MediPharm Labs (LABS) AI Stock Analysis

• Market Cap: $27.35M
• Dividend Yield: N/A
• Average Volume (3M): 466.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• 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: 0.78
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: -3.32
• 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: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

MediPharm Labs faces significant challenges with profitability and cash flow, as reflected in its financial performance score. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively result in a low overall stock score.

Positive Factors

International Strategy

The company's focus on international markets and a differentiated business model positions it well to capture growth in high-value medical cannabis markets, enhancing its long-term competitive advantage.

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, supporting long-term business sustainability and expansion.

Balance Sheet Health

A stable balance sheet with low leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profitability Issues

Ongoing profitability challenges could hinder the company's ability to reinvest in the business and achieve sustainable growth, impacting long-term viability.

Cash Flow Challenges

Negative cash flows limit the company's ability to fund operations and growth initiatives internally, potentially increasing reliance on external financing.

Return on Equity

Inefficient use of equity capital can deter investors and limit the company's ability to generate shareholder value, impacting long-term financial health.

MediPharm Labs Business Overview & Revenue Model

Company Description

MediPharm Labs (LABS) is a leading Canadian pharmaceutical company specializing in the production and distribution of high-quality cannabis-based products. The company operates primarily in the cannabis sector, focusing on the extraction and formulation of cannabis oils and concentrates. MediPharm Labs provides a range of products including medical and recreational cannabis oils, which are designed for both