DRI Healthcare (DHT.UN) AI Stock Analysis

• Market Cap: C$913.67M
• Dividend Yield: 3.56%
• Average Volume (3M): 33.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -0.94%
• EPS Growth: -540.90%
• Country: CA
• Employees: 36
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.78
• Shares Outstanding: 55,073,837
• 10 Day Avg. Volume: 43,025
• 30 Day Avg. Volume: 33,233
• PEG Ratio: 1.34
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 3.36
• P/FCF Ratio: -3.58
• 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$20.17
• Price Target Upside: 21.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$17.00 ▲(2.47% Upside)

The score is held back primarily by uneven financial performance (recent losses, rising leverage, and consistently negative free cash flow), partially offset by a favorable earnings call highlighting strong adjusted EBITDA/cash receipt growth and strategic steps (internalization, acquisitions, buybacks). Technicals and valuation are neutral overall, with muted momentum and a negative P/E balanced by a moderate dividend yield.

Positive Factors

Strong Cash Generation

Strong cash generation capability ensures DRI Healthcare can fund operations and investments without relying on external financing, enhancing financial resilience.

Strategic Acquisitions

Strategic acquisitions in innovative therapies enhance DRI's portfolio, potentially driving long-term revenue growth and solidifying its market position.

Robust Gross Profit Margins

Sustained high gross profit margins reflect effective cost management and pricing power, supporting profitability and competitive advantage.

Negative Factors

Revenue Decline

A significant revenue decline indicates potential challenges in maintaining market share or product demand, impacting long-term financial performance.

Net Losses

Net losses undermine profitability and may limit the company's ability to reinvest in growth opportunities, affecting future earnings potential.

High Capital Expenditure

High capital expenditure, while potentially beneficial long-term, currently strains cash flow, potentially limiting short-term financial flexibility.

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 incorporated in 2020 and is headquartered in Toronto, Canada.

How the Company Makes Money

DRI Healthcare generates revenue mainly through its investments in healthcare assets, which include royalties, licensing agreements, and equity stakes in pharmaceutical and biotech companies. The company earns revenue by receiving a percentage of sales from the products it invests in, particularly those that generate royalties from approved therapies. Additionally, DRI Healthcare may benefit from partnerships and collaborations with established firms in the healthcare sector, which can provide access to promising technologies and enhance its portfolio. The firm's focus on acquiring rights to innovative medical solutions allows it to capitalize on emerging trends in healthcare, contributing to its overall earnings.

DRI Healthcare Financial Statement Overview

Summary

Mixed fundamentals: strong revenue growth through 2024 but TTM revenue pulled back, profitability swung from a strong 2023 to losses in 2024 and TTM, leverage rose materially (debt-to-equity ~0.82 in 2024 and ~0.89 TTM), and free cash flow has remained negative despite consistently positive operating cash flow.

Income Statement

Revenue expanded strongly from 2021–2024 (including a sharp step-up in 2023 and continued growth in 2024), but TTM (Trailing-Twelve-Months) shows a revenue pullback. Profitability is volatile: 2023 posted very high net income, while 2024 and TTM swung back to losses. Margins also look inconsistent across periods, which reduces confidence in the sustainability and quality of earnings despite the company’s ability to generate substantial gross profit.

Balance Sheet

The balance sheet has meaningful leverage: debt-to-equity increased from low levels in 2021–2023 to ~0.82 in 2024 and ~0.89 in TTM (Trailing-Twelve-Months). Equity remains sizable, but rising debt reduces financial flexibility. Returns on equity are modest-to-negative recently (negative in 2024 and low in TTM), signaling weaker profitability relative to the capital base and limiting balance-sheet strength despite adequate scale of assets.

