Cardiol Therapeutics (CRDL) AI Stock Analysis

• Market Cap: $111.80M
• Dividend Yield: N/A
• Average Volume (3M): 81.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: N/A
• EPS Growth: -21.76%
• Country: CA
• Employees: 22
• Sector: Healthcare
• Sector Strength: 65
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.51
• Shares Outstanding: 81,603,424
• 10 Day Avg. Volume: 87,924
• 30 Day Avg. Volume: 81,018
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.30
• P/FCF Ratio: 0.00
• 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: C$11.45
• Price Target Upside: 754.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Cardiol Therapeutics receives a low overall score due to severe financial challenges, including consistent losses and negative cash flows. The technical analysis indicates bearish trends, further weighing down the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, suggesting limited appeal to investors seeking value or income.

Positive Factors

Clinical Development

Advancement of CRD-38 into Phase 1 testing is seen as a positive catalyst, targeting a large market opportunity due to the high number of hospital admissions each year in the U.S. attributed to heart failure.

Financial Stability

Cardiol Therapeutics has sufficient funds totaling C$34.0M to fund operations into the second quarter of 2026.

Negative Factors

Market Competition

Potential failure of products to show sufficient competitive differentiation in targeted product indications is a risk to the investment thesis.

Regulatory and Clinical Risks

Risks include failure of clinical trials to prove efficacy, regulatory requirements for additional clinical studies, and potential inability to raise additional funds under poor market conditions.

Cardiol Therapeutics Business Overview & Revenue Model

Company Description

Cardiol Therapeutics (CRDL) is a clinical-stage biotechnology company focused on the research and development of innovative anti-inflammatory and anti-fibrotic therapies for the treatment of cardiovascular diseases. The company's core product, CardiolRx, is a pharmaceutically manufactured oral cannabidiol formulation currently being investigated in clinical trials for its potential to treat heart conditions such as acute myocarditis and heart failure. Cardiol Therapeutics operates primarily within the biotechnology and pharmaceutical sectors, aiming to address significant unmet medical needs in cardiology.

How the Company Makes Money

Cardiol Therapeutics primarily generates revenue through the development and commercialization of its pharmaceutical products. As a clinical-stage company, its primary source of future revenue is anticipated to come from successful drug development and subsequent licensing or commercialization of its lead product, CardiolRx. Key revenue streams may include milestone payments from partnerships or licensing agreements with larger pharmaceutical companies, as well as potential sales revenue upon regulatory approval of its therapies. The company's earnings are significantly influenced by its ability to advance its clinical trials, protect its intellectual property, and establish strategic collaborations to support its research and development efforts.

Cardiol Therapeutics Financial Statement Overview

Summary

Cardiol Therapeutics is facing financial challenges characterized by lack of revenue, consistent losses, and negative cash flows. While the balance sheet shows low reliance on debt, the persistent operational losses and negative cash flows raise concerns about the company's ability to achieve profitability and maintain liquidity without external funding.

Income Statement

Cardiol Therapeutics has consistently reported zero revenue over the observed periods, indicating a lack of commercial product launches or sales. The net profit margin is negative, reflecting substantial losses. EBIT and EBITDA margins are also negative, further emphasizing the operational challenges the company faces in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is low, indicating minimal reliance on debt financing. However, the return on equity is negative due to consistent net losses, impacting shareholder value. The equity ratio is relatively strong, suggesting that a significant portion of the assets is financed by equity, which can be seen as a sign of financial stability.

Cash Flow

Cardiol Therapeutics has significant negative free cash flow, indicating cash outflows exceed cash inflows, which could affect future liquidity. The operating cash flow to net income ratio is not favorable, highlighting inefficiencies in converting net income into cash. The lack of significant positive cash flow from operations poses a risk to sustaining operations without additional financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	78.76K	0.00	0.00
	Gross Profit
-190.29K	-248.35K	-219.91K	78.76K	-229.54K	-150.57K
	EBIT
-24.18M	-29.79M	-50.34M	-45.47M	-20.61M	-13.58M
	EBITDA
-37.55M	-27.88M	-30.71M	-38.44M	-20.41M	-13.53M
	Net Income Common Stockholders
-36.14M	-28.13M	-11.52M	-24.72M	-20.65M	-13.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.36M	34.93M	59.47M	83.90M	14.03M	6.96M
	Total Assets
3.22M	36.70M	62.03M	87.88M	15.89M	15.50M
	Total Debt
190.04K	158.53K	72.87K	117.58K	156.57K	190.75K
	Net Debt
-2.17M	-34.77M	-59.40M	-83.78M	-13.87M	-6.77M
	Total Liabilities
366.76K	8.45M	9.83M	11.64M	2.62M	830.83K
	Stockholders Equity
2.85M	28.25M	52.20M	76.24M	13.27M	14.67M
Cash Flow		Free Cash Flow
-25.96M	―	-27.30M	-23.56M	-9.23M	-11.80M
	Operating Cash Flow
-25.93M	―	-27.22M	-23.55M	-9.19M	-11.38M
	Investing Cash Flow
-25.84K	-64.31K	-74.71K	-12.92K	-40.60K	-424.31K
	Financing Cash Flow
135.98K	―	-53.93K	93.44M	16.30M	2.03M

Cardiol Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRDL, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.73, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CRDL.

Cardiol Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	68 Neutral	C$360.07M	―	-3.15%	4.64%	-15.41%	-69.47%
HLS	52 Neutral	C$147.84M	―	-23.20%	―	-8.80%	26.77%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
TH	45 Neutral	$94.72M	―		―	6.07%	80.33%
CRDL	31 Underperform	$111.80M	―	-138.82%	―	―	-21.76%