MediPharm Labs (LABS) AI Stock Analysis

• Market Cap: C$29.45M
• Dividend Yield: N/A
• Average Volume (3M): 466.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 18.06%
• EPS Growth: 34.58%
• Country: CA
• Employees: 161
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 420,755,000
• 10 Day Avg. Volume: 458,518
• 30 Day Avg. Volume: 466,636
• PEG Ratio: 0.08
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -4.88
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$0.06 ▼(-10.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics reflect ongoing losses, resulting in a lower score.

Positive Factors

International Expansion

Entering the French market demonstrates MediPharm Labs' ability to expand internationally, enhancing its market reach and diversifying revenue streams, which is crucial for long-term growth and stability.

Revenue Growth

Consistent revenue growth, as seen in Q3, highlights the company's expanding market presence and product demand, supporting its long-term business sustainability and market competitiveness.

Low Leverage

Minimal leverage indicates financial stability and flexibility, allowing MediPharm Labs to invest in growth opportunities without the burden of high debt, which is beneficial for long-term resilience.

Negative Factors

Profitability Challenges

Persistent profitability issues, indicated by negative margins, suggest ongoing challenges in cost management and pricing power, which could hinder long-term financial health and shareholder returns.

Negative Cash Flow

Negative cash flow from operations indicates that the company is not generating sufficient cash internally, which could limit its ability to fund growth initiatives and manage financial obligations over time.

Negative Return on Equity

A negative return on equity reflects inefficient use of shareholder funds, suggesting that the company is struggling to generate profits from its equity base, which could impact investor confidence and long-term value creation.

MediPharm Labs Business Overview & Revenue Model

Company Description

MediPharm Labs Corp., a pharmaceutical company, produces and sells pharmaceutical-quality cannabis oil and concentrates, and advanced derivative products in Canada, Australia, Germany, and internationally. It formulates, processes, packages, and distributes cannabis extracts and advanced cannabinoid-based products. The company also provides GMP flower sourcing, packaging, and distribution services. MediPharm Labs Corp. was founded in 2015 and is headquartered in Barrie, Canada.

How the Company Makes Money

MediPharm Labs generates revenue through multiple channels, primarily by selling cannabis oil products to licensed producers and retailers in the cannabis market. The company’s revenue model is built around the production of high-quality cannabis extracts, which are sold in bulk or packaged for end consumers. Key revenue streams include the sale of cannabis oils, concentrates, and related products, as well as contract manufacturing services for other cannabis brands. Significant partnerships with licensed producers and retailers enhance their market presence and distribution capabilities, further contributing to the company's earnings. Additionally, MediPharm Labs may benefit from economies of scale and efficiency in production, allowing for competitive pricing and improved margins.

MediPharm Labs Financial Statement Overview

Summary

MediPharm Labs shows modest revenue growth and a stable balance sheet with low leverage. However, profitability issues and negative cash flows highlight ongoing operational challenges. The company needs to improve margins and cash flow generation to enhance financial health.

Income Statement

MediPharm Labs shows a modest revenue growth rate of 3.39% TTM, indicating some positive momentum. However, profitability remains a significant concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved to 31.56% TTM, but the company still struggles to achieve net profitability.

Balance Sheet

The company's balance sheet is relatively stable with a low debt-to-equity ratio of 0.014 TTM, suggesting limited leverage risk. However, the negative return on equity of -20.22% TTM highlights inefficiencies in generating returns for shareholders. The equity ratio remains strong, indicating a solid capital structure.

Cash Flow

Cash flow remains a challenge with negative operating cash flow and free cash flow, although there is a positive free cash flow growth rate of 17.62% TTM. The free cash flow to net income ratio above 1 indicates that the company is generating cash relative to its net losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.10M	41.96M	33.06M	22.12M	21.71M	36.01M
Gross Profit	13.47M	12.80M	5.86M	-1.91M	-15.25M	-43.98M
EBITDA	-6.13M	-7.52M	-10.48M	-27.09M	-38.55M	-53.40M
Net Income	-8.03M	-10.69M	-13.08M	-29.98M	-54.80M	-67.11M
Balance Sheet
Total Assets	46.60M	53.73M	63.94M	65.50M	92.36M	118.23M
Cash, Cash Equivalents and Short-Term Investments	10.58M	11.69M	17.98M	24.14M	34.11M	19.91M
Total Debt	423.00K	388.00K	2.29M	632.00K	216.00K	18.46M
Total Liabilities	8.74M	10.55M	10.93M	9.49M	9.21M	39.82M
Stockholders Equity	37.86M	43.18M	53.01M	56.01M	83.15M	78.41M
Cash Flow
Free Cash Flow	-7.15M	-5.01M	-12.81M	-16.93M	-14.00M	-45.28M
Operating Cash Flow	-7.01M	-4.86M	-12.34M	-16.07M	-13.21M	-37.77M
Investing Cash Flow	4.58M	413.00K	6.87M	5.16M	35.00K	-7.45M
Financing Cash Flow	-79.00K	-1.85M	-368.00K	796.00K	27.80M	26.42M

MediPharm Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 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:LABS, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LABS.

MediPharm Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	64 Neutral	$66.34M	4.38	21.77%	―	15.11%	―
VEXT	52 Neutral	C$73.07M	-2.46	-21.73%	―	43.56%	-349.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
AVCN	45 Neutral	C$27.10M	-14.02	-77.67%	―	2.41%	74.61%
IAN	44 Neutral	C$68.17M	20.00	―	―	-6.05%	―
AYR.A	40 Neutral	C$18.10M	-0.04	―	―	0.63%	-31.86%

MediPharm Labs Corporate Events

MediPharm Labs Enters French Medicinal Cannabis Market with First Shipment

MediPharm Labs has completed its first shipment to France, marking a significant milestone in its expansion into the European medicinal cannabis market. This achievement highlights the company’s capability to meet stringent European standards and strengthens its position as a trusted supplier of pharmaceutical-grade cannabis products. The French market is expected to grow significantly, and MediPharm’s strategic partnerships and global distribution network position it well to capitalize on this growth. As of Q3 2025, international medical cannabis accounted for 56% of the company’s revenue, demonstrating its successful global expansion.

MediPharm Labs Secures Legal Victory with Dismissal of Defamation Action

MediPharm Labs announced the complete dismissal of a defamation action initiated by Apollo, Nobul, and Regan McGee under Ontario’s anti-SLAPP law. The Superior Court of Justice in Ontario dismissed the $50 million claim against MediPharm’s executives, citing a lack of evidence from the plaintiffs. This legal victory follows previous dismissals of related claims and applications against the company, reinforcing MediPharm’s legal standing and potentially strengthening its position in the industry. Additionally, MediPharm is addressing unauthorized press releases related to Apollo that were disseminated without its consent.

MediPharm Labs Achieves Double-Digit Revenue Growth in Q3 2025

MediPharm Labs reported a successful Q3 2025 with a 17% increase in revenue compared to Q3 2024, driven by significant gains in international medical cannabis sales, which now account for 56% of total revenue. The company also achieved a notable 19% reduction in operating expenses year-over-year, reflecting its commitment to disciplined cost management and sustainable growth, while maintaining a strong cash balance of $10.6 million.

MediPharm Labs to Announce Q3 2025 Financial Results

MediPharm Labs announced it will release its third quarter 2025 financial results on November 13, 2025, before markets open. The company will also host a conference call and webcast to discuss these results. This announcement is significant as it reflects MediPharm’s ongoing commitment to transparency and engagement with stakeholders, and it may impact the company’s market positioning and investor relations.