Knight Therapeutics (GUD) AI Stock Analysis

• Market Cap: C$668.60M
• Dividend Yield: N/A
• Average Volume (3M): 48.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 18.70%
• EPS Growth: 88.31%
• Country: CA
• Employees: 745
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.09
• Shares Outstanding: 98,034,744
• 10 Day Avg. Volume: 49,308
• 30 Day Avg. Volume: 48,518
• PEG Ratio: 0.50
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 8.81
• 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$8.98
• Price Target Upside: 31.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): C$468.46M

• Rating: 71 Outperform
• Price Target: C$7.00 ▲(2.64% Upside)
• Action: Upgraded Date: 03/21/26
• Date: Action: Upgraded 03/21/26

The score is driven primarily by financial resilience (low leverage and improving cash generation) and a strong, guidance-raising earnings call. Technicals are supportive with price above key moving averages and positive MACD. The main offset is valuation risk stemming from negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Conservative balance sheet

Low leverage and a sizeable equity base give Knight durable financial flexibility to fund launches, absorb regulatory or revenue shocks, and pursue in-licenses or bolt-on acquisitions without immediate refinancing pressure. This underpins multi‑period execution of strategy.

Improving cash generation

Rising operating and free cash flow provides a sustainable internal funding source for commercialization, regulatory filings, and product launches. Strong cash conversion reduces reliance on external capital and supports reinvestment in high‑growth therapeutic areas over the next several quarters.

Portfolio expansion & partnerships

Broadening specialty oncology franchise through in‑licenses and launches diversifies revenue streams and raises product mix quality. Durable distribution relationships and exclusives in Latin America and Canada strengthen market position and recurring sales potential across regulatory cycles.

Negative Factors

Inconsistent profitability

Repeated swings between profits and losses indicate unstable operating leverage and margin durability. This makes free cash and net income forecasts less reliable, constrains retained earnings accumulation, and raises execution risk for multi‑period growth plans.

Regulatory setbacks

Regulatory refusals and compliance notices in key markets can delay launches, reduce near‑term revenues and tie up management resources. Appeals and supplemental filings can take many months, materially shifting expected timing of cash flows and product ramp assumptions.

Strategic investment volatility

Exposure to marked‑to‑market strategic investments introduces earnings and equity volatility unrelated to core commercialization. Such swings can erode reported profitability and capital when markets turn, complicating long‑term performance assessment and capital allocation.

Knight Therapeutics Business Overview & Revenue Model

Company Description

Knight Therapeutics Inc., a specialty pharmaceutical company, develops, acquires, in-licenses, out-licenses, markets, and distributes pharmaceutical and consumer health products, and medical devices in Canada, Latin America, and internationally. It offers Nerlynx for extended adjuvant breast cancer and metastatic breast cancer; Tafasitamab for relapsed or refractory diffuse large B-cell lymphoma; Pemigatinib to treat metastatic cholangiocarcinoma; Trelstar for advanced prostate cancer and for pain associated with endometriosis; Vidaza for myelodysplastic syndrome; Abraxane for metastatic pancreatic adenocarcinoma; Halaven for metastatic breast cancer and doft tissue sarcoma; and Lenvima for differentiated thyroid cancer, advanced renal cell cancer, and unresectable hepatocellular carcinoma. The company also provides Ladevina for multiple myeloma, myelodysplastic syndrome, mantle cell lymphoma, and follicular lymphoma; Zyvalix for metastatic prostate cancer; Karfib for relapsed or refractory multiple myeloma; Leprid for advanced prostate cancer; Rembre for chronic myeloid leukemia; Ambisome and Cresemba for fungal infection; Impavido for leishmaniasis; Exelon for mild to moderately severe dementia; and Ibsrela for the treatment of irritable bowel syndrome with constipation. In addition, it offers Salofalk for ulcerative colitis; Ursofalk to treat biliary cirrhosis; Imvexxy for moderate to severe dyspareunia; Bijuva for moderate to severe vasomotor symptoms associated with menopause in women with intact uteri; Fibridoner to treat idiopathic pulmonary fibrosis; Toliscrin DPI for pseudomonas aeruginosa lung infection in patients with cystic fibrosis; Toliscrin 1-2 for severe acute or resistant chronic infections; and Tobradosa Haler for chronic lung infections. Further, the company finances other life science companies; and invests in life sciences venture capital funds. Knight Therapeutics Inc. was incorporated in 2013 and is headquartered in Montreal, Canada.

