Cardiol Therapeutics (CRDL) AI Stock Analysis

• Market Cap: $143.81M
• Dividend Yield: N/A
• Average Volume (3M): 73.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: N/A
• EPS Growth: -18.03%
• Country: CA
• Employees: 18
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.10
• Shares Outstanding: 82,649,730
• 10 Day Avg. Volume: 90,894
• 30 Day Avg. Volume: 73,778
• PEG Ratio: -0.53
• Price to Book (P/B): 8.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.76
• 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: $11.65
• Price Target Upside: 561.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 38 Underperform
• Price Target: ―

Cardiol Therapeutics faces substantial financial challenges, primarily driven by ongoing losses and negative cash flow. The stock's technical indicators suggest mixed momentum, and its valuation is constrained by a negative P/E ratio. However, promising clinical developments and strategic advancements in heart disease treatments provide some positive outlook, though these are not sufficient to offset the financial and technical concerns.

Positive Factors

Clinical Trials

The expected release of data from the Phase II ARCHER trial in acute myocarditis could unlock significant value for CRDL.

Market Opportunities

The potential market opportunity for CRD-38 is significant, with approximately 1.2 million heart failure hospitalizations in the U.S. each year and no approved drugs targeting inflammatory/fibrotic mechanisms.

Regulatory Progress

CardiolRx has FDA Orphan Drug designation for the treatment of pericarditis, which supports its regulatory pathway to approval.

Negative Factors

Investment Risks

Risks to the investment thesis include failure of clinical trials to prove efficacy and regulatory requirements for additional clinical studies.

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 operates primarily in the biopharmaceutical sector and is dedicated to advancing its proprietary cannabidiol-based formulations for heart failure and acute myocarditis, aiming to address unmet medical needs in these areas.

How the Company Makes Money

Cardiol Therapeutics makes money primarily through the development and commercialization of its pharmaceutical products. The company's revenue model is centered around bringing its drug candidates through clinical trials to regulatory approval, after which it plans to generate income through the sales of these therapies. Additionally, Cardiol may engage in licensing agreements or strategic partnerships with larger pharmaceutical companies to co-develop or distribute its products, which could provide upfront payments, milestone payments, and royalties as potential revenue streams. The company may also seek funding through grants, collaborations, or equity financing to support its research and development activities.

Cardiol Therapeutics Financial Statement Overview

Summary

Cardiol Therapeutics faces significant financial hurdles, with ongoing losses and cash flow challenges. The lack of revenue generation, combined with a reliance on financing for cash flow, underscores a risky financial position. While the debt level is low, the declining equity and persistent losses require strategic adjustments to improve financial health.

Income Statement

Cardiol Therapeutics has consistently reported zero revenue, heavily impacting gross and net profit margins. The company faces significant losses, evidenced by a negative EBIT and EBITDA. The lack of revenue growth and substantial net losses signal ongoing financial challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows a relatively low debt level, with a debt-to-equity ratio that is manageable. However, the substantial decline in stockholders' equity over time is concerning. The equity ratio remains positive, indicating some stability, but the continued erosion of equity due to persistent losses poses risks.

Cash Flow

Cardiol Therapeutics exhibits negative operating and free cash flows, highlighting cash burn issues. The company has yet to generate positive cash flow from operations, relying on financing activities to sustain operations. This dependency on external financing may not be sustainable long-term.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	78.76K	0.00
Gross Profit	-373.11K	-248.35K	-219.91K	78.76K	-229.54K
EBITDA	-36.30M	-27.88M	-30.71M	-38.44M	-20.41M
Net Income	-36.68M	-28.13M	-11.52M	-24.72M	-20.65M
Balance Sheet
Total Assets	31.86M	36.70M	62.03M	87.88M	15.89M
Cash, Cash Equivalents and Short-Term Investments	30.58M	34.93M	59.47M	83.90M	14.03M
Total Debt	158.53K	158.53K	72.87K	117.58K	156.57K
Total Liabilities	7.14M	8.45M	9.83M	11.64M	2.62M
Stockholders Equity	24.73M	28.25M	52.20M	76.24M	13.27M
Cash Flow
Free Cash Flow	-25.08M	―	-27.30M	-23.56M	-9.23M
Operating Cash Flow	-25.06M	―	-27.22M	-23.55M	-9.19M
Investing Cash Flow	-21.29K	-64.31K	-74.71K	-12.92K	-40.60K
Financing Cash Flow	18.84M	―	-53.93K	93.44M	16.30M

