CareRx (CRRX) AI Stock Analysis

• Market Cap: C$229.69M
• Dividend Yield: 0.56%
• Average Volume (3M): 71.09K
• Price to Earnings (P/E): 3650.0
• Beta (1Y): 0.06
• Revenue Growth: 0.19%
• EPS Growth: N/A
• Country: CA
• Employees: 1,423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 62,980,570
• 10 Day Avg. Volume: 18,484
• 30 Day Avg. Volume: 71,092
• PEG Ratio: 1.33
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 4.15
• 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$4.58
• Price Target Upside: 27.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$3.50 ▼(-2.78% Downside)

CareRx's overall stock score reflects a mixed financial performance with ongoing profitability challenges, as indicated by negative net profit margins and a negative P/E ratio. However, the recent earnings call provided a positive outlook with revenue and EBITDA growth, reduced debt, and the initiation of a dividend, which boosts confidence in future cash flows. Technical indicators are neutral, showing a stable trend, while valuation remains a concern due to the negative P/E ratio.

Positive Factors

Revenue and EBITDA Growth

The increase in revenue and EBITDA indicates strong operational performance and efficiency, which supports long-term growth and market competitiveness.

Positive Net Income

Consistent positive net income reflects improved profitability and financial health, enhancing the company's ability to reinvest in growth opportunities.

Reduction in Net Debt

Reduced net debt strengthens the balance sheet, providing greater financial flexibility and reducing risk, which is crucial for sustainable growth.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses a challenge to long-term growth, indicating potential issues in market demand or competitive positioning.

Negative Net Profit Margins

Negative net profit margins highlight profitability issues, which can limit the company's ability to invest in growth and innovation.

Cash Flow Decrease

Decreased cash flow from operations may impact the company's ability to fund operations and growth initiatives, potentially affecting long-term sustainability.

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 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 and related services, such as medication management and compliance packaging. Additionally, CareRx may have partnerships with healthcare providers and payers, which can enhance its service offerings and revenue potential. The company's ability to streamline medication processes and improve health outcomes for residents also positions it favorably for potential reimbursement incentives from government and insurance programs.

CareRx Financial Statement Overview

Summary

CareRx demonstrates strong cash flow management and a healthy gross profit margin. However, challenges include stagnant revenue growth, negative net income, and significant debt levels, necessitating strategic focus on operational efficiency and growth opportunities.

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	365.96M	366.71M	370.75M	381.73M	262.63M	162.20M
Gross Profit	108.09M	108.06M	84.72M	109.93M	75.28M	47.05M
EBITDA	25.14M	23.90M	24.65M	-610.00K	9.01M	4.15M
Net Income	-1.82M	-4.50M	-5.41M	-34.35M	-22.73M	-18.18M
Balance Sheet
Total Assets	218.31M	223.54M	231.89M	264.54M	282.82M	156.11M
Cash, Cash Equivalents and Short-Term Investments	8.69M	9.08M	7.03M	28.37M	35.63M	19.62M
Total Debt	81.87M	82.63M	97.86M	135.22M	125.57M	82.19M
Total Liabilities	131.36M	139.31M	150.37M	200.08M	200.53M	144.81M
Stockholders Equity	86.95M	84.23M	81.53M	64.46M	82.29M	11.30M
Cash Flow
Free Cash Flow	23.95M	29.88M	18.68M	8.72M	153.00K	-1.73M
Operating Cash Flow	31.78M	37.99M	27.38M	22.33M	7.27M	229.00K
Investing Cash Flow	-9.15M	-7.92M	-12.31M	-16.60M	-93.18M	-4.17M
Financing Cash Flow	-21.16M	-28.02M	-36.40M	-12.99M	101.91M	23.50M

CareRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.60
• 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 Positive. The current price of 3.6 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.42, and above the 200-day MA of 2.90, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 75.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRRX.

CareRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	68 Neutral	C$1.38B	16.68	65.09%	3.16%	8.68%	39.93%
DR	63 Neutral	C$252.96M	1.98	39.85%	2.45%	-40.05%	558.77%
SIA	59 Neutral	C$1.75B	47.54	6.94%	4.94%	10.13%	1.30%
CRRX	56 Neutral	C$229.69M	3,650.00	0.11%	0.56%	0.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
WELL	43 Neutral	C$1.26B	-9.60	-5.11%	―	26.20%	-156.86%
PHA	42 Neutral	C$1.39M	-0.12	-1473.72%	―	-22.61%	7.72%

CareRx Corporate Events

CareRx Reports Strong Q3 2025 Financial Results and Strategic Initiatives

CareRx Corporation reported positive financial results for the third quarter of 2025, with revenue increasing to $93.2 million and adjusted EBITDA rising to $8.3 million. The company also initiated a quarterly dividend and renewed its share buyback program, reflecting confidence in its strategic positioning and commitment to delivering long-term value to stakeholders. Notable events included hosting Ontario’s Minister of Long-Term Care to showcase their innovative services and declaring a dividend of $0.02 per common share.

The most recent analyst rating on (TSE:CRRX) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx to Discuss Q3 2025 Financial Results in Upcoming Conference Call

CareRx Corporation announced it will host a conference call on November 4, 2025, to discuss its third quarter financial results, which will be released after market close on November 3, 2025. This announcement reflects CareRx’s ongoing commitment to transparency and communication with stakeholders, potentially impacting investor confidence and market positioning as the company continues to lead in the pharmacy services sector for senior care communities.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$3.50 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Initiates Dividend and Renews Share Repurchase Program

CareRx Corporation announced the initiation of a quarterly dividend and received regulatory approval for the renewal of its normal course issuer bid to repurchase outstanding common shares. This move reflects the company’s commitment to a disciplined capital allocation strategy, allowing it to return capital to shareholders while maintaining financial flexibility for growth initiatives. The dividend is set at $0.02 per share, and the issuer bid allows for the repurchase of up to 1,500,000 common shares, representing approximately 2.4% of the total shares. This strategy is part of CareRx’s broader approach to manage capital effectively and reward shareholder confidence.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.