DRI Healthcare (TSE:DHT.UN)
TSX:DHT.UN
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DRI Healthcare
(TSX:DHT.UN)
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Rating:55Neutral
Price Target:
C$16.50
▼(-2.48% Downside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by weak financial statement quality (net losses, thin free cash flow, and higher leverage) and bearish technical momentum. These are partially offset by a constructive earnings call (record adjusted EBITDA/margins, improved capital structure actions, and raised distribution) and a moderate income-oriented valuation support from the ~3.5% dividend yield despite the negative P/E.
Positive Factors
High adjusted EBITDA margins
Sustained very high adjusted EBITDA margins (84% TTM; 91% Q4) reflect the royalty business’s operating leverage and pricing of cash-flow streams. High margins support durable internal cash generation and distribution capacity, cushioning the trust versus headline net losses and enabling reinvestment.
Negative Factors
Elevated leverage
Leverage materially higher (debt ≈ equity) reduces balance-sheet flexibility and raises refinancing and interest-rate risk. If royalty cash flows soften or impairments recur, high leverage constrains the trust’s ability to pursue acquisitions, cushion distributions, or withstand prolonged revenue shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
High adjusted EBITDA margins
Sustained very high adjusted EBITDA margins (84% TTM; 91% Q4) reflect the royalty business’s operating leverage and pricing of cash-flow streams. High margins support durable internal cash generation and distribution capacity, cushioning the trust versus headline net losses and enabling reinvestment.
Read all positive factors
DRI Healthcare (DHT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$914.92M
Dividend Yield3.56%
Average Volume (3M)33.23K
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue Growth6.89%
EPS Growth-3468.85%
CountryCA
Employees36
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.88
Shares Outstanding55,016,155
10 Day Avg. Volume43,025
30 Day Avg. Volume33,233
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.06
Price to Sales (P/S)2.38
P/FCF Ratio-40.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.33Price Target Upside26.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.07
Revenue Forecast (FY)C$269.10M
DRI Healthcare Business Overview & Revenue Model
Company Description
DRI Healthcare Trust focuses on managing and growing a portfolio of pharmaceutical royalties. It owns a portfolio of 18 royalties derived from the sale of 14 various pharmaceutical products that focuses on eight therapeutic areas. The company was ...
How the Company Makes Money
DRI Healthcare makes money primarily by collecting royalty and royalty-like payments that are contractually linked to the sales of specific pharmaceutical products in its portfolio. Its core revenue streams typically include: (1) royalties on net ...
DRI Healthcare Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominately positive operational and financial story: record margins and adjusted EBITDA, cash receipt growth, successful capital allocation actions (unit buybacks, preferred redemptions, and longer-dated private placement debt), and outperformance from several recently acquired assets (Orserdu, Ekterly, Xempozyme). The company also outlined a funded growth plan through 2030 and a proprietary risk framework and AI integration to scale deal evaluation. Offsetting these positives are notable asset-specific headwinds (notably Omidria impairment, Vonjo and legacy product pressures), some lumpiness from one-time items, and a deliberate shift toward more pre‑approval deals that may slow near-term deployment pace. Overall, the highlights materially outweigh the lowlights, with management framing challenges clearly and taking actions to strengthen the balance sheet and underwriting process.Positive Updates
Record Financial Performance and Margin Expansion
Total income of $198.6M for FY2025, up 6% year-over-year; normalized trailing 12-month adjusted EBITDA margin of 84% and normalized annual adjusted EBITDA margin of 88% (highest in company history); Q4 2025 adjusted EBITDA margin of 91% vs 83% in Q4 2024; trailing 12-month adjusted EBITDA of $165M.
Negative Updates
Omidria Underperformance and Impairment
Omidria experienced prolonged softness driven by MIPS-related demand resets and lack of growth in HOPD; management took a $9.7M impairment in Q4 2025 and now forecasts flat sales/no growth for Omidria over the next few years.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance and Margin Expansion
Total income of $198.6M for FY2025, up 6% year-over-year; normalized trailing 12-month adjusted EBITDA margin of 84% and normalized annual adjusted EBITDA margin of 88% (highest in company history); Q4 2025 adjusted EBITDA margin of 91% vs 83% in Q4 2024; trailing 12-month adjusted EBITDA of $165M.