Cardiol Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Positive
• 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 1.76 is below the 20-day moving average (MA) of 1.87, below the 50-day MA of 1.77, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 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	71 Outperform	C$679.23M	―	-3.70%	2.46%	-12.01%	-698.83%
TH	60 Neutral	$197.94M	―		―	5.24%	-7.99%
HLS	56 Neutral	C$154.63M	―	-23.05%	―	-3.73%	32.70%
Sector *	52 Neutral	$7.39B	>-0.01	-63.86%	2.36%	16.15%	0.36%
CRDL	38 Underperform	$143.81M	―	-190.61%	―	―	-18.03%

Cardiol Therapeutics Corporate Events

Cardiol Therapeutics Commences Phase III Trial for CardiolRx™ in Recurrent Pericarditis

Cardiol Therapeutics has announced the enrollment of the first patient in its pivotal Phase III MAVERIC trial, which aims to evaluate the efficacy of CardiolRx™ in preventing recurrent pericarditis. This trial, conducted across multiple centers, is a significant step towards potentially securing regulatory approval for CardiolRx™ as a non-immunosuppressive treatment option for pericarditis patients, addressing a critical need for new therapies in this area. The trial’s success could significantly impact the treatment landscape for this debilitating heart condition and improve the quality of life for affected patients.

Spark’s Take on TSE:CRDL Stock

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

Cardiol Therapeutics faces substantial financial challenges, primarily driven by ongoing losses, negative cash flow, and a weak technical outlook. Despite promising clinical developments and strategic positioning in heart disease treatments, these factors are not sufficient to offset the financial and technical concerns. The overall outlook is cautious, given the high risk associated with the current financial state and market trends.

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

Cardiol Therapeutics Advances Heart Disease Treatments with Promising Clinical Results

Cardiol Therapeutics announced significant progress in its clinical programs for 2024, including positive results from the Phase II MAvERIC-Pilot study on CardiolRx™ for recurrent pericarditis, supporting the advancement to a Phase III trial. The company also completed patient enrollment in the Phase II ARCHER trial for acute myocarditis, with results expected in 2025. CardiolRx™ received Orphan Drug Designation from the U.S. FDA for pericarditis treatment, and the company remains financially stable with cash reserves to fund operations into 2026. These developments position Cardiol strongly in the heart disease treatment space, potentially impacting stakeholders positively by addressing significant unmet needs in pericarditis and myocarditis.

Cardiol Therapeutics to Present at TD Cowen Health Care Conference

Cardiol Therapeutics announced its participation in the TD Cowen 45th Annual Health Care Conference, highlighting its ongoing clinical trials and FDA-approved studies for its lead drug candidate, CardiolRx™, aimed at treating heart diseases like recurrent pericarditis and acute myocarditis. The company’s strategic focus on innovative therapies positions it as a significant player in the healthcare sector, potentially impacting stakeholders through advancements in heart disease treatment.

Cardiol Therapeutics Advances Heart Failure Treatment with New Research Publication

Cardiol Therapeutics has announced the publication of research in the Journal of the American College of Cardiology: Basic to Translational Science, supporting the development of its subcutaneous drug candidate, CRD-38, for heart failure treatment. The research indicates that CRD-38 significantly improves cardiac function and reduces key heart failure mechanisms, which could enhance the company’s market positioning and provide new treatment avenues for a condition with high hospitalization and mortality rates.