Crescita Therpeutc (CTX) AI Stock Analysis

• Market Cap: C$8.96M
• Dividend Yield: N/A
• Average Volume (3M): 18.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 20.33%
• EPS Growth: 53.93%
• Country: CA
• Employees: 80
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 18,867,533
• 10 Day Avg. Volume: 18,660
• 30 Day Avg. Volume: 18,954
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: C$0.50 ▲(6.38% Upside)

Crescita Therapeutics faces significant challenges with declining revenues and profitability, reflected in its financial performance score. Technical indicators suggest a bearish trend, while valuation metrics indicate potential overvaluation due to negative earnings. Despite these challenges, the company's stable balance sheet provides some support.

Crescita Therpeutc Business Overview & Revenue Model

Company Description

Crescita Therapeutics Inc. (CTX) is a Canadian commercial dermatology company focused on developing and commercializing innovative skincare solutions. The company operates in the pharmaceutical and skincare sectors, offering a range of prescription products, non-prescription skincare products, and proprietary transdermal delivery technologies. Crescita's core products aim to address skin conditions such as acne, psoriasis, and pain management, leveraging its formulations and delivery platforms to provide effective treatment solutions.

How the Company Makes Money

Crescita Therapeutics generates revenue through the sale of its dermatological products, which are marketed across various channels including pharmacies, spas, and direct-to-consumer platforms. The company benefits from its proprietary transdermal delivery technologies, which it licenses to other pharmaceutical companies, providing a steady stream of licensing revenue. Additionally, Crescita engages in collaborations and partnerships with other companies in the skincare and pharmaceutical industries, which can include co-development agreements and distribution partnerships. These strategic alliances help broaden the company's market reach and drive sales growth. Crescita also invests in research and development to expand its product pipeline, ensuring a continuous flow of innovative solutions to sustain its revenue streams.

Crescita Therpeutc Financial Statement Overview

Summary

Crescita Therapeutics shows mixed financial performance with declining revenues and profitability challenges. The balance sheet is stable with low leverage, but asset contraction is concerning. Cash flow management has improved, though inconsistencies persist.

Income Statement

Crescita Therapeutics has experienced a declining revenue trend from 2022 to 2024, with total revenue decreasing by 16.8% from 2022 to 2023 and further by 11.2% from 2023 to 2024. The company has negative EBIT and net income margins, indicating challenges in managing operating expenses and generating profits. Gross profit margin fell from 55.98% in 2022 to 49.06% in 2024, showing pressure on profitability.

Balance Sheet

The company's balance sheet remains fairly stable, with a manageable debt-to-equity ratio of 0.05 in 2024, suggesting low financial leverage. However, stockholders' equity has decreased over the years. The equity ratio of 72.71% in 2024 reflects a solid capital structure. However, the decline in total assets from 2020 to 2024 indicates a contraction in the company's asset base.

Cash Flow

There has been a positive trend in operating cash flow from 2023 to 2024, improving free cash flow from negative to positive territory. The free cash flow to net income ratio is favorable, indicating efficient cash management despite net losses. However, fluctuations in free cash flow growth and operating cash flow indicate inconsistencies in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.27M	19.58M	17.52M	23.52M	16.77M	15.64M
Gross Profit	10.53M	9.61M	10.36M	13.18M	10.01M	11.27M
EBITDA	91.00K	-1.33M	45.00K	2.09M	598.00K	2.26M
Net Income	-1.33M	-2.75M	-1.99M	862.00K	-1.10M	37.00K
Balance Sheet
Total Assets	21.89M	21.78M	24.60M	28.48M	28.92M	26.83M
Cash, Cash Equivalents and Short-Term Investments	8.18M	9.27M	9.38M	8.24M	11.33M	14.28M
Total Debt	602.00K	834.00K	1.25M	1.61M	2.87M	1.23M
Total Liabilities	6.27M	5.95M	5.78M	7.39M	8.40M	5.70M
Stockholders Equity	15.61M	15.83M	18.82M	21.10M	20.53M	21.13M
Cash Flow
Free Cash Flow	-137.00K	1.54M	1.94M	-1.25M	-1.94M	5.55M
Operating Cash Flow	1.28M	2.73M	2.08M	-1.02M	-1.60M	5.61M
Investing Cash Flow	-1.34M	-2.02M	-133.00K	-290.00K	-846.00K	-59.00K
Financing Cash Flow	-801.00K	-861.00K	-782.00K	-1.85M	-500.00K	-476.00K

Crescita Therpeutc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CTX, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.48, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CTX.

Crescita Therpeutc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTX	53 Neutral	C$8.96M	―	-8.12%	―	20.33%	53.93%
MPH	52 Neutral	C$13.78M	―	-7.15%	―	10.84%	48.57%
Sector *	51 Neutral	$7.95B	-0.40	-41.67%	2.21%	22.29%	-1.85%
RVV	46 Neutral	C$8.37M	―	-50.76%	―	―	15.79%
MVMD	35 Underperform	C$7.05M	―	-132.79%	―	-46.59%	9.48%
AQS	21 Underperform	C$663.17K	―	43.02%	―	192.96%	42.59%
WIB	―	C$1.96M	―		―	―	―

Crescita Therpeutc Corporate Events

Crescita Therapeutics Reports Strong Q2 2025 Results and Strategic Developments

Crescita Therapeutics reported a strong financial performance for the second quarter of 2025, with significant year-over-year improvements in revenue, gross profit, and net income. The company successfully fulfilled key purchase orders and saw growth in its skincare segment. A mutual termination agreement with Croma Pharma GmbH added a substantial amount to its topline, and Crescita is now exploring new partnerships for its Pliaglis product in Europe. The company also repurchased shares under its Normal Course Issuer Bid, indicating confidence in its market position and future growth prospects.

Crescita Therapeutics Reports Positive Shareholder Meeting Outcomes

Crescita Therapeutics Inc. announced the results of its Annual General and Special Meeting of Shareholders, highlighting the election of directors, reappointment of external auditors, and approval of the continuation of its Shareholder Rights Plan. The meeting results indicate strong shareholder support for the company’s leadership and strategic initiatives, which could positively impact Crescita’s market position and stakeholder confidence.

Crescita Therapeutics Regains Pliaglis Rights After Ending Croma Agreement

Crescita Therapeutics has mutually terminated its licensing agreement with Croma Pharma GmbH for the commercialization of Pliaglis in several European and South American countries. This strategic decision allows Crescita to regain control over Pliaglis’s development and commercialization rights in these territories and explore new partnerships, while Croma rationalizes its product portfolio and pays Crescita €575,000.