HLS Therapeutics Inc (HLS) AI Stock Analysis

• Market Cap: C$163.88M
• Dividend Yield: N/A
• Average Volume (3M): 8.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -1.42%
• EPS Growth: 35.15%
• Country: CA
• Employees: 92
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.12
• Shares Outstanding: 31,393,820
• 10 Day Avg. Volume: 6,907
• 30 Day Avg. Volume: 8,554
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$6.38
• Price Target Upside: 19.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: C$5.00 ▼(-6.54% Downside)

The overall stock score of 53 reflects the company's strong technical indicators, which are offset by weak financial performance and valuation metrics. The stock shows positive momentum, but significant challenges in profitability and valuation hinder its attractiveness. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Capital Allocation

HLS's capital allocation program has been effective, as it continues to buy back stock, pay down debt, and expand its portfolio through strategic in-licensing deals.

Product Launch

The potential commercial launch of two new cardiovascular drugs in Canada could significantly expand HLS’s cardiovascular franchise and revenue.

Sales Growth

The steady increase in Vascepa sales and the impressive recovery of aEBITDA have motivated an analyst upgrade to an Outperform rating.

Negative Factors

Market Conditions

The ongoing trade war's potential impact on the market has led to a decline in the 2025 revenue forecast, primarily due to FX headwinds.

Profit Margin

Gross profit margin in Q4 contracted to 83% as royalty revenue declined significantly.

Revenue Performance

Revenue declined 2% to $15.5M, coming in just below the Street's estimate of $15.7M.

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 Inc. generates revenue through the commercialization and sales of pharmaceutical products, particularly in the cardiovascular and CNS areas. The company earns money by acquiring rights to promising drugs and enhancing their market reach through effective promotion and distribution strategies. Key revenue streams include direct sales of its pharmaceutical products as well as potential royalties from licensing agreements. HLS may also enter into strategic partnerships to expand its product offerings and market access, which can contribute 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: Positive
• Last Price: 5.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLS, the sentiment is Positive. The current price of 5.35 is above the 20-day moving average (MA) of 5.12, above the 50-day MA of 4.99, and above the 200-day MA of 4.37, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 51.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HLS.

HLS Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLS	53 Neutral	C$163.88M	―	-20.58%	―	-1.42%	35.15%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
THTX	―	$149.97M	―		―	―	―
CPHRF	―	$278.70M	23.48	12.25%	―	―	―
MDP	60 Neutral	C$91.94M	75.67	1.88%	―	0.03%	-17.30%
CRDL	―	$94.75M	―	-271.56%	―	―	―

HLS Therapeutics Inc Corporate Events

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.

HLS Therapeutics to Announce Q2 2025 Financial Results

HLS Therapeutics Inc. announced it will release its financial results for the second quarter of 2025 on August 14, 2025, accompanied by a conference call to discuss the results. This announcement reflects the company’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

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.

HLS Therapeutics Secures Nova Scotia Reimbursement for Vascepa

HLS Therapeutics Inc. has announced a Product Listing Agreement with Nova Scotia for the public reimbursement of Vascepa, a prescription treatment for cardiovascular events, under the provincial drug plan. This agreement significantly enhances the accessibility of Vascepa in Atlantic Canada, aligning with HLS’s strategic goal to become a leading Canadian company in cardiovascular risk reduction. With this milestone, Vascepa is now accessible to over 95% of eligible patients in Canada, marking a significant expansion in its market reach.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$3.75 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

HLS Therapeutics Announces Strong Shareholder Support at Annual Meeting

HLS Therapeutics Inc. announced the results of its Annual Meeting of Shareholders, where 50.81% of total common shares were voted. All nominated directors were elected with high approval rates, and Ernst & Young LLP was confirmed as the company’s auditors. This outcome reflects strong shareholder support and reinforces HLS’s strategic direction in the pharmaceutical industry.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$3.75 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.