Knight Therapeutics (TSE:GUD)
TSX:GUD
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Knight Therapeutics
(TSX:GUD)
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Rating:69Neutral
Price Target:
C$9.50
▲(24.18% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by a strong balance sheet and improving cash flow alongside solid revenue growth, but held back by persistently thin/volatile profitability. Technically, the uptrend is constructive, though momentum looks stretched (high RSI). Valuation appears reasonable on P/E, while the latest earnings call was a net positive due to raised 2026 guidance and record operating performance despite identifiable regulatory, cost, and macro risks.
Positive Factors
Balance Sheet Strength
A net cash position and ample liquid assets provide durable financial flexibility to fund launches, M&A and buybacks without reliance on new debt. Low leverage reduces refinancing and solvency risk, enabling the company to absorb revenue volatility and invest in long-term commercial expansion.
Negative Factors
Earnings Volatility
Repeated switches between profits and losses indicate weak earnings durability and sensitivity to product mix, one‑off items and revaluations. This instability complicates capital allocation, makes forecasting harder and increases reliance on acquisitions or one-time gains to meet long-term targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A net cash position and ample liquid assets provide durable financial flexibility to fund launches, M&A and buybacks without reliance on new debt. Low leverage reduces refinancing and solvency risk, enabling the company to absorb revenue volatility and invest in long-term commercial expansion.
Read all positive factors
Knight Therapeutics (GUD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$801.92M
Dividend YieldN/A
Average Volume (3M)48.52K
Price to Earnings (P/E)13.8
Beta (1Y)0.43
Revenue Growth36.93%
EPS Growth-47.43%
CountryCA
Employees745
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.05
Shares Outstanding98,034,744
10 Day Avg. Volume49,308
30 Day Avg. Volume48,518
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.79
Price to Sales (P/S)1.34
P/FCF Ratio8.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.61Price Target Upside25.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.17
Revenue Forecast (FY)C$490.89M
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. I...
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...
Knight Therapeutics Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum—record quarterly revenues and adjusted EBITDA, improved gross margin, a stronger balance sheet and an active launch and BD pipeline—supported by raised 2026 guidance. Key challenges include a withdrawal and delayed resubmission of Qelbree's Health Canada filing due to manufacturing changes, a meaningful YoY increase in operating expenses, a small Q1 net loss from investment revaluations, and medium-term risks from potential generic competition and Argentina hyperinflation exposure. Overall, the positive financial results, strengthened liquidity and well-filled launch pipeline materially outweigh the identifiable near-term execution and macro risks.Positive Updates
Record Revenue Growth
Reported record Q1 2026 revenues of $148 million, an increase of approximately $59.6–$60 million year-over-year (about +68–69% YoY). Growth drivers included incremental revenues from the Sumitomo and Paladin portfolios, promoted products and customer purchasing patterns.
Negative Updates
Withdrawal of Qelbree New Drug Submission in Canada
Withdrew Health Canada NDS for Qelbree due to partner manufacturing changes; resubmission expected later with required manufacturing data and previously requested technical information. Launch delay estimated at around 1–2 years, postponing anticipated revenues.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue Growth
Reported record Q1 2026 revenues of $148 million, an increase of approximately $59.6–$60 million year-over-year (about +68–69% YoY). Growth drivers included incremental revenues from the Sumitomo and Paladin portfolios, promoted products and customer purchasing patterns.
Read all positive updates
Company Guidance
Knight raised its fiscal 2026 outlook, now expecting revenues of $510–$525 million and adjusted EBITDA of ~15% of revenues (roughly $76.5–$78.8 million), an increase management attributes to stronger promoted‑product performance across Canada, Mexico and Colombia and an FX tailwind they estimate at ~$5–$10 million; the guidance assumes no material hyperinflation accounting adjustment in Argentina and other press‑release assumptions. For context, Q1 results included record revenues of $148 million, adjusted EBITDA of $28 million (adjusted EBITDA per share $0.28), adjusted gross margin of $70.6 million (48% of revenues), operating expenses of $43 million, operating cash inflows of $41 million, cash & marketable securities of $127 million, debt of ~$58 million (net cash ~$69 million), and management expects ~10 launches in 2026 after 15 launches over the last two years.Knight Therapeutics Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 510.45M | 450.09M | 371.30M | 328.20M | 293.56M | 243.48M |
| Gross Profit | 190.52M | 150.74M | 174.41M | 152.65M | 138.06M | 115.41M |
| EBITDA | 65.18M | 54.37M | 64.38M | 40.90M | 25.26M | 42.59M |
| Net Income | 5.61M | -5.37M | 4.33M | -16.84M | -29.89M | 15.68M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.05B | 963.80M | 945.49M | 1.05B | 991.89M |
| Cash, Cash Equivalents and Short-Term Investments | 127.29M | 95.28M | 172.84M | 154.42M | 185.61M | 162.99M |
| Total Debt | 69.78M | 77.91M | 49.46M | 69.09M | 77.70M | 40.96M |
| Total Liabilities | 299.33M | 279.03M | 168.69M | 198.62M | 228.98M | 149.87M |
| Stockholders Equity | 787.27M | 767.27M | 795.11M | 746.87M | 825.86M | 842.02M |
Cash Flow | ||||||
| Free Cash Flow | 76.19M | 68.40M | 4.81M | 25.98M | 14.66M | -179.56M |
| Operating Cash Flow | 105.56M | 70.30M | 36.28M | 35.94M | 40.48M | 44.62M |
| Investing Cash Flow | -101.01M | -84.11M | 16.96M | 29.34M | -63.08M | -105.28M |
| Financing Cash Flow | -6.58M | 13.01M | -33.54M | -81.00M | 1.76M | -78.31M |
Knight Therapeutics Technical Analysis
Positive
7.65
Price Trends
7.37
Positive
6.71
Positive
6.41
Positive
Market Momentum
0.33
Negative
61.13
Neutral
67.89
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 7.65 is below the 20-day moving average (MA) of 7.90, above the 50-day MA of 7.37, and above the 200-day MA of 6.41, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.89 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | C$427.76M | 13.68 | 25.69% | ― | 27.57% | 226.76% | |
69 Neutral | C$801.92M | 13.85 | 0.73% | ― | 36.93% | -47.43% | |
69 Neutral | C$1.38B | 17.74 | -0.19% | ― | 27.16% | -103.47% | |
55 Neutral | C$145.11M | -10.87 | -16.54% | ― | -2.35% | 42.42% | |
54 Neutral | C$203.14M | ― | -6.83% | ― | 41.27% | -281.56% | |
52 Neutral | C$270.50M | 44.94 | -7.78% | ― | 16.54% | -777.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Knight Therapeutics Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Knight Therapeutics Posts Record 2025 Revenue, Sets Confident 2026 Outlook
Positive
Mar 19, 2026
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 p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.