DRI Healthcare (DHT.UN) AI Stock Analysis

• Market Cap: C$781.54M
• Dividend Yield: 3.9%
• Average Volume (3M): 56.05K
• Price to Earnings (P/E): 382.2
• Beta (1Y): 0.07
• Revenue Growth: 5.65%
• EPS Growth: -98.77%
• Country: CA
• Employees: 36
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.60
• Shares Outstanding: 55,864,060
• 10 Day Avg. Volume: 52,864
• 30 Day Avg. Volume: 56,045
• PEG Ratio: 3.12
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.02
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: C$18.00
• Price Target Upside: 28.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: C$15.50 ▲(10.79%Upside)

DRI Healthcare's strong technical momentum and strategic corporate events, such as the FDA approval of Ekterly and management internalization, bolster its stock score. However, high valuation and recent profitability challenges slightly dampen the overall outlook.

Positive Factors

Governance Improvement

DHT has improved its governance structure by requiring independent trustees to take at least half their retainer in equity, aligning interests with shareholders.

Innovative Acquisition

DHT has announced the acquisition of certain payment rights tied to CASGEVY, which is a novel deal structure for the company.

Management Confidence

Ali Hedayat, with extensive experience from Goldman Sachs and hedge funds, is involved in DHT's strategy and owns shares personally, indicating confidence in the company's direction.

Negative Factors

Auditing Issues

There are gaps in DHT's auditing process, with speculation that Deloitte was not effectively sampling invoices for audit.

Auditing Process

There are gaps in DHT's auditing process, with speculation that Deloitte was not effectively sampling invoices for audit.

Fraudulent Charges

DHT has faced fraudulent consulting charges put through by Behzad Khosrowshahi, with capital siphoned into his personal account.

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 makes money by acquiring and managing royalty interests in various pharmaceutical and biotechnology products. The company's primary revenue stream is the income generated from these royalty investments, which typically involve receiving a percentage of sales from the underlying products. DRI Healthcare invests in a broad range of therapeutics, ensuring diversification and risk management. Key factors contributing to its earnings include the successful commercialization of drugs, ongoing sales growth, and strategic partnerships with pharmaceutical companies to acquire high-potential royalty streams. Additionally, the company may engage in licensing agreements and other financial structures to enhance its revenue opportunities.

DRI Healthcare Financial Statement Overview

Summary

DRI Healthcare shows robust gross profit margins and a solid equity base with no leverage. However, the recent revenue decline and net losses pose profitability challenges. Strong operating cash flows highlight effective cash management despite high capital expenditure impacting free cash flow.

Income Statement

The company has experienced volatility in revenue, with a recent decline from $217.98 million to $138.55 million. Gross profit margins remained strong at 100%, but the net profit margin turned negative due to a net loss. The absence of EBIT and EBITDA in the latest period indicates operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is healthy, reflecting financial stability. However, the negative net income affects return on equity.

Cash Flow

Operating cash flow is significantly higher than net income, indicating strong cash generation. However, free cash flow is negative due to substantial capital expenditures, suggesting high investment levels but potential cash flow concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.55M	117.44M	79.87M	73.33M	0.00
Gross Profit	66.60M	-20.36M	79.87M	73.33M	0.00
EBITDA	-4.94M	105.68M	76.77M	66.06M	0.00
Net Income	-3.36M	91.50M	11.60M	21.56M	-2.17K
Balance Sheet
Total Assets	984.87M	833.16M	633.42M	436.69M	10.00
Cash, Cash Equivalents and Short-Term Investments	36.50M	62.84M	36.69M	61.71M	10.00
Total Debt	432.12M	145.48M	244.99M	43.92M	0.00
Total Liabilities	457.34M	273.46M	261.08M	57.71M	362.00
Stockholders Equity	527.53M	561.50M	372.34M	378.99M	-352.00
Cash Flow
Free Cash Flow	-129.84M	-313.90M	-197.03M	-232.46M	0.00
Operating Cash Flow	155.41M	76.38M	77.47M	91.86M	0.00
Investing Cash Flow	-293.31M	-128.81M	-273.67M	-372.33M	0.00
Financing Cash Flow	111.56M	78.57M	171.17M	342.18M	60.00

