HLS Therapeutics Inc (HLS) AI Stock Analysis

• Market Cap: C$169.51M
• Dividend Yield: N/A
• Average Volume (3M): 19.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 31,275,282
• 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$7.06
• Price Target Upside: 41.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$4.50 ▼(-9.82% Downside)

HLS Therapeutics Inc. faces significant challenges in financial performance, particularly in revenue growth and profitability, which are reflected in its negative P/E ratio. Technical analysis indicates bearish momentum, further impacting the stock's outlook. While there are positive aspects such as strong gross margins and cash flow management, these are overshadowed by the company's current struggles.

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., a specialty pharmaceutical company, acquires and commercializes pharmaceutical products in the specialty central nervous system and cardiovascular (CV) markets in Canada, the United States, and internationally. The company's product portfolio includes Clozaril, an atypical antipsychotic used in the treatment of schizophrenia; Vascepa, an icosapent ethyl capsules; and PERSERIS, an injectable risperidone product for the treatment of schizophrenia. It also offers MyCare psychiatry lab assays and MyCare Insite point of care therapeutic drug-level monitoring tests. In addition, the company holds the U.S. marketing rights of Absorica, a commercial stage dermatology product; Canadian rights of Trinomia for CV therapeutics; and a portfolio of royalty interests of four healthcare products. HLS Therapeutics Inc. was founded in 2018 and is headquartered in Etobicoke, Canada.

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	56.42M	56.62M	63.07M	61.47M	60.01M	56.11M
Gross Profit	46.60M	47.62M	55.45M	56.49M	56.04M	52.48M
EBITDA	15.49M	17.22M	12.88M	18.00M	25.41M	23.19M
Net Income	-15.04M	-19.66M	-27.53M	-23.60M	-13.12M	-15.33M
Balance Sheet
Total Assets	149.07M	159.90M	209.06M	241.65M	275.90M	303.91M
Cash, Cash Equivalents and Short-Term Investments	12.15M	17.46M	21.95M	20.72M	21.18M	20.61M
Total Debt	55.57M	66.45M	87.62M	97.34M	97.57M	107.12M
Total Liabilities	82.51M	88.56M	111.36M	116.33M	115.17M	134.66M
Stockholders Equity	66.56M	71.34M	97.70M	125.32M	160.74M	169.25M
Cash Flow
Free Cash Flow	11.73M	7.99M	15.60M	6.79M	11.92M	-35.33M
Operating Cash Flow	12.85M	8.00M	15.79M	16.94M	16.43M	9.34M
Investing Cash Flow	-2.62M	11.73M	-189.00K	-10.15M	-4.51M	-44.68M
Financing Cash Flow	-30.49M	-23.36M	-14.64M	-6.86M	-11.40M	9.56M

HLS Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 4.99 is below the 20-day moving average (MA) of 5.19, below the 50-day MA of 5.43, and above the 200-day MA of 4.89, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.02 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	71 Outperform	$375.57M	22.40	16.32%	―	94.28%	5.23%
TH	61 Neutral	―	―	―	―	5.24%	-7.99%
MDP	57 Neutral	C$86.45M	64.48	0.87%	―	2.14%	-83.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	44 Neutral	C$169.51M	-8.20	-20.49%	―	0.73%	33.51%
CRDL	38 Underperform	$146.00M	―	-341.20%	―	―	21.17%

HLS Therapeutics Inc Corporate Events

HLS Therapeutics Reports Mixed Earnings Amid Growth Challenges

In the latest earnings call, HLS Therapeutics presented a mixed performance, showcasing strong adjusted EBITDA growth and a solid financial position, yet facing challenges in revenue growth and competitive pressures, particularly in the Clozaril business. Despite significant achievements, the decline in revenue and lower-than-expected growth in certain areas painted a balanced sentiment among stakeholders.

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.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

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.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

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.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

HLS Therapeutics Secures New Credit Agreement for Financial Flexibility

HLS Therapeutics Inc. has announced a new credit agreement with National Bank of Canada, replacing its previous facility with JP Morgan Chase Bank. The new CAD $107 million facility, which includes a CAD $79 million term loan, provides enhanced financial flexibility and reduces foreign exchange exposure. The agreement reflects improved terms with lower interest rates, benefiting the company’s cash flow and supporting its strategic priorities like share buybacks and portfolio expansion.

The most recent analyst rating on (TSE:HLS) stock is a Buy with a C$9.50 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

HLS Therapeutics Reports Strong Q2 2025 Financials and Strategic Expansion

HLS Therapeutics Inc. reported a 21% increase in adjusted EBITDA for Q2 2025 and a 29% rise year-to-date, with significant growth in cash from operations. The company made substantial debt repayments and expanded its cardiovascular portfolio by licensing Canadian rights to NEXLETOL and NEXLIZET from Esperion Therapeutics. These developments are expected to strengthen HLS’s market position and support its growth trajectory, with plans to launch the new products in Canada by Q2 2026.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$3.50 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.