish trend, which, along with a negative P/E ratio, contributes to its low valuation score. The lack of earnings call data and corporate events leaves the primary focus on the company’s financial challenges.

To see Spark’s full report on TSE:AQS stock, click here.