DRI Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.99 is above the 20-day moving average (MA) of 13.62, above the 50-day MA of 13.08, and above the 200-day MA of 12.25, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.70 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHT.UN	72 Outperform	C$781.54M	382.24	0.27%	3.90%	5.65%	-98.77%
Sector *	50 Neutral	AU$2.58B	3.39	-57.47%	2.65%	36.73%	13.67%
KHTRF	―	$439.03M	57.00	1.41%	―	―	―
CPHRF	―	$230.06M	24.42	9.69%	―	―	―
MDP	68 Neutral	C$90.65M	21.88	5.27%	―	-1.14%	―
HLS	56 Neutral	C$154.63M	―	-23.05%	―	-3.73%	32.70%
MPH	54 Neutral	C$11.58M	―	-8.79%	―	-0.29%	-53.83%

DRI Healthcare Corporate Events

FDA Approval of Ekterly Boosts DRI Healthcare’s Portfolio

DRI Healthcare announced that the FDA has approved Ekterly, developed by KalVista Pharmaceuticals, as the first oral on-demand therapy for hereditary angioedema (HAE). This approval entitles DRI Healthcare to a tiered royalty on Ekterly’s global sales, enhancing its portfolio value. KalVista has opted for additional funding, increasing DRI’s investment to $127 million, and the transaction includes potential milestone payments based on sales performance.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

FDA Approval Boosts DRI Healthcare’s Investment in Ekterly

DRI Healthcare announced the FDA approval of Ekterly, developed by KalVista Pharmaceuticals, as the first and only oral on-demand therapy for hereditary angioedema (HAE), a rare genetic disorder. This approval enhances DRI Healthcare’s portfolio value, as they are entitled to tiered royalties on Ekterly’s global sales, with potential milestone payments, following KalVista’s decision to increase funding, bringing DRI’s total investment to $127 million.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Completes Internalization to Enhance Strategic Alignment

DRI Healthcare has completed its internalization transaction, bringing its investment management function in-house. This strategic move aims to align interests with unitholders, enhance governance, and improve transparency. The transaction involved terminating the management agreement with DRI Capital for a $48 million payment and acquiring relevant assets for $1 million. The internalization is expected to foster stronger growth prospects and value generation, benefiting stakeholders by reducing fees and creating a more cohesive organizational structure.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Trust Reports FDA Delay on KalVista’s Sebetralstat Decision

DRI Healthcare Trust announced that KalVista Pharmaceuticals received a notice from the FDA indicating a delay in the PDUFA goal date for sebetralstat due to resourcing constraints. The FDA has not requested additional data and expects to make a decision within four weeks, which may impact KalVista’s market positioning and stakeholder expectations.

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 Trust Strengthens Board with New Appointment

DRI Healthcare Trust has appointed Annalisa King as an independent member and chair of the audit committee of its board of trustees. Ms. King brings extensive expertise in audit, risk, and financial strategy, having served on multiple TSX public company boards and held significant roles in corporate finance and business transformation. Her addition strengthens the board’s diverse expertise, which is crucial for the Trust’s continued growth and success.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Trust Confirms Trustee Elections and Auditor Reappointment at AGM

DRI Healthcare Trust announced the results of its annual general meeting, where all trustee nominees were elected, and Deloitte LLP was reappointed as auditors. The reappointment of Deloitte LLP as auditors received strong support, with 95.75% of votes in favor, reflecting confidence in the Trust’s governance and financial oversight.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Trust Announces Q1 2025 Results and Management Internalization

DRI Healthcare Trust has announced its first-quarter 2025 financial results and a strategic move to internalize its management functions, which is expected to save $200 million over ten years. This internalization involves terminating the existing management agreement with DRI Capital Inc., acquiring relevant assets, and transitioning employees to a Trust subsidiary. The move aims to align interests, enhance transparency, and create value for stakeholders. The transaction is anticipated to close before the fourth quarter of 2025, subject to customary conditions.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

DRI Healthcare Trust Schedules Q1 2025 Earnings Call

DRI Healthcare Trust announced it will host a conference call on May 13, 2025, to discuss its first quarter financial results, which will be released the previous day. This event underscores the Trust’s commitment to transparency and engagement with stakeholders, potentially impacting its market perception and investor relations positively.