CareRx (CRRX) AI Stock Analysis

• Market Cap: C$228.36M
• Dividend Yield: 1.03%
• Average Volume (3M): 71.09K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.19
• Revenue Growth: 0.19%
• EPS Growth: N/A
• Country: CA
• Employees: 1,423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.37
• Shares Outstanding: 62,787,746
• 10 Day Avg. Volume: 18,484
• 30 Day Avg. Volume: 71,092
• PEG Ratio: -0.01
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 10.92
• 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$5.42
• Price Target Upside: 47.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): C$393.84M

• Rating: 66 Neutral
• Price Target: C$4.00 ▲(8.99% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 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.

Improved leverage and balance sheet

Material de‑leveraging to roughly 0.8x net debt/EBITDA and a meaningful Y/Y drop in net debt strengthens financial flexibility. Lower leverage supports dividend payments, opportunistic M&A, and hub investments while reducing insolvency risk during demand variability.

Scale and bed-addition driven operating leverage

Growing bed footprint and hub‑and‑spoke expansion create low incremental labor costs per bed, enabling margin accretion as volumes scale. Clinical programs and hub transitions also deepen facility relationships, supporting durable revenue growth and higher long‑run unit economics.

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.

Volatile free cash flow

Large year‑to‑year swings in free cash flow, despite positive operating cashflow in 2025, point to working capital and investment sensitivity. This volatility undermines reliable funding for dividends, debt paydown or acquisitions and raises execution risk for multi‑year plans.

Regulatory & execution risk on bed onboarding / M&A

Growth heavily relies on onboarding new beds and opportunistic acquisitions, but licensing delays, competition reviews and an early‑stage deal pipeline can materially slow expected volume and margin gains. These structural execution and regulatory frictions pose lasting timing risk to plans.

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

Financials reflect a turnaround with meaningful profitability and ROE improvement in 2025 and reduced leverage, but quality is mixed due to gross margin compression (about 29.5% to 25.0%) and a sharp free-cash-flow decline versus 2024, indicating uneven cash conversion.

Income Statement

CareRx shows a clear profitability turn in the most recent annual period (2025) with net income of $26.1M and improved operating earnings versus prior loss-making years (2021–2024). Revenue has been relatively stable recently (about $366.7M in 2024 to $370.2M in 2025; ~1.1% growth), but longer-term growth has been strong from 2020 levels. A key weakness is margin volatility: gross margin fell from ~29.5% (2024) to ~25.0% (2025), suggesting higher costs or mix pressure even as the bottom line improved.

Balance Sheet

Leverage has improved meaningfully over time: debt relative to equity declined from very elevated levels in 2020–2022 to ~0.71x in 2025, alongside a rebound in equity. Returns also improved sharply, with 2025 showing a strong positive return on equity (~23.9%) versus negative returns in 2021–2024. The main risk is that the company still carries a notable debt load ($77.9M in 2025), and prior years show the business has been exposed to periods of weaker profitability, which can pressure the balance sheet if results soften again.

Cash Flow

Cash generation is generally solid, with positive operating cash flow and free cash flow across 2021–2025 (and 2025 free cash flow of ~$22.0M). Free cash flow also tracks earnings reasonably well in 2025 (about 0.80x free cash flow relative to net income). The weakness is volatility: 2025 free cash flow declined sharply versus 2024 (free cash flow growth of about -55%), indicating inconsistent cash conversion year-to-year and a potential sensitivity to working capital or investment needs.

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

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.67 is below the 20-day moving average (MA) of 3.82, below the 50-day MA of 3.85, and above the 200-day MA of 3.36, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 32.83 is Neutral, neither overbought nor oversold. The STOCH value of 19.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DR	76 Outperform	C$301.32M	5.81	89.16%	2.35%	-40.05%	558.77%
EXE	70 Outperform	C$2.47B	18.86	47.65%	2.28%	11.59%	41.99%
CRRX	66 Neutral	C$228.36M	9.17	28.24%	1.03%	0.19%	―
NLH	63 Neutral	C$29.51M	-92.15	4.10%	―	19.61%	―
SIA	63 Neutral	C$2.29B	42.05	7.07%	4.47%	11.47%	6.45%
WELL	58 Neutral	C$1.13B	78.13	-5.11%	―	26.20%	-156.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

CareRx Corporate Events

CareRx Declares Q1 2026 Dividend Amid Stable Seniors Pharmacy Operations

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 purposes, and the company has advised investors that tax treatment will vary depending on residency and applicable laws.

The announcement underscores CareRx’s continued return of capital to shareholders while it maintains its role as a leading pharmacy services provider to seniors and congregate care communities across Canada. By pairing dividend payments with a technology-driven, nationwide service platform, the company signals ongoing financial and operational stability that may be reassuring to investors and stakeholders in the seniors’ care ecosystem.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Posts First Full-Year Profit, Boosts Margins and Launches Dividend in 2025

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 full year of positive net income at $26.1 million, strengthened its balance sheet by reducing net debt, initiated a quarterly dividend and share buybacks, and said operational efficiencies and platform expansion position it to benefit from growth in seniors housing.

Fourth-quarter revenue climbed to $96.1 million, while Adjusted EBITDA rose to $8.8 million and cash from operations reached $9.6 million, reflecting contributions from newly onboarded beds and cost-saving initiatives. CareRx’s move to return capital via dividends and its renewed share repurchase program underscore confidence in its cash generation and signal a more shareholder-friendly posture as it targets further scalable growth with its operator partners.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Sets Date to Release 2025 Results and Host Investor Call

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 fulfillment centers. The company works closely with home operator partners to enhance staff education and improve the quality and efficiency of medication systems.

The company announced it will release its annual and fourth quarter 2025 financial results after markets close on March 4, 2026, and will discuss the performance on a conference call the following morning. Investors will be able to access a live and archived webcast with slide presentation via the investor section of CareRx’s website, underscoring the firm’s efforts to maintain transparency and engagement with its shareholder base.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Declares Q4 2025 Dividend, Reinforcing Shareholder Value

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 maintaining its leadership position in the pharmacy services sector for senior living communities across Canada.

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.