Knight Therapeutics (GUD) AI Stock Analysis

• Market Cap: $590.95M
• Dividend Yield: N/A
• Average Volume (3M): 62.58K
• Price to Earnings (P/E): 1744.1
• Beta (1Y): 0.29
• Revenue Growth: 13.82%
• EPS Growth: N/A
• Country: CA
• Employees: 745
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 99,654,495
• 10 Day Avg. Volume: 54,194
• 30 Day Avg. Volume: 62,577
• 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: 1.01
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 11.42
• 1Y Price Target: $8.18
• Price Target Upside: 38.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 47 Neutral
• Price Target: C$6.00 ▲(1.18% Upside)

Knight Therapeutics faces significant challenges with its high P/E ratio and bearish technical indicators, suggesting potential overvaluation and negative market sentiment. While the company has a strong balance sheet and recent earnings call highlights positive revenue growth and business development, these factors are overshadowed by profitability concerns and cash flow issues.

Positive Factors

Negative Factors

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 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 stable 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. Improvements in operational efficiency and cash management are needed.

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	384.56M	371.30M	328.20M	293.56M	243.48M	199.52M
Gross Profit	165.07M	174.41M	152.65M	138.06M	115.41M	81.69M
EBITDA	52.05M	64.38M	40.90M	25.26M	42.59M	67.56M
Net Income	383.00K	4.33M	-16.84M	-29.89M	15.68M	31.76M
Balance Sheet
Total Assets	1.04B	963.80M	945.49M	1.05B	991.89M	1.04B
Cash, Cash Equivalents and Short-Term Investments	116.42M	172.84M	154.42M	185.61M	162.99M	411.34M
Total Debt	104.74M	49.46M	69.09M	77.70M	40.96M	56.19M
Total Liabilities	274.89M	168.69M	198.62M	228.98M	149.87M	153.44M
Stockholders Equity	763.06M	795.11M	746.87M	825.86M	842.02M	886.24M
Cash Flow
Free Cash Flow	-1.54M	4.81M	25.98M	14.66M	-179.56M	-32.87M
Operating Cash Flow	30.41M	36.28M	35.94M	40.48M	44.62M	-12.21M
Investing Cash Flow	-39.59M	16.96M	29.34M	-63.08M	-105.28M	101.35M
Financing Cash Flow	26.83M	-33.54M	-81.00M	1.76M	-78.31M	-29.23M

Knight Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.93 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.29, and above the 200-day MA of 5.88, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 34.46 is Neutral, neither overbought nor oversold. The STOCH value of 8.87 is Positive, 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
RX	78 Outperform	134.95M	16.24	21.97%	1.66%	16.82%	19.25%
CPH	77 Outperform	406.55M	24.25	11.28%	―	121.40%	-47.34%
TH	61 Neutral	205.53M	-16.29	32.79%	―	5.24%	-7.99%
MDP	60 Neutral	89.36M	67.40	1.52%	―	0.03%	-17.30%
HLS	53 Neutral	169.20M	-8.17	-27.55%	―	-1.42%	35.15%
GUD	47 Neutral	$590.95M	1,744.12	0.03%	―	13.82%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.