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DRI Healthcare (TSE:DHT.UN)
TSX:DHT.UN
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DRI Healthcare
(TSX:DHT.UN)
64Neutral
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 (DHT.UN) vs. S&P 500 (SPY)
Market Cap
C$698.26M
Dividend Yield4.01%
Average Volume (3M)33.20K
Price to Earnings (P/E)338.8
Beta (1Y)-0.14
Revenue Growth14.11%
EPS Growth-102.18%
CountryCA
Employees37
SectorHealthcare
Sector Strength48
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.60
Shares Outstanding56,310,920
10 Day Avg. Volume29,641
30 Day Avg. Volume33,197
Financial Highlights & Ratios
PEG Ratio1.14
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio-3.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.67Price Target Upside34.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
DRI Healthcare Business Overview & Revenue Model
Company DescriptionDRI Healthcare Trust is an investment entity primarily focused on managing and investing in healthcare-related royalty streams. The company operates within the healthcare sector, concentrating its efforts on acquiring diversified portfolios of royalties, primarily from pharmaceutical and biotechnology products. DRI Healthcare aims to provide investors with stable and growing cash flows by leveraging its expertise in evaluating and managing healthcare royalties.
How the Company Makes MoneyDRI 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.65
Positive
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.75
Positive
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 138.55M | 217.98M | 79.87M | 73.33M | 0.00 | Gross Profit |
| 138.55M | 166.28M | 79.87M | 73.33M | 0.00 | EBIT |
| 0.00 | 92.40M | 18.23M | 21.56M | -2.17K | EBITDA |
| 0.00 | 92.00K | 78.10M | 66.28M | 0.00 | Net Income Common Stockholders |
| -3.36M | 91.50M | 4.97M | 21.56M | -2.17K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.50M | 62.84M | 36.69M | 61.71M | 10.00 | Total Assets |
| 984.87M | 833.16M | 633.42M | 436.69M | 10.00 | Total Debt |
| 0.00 | 145.48M | 244.99M | 43.92M | 0.00 | Net Debt |
| -36.50M | -62.84M | 208.30M | -17.79M | -10.00 | Total Liabilities |
| 457.34M | 273.46M | 261.08M | 57.71M | 362.00 | Stockholders Equity |
| 527.53M | 559.70M | 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
Positive
12.44
Price Trends
11.51
Positive
11.64
Positive
12.04
Positive
Market Momentum
0.23
Negative
70.51
Negative
84.11
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 12.44 is above the 20-day moving average (MA) of 11.54, above the 50-day MA of 11.51, and above the 200-day MA of 12.04, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 84.11 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$460.90M | ― | -3.70% | 3.63% | -12.01% | -698.83% | |
64 Neutral | C$698.26M | 338.80 | 0.27% | 4.01% | 14.11% | -102.18% | |
64 Neutral | $582.77M | 52.39 | 1.41% | ― | 12.21% | ― | |
63 Neutral | $585.21M | 5.65 | -3.98% | 2.51% | -9.36% | -145.18% | |
60 Neutral | C$143.07M | ― | -23.05% | ― | -3.73% | 32.70% | |
52 Neutral | $5.22B | 3.55 | -44.39% | 2.82% | 15.40% | -0.09% |
* Healthcare Sector Average
Performance Comparison
TSE:DHT.UN
DRI Healthcare
12.48
-1.78
-12.48%
TSE:GUD
Knight Therapeutics
5.81
-0.29
-4.75%
TSE:MRE
Martinrea International
8.52
-3.57
-29.53%
TSE:HLS
HLS Therapeutics Inc
4.68
0.71
17.88%
TSE:NEO
Neo Performance Materials Inc
10.64
4.33
68.62%
DRI Healthcare Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q3-2024)
| % Change Since: 0.32%|
Next Earnings Date:Jul 31, 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 Corporate Events
Financial Disclosures
DRI Healthcare Trust Schedules Q1 2025 Earnings Call
Positive
Apr 22, 2025
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.
Spark’s Take on TSE:DHT.UN Stock
According to Spark, TipRanks’ AI Analyst, TSE:DHT.UN is a Neutral.
DRI Healthcare’s strong balance sheet and cash flow generation are overshadowed by profitability challenges due to revenue decline and net losses. Technical indicators suggest a bearish trend, and valuation concerns persist due to negative earnings. However, recent corporate events demonstrate a positive outlook with improved financial results and strategic management, providing a moderate boost to the overall score.
To see Spark’s full report on TSE:DHT.UN stock, click here.
Business Operations and StrategyFinancial Disclosures
DRI Healthcare Trust Reports Robust 2024 Financial Results and Sets Positive Outlook for 2025
Positive
Mar 3, 2025
DRI Healthcare Trust reported strong financial results for the fourth quarter and fiscal year 2024, highlighting a 45% increase in Normalized Total Cash Receipts, which underscores the company’s growth and effective portfolio management. The Trust has completed the remediation of material weaknesses, increased its quarterly distribution, and announced 2025 royalty income guidance, positioning itself for continued success and stakeholder alignment in the upcoming year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.