Crescita Therpeutc (CTX) AI Stock Analysis

• Market Cap: C$8.93M
• Dividend Yield: N/A
• Average Volume (3M): 12.63K
• Price to Earnings (P/E): 19.4
• Beta (1Y): <0.01
• Revenue Growth: 26.79%
• EPS Growth: N/A
• Country: CA
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 18,613,937
• 10 Day Avg. Volume: 2,470
• 30 Day Avg. Volume: 12,630
• PEG Ratio: -0.09
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$0.56 ▲(19.57% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is primarily supported by a strong, low-leverage balance sheet and an improving financial trajectory (revenue growth and return to net profitability). Offsetting this are still-weak operating profitability (negative TTM EBIT) and volatile cash flow (sharp FCF decline), while technicals are moderately positive but not yet above the 200-day trend; valuation appears mid-range with no dividend yield data.

Positive Factors

Low leverage balance sheet

Extremely low debt provides durable financial flexibility, lowering fixed-interest burden and preserving borrowing capacity for R&D or regulatory milestones. This conservatism supports multi-quarter programs and reduces refinancing risk during slower revenue periods.

Positive cash generation

Sustained positive OCF and FCF enable internal funding of operations and incremental investment without immediate external capital. Over 2–6 months this supports product development, working capital needs and modest reinvestment, helping execution continuity through near-term cycles.

Revenue growth and return to profitability

Top-line growth with a swing back to net profit signals improving commercial traction and cost discipline. If sustained, this trend can compound operating leverage, fund further development, and transition the company from a recovery phase to consistent earnings generation.

Negative Factors

Negative operating profitability (EBIT)

Persistently negative EBIT shows core operations have not reached structural profitability. This constrains durable margin expansion, forces reliance on non-operating items or cash buffers, and means long-term earnings depend on meaningful operating improvements or scale.

Thin net margin

A very low net margin limits the company's ability to absorb cost inflation or invest aggressively while remaining profitable. Even with revenue growth, thin margins leave little buffer for R&D, commercial scaling or unforeseen expenses, challenging sustainable profitability.

Volatile cash flow / sharp FCF decline

Material decline and volatility in free cash flow undermine reliable funding for operations and capex. This increases dependence on external financing or equity raises, complicates multi-quarter planning, and elevates execution risk for product development and commercialization.

Crescita Therpeutc Business Overview & Revenue Model

Company Description

Crescita Therapeutics Inc., a dermatology company, provides non-prescription skincare products and prescription drug products in Canada, the United States, and internationally. The company operates through three segments: Commercial Skincare, Licensing and Royalties, and Manufacturing and Services. It owns proprietary platform technologies, including MMPE and DuraPeel for the development of topicals containing cannabis and hemp. The company's prescription products include Pliaglis, a topical local anesthetic cream that provides dermal analgesia on intact skin prior to superficial dermatological procedures; CTX-101, a Phase III topical formulation utilizing a corticosteroid in combination with MMPE technology to treat plaque psoriasis; CTX-102, a Phase I topical formulation utilizing MMPE technology to treat an undisclosed dermatological skin condition; and dermatology products in pre-clinical formulation utilizing MMPE technology for prescription treatments of skin diseases. Its non-prescription skincare products comprise skincare products, such as facial creams, cleansers, exfoliants, masks, serums, and suncare products for aging, acne, rosacea, pigmentation, dehydration, and sensitivity under the Laboratoire Dr Renaud brand; a line of dermocosmetic products for anti-aging medical procedures under the Pro-Derm brand; a line of products to target and treat various skincare concerns under the Alyria brand; and skincare products primarily for the Asian consumers under Dermazulene brand, as well as NCTF 135 HA, a skin revitalization solution primarily used for the improvement of skin quality and fine lines. The company has a development and licensing agreement with Sundial Growers Inc. to develop cannabis; a commercialization license agreement with Cantabria Labs Inc.; and a development and commercialization license agreement with Taro Pharmaceuticals Inc. Crescita Therapeutics Inc. was incorporated in 2016 and is headquartered in Laval, Canada.

How the Company Makes Money

Crescita Therapeutics generates revenue through a combination of product sales, licensing agreements, and collaborations with other pharmaceutical companies. Key revenue streams include the sale of its proprietary topical products in various markets, which are marketed directly or through partnerships with larger pharmaceutical firms. Additionally, CTX engages in licensing its drug delivery technology to other companies, receiving upfront payments and royalties from the sales of partnered products. Significant partnerships with research institutions and other biotech companies also contribute to its earnings by facilitating joint development projects and expanding its product portfolio.