How the Company Makes Money

Knight Therapeutics makes money primarily by commercializing prescription pharmaceuticals that it has acquired or licensed. Revenue is generated mainly from product sales to customers (e.g., wholesalers, hospitals, pharmacies, and other healthcare-channel counterparties, depending on the market), where Knight earns the spread between the selling price and the cost to acquire/manufacture the products plus the costs to market, distribute, and support them. A second revenue stream comes from partnering and licensing arrangements: when Knight in-licenses products for its territories, it typically pays the originator upfront and/or milestone payments and ongoing royalties or supply prices; in turn, it earns revenue from selling those products locally, and in some cases may earn service income or receive payments tied to sublicensing/out-licensing (specific deal terms vary by product and are not consistently public). The company also generates income from its strategic investment portfolio, which can contribute through realized gains/losses on sales of investments, changes in fair value, dividends/interest (where applicable), and other investment-related income. Key factors that influence earnings include the performance of the marketed product portfolio, the pace and success of adding new licensed/acquired products, regulatory approvals and pricing/reimbursement dynamics in its operating geographies, and the economics of its partnership contracts (e.g., royalty/supply terms).

Knight Therapeutics Financial Statement Overview

Summary

Strong balance sheet (low leverage, sizeable equity base) and improving operating/free cash flow support resilience, but bottom-line profitability has been inconsistent with multiple loss years and a return to losses in 2025.

Income Statement

Revenue has grown steadily across the period, including +8.8% in 2025 (annual) after strong growth in prior years. However, profitability is inconsistent: net income swung from profits in 2020–2021 to losses in 2022–2023, recovered slightly in 2024, and turned negative again in 2025. Gross profit has remained sizable, but the repeated flips between positive and negative earnings suggest uneven operating leverage and limited durability in bottom-line performance.

Balance Sheet

The balance sheet looks conservative, with low leverage and a large equity base (debt-to-equity was ~0.05–0.09 in 2021–2024). Total assets and equity are substantial relative to debt, which provides flexibility to absorb earnings volatility. The main weakness is returns: return on equity is low and has turned negative in several years (including 2025), indicating the company is not consistently translating its capital base into profits.

Cash Flow

Cash generation has improved meaningfully in recent years: operating cash flow is solid and rising into 2025, and free cash flow is very strong in 2025 versus modest levels in 2024. That said, cash flow has been volatile historically, including negative operating cash flow in 2020 and deeply negative free cash flow in 2021, highlighting potential swings driven by working capital or investment timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	450.09M	371.30M	328.20M	293.56M	243.48M
Gross Profit	150.74M	174.41M	152.65M	138.06M	115.41M
EBITDA	54.37M	64.38M	40.90M	25.26M	42.59M
Net Income	-5.37M	4.33M	-16.84M	-29.89M	15.68M
Balance Sheet
Total Assets	1.05B	963.80M	945.49M	1.05B	991.89M
Cash, Cash Equivalents and Short-Term Investments	95.28M	172.84M	154.42M	185.61M	162.99M
Total Debt	77.91M	49.46M	69.09M	77.70M	40.96M
Total Liabilities	279.03M	168.69M	198.62M	228.98M	149.87M
Stockholders Equity	767.27M	795.11M	746.87M	825.86M	842.02M
Cash Flow
Free Cash Flow	68.40M	4.81M	25.98M	14.66M	-179.56M
Operating Cash Flow	70.30M	36.28M	35.94M	40.48M	44.62M
Investing Cash Flow	-84.11M	16.96M	29.34M	-63.08M	-105.28M
Financing Cash Flow	13.01M	-33.54M	-81.00M	1.76M	-78.31M

Knight Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.82
• 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:GUD, the sentiment is Positive. The current price of 6.82 is above the 20-day moving average (MA) of 6.26, above the 50-day MA of 6.09, and above the 200-day MA of 6.08, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 62.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GUD.

Knight Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	78 Outperform	C$418.66M	10.05	24.23%	―	94.28%	5.23%
GUD	71 Outperform	C$668.60M	-112.09	-0.45%	―	18.70%	88.31%
CRON	60 Neutral	$1.31B	-104.58	-0.87%	―	22.20%	―
ACB	52 Neutral	C$259.73M	44.94	-7.78%	―	23.87%	-19.57%
HLS	52 Neutral	C$137.60M	-8.75	-19.40%	―	0.73%	33.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OGI	47 Neutral	C$254.95M	3.90	4.86%	―	62.15%	60.50%

Knight Therapeutics Corporate Events

Knight Therapeutics Posts Record 2025 Revenue, Sets Confident 2026 Outlook

Knight Therapeutics reported record 2025 revenues of $450.1 million and its highest-ever adjusted EBITDA and operating cash flow since inception, driven largely by contributions from the Paladin and Sumitomo acquisitions and strong growth in key promoted products. Despite these gains, gross margin declined, and the company posted a net loss due to inflation impacts, inventory fair-value adjustments, and pressure in mature and branded generic portfolios.

The company strengthened its balance sheet and capital structure with a new US$100 million syndicated revolving credit facility, a working capital line, and the settlement of the Synergy loan, while also repurchasing over 1.1 million shares under its NCIB. Looking ahead, Knight issued 2026 guidance calling for revenues between $490 million and $510 million and an adjusted EBITDA margin of about 15%, signaling confidence in continued portfolio growth and integration of recent acquisitions.

The most recent analyst rating on (TSE:GUD) stock is a Buy with a C$7.45 price target. To see the full list of analyst forecasts on Knight Therapeutics stock, see the TSE:GUD Stock Forecast page.