Cash Flow

Operating cash flow is consistently positive and remains solid in TTM (Trailing-Twelve-Months), which is a key strength. However, free cash flow is negative across all shown periods, including TTM, indicating heavy reinvestment, working-capital drag, or other cash uses that prevent true cash generation. With net income negative in 2024 and TTM, cash flow quality is mixed: operating cash inflow helps, but persistent negative free cash flow is a clear constraint.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	171.42M	138.55M	117.44M	79.87M	73.33M	0.00
Gross Profit	171.42M	66.60M	-20.36M	79.87M	73.33M	0.00
EBITDA	107.77M	-4.94M	107.52M	76.77M	66.06M	0.00
Net Income	-51.59M	-3.36M	91.50M	11.60M	21.56M	-2.17K
Balance Sheet
Total Assets	909.05M	984.87M	833.16M	633.42M	436.69M	0.00
Cash, Cash Equivalents and Short-Term Investments	35.61M	36.50M	62.84M	36.69M	61.71M	0.00
Total Debt	450.39M	432.12M	145.48M	244.99M	43.92M	0.00
Total Liabilities	471.95M	457.34M	273.46M	261.08M	57.71M	362.00
Stockholders Equity	437.10M	527.53M	561.50M	372.34M	378.99M	-352.00
Cash Flow
Free Cash Flow	-87.75M	-129.84M	-313.90M	-197.03M	-232.46M	0.00
Operating Cash Flow	102.25M	155.41M	76.38M	77.47M	91.86M	0.00
Investing Cash Flow	-191.88M	-293.31M	-128.81M	-273.67M	-372.33M	0.00
Financing Cash Flow	35.92M	111.56M	78.57M	171.17M	342.18M	60.00

DRI Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.59 is above the 20-day moving average (MA) of 15.90, above the 50-day MA of 16.17, and above the 200-day MA of 14.42, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 89.77 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	75 Outperform	C$2.29B	38.20	2.42%	―	6.18%	-28.69%
TRUL	60 Neutral	$2.01B	-10.72	-9.95%	―	4.27%	3.41%
DHT.UN	59 Neutral	C$913.67M	-12.75	-10.92%	3.56%	-0.94%	-540.90%
CURA	58 Neutral	C$2.44B	―	-27.61%	―	-3.38%	-31.35%
CL	52 Neutral	C$658.48M	-7.17	-11.79%	―	-6.48%	22.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VRNO	49 Neutral	C$2.17B	-4.68	-33.01%	―	-4.58%	-141.91%

DRI Healthcare Corporate Events

DRI Healthcare Trust Reports Q3 2025 Results and Strategic Acquisitions

DRI Healthcare Trust reported its third-quarter 2025 financial results, highlighting a total income of $48.7 million and a comprehensive loss of $57.7 million. The company completed the internalization of its investment management function and acquired a royalty interest in the U.S. net sales of veligrotug and VRDN-003 for up to $300 million. These strategic moves are part of DRI Healthcare’s efforts to strengthen its portfolio and enhance shareholder value.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$19.50 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Acquires Royalty Interest in Promising TED Treatments

DRI Healthcare Trust has announced the acquisition of a synthetic royalty interest in the U.S. sales of veligrotug and VRDN-003, treatments for Thyroid Eye Disease (TED), from Viridian Therapeutics. This transaction, valued at up to $300 million, is DRI’s third synthetic royalty transaction and further increases its portfolio exposure to rare diseases. Veligrotug has shown promising clinical results and has been granted Breakthrough Therapy Designation by the FDA, potentially accelerating its regulatory review. If approved, it will be the second biologic treatment for TED, offering improved patient outcomes with fewer doses. The deal is expected to enhance DRI’s long-term cash flows and strengthen its position in the rare disease market.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare to Discuss Q3 2025 Financial Results in Upcoming Call

DRI Healthcare Trust has announced it will host a conference call on November 6, 2025, to discuss its third quarter financial results, which will be released the day before. This event provides an opportunity for stakeholders to engage with the company’s management and gain insights into its financial performance and strategic direction.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Hold with a C$15.50 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.