CareRx (CRRX) AI Stock Analysis

• Market Cap: C$178.13M
• Dividend Yield: N/A
• Average Volume (3M): 16.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -0.69%
• EPS Growth: 8.08%
• Country: CA
• Employees: 1,423
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.00
• Shares Outstanding: 62,995,872
• 10 Day Avg. Volume: 25,788
• 30 Day Avg. Volume: 16,648
• PEG Ratio: -2.90
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.26
• 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$3.00
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: C$3.00 ▲(6.01%Upside)

CareRx's overall stock score reflects a blend of strong cash management and positive corporate events offset by poor valuation metrics and challenges in achieving consistent profitability. The company's recent return to profitability and strategic initiatives provide a positive outlook, but financial performance and valuation concerns remain significant risks.

Positive Factors

Growth Potential

CareRx serviced slightly more beds than estimated, indicating potential growth.

Operational Improvements

Revenue per bed increased 3.5% year over year, showing operational improvements.

Negative Factors

Financial Performance

The company posted a small miss on revenues and EBITDA due to lower than forecast revenue per bed.

Operational Challenges

Revenue per bed in the quarter was lower than in the previous quarter, affected by the number of days in the quarter.

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 services. It serves approximately 50,000 residents in approximately 900 seniors and other communities, including long-term care homes, retirement homes, assisted living facilities, and group homes. The company was formerly known as Centric Health Corporation and changed its name to CareRx Corporation in June 2020. CareRx Corporation was incorporated in 2001 and is headquartered in Toronto, Canada.

How the Company Makes Money

CareRx generates revenue primarily through the provision of pharmacy services to long-term care homes and retirement residences. The company earns money by dispensing medications, providing medication management and consulting services, and offering specialized packaging and delivery services to healthcare facilities. Key revenue streams include government funding, contracts with care facilities, and partnerships with healthcare providers. Significant factors contributing to its earnings are its extensive network of pharmacy locations across Canada and its focus on providing tailored healthcare solutions to meet the needs of its clients.

CareRx Financial Statement Overview

Summary

CareRx's financial performance is mixed. While the company shows strong cash flow management and a healthy gross profit margin, it struggles with profitability and high leverage. Stagnant revenue growth and negative net income indicate areas needing improvement.

Income Statement

CareRx's income statement shows moderate financial performance. The company has been struggling with profitability, as seen in the negative net income for TTM and annual periods. However, the gross profit margin is healthy at 29.5% TTM, demonstrating strong cost management relative to revenue. Revenue growth has been stagnant recently, indicating limited top-line expansion. The EBIT and EBITDA margins are modest, reflecting potential operational efficiencies but also suggesting room for improvement in cost control and revenue growth.

Balance Sheet

The balance sheet indicates a relatively high leverage, with a debt-to-equity ratio of 0.95 TTM, suggesting significant reliance on debt financing. Stockholders' equity has shown growth, albeit slowly, from 2021 to TTM. The equity ratio is moderate at 38.6% TTM, implying a balanced approach between debt and equity. However, the company's return on equity remains negative due to persistent net losses, indicating underperformance in generating returns on shareholders' investments.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio, indicating robust cash generation relative to net income losses. The free cash flow is positive and has shown growth, providing a buffer for investment and debt service. Despite investment in capital expenditures, the company maintains a positive free cash flow, which is a positive indicator of financial health. The company seems to manage its cash flows effectively, balancing operating needs with investment and financing activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
366.54M	366.71M	370.75M	381.73M	262.63M	162.20M
	Gross Profit
108.23M	108.06M	84.72M	109.93M	75.28M	47.05M
	EBIT
4.77M	4.53M	4.67M	-21.94M	-3.31M	-2.94M
	EBITDA
24.07M	23.90M	24.65M	-610.00K	9.01M	4.15M
	Net Income Common Stockholders
-3.76M	-4.50M	-5.41M	-34.35M	-22.73M	-18.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.62M	9.08M	7.03M	28.37M	35.63M	19.62M
	Total Assets
156.11M	223.54M	231.89M	264.54M	282.82M	156.11M
	Total Debt
82.19M	82.63M	97.86M	135.22M	125.57M	82.19M
	Net Debt
62.57M	73.55M	90.83M	106.85M	89.95M	62.57M
	Total Liabilities
144.81M	139.31M	150.37M	200.08M	200.53M	144.81M
	Stockholders Equity
11.30M	84.23M	81.53M	64.46M	82.29M	11.30M
Cash Flow		Free Cash Flow
24.56M	29.88M	18.68M	8.72M	153.00K	-1.73M
	Operating Cash Flow
30.62M	37.99M	27.38M	22.33M	7.27M	229.00K
	Investing Cash Flow
-8.41M	-7.92M	-12.31M	-16.60M	-93.18M	-4.17M
	Financing Cash Flow
-27.88M	-28.02M	-36.40M	-12.99M	101.91M	23.50M

CareRx Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRRX, the sentiment is Neutral. The current price of 2.83 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.74, and above the 200-day MA of 2.31, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 60.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CRRX.

CareRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	73 Outperform	C$1.20B	15.59	71.61%	3.38%	9.38%	117.85%
SIA	72 Outperform	C$1.71B	43.76	6.93%	5.07%	8.76%	14.05%
WELL	65 Neutral	C$1.04B	30.45	-3.53%	―	17.19%	-191.01%
CRRX	61 Neutral	C$178.13M	―	-4.48%	―	-0.69%	8.08%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
MFCSF		$216.51M	2.38	33.87%	2.29%	―	―
PHA	46 Neutral	C$3.77M	―	-239.50%	―	3.03%	-410.90%

CareRx Corporate Events

CareRx Announces Successful Election of Board Members at Annual Meeting

CareRx Corporation, a prominent provider of pharmacy services to seniors in Canada, announced the successful election of its board of directors during the Annual General Meeting of Shareholders. All proposed resolutions were passed, reinforcing the company’s leadership and strategic direction. This outcome supports CareRx’s continued focus on enhancing medication safety and efficiency in senior care facilities, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (TSE:CRRX) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Reports First Quarter 2025 Results, Marks Return to Growth

CareRx Corporation reported its financial results for the first quarter of 2025, highlighting a return to growth with a net income of $0.2 million, a significant improvement from previous losses. The company has strengthened its financial and operational foundation through strategic investments and cost-saving initiatives, enhancing its capacity for scalable growth. The opening of a new pharmacy in North Burnaby and the consolidation of operations in British Columbia are part of its efforts to optimize operations. Additionally, a pause in changes to long-term care pharmacy funding in Ontario provides temporary relief from anticipated fee reductions, potentially impacting future revenue streams.