Knight Therapeutics (GUD) AI Stock Analysis

• Market Cap: $592.59M
• Dividend Yield: N/A
• Average Volume (3M): 48.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 18.70%
• EPS Growth: 88.31%
• Country: CA
• Employees: 745
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.04
• Shares Outstanding: 99,260,730
• 10 Day Avg. Volume: 49,308
• 30 Day Avg. Volume: 48,518
• PEG Ratio: -0.98
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 112.22
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 10.94
• 1Y Price Target: $8.48
• Price Target Upside: 42.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$6.00 ▲(0.50% Upside)

Knight Therapeutics' overall score is driven by strong earnings call performance, showcasing significant revenue and EBITDA growth. However, challenges in profitability, cash flow, and valuation metrics weigh down the score. The technical analysis indicates a neutral market sentiment.

Positive Factors

Revenue Growth

The significant revenue growth of 34% year-over-year indicates strong market demand and successful product expansion, supporting long-term business sustainability.

Oncology Portfolio Expansion

Expanding the oncology portfolio with new in-licensed drugs enhances Knight's competitive position in the high-growth oncology market, driving future revenue potential.

Increased Financial Flexibility

Increasing the credit facility provides Knight with greater financial flexibility to invest in growth opportunities and manage operational needs, strengthening its financial position.

Negative Factors

Profitability Challenges

Persistent profitability issues, such as negative net income, could hinder long-term financial health and limit reinvestment capabilities, impacting growth prospects.

Regulatory Setbacks

Regulatory setbacks, like the rejection in Brazil, delay market entry and revenue generation, potentially affecting the company's strategic growth plans in key markets.

Cash Flow Concerns

Weak cash flow performance limits Knight's ability to fund operations and invest in growth, posing risks to long-term financial stability and operational efficiency.

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 generates revenue primarily through the commercialization and sales of its pharmaceutical products. The company employs a revenue model that includes both direct sales and partnerships with other pharmaceutical companies for product distribution and licensing agreements. Key revenue streams consist of product sales in Canada, royalties from licensed products, and milestone payments from collaborative agreements. Additionally, Knight Therapeutics has established strategic partnerships that enhance its market access and product offerings, contributing significantly to its revenue growth. The company also focuses on acquiring rights to promising pharmaceuticals, which can lead to potential earnings through market exclusivity and pricing strategies in the therapeutic sectors it operates within.

Knight Therapeutics Financial Statement Overview

Summary

Knight Therapeutics shows moderate revenue growth and a strong balance sheet with low leverage. However, profitability and cash flow generation are areas of concern, with declining margins and negative free cash flow growth. The company needs to improve operational efficiency and cash management to enhance financial performance.

Income Statement

Knight Therapeutics shows moderate revenue growth with a TTM increase of 3.16%. However, profitability is a concern, as indicated by a low net profit margin of 0.10% and negative EBIT margin. The gross profit margin remains stable at around 43%, but the declining EBITDA margin suggests pressure on operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.14, indicating conservative leverage. However, the return on equity is minimal at 0.05%, reflecting limited profitability. The equity ratio is robust, suggesting financial stability.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth by 89.84% TTM. The operating cash flow to net income ratio is low at 0.20, indicating challenges in converting income into cash. The negative free cash flow to net income ratio further highlights cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.85M	371.30M	328.20M	293.56M	243.48M	199.52M
Gross Profit	160.41M	174.41M	152.65M	138.06M	115.41M	81.69M
EBITDA	54.35M	64.38M	40.90M	25.26M	42.59M	67.56M
Net Income	-3.49M	4.33M	-16.84M	-29.89M	15.68M	31.76M
Balance Sheet
Total Assets	1.05B	963.80M	945.49M	1.05B	991.89M	1.04B
Cash, Cash Equivalents and Short-Term Investments	95.56M	172.84M	154.42M	185.61M	162.99M	411.34M
Total Debt	106.24M	49.46M	69.09M	77.70M	40.96M	56.19M
Total Liabilities	281.78M	168.69M	198.62M	228.98M	149.87M	153.44M
Stockholders Equity	766.79M	795.11M	746.87M	825.86M	842.02M	886.24M
Cash Flow
Free Cash Flow	5.63M	4.81M	25.98M	14.66M	-179.56M	-32.87M
Operating Cash Flow	35.95M	36.28M	35.94M	40.48M	44.62M	-12.21M
Investing Cash Flow	-53.94M	16.96M	29.34M	-63.08M	-105.28M	101.35M
Financing Cash Flow	25.88M	-33.54M	-81.00M	1.76M	-78.31M	-29.23M

Knight Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 5.97 is below the 20-day moving average (MA) of 6.03, below the 50-day MA of 5.99, and below the 200-day MA of 6.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GUD.

Knight Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	74 Outperform	C$383.08M	16.00	16.32%	―	94.28%	5.23%
CRON	67 Neutral	C$1.44B	28.68	3.34%	―	22.20%	―
GUD	57 Neutral	$592.59M	-168.17	-0.48%	―	18.70%	88.31%
OGI	54 Neutral	C$325.36M	-11.87	-7.93%	―	62.15%	60.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	51 Neutral	C$149.80M	-7.67	-20.49%	―	0.73%	33.51%
ACB	49 Neutral	C$355.53M	-6.09	-10.76%	―	23.87%	-19.57%

Knight Therapeutics Corporate Events

Knight Therapeutics Achieves Record-High Revenues in Q3 2025

Knight Therapeutics reported record-high quarterly revenues and adjusted EBITDA for the third quarter of 2025, driven by the integration of the Paladin and Sumitomo portfolios and growth in its promoted products. Despite a net loss, the company increased its financial guidance for 2025 and expanded its product pipeline with new launches in Canada, Argentina, Brazil, and Mexico, which could enhance its market positioning and stakeholder value.

Knight Therapeutics Secures US$100 Million Credit Facility to Boost Growth

Knight Therapeutics Inc. has successfully closed a US$100 million revolving credit facility, doubling its previous capacity and including an accordion feature for an additional US$100 million. This facility, syndicated with four banks including National Bank of Canada, Citibank, CIBC, and TD, is intended to support the company’s growth strategy, including acquisitions, and provides financial flexibility for corporate purposes. The facility has a maturity date of June 17, 2028, with options for extension, and includes various financial covenants.