CareRx (TSE:CRRX)
TSX:CRRX
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CareRx
(TSX:CRRX)
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Rating:66Neutral
Price Target:
C$4.00
▲(11.11% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by improving financial performance from a turnaround (profitability and de-leveraging) and supportive valuation (low P/E plus dividend). Offsetting these positives are weaker near-term technical signals and execution risks from the earnings call tied to bed-onboarding timing and regulatory uncertainty.
Positive Factors
Recurring LTC pharmacy revenue
CareRx's core model is recurring dispensing and clinical services to LTC and retirement facilities, creating predictable, contract-driven revenue tied to resident medication needs. This repeatable demand and facility-level contracting support steady volumes and durable cashflows over months to years.
Negative Factors
Gross margin compression
A multi-point drop in gross margin signals structural cost or pricing pressure that can durably depress operating leverage. If sustained, margin compression reduces free cash flow and limits the scalability of dividends, hub investments, and M&A even if revenue growth continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring LTC pharmacy revenue
CareRx's core model is recurring dispensing and clinical services to LTC and retirement facilities, creating predictable, contract-driven revenue tied to resident medication needs. This repeatable demand and facility-level contracting support steady volumes and durable cashflows over months to years.
Read all positive factors
CareRx (CRRX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$226.31M
Dividend Yield1.03%
Average Volume (3M)71.09K
Price to Earnings (P/E)9.2
Beta (1Y)0.07
Revenue Growth0.19%
EPS GrowthN/A
CountryCA
Employees1,423
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.37
Shares Outstanding62,916,103
10 Day Avg. Volume18,484
30 Day Avg. Volume71,092
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)2.19
Price to Sales (P/S)0.65
P/FCF Ratio10.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.42Price Target Upside50.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.18
Revenue Forecast (FY)C$392.89M
CareRx Business Overview & Revenue Model
Company Description
CareRx Corporation, together with its subsidiaries, provides specialty pharmacy services to seniors in Canada. The company operates a network of pharmacy fulfilment centers that provide chronic medication and other specialty clinical pharmacy serv...
How the Company Makes Money
CareRx generates revenue through multiple streams, primarily by providing pharmacy services to long-term care facilities, which include nursing homes and assisted living centers. The company charges these facilities for prescription medications an...
CareRx Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational momentum and a clear turnaround to sustained profitability, with multiple positive financial metrics (revenue and EBITDA growth, margin expansion, bed additions, improved leverage, cash generation and a deferred tax asset). Operational and strategic initiatives (hub-and-spoke, new Burnaby hub, clinical programs and government engagement) support growth prospects. Key risks highlighted were timing/regulatory uncertainty around onboarding new beds, an early-stage M&A pipeline, and some near-term cash balance decline. On balance the positive achievements and improved financial profile materially outweigh the identified risks.Positive Updates
Quarterly Revenue Growth
Q4 revenue of $96.1M versus $92.2M in Q4 2024, an increase of approximately 4.2%, driven primarily by higher average beds serviced.
Negative Updates
Quarterly Cash Balance Decline
Cash on hand decreased to $13.9M at December 31, 2025 from $15.5M at the end of Q3 2025, a decline of ~10.3% quarter-over-quarter, despite improved operating cash flow.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Q4 revenue of $96.1M versus $92.2M in Q4 2024, an increase of approximately 4.2%, driven primarily by higher average beds serviced.
