HLS Therapeutics Inc (HLS) AI Stock Analysis

• Market Cap: C$152.30M
• Dividend Yield: N/A
• Average Volume (3M): 19.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 0.73%
• EPS Growth: 33.51%
• Country: CA
• Employees: 92
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.17
• Shares Outstanding: 31,273,682
• 10 Day Avg. Volume: 21,807
• 30 Day Avg. Volume: 19,898
• PEG Ratio: 0.16
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 10.89
• 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$7.25
• Price Target Upside: 47.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$5.00 ▲(1.83% Upside)

HLS Therapeutics Inc. faces significant challenges in revenue growth and profitability, which weigh heavily on its financial performance score. Despite these challenges, the company shows potential in cash flow management and has a strong pipeline with upcoming product launches that could drive future growth. Technical indicators suggest a bearish trend, and valuation metrics reflect current unprofitability. However, recent corporate events and strategic initiatives provide a positive outlook for long-term growth.

Positive Factors

Strong Gross Margins

Strong gross margins reflect effective cost control and pricing power, which can support profitability even amid revenue challenges.

Positive Cash Flow Trends

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Bempedoic Acid Launch

The upcoming launch of bempedoic acid could drive future growth by expanding the product portfolio and capturing new market segments.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competitive pressures, which could impact long-term growth and profitability.

Clozaril Revenue Decline

Declining sales in a key product like Clozaril suggest competitive pressures and market saturation, affecting overall revenue stability.

Negative Return on Equity

Negative ROE reflects inefficiencies in using equity capital, which may hinder the company's ability to attract investment and grow.

HLS Therapeutics Inc Business Overview & Revenue Model

Company Description

HLS Therapeutics Inc (HLS) is a specialty pharmaceutical company based in Canada, focused on the development and commercialization of innovative therapeutics for the treatment of central nervous system (CNS) disorders and cardiovascular diseases. The company operates primarily in the pharmaceutical sector, with a portfolio that includes both patented and generic products designed to address unmet medical needs in these areas.

How the Company Makes Money

HLS Therapeutics generates revenue through the sales of its pharmaceutical products, which include prescription medications for CNS and cardiovascular conditions. The company employs a revenue model that relies on both direct sales to healthcare providers and partnerships with distributors and pharmacies. Key revenue streams include sales from marketed products, royalties from licensing agreements, and potential milestone payments from collaborative partnerships. Additionally, HLS may benefit from strategic alliances with other pharmaceutical companies that enhance its market reach and product offerings, contributing to its overall earnings.

HLS Therapeutics Inc Financial Statement Overview

Summary

HLS Therapeutics Inc. demonstrates strong gross margins and positive cash flow trends, but faces significant challenges in revenue growth and profitability. The balance sheet reflects moderate leverage, but negative returns on equity indicate inefficiencies in generating shareholder value. Overall, the company shows potential in cash flow management but needs to address revenue and profitability issues to improve its financial health.

Income Statement

HLS Therapeutics Inc. has faced declining revenue growth, with a significant drop of 61.3% in TTM. The gross profit margin remains strong at 82.6%, indicating efficient cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -26.7% and negative EBIT margin. The EBITDA margin is positive at 27.5%, showing some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.83, suggesting manageable leverage. However, the return on equity is negative at -21.2%, indicating challenges in generating returns for shareholders. The equity ratio stands at 44.7%, reflecting a stable capital structure.

Cash Flow

HLS Therapeutics shows a positive free cash flow growth rate of 9.3% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.47, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is high at 91.3%, highlighting strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.85M	56.62M	63.07M	61.47M	60.01M	56.11M
Gross Profit	45.72M	47.62M	55.45M	56.49M	56.04M	52.48M
EBITDA	16.45M	17.22M	12.88M	18.00M	25.41M	23.19M
Net Income	-14.12M	-19.66M	-27.53M	-23.60M	-13.12M	-15.33M
Balance Sheet
Total Assets	140.23M	159.90M	209.06M	241.65M	275.90M	303.91M
Cash, Cash Equivalents and Short-Term Investments	10.78M	17.46M	21.95M	20.72M	21.18M	20.61M
Total Debt	54.09M	66.45M	87.62M	97.34M	97.57M	107.12M
Total Liabilities	78.49M	88.56M	111.36M	116.33M	115.17M	134.66M
Stockholders Equity	61.74M	71.34M	97.70M	125.32M	160.74M	169.25M
Cash Flow
Free Cash Flow	12.43M	7.99M	15.60M	6.79M	11.92M	-35.33M
Operating Cash Flow	13.83M	8.00M	15.79M	16.94M	16.43M	9.34M
Investing Cash Flow	-1.40M	11.73M	-189.00K	-10.15M	-4.51M	-44.68M
Financing Cash Flow	-18.84M	-23.36M	-14.64M	-6.86M	-11.40M	9.56M

HLS Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLS, the sentiment is Negative. The current price of 4.91 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 5.21, and below the 200-day MA of 4.95, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HLS.

HLS Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	74 Outperform	C$353.91M	14.79	16.32%	―	94.28%	5.23%
TH	61 Neutral	―	―	―	―	5.24%	-7.99%
MDP	58 Neutral	C$85.91M	122.69	0.87%	―	2.14%	-83.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	51 Neutral	C$152.30M	-7.86	-20.49%	―	0.73%	33.51%
CRDL	38 Underperform	$142.00M	-3.34	-341.20%	―	―	21.17%

HLS Therapeutics Inc Corporate Events

HLS Therapeutics Gains Health Canada Approval for NILEMDO®

HLS Therapeutics Inc. announced that Health Canada has approved NILEMDO® for the reduction of LDL-cholesterol in Canadians at risk of cardiovascular disease. This approval, supported by data from the CLEAR Outcomes trial, strengthens HLS’s position as a leading cardiovascular company in Canada and is expected to significantly impact its future growth. The commercial launch of NILEMDO is planned for Q2 2026. However, HLS received a Notice of Non-Compliance for NEXLIZET®, requiring additional information for approval, although no concerns were raised about its clinical data, efficacy, or safety.

HLS Therapeutics Reports Strong Q3 2025 Results and Prepares for New Product Launch

HLS Therapeutics Inc. reported a strong financial performance for Q3 2025, with a 19% increase in Adjusted EBITDA and a 67% rise in cash from operations. The company secured a new credit facility with improved terms and is preparing for the launch of bempedoic acid in Canada, expected to address significant unmet needs in cardiovascular treatment. Despite challenges in the Canadian market, HLS remains optimistic about future growth, leveraging operational synergies and maintaining a strong balance sheet to explore additional opportunities.

HLS Therapeutics to Announce Q3 2025 Financial Results

HLS Therapeutics Inc. announced it will release its financial results for the third quarter of 2025 on November 13, 2025, followed by a conference call to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the pharmaceutical industry, particularly in its focus areas of psychiatric and cardiovascular treatments.

HLS Therapeutics and Amarin Highlight Cardiovascular Advances at Canadian Congress

HLS Therapeutics Inc., in collaboration with Amarin Corporation, announced the presentation of significant scientific data at the Canadian Cardiovascular Congress, emphasizing the therapeutic potential of Icosapent Ethyl and Eicosapentaenoic Acid. These presentations underscore HLS’s commitment to enhancing cardiovascular care and exploring the mechanistic effects of these compounds, potentially impacting the treatment of cardiometabolic conditions and inflammation-related endothelial functions.