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DRI Healthcare (TSE:DHT.UN)
TSX:DHT.UN
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DRI Healthcare (DHT.UN) AI Stock Analysis

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TSE:DHT.UN

DRI Healthcare

(TSX:DHT.UN)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
C$16.50
▲(9.20% Upside)
The stock's overall score is driven by strong technical indicators and a solid financial base, despite profitability challenges and a high P/E ratio suggesting overvaluation. The absence of earnings call data and corporate events means these factors did not influence the score.
Positive Factors
Business Model Strength
The company's focus on acquiring pharmaceutical royalties provides a stable and predictable revenue stream, leveraging the success of established drugs.
Cash Generation Ability
Strong operating cash flow highlights effective cash management, ensuring liquidity and the ability to reinvest in growth opportunities.
Balance Sheet Health
A debt-free balance sheet enhances financial stability, providing flexibility for strategic investments and shielding against interest rate risks.
Negative Factors
Revenue Decline
Declining revenue poses a challenge to maintaining profitability and may impact the company's ability to sustain its business model long-term.
Profitability Challenges
Negative net profit margins highlight operational inefficiencies, which could hinder the company's ability to generate sustainable profits.
High Capital Expenditure
High capital expenditures, while potentially beneficial for growth, can strain cash flow and limit financial flexibility if not managed effectively.

DRI Healthcare (DHT.UN) vs. iShares MSCI Canada ETF (EWC)

DRI Healthcare Business Overview & Revenue Model

Company DescriptionDRI 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 MoneyDRI Healthcare Trust generates revenue primarily through the acquisition and management of pharmaceutical royalties. The company invests in royalty streams of established pharmaceuticals, which provide a continuous flow of income based on the sales performance of these drugs. By securing royalties from a wide array of therapeutics, DRI Healthcare diversifies its income sources, minimizing risk and ensuring steady cash flow. The company may also engage in strategic partnerships with pharmaceutical companies to expand its portfolio and enhance its revenue potential. Additionally, the performance of its investments is influenced by the success and market demand for the underlying pharmaceutical products.

DRI Healthcare Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance and strategic growth through significant transactions and a robust pipeline. However, challenges remain due to litigation and market dynamics impacting specific assets.
Q3-2024 Updates
Positive Updates
Significant Portfolio Growth
Completed two innovative transactions for Casgevy and Sebetralstat, deploying a total of $162 million with a potential deal size of up to $241 million. Expanded credit facilities from $500 million to $632 million, providing additional capital for strategic investments.
Strong Financial Performance
Recorded $38.9 million in normalized total cash receipts, a 54% increase over the same quarter in 2023. Adjusted EBITDA increased by 53% to $31.3 million compared to the same quarter in 2023, with a margin of 80%.
Royalty Receipts Growth
Royalty receipts increased 54% year-over-year, driven by Orserdu and Empaveli sales, with OMIDRIA receipts increasing 195% from the previous year.
Pipeline and Market Opportunities
Robust pipeline with over $3 billion in potential opportunities. Significant tailwinds from biotech market conditions, providing opportunities for further strategic investments.
Negative Updates
Oracea Revenue Decline
Oracea royalty receipts decreased by 47% year-over-year and by 26% from the previous quarter due to generic entry and ongoing litigation with Galderma.
Eylea and SPINRAZA Sales Volatility
Eylea royalties showed only slight growth of 13% year-over-year, with expected declines due to patent litigation. SPINRAZA receipts declined 8% year-over-year but increased 21% over the previous quarter.
Litigation and Market Challenges
Challenges with ongoing litigation impacting Oracea and Eylea. The MIPS program affecting OMIDRIA usage patterns.
Company Guidance
During the DRI Healthcare Trust Q3 2024 earnings call, several key metrics and financial guidance were discussed. The Trust reported $162 million deployed in two innovative transactions, with a total potential deal size of up to $241 million. They expanded their credit facilities from $500 million to $632 million, with nearly $300 million still available. A quarterly distribution of $0.085 per unit was declared, payable in January 2025. The Trust aims to maintain an adjusted EBITDA margin of around 84%, with an adjusted cash earnings per unit of $2.44 for the last 12 months ending September 30, 2024. Total cash receipts increased by 54% compared to the previous year, although a 10% decline from the last quarter was noted due to typical biopharma sales volatility. The Trust also anticipates cash receipts through at least 2041 for some of its recent transactions.

