HLS Therapeutics Inc (HLS) AI Stock Analysis

• Market Cap: C$157.22M
• Dividend Yield: N/A
• Average Volume (3M): 10.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -3.73%
• EPS Growth: 32.70%
• Country: CA
• Employees: 92
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.20
• Shares Outstanding: 31,634,357
• 10 Day Avg. Volume: 6,062
• 30 Day Avg. Volume: 10,886
• PEG Ratio: -0.13
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.50
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 5.55
• 1Y Price Target: C$6.75
• Price Target Upside: 36.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: C$4.50 ▼(-9.27%Downside)

HLS Therapeutics demonstrates strong operational efficiency and cash management, which is a significant strength. However, persistent net losses and a negative P/E ratio impact the valuation negatively. The stock's positive momentum is encouraging, aided by strategic corporate events like partnerships and board appointments, which enhance its growth prospects.

Positive Factors

Insurance Coverage

Vascepa has now achieved insurance coverage for over 90% of Canadians eligible for public plans and over 95% for private plans.

Product Synergy

HLS Therapeutics has in-licensed synergistic products with the potential to more than double revenues.

Negative Factors

Gross Profit Margin

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

Revenue Decline

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 (HLS) is a pharmaceutical company focused on acquiring and commercializing late-stage development, commercial-stage branded pharmaceutical products, primarily in the North American market. The company is particularly active in the areas of the central nervous system (CNS) and cardiovascular therapeutic markets. HLS's core products include medications that serve niche patient populations with significant unmet medical needs.

How the Company Makes Money

HLS Therapeutics Inc generates revenue through the commercialization and sales of pharmaceutical products. The company's revenue streams primarily consist of product sales, royalties, and licensing fees. HLS acquires rights to commercialize clinically proven drugs with established efficacy and safety profiles. The company leverages its expertise in regulatory approvals, market access, and sales and marketing to drive product sales across North America. Strategic partnerships and licensing agreements with other pharmaceutical firms also contribute to its earnings, allowing HLS to expand its market reach and diversify its product portfolio.

HLS Therapeutics Inc Financial Statement Overview

Summary

HLS Therapeutics Inc shows strong operational efficiency with a high gross profit margin and improving EBITDA margins. However, persistent net losses result in negative net profit margins and ROE. The balance sheet reflects moderate leverage with a stable equity ratio. Cash flow remains positive despite net losses, highlighting effective cash management. The company needs to address profitability issues to enhance financial stability.

Income Statement

The company has shown a decline in revenue from 2023 to 2024, with a revenue growth rate of -10.24%. The gross profit margin remains strong at approximately 84.1% in 2024, though it has slightly decreased from previous years. Net profit margin remains negative due to persistent net losses, indicating profitability issues. EBITDA margin improved to 30.41% in 2024 from 20.42% in 2023, demonstrating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is approximately 0.93, indicating a moderate level of leverage. Return on equity is negative, reflecting ongoing net losses. The equity ratio stands at 44.6%, which suggests a balanced approach to financing between debt and equity. Overall, the balance sheet shows a stable but leveraged financial position.

Cash Flow

The operating cash flow to net income ratio is negative due to net losses, but the company has managed positive free cash flow of $7.99 million in 2024. Free cash flow to net income ratio is also negative. Despite net losses, the company maintains positive cash generation from operations, indicating efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.77M	56.62M	63.07M	61.47M	60.01M	56.11M
	Gross Profit
47.15M	47.62M	55.45M	56.49M	56.04M	52.48M
	EBIT
-10.13M	-7.69M	-10.35M	-13.44M	-6.24M	-11.26M
	EBITDA
14.60M	17.22M	12.88M	18.00M	25.41M	23.19M
	Net Income Common Stockholders
-17.98M	-19.66M	-27.53M	-23.60M	-13.12M	-15.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.73M	17.46M	21.95M	20.72M	21.18M	20.61M
	Total Assets
153.95M	159.90M	209.06M	241.65M	275.90M	303.91M
	Total Debt
63.74M	66.45M	87.62M	97.34M	97.57M	107.12M
	Net Debt
46.01M	48.99M	65.67M	76.62M	76.39M	86.51M
	Total Liabilities
87.15M	88.56M	111.36M	116.33M	115.17M	134.66M
	Stockholders Equity
66.80M	71.34M	97.70M	125.32M	160.74M	169.25M
Cash Flow		Free Cash Flow
10.73M	7.99M	15.60M	6.79M	11.92M	-35.33M
	Operating Cash Flow
10.77M	8.00M	15.79M	16.94M	16.43M	9.34M
	Investing Cash Flow
11.72M	11.73M	-189.00K	-10.15M	-4.51M	-44.68M
	Financing Cash Flow
-23.61M	-23.36M	-14.64M	-6.86M	-11.40M	9.56M

HLS Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 4.96 is above the 20-day moving average (MA) of 4.95, above the 50-day MA of 4.62, and above the 200-day MA of 4.02, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, 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
CPH	73 Outperform	C$331.05M	24.72	9.69%	―	84.83%	-58.69%
MDP	71 Outperform	C$99.68M	15.91	11.27%	―	-3.82%	-50.36%
HLS	60 Neutral	C$157.22M	―	-23.05%	―	-3.73%	32.70%
TH	58 Neutral	$154.49M	―		―	16.23%	85.76%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
CRDL	38 Underperform	C$147.94M	―	-190.61%	―	―	-18.03%

HLS Therapeutics Inc Corporate Events

HLS Therapeutics Partners with Esperion to Bring Cardiovascular Treatments to Canada

HLS Therapeutics Inc. has partnered with Esperion Therapeutics to commercialize NEXLETOL and NEXLIZET in Canada, targeting a significant unmet medical need for over half a million Canadians with cardiovascular issues. This strategic move aligns with HLS’s business development strategy and strengthens its position in the Canadian cardiovascular market. The agreement involves an upfront payment and potential milestone payments, with HLS funding these through existing cash reserves, indicating no significant increase in operating expenses. This collaboration is expected to enhance HLS’s market presence and provide advanced treatment options for Canadian patients.

HLS Therapeutics Reports Q1 2025 Growth and Strategic Expansion

HLS Therapeutics reported a 5% increase in total product revenue for Q1 2025 compared to Q1 2024, with significant growth in the Canadian market driven by a 34% rise in Vascepa sales. The company also achieved a 41% increase in adjusted EBITDA, reflecting operational efficiencies and a 20% reduction in operating expenses. HLS expanded its cardiovascular portfolio by securing Canadian rights to NEXLETOL and NEXLIZET from Esperion Therapeutics, aligning with its strategic focus on growth and shareholder value enhancement. This expansion is expected to complement existing products and address unmet medical needs, with commercial launch preparations underway for early 2026.

HLS Therapeutics to Present at 2025 Healthcare Investor Conference

HLS Therapeutics Inc. announced that its Chief Commercial Officer, Brian Walsh, will present at the 2025 Bloom Burton & Co. Healthcare Investor Conference in Toronto. This presentation underscores HLS’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and influence in the pharmaceutical industry, particularly in the areas of psychiatric and cardiovascular treatments.

HLS Therapeutics to Announce Q1 2025 Financial Results

HLS Therapeutics Inc. announced it will release its Q1 2025 financial results on May 8, 2025, followed by a conference call hosted by key executives to discuss the results. This announcement is part of the company’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance, which could influence its market positioning and investor relations.