DRI Healthcare (DHT.UN) AI Stock Analysis

• Market Cap: C$865.85M
• Dividend Yield: 3.58%
• Average Volume (3M): 33.23K
• Price to Earnings (P/E): 160.7
• Beta (1Y): 0.32
• 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: 55,149,550
• 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: 21.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$17.00 ▲(2.10% Upside)

DRI Healthcare's strong financial performance and strategic initiatives, as highlighted in the earnings call, are the primary drivers of its stock score. The technical indicators support a positive trend, although valuation concerns due to a high P/E ratio temper the overall outlook. The absence of debt and solid cash flow management are significant strengths, but recent profitability challenges and high capital expenditures pose risks.

Positive Factors

Strong Cash Generation

Strong cash generation indicates effective cash management and operational efficiency, providing the company with flexibility for future investments and growth.

Strategic Acquisitions

Strategic acquisitions enhance long-term value and leverage DRI's niche in structuring innovative deals, potentially leading to future revenue growth and competitive advantage.

No Leverage

A debt-free balance sheet provides financial stability and reduces risk, allowing the company to navigate economic uncertainties and invest in growth opportunities without financial strain.

Negative Factors

Revenue Decline

A decline in revenue can indicate challenges in maintaining market share or product demand, potentially impacting long-term profitability and growth prospects.

High Capital Expenditures

High capital expenditures, while potentially beneficial long-term, can strain current cash flow and limit immediate financial flexibility, posing risks if returns are delayed.

Profitability Challenges

Negative profitability impacts financial health and investor confidence, requiring strategic adjustments to improve margins and ensure sustainable growth.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.88M	138.55M	117.44M	79.87M	73.33M	0.00
Gross Profit	133.30M	66.60M	-20.36M	79.87M	73.33M	0.00
EBITDA	65.45M	-4.94M	107.52M	76.77M	66.06M	0.00
Net Income	3.93M	-3.36M	91.50M	11.60M	21.56M	-2.17K
Balance Sheet
Total Assets	967.26M	984.87M	833.16M	633.42M	436.69M	0.00
Cash, Cash Equivalents and Short-Term Investments	82.50M	36.50M	62.84M	36.69M	61.71M	0.00
Total Debt	447.23M	432.12M	145.48M	244.99M	43.92M	0.00
Total Liabilities	463.66M	457.34M	273.46M	261.08M	57.71M	362.00
Stockholders Equity	503.60M	527.53M	561.50M	372.34M	378.99M	-352.00
Cash Flow
Free Cash Flow	-20.84M	-129.84M	-313.90M	-197.03M	-232.46M	0.00
Operating Cash Flow	146.16M	155.41M	76.38M	77.47M	91.86M	0.00
Investing Cash Flow	-169.09M	-293.31M	-128.81M	-273.67M	-372.33M	0.00
Financing Cash Flow	51.67M	111.56M	78.57M	171.17M	342.18M	60.00

DRI Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.65
• 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 16.65 is above the 20-day moving average (MA) of 15.56, above the 50-day MA of 14.99, and above the 200-day MA of 13.18, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.49 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
CPH	71 Outperform	$375.57M	22.40	16.32%	―	94.28%	5.23%
DHT.UN	71 Outperform	C$865.85M	160.70	-10.92%	3.58%	-0.94%	-540.90%
MDP	57 Neutral	C$86.45M	64.48	0.87%	―	2.14%	-83.06%
MPH	52 Neutral	C$13.57M	-3.96	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GUD	47 Neutral	$578.13M	1,705.88	-0.48%	―	18.70%	88.31%
HLS	44 Neutral	C$169.51M	-8.20	-20.49%	―	0.73%	33.51%

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.

DRI Healthcare Trust Appoints Zaheed Mawani as New CFO

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.

DRI Healthcare to Present at Key Investor Conferences

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.

DRI Healthcare Reports Transformative Q2 2025 Results

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.