Read all positive updates
Company Guidance
Management's forward guidance and targets included a 2026 organic bed growth goal of 6,000–8,000 net new beds (which management said could help push adjusted EBITDA into double-digit margins), plans to add two more hub facilities within ~24 months, continued capital allocation to a quarterly dividend and renewed NCIB (Q4 dividend paid was $1.3M), discretionary annual maintenance/expansion capex of roughly $8–$10M, opportunistic M&A as warranted, and close monitoring of semaglutide (expected by management to potentially go generic late in the year); they also highlighted the company’s strong balance-sheet position (cash $13.9M, net debt $27.1M, net debt/adjusted EBITDA ~0.8x, and a ~24% Y/Y reduction in net debt) as enabling this growth plan.CareRx Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 370.24M | 366.71M | 370.75M | 381.73M | 262.63M |
| Gross Profit | 92.63M | 108.06M | 84.72M | 109.93M | 75.28M |
| EBITDA | 30.22M | 23.90M | 24.65M | -610.00K | 9.01M |
| Net Income | 26.13M | -4.50M | -5.41M | -34.35M | -22.73M |
Balance Sheet | |||||
| Total Assets | 253.02M | 223.54M | 231.89M | 264.54M | 282.82M |
| Cash, Cash Equivalents and Short-Term Investments | 14.40M | 9.08M | 7.03M | 28.37M | 35.63M |
| Total Debt | 77.92M | 82.63M | 97.86M | 135.22M | 125.57M |
| Total Liabilities | 143.51M | 139.31M | 150.37M | 200.08M | 200.53M |
| Stockholders Equity | 109.50M | 84.23M | 81.53M | 64.46M | 82.29M |
Cash Flow | |||||
| Free Cash Flow | 21.95M | 29.88M | 18.68M | 8.72M | 153.00K |
| Operating Cash Flow | 27.54M | 37.99M | 27.38M | 22.33M | 7.27M |
| Investing Cash Flow | -8.26M | -7.92M | -12.31M | -16.60M | -93.18M |
| Financing Cash Flow | -14.44M | -28.02M | -36.40M | -12.99M | 101.91M |
CareRx Technical Analysis
Negative
3.60
Price Trends
3.77
Negative
3.71
Negative
3.42
Positive
Market Momentum
-0.03
Positive
40.96
Neutral
16.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRRX, the sentiment is Negative. The current price of 3.6 is below the 20-day moving average (MA) of 3.69, below the 50-day MA of 3.77, and above the 200-day MA of 3.42, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CRRX.
CareRx Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$2.68B | 18.86 | 47.65% | 2.28% | 11.59% | 41.99% | |
67 Neutral | C$293.19M | 10.68 | 89.16% | 2.35% | -40.05% | 558.77% | |
66 Neutral | C$226.31M | 9.17 | 28.24% | 1.03% | 0.19% | ― | |
63 Neutral | C$30.56M | -92.15 | 4.10% | ― | 19.61% | ― | |
63 Neutral | C$2.23B | 42.05 | 6.93% | 4.47% | 11.47% | 6.45% | |
54 Neutral | C$975.88M | -133.00 | -0.87% | ― | 26.20% | -156.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TSE:CRRX
CareRx
3.60
1.04
40.73%
TSE:EXE
Extendicare
28.34
16.07
130.93%
TSE:NLH
Nova Leap Health
0.35
0.11
45.83%
TSE:SIA
Sienna Senior Living
22.48
7.46
49.71%
TSE:DR
Medical Facilities
16.61
1.76
11.86%
TSE:WELL
WELL Health Technologies Corp
3.82
-0.18
-4.50%
CareRx Corporate Events
Business Operations and StrategyDividends
CareRx Declares Q1 2026 Dividend Amid Stable Seniors Pharmacy Operations
Positive
Mar 5, 2026
CareRx Corporation has declared a quarterly dividend of CAD$0.02 per common share for the first quarter of 2026, payable on April 9 to shareholders of record as of March 19. The dividend is designated as an eligible dividend for Canadian tax purpo...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
CareRx Posts First Full-Year Profit, Boosts Margins and Launches Dividend in 2025
Positive
Mar 5, 2026
CareRx reported 2025 revenue of $370.2 million, modestly higher than a year earlier, with average beds serviced rising to 92,250 in the fourth quarter and Adjusted EBITDA improving to $32.9 million and margins to 8.9%. The company posted its first...
Business Operations and StrategyFinancial Disclosures
CareRx Sets Date to Release 2025 Results and Host Investor Call
Neutral
Feb 25, 2026
CareRx Corporation, a national provider of pharmacy services to seniors housing and other congregate care communities across Canada, supports resident health and medication safety through automated multi-dose packaging and a network of pharmacy fu...
Dividends
CareRx Declares Q4 2025 Dividend, Reinforcing Shareholder Value
Positive
Dec 15, 2025
CareRx Corporation has announced a dividend of CAD$0.02 per common share, payable on January 21, 2026, to shareholders of record as of December 23, 2025. This move underscores CareRx’s commitment to delivering value to its shareholders while...
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.