Crescita Therpeutc Financial Statement Overview

Summary

Income statement shows an improving trend with ~8.9% TTM revenue growth and a return to positive net income, but profitability remains thin (~2% net margin) and TTM EBIT is still negative. Balance sheet is a clear strength with very low leverage (debt-to-equity ~0.03) and improved ROE versus prior periods. Cash flow is positive (TTM OCF ~$2.0M; FCF ~$1.4M) but has seen a sharp decline versus the prior period, suggesting volatility.

Income Statement

TTM (Trailing-Twelve-Months) shows continued top-line growth (revenue up ~8.9%) and a clear swing back to profitability (positive net income) versus losses in 2023–2024. Gross margin has held around ~52% in TTM, but profitability remains thin (net margin ~2%) and operating performance is still pressured, with negative EBIT in TTM after prior-year losses—indicating earnings quality is improving but not yet consistently strong.

Balance Sheet

The balance sheet looks conservatively financed, with very low leverage (debt-to-equity ~0.03 in TTM) and a sizable equity base relative to assets. Return on equity has recovered to positive in TTM after negative returns in 2023–2024, but overall returns remain modest, suggesting the company is stable financially yet still working to translate its asset and equity base into consistently strong profitability.

Cash Flow

Cash generation is positive in TTM, with operating cash flow (~$2.0M) and free cash flow (~$1.4M) both in the black, supporting liquidity. However, free cash flow growth is sharply negative in TTM (a large decline versus the prior period), and cash conversion versus accounting earnings is only moderate, pointing to volatility in cash flows even as profitability improves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.07M	19.58M	17.52M	23.52M	16.77M	15.64M
Gross Profit	11.42M	9.61M	10.36M	13.18M	10.01M	11.27M
EBITDA	1.95M	-1.33M	45.00K	2.09M	598.00K	2.26M
Net Income	457.00K	-2.75M	-1.99M	862.00K	-1.10M	37.00K
Balance Sheet
Total Assets	21.46M	21.78M	24.60M	28.48M	28.92M	26.83M
Cash, Cash Equivalents and Short-Term Investments	8.31M	9.27M	9.38M	8.24M	11.33M	14.28M
Total Debt	484.00K	834.00K	1.25M	1.61M	2.87M	1.23M
Total Liabilities	5.20M	5.95M	5.78M	7.39M	8.40M	5.70M
Stockholders Equity	16.26M	15.83M	18.82M	21.10M	20.53M	21.13M
Cash Flow
Free Cash Flow	1.40M	1.54M	1.94M	-1.25M	-1.94M	5.55M
Operating Cash Flow	2.03M	2.73M	2.08M	-1.02M	-1.60M	5.61M
Investing Cash Flow	-1.41M	-2.02M	-133.00K	-290.00K	-846.00K	-59.00K
Financing Cash Flow	-813.00K	-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: Positive
• 200DMA: Negative
• MACD: Positive
• 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 0.49, below the 50-day MA of 0.48, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 65.19 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
CPH	78 Outperform	C$382.83M	15.99	16.32%	―	94.28%	5.23%
CTX	66 Neutral	C$8.93M	19.43	2.83%	―	26.79%	―
MDP	65 Neutral	C$101.75M	-190.91	0.87%	―	2.14%	-83.06%
MPH	54 Neutral	C$13.36M	-3.90	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	48 Neutral	C$140.42M	-7.18	-20.49%	―	0.73%	33.51%
CRDL	46 Neutral	C$157.47M	-3.37	-341.20%	―	―	21.17%

Crescita Therpeutc Corporate Events

Crescita Therapeutics Reports Strong Q3 2025 Growth and Strategic Developments

Crescita Therapeutics reported significant financial growth in Q3 2025, with revenue and net income increases driven by its Manufacturing segment. The acquisition of assets from Laboratoire Provence-Canada Inc. and a new five-year supply agreement have bolstered Crescita’s recurring revenue and manufacturing capabilities. The company also regained rights to Pliaglis in several European and South American markets after terminating a licensing agreement with Croma Pharma GmbH, positioning Crescita to explore new partnerships.

The most recent analyst rating on (TSE:CTX) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Crescita Therpeutc stock, see the TSE:CTX Stock Forecast page.