Read all positive updates
Company Guidance
The guidance reflected meaningful growth versus the 2025 baseline (2025 total income $198.6M; royalty income $188.7M, above the $172–182M target; normalized cash receipts $196.4M; trailing 12‑month adjusted EBITDA $165M and margin 84% — normalized annual margin 88% — with Q4 margin at 91%), while acknowledging a $9.7M Q4 impairment on Omidria; the trust will raise the quarterly distribution to $0.11 (from $0.10) starting Q1 2026, expects to retain $42.4M cash, $59.7M royalties receivable and $239M of credit availability, and to realize >$25M of annual cash‑flow improvement from debt/preferred refinancings; longer term DRI plans $800M–$1B of investments in 2026–2030 (fully funded), targets a low‑teens CAGR in adjusted EBITDA through 2030 (currently tracking a 12% CAGR in royalty income off 2022), and expects remaining margin uplift of roughly 500 basis points versus pre‑internalization levels (each 1% of margin ≈ $2M of run‑rate cash flow).DRI Healthcare Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
44
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 198.61M | 195.17M | 138.55M | 117.44M | 79.87M | 73.33M |
| Gross Profit | 42.75M | -21.51M | 66.60M | -20.36M | 79.87M | 73.33M |
| EBITDA | 155.58M | 92.25M | -4.94M | 107.52M | 76.77M | 66.06M |
| Net Income | -49.55M | -51.35M | -3.36M | 91.50M | 11.60M | 21.56M |
Balance Sheet | ||||||
| Total Assets | 919.40M | 941.10M | 984.87M | 833.16M | 633.42M | 436.69M |
| Cash, Cash Equivalents and Short-Term Investments | 52.71M | 42.35M | 36.50M | 62.84M | 36.69M | 61.71M |
| Total Debt | 457.56M | 482.06M | 432.12M | 145.48M | 244.99M | 43.92M |
| Total Liabilities | 484.34M | 503.32M | 457.34M | 273.46M | 261.08M | 57.71M |
| Stockholders Equity | 435.06M | 437.78M | 527.53M | 561.50M | 372.34M | 378.99M |
Cash Flow | ||||||
| Free Cash Flow | 9.94M | -11.42M | -129.84M | -313.90M | -197.03M | -232.46M |
| Operating Cash Flow | 88.88M | 78.11M | 155.41M | 76.38M | 77.47M | 91.86M |
| Investing Cash Flow | -67.68M | -81.64M | -293.31M | -128.81M | -273.67M | -372.33M |
| Financing Cash Flow | -24.24M | 9.56M | 111.56M | 78.57M | 171.17M | 342.18M |
DRI Healthcare Technical Analysis
Positive
16.92
Price Trends
16.50
Positive
16.25
Positive
15.59
Positive
Market Momentum
-0.04
Negative
60.76
Neutral
75.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DHT.UN, the sentiment is Positive. The current price of 16.92 is above the 20-day moving average (MA) of 16.22, above the 50-day MA of 16.50, and above the 200-day MA of 15.59, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 75.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DHT.UN.
DRI Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.21B | 23.97 | 6.59% | ― | 4.14% | 146.77% | |
65 Neutral | C$3.63B | 6.09 | -12.61% | ― | -2.25% | 55.22% | |
59 Neutral | C$2.10B | 114.35 | -6.88% | ― | -2.05% | 52.34% | |
55 Neutral | C$914.92M | -124.88 | -10.93% | 3.56% | 6.89% | -3468.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$2.17B | -5.59 | -33.23% | ― | -6.05% | 25.65% | |
46 Neutral | C$563.64M | -6.31 | -35.26% | ― | -9.65% | -55.41% |
* Healthcare Sector Average
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DRI Healthcare
16.80
4.62
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DRI Healthcare Corporate Events
Business Operations and StrategyPrivate Placements and Financing
DRI Healthcare Raises US$250 Million in Secured Notes to Refinance Debt and Support Growth
Positive
Mar 25, 2026
DRI Healthcare Trust has closed a US$250 million private placement of senior secured notes through its subsidiary, DRI Healthcare LP, issued in two tranches maturing in 2031 and 2033 at coupons of 5.35% and 5.65%. The notes rank pari passu with th...
Business Operations and StrategyPrivate Placements and Financing
DRI Healthcare Refinances Series C Preferreds With C$108.7 Million Convertible Debenture Issue
Positive
Mar 21, 2026
DRI Healthcare Trust has completed a C$108.7 million private placement of convertible unsecured subordinated debentures, bearing 5.75% interest and maturing in 2031, which can be converted into trust units at a 30% premium to the recent three-day ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
DRI Healthcare Marks Record 2025 Results and Tightens Capital Structure for Multi-Year Growth
Positive
Mar 4, 2026
DRI Healthcare Trust reported a strong fourth quarter, generating total income of $61.7 million and an adjusted EBITDA margin of 91%, as internalizing its investment management function helped deliver record full-year total income, cash receipts, ...
Business Operations and StrategyPrivate Placements and Financing
DRI Healthcare Trust Refinances Preferred Securities With New Convertible Debentures
Positive
Mar 2, 2026
DRI Healthcare Trust has struck a refinancing deal with EdgePoint Wealth Management Inc. and Alberta Investment Management Corporation, exchanging C$108.7 million of its 7.50% Series C preferred securities into new convertible unsecured subordinat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.