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
65
Positive
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
75
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue160.88M138.55M117.44M79.87M73.33M0.00
Gross Profit133.30M66.60M-20.36M79.87M73.33M0.00
EBITDA65.45M-4.94M105.68M76.77M66.06M0.00
Net Income3.93M-3.36M91.50M11.60M21.56M-2.17K
Balance Sheet
Total Assets967.26M984.87M833.16M633.42M436.69M0.00
Cash, Cash Equivalents and Short-Term Investments82.50M36.50M62.84M36.69M61.71M0.00
Total Debt447.23M432.12M145.48M244.99M43.92M0.00
Total Liabilities463.66M457.34M273.46M261.08M57.71M362.00
Stockholders Equity503.60M527.53M561.50M372.34M378.99M-352.00
Cash Flow
Free Cash Flow-20.84M-129.84M-313.90M-197.03M-232.46M0.00
Operating Cash Flow146.16M155.41M76.38M77.47M91.86M0.00
Investing Cash Flow-169.09M-293.31M-128.81M-273.67M-372.33M0.00
Financing Cash Flow51.67M111.56M78.57M171.17M342.18M60.00

DRI Healthcare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.11
Price Trends
50DMA
14.48
Positive
100DMA
14.06
Positive
200DMA
12.81
Positive
Market Momentum
MACD
0.11
Negative
RSI
59.59
Neutral
STOCH
73.04
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 15.11 is above the 20-day moving average (MA) of 14.73, above the 50-day MA of 14.48, and above the 200-day MA of 12.81, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.04 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$378.88M22.6012.25%121.40%-47.34%
C$836.19M155.070.78%3.81%0.03%-56.81%
C$87.10M65.691.88%0.03%-17.30%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
C$175.14M-20.58%-1.42%35.15%
$581.12M1,714.710.03%13.82%
C$11.38M-7.15%10.84%48.57%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DHT.UN
DRI Healthcare
15.11
1.84
13.87%
TSE:GUD
Knight Therapeutics
5.86
0.22
3.90%
TSE:CPH
Cipher Pharmaceuticals
14.55
-1.15
-7.32%
TSE:MPH
Medicure
1.04
0.06
6.12%
TSE:MDP
Medexus Pharmaceuticals Inc
2.89
0.31
12.02%
TSE:HLS
HLS Therapeutics Inc
5.56
2.09
60.23%

DRI Healthcare Corporate Events

Business Operations and StrategyM&A Transactions
DRI Healthcare Acquires Royalty Interest in Promising TED Treatments
Positive
Oct 20, 2025

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.

Financial Disclosures
DRI Healthcare to Discuss Q3 2025 Financial Results in Upcoming Call
Neutral
Oct 16, 2025

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.

Business Operations and StrategyExecutive/Board Changes
DRI Healthcare Trust Appoints Zaheed Mawani as New CFO
Positive
Sep 19, 2025

DRI Healthcare Trust has promoted Zaheed Mawani to the position of Chief Financial Officer, effective October 1, 2025. Mr. Mawani, who joined the company as Chief Compliance Officer in 2024, brings over 30 years of financial leadership experience from major public companies. This strategic move underscores DRI Healthcare’s commitment to leveraging internal talent for its growth. The outgoing CFO, Amit Kapur, will assist in a smooth transition until the end of September.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

Business Operations and Strategy
DRI Healthcare to Present at Key Investor Conferences
Neutral
Sep 16, 2025

DRI Healthcare Trust announced its participation in upcoming investor conferences, including the 24th Annual CIBC Eastern Institutional Investor Conference in Montreal and the Raymond James Dividend & Royalty Conference in Toronto. These presentations are significant for DRI Healthcare as they provide an opportunity to engage with investors and showcase their strategic initiatives, potentially impacting their market positioning and stakeholder relations.

The most recent analyst rating on ($TSE:DHT.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on DRI Healthcare stock, see the TSE:DHT.UN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
DRI Healthcare Reports Transformative Q2 2025 Results
Positive
Aug 13, 2025

DRI Healthcare has reported its second quarter 2025 financial results, highlighting a significant transformation with the internalization of its investment management function, which aligns management and unitholder interests. The company achieved a total income of $44.1 million and completed a notable transaction to enhance its royalty entitlement, positioning itself for sustainable future returns.

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.

Financial Disclosures
DRI Healthcare to Announce Q2 2025 Financial Results
Neutral
Jul 24, 2025

DRI Healthcare Trust announced it will host a conference call and webcast to discuss its second quarter 2025 financial results on August 14, 2025. The company will release its financial results on August 13, 2025, after market close. This announcement is significant as it provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

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.

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.Date of analysis: Oct 21, 2025