Knight Therapeutics (GUD) AI Stock Analysis

• Market Cap: C$619.84M
• Dividend Yield: N/A
• Average Volume (3M): 51.61K
• Price to Earnings (P/E): 1829.4
• Beta (1Y): 0.28
• Revenue Growth: 13.82%
• EPS Growth: N/A
• Country: CA
• Employees: 745
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 99,653,270
• 10 Day Avg. Volume: 70,185
• 30 Day Avg. Volume: 51,606
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$8.08
• Price Target Upside: 29.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: C$7.00 ▲(12.54% Upside)

Knight Therapeutics' strong revenue growth and strategic initiatives are significant positives, supported by a robust balance sheet and positive earnings call sentiment. However, high valuation metrics and profitability challenges weigh on the overall score.

Positive Factors

Earnings

Knight Therapeutics reported a strong quarterly performance, beating estimates and increasing its guidance.

Growth Strategy

Knight Therapeutics plans to launch over 10 new drugs, expected to significantly increase revenue and gross margin.

Negative Factors

Financial Performance

Adjusted EBITDA declined due to lower gross margins and increased selling, marketing, and administrative expenses.

Gross Margins

Gross margins have decreased, impacted by product mix changes and severance expenses related to manufacturing shifts.

Knight Therapeutics Business Overview & Revenue Model

Company Description

Knight Therapeutics Inc. (GUD) is a Canadian specialty pharmaceutical company that focuses on acquiring, in-licensing, and commercializing innovative pharmaceutical products. The company operates primarily in the healthcare sector, targeting areas such as rare diseases, oncology, and other therapeutic areas where there is a significant unmet medical need. Knight Therapeutics is known for its efforts in bringing novel therapies to market, and it aims to provide patients with effective treatment options while maximizing value for stakeholders.

How the Company Makes Money

Knight Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products, which includes both proprietary drugs and licensed products. The company's revenue model is based on sales of these products in the markets where they are available. Key revenue streams include direct sales to healthcare providers and pharmacies, as well as potential royalties and milestones from partnerships with other pharmaceutical companies. Significant partnerships with other biopharmaceutical firms enhance its product pipeline and market reach, contributing to the company's earnings. Additionally, Knight Therapeutics may also engage in licensing deals that provide upfront payments and ongoing royalties, further diversifying its revenue sources.

Knight Therapeutics Financial Statement Overview

Summary

Knight Therapeutics shows strong revenue growth and a solid balance sheet, with low leverage and high equity ratios. However, the company faces profitability challenges and cash flow issues that could impact future financial flexibility.

Income Statement

The income statement shows a steady revenue increase, with a notable 13.3% growth from 2022 to 2023, contributing to the positive revenue trajectory. Gross profit margins have been maintained above 45% across periods, indicating good cost management. However, the company faces challenges in profitability, with EBIT margins fluctuating and sometimes negative, impacting net profit margins. Recent improvement in net income for TTM suggests potential recovery.

Balance Sheet

The balance sheet reflects a strong equity base, with a high equity ratio of approximately 79.3% in TTM, indicating financial stability. The debt-to-equity ratio remains low, around 0.07, which suggests prudent use of leverage. However, there is room for improvement in ROE, which, despite being positive in TTM, remains modest compared to industry norms.

Cash Flow

Cash flow analysis reveals challenges in sustaining free cash flow, with negative free cash flow reported in TTM. The operating cash flow to net income ratio is high, indicating good operational efficiency. However, the negative free cash flow growth and fluctuating capital expenditures pose concerns for long-term cash sustainability.

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

Knight Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.22
• 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 6.22 is above the 20-day moving average (MA) of 6.21, above the 50-day MA of 6.07, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 65.27 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	76 Outperform	$368.97M	21.54	12.25%	―	121.40%	-47.34%
RX	75 Outperform	C$130.01M	16.56	22.17%	1.67%	16.55%	14.70%
GUD	68 Neutral	C$619.84M	1,829.41	0.03%	―	13.82%	―
MDP	68 Neutral	C$88.71M	71.78	1.88%	―	0.03%	-17.30%
TH	61 Neutral	$205.53M	―		―	5.24%	-7.99%
HLS	58 Neutral	C$159.79M	―	-20.58%	―	-3.73%	32.70%
Sector *	47 Neutral	C$213.29M	-1.44	-30.58%	3.10%	19.48%	-0.04%

Knight Therapeutics Corporate Events

Knight Therapeutics Achieves Record Revenues Amid Strategic Expansions

Knight Therapeutics reported record-high quarterly revenues for the second quarter of 2025, with a 12% increase over the previous year. Despite the revenue growth, the company faced a net loss of $12,622, attributed to hyperinflation accounting in Argentina affecting gross margins. The company entered into a revolving credit facility with National Bank of Canada and executed an asset purchase agreement with Paladin Pharma Inc., indicating strategic moves to strengthen its market position.

The most recent analyst rating on (TSE:GUD) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Knight Therapeutics stock, see the TSE:GUD Stock Forecast page.

Knight Therapeutics Secures US$50 Million Credit Facility to Fuel Growth

Knight Therapeutics Inc. has secured a US$50 million revolving credit facility with the National Bank of Canada to support its growth strategy, including the acquisition of Paladin. The facility, which can be increased to US$100 million, provides financial flexibility for acquisitions and business growth, enhancing Knight’s capital structure and operational capabilities in Latin America and Canada.

The most recent analyst rating on (TSE:GUD) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Knight Therapeutics stock, see the TSE:GUD Stock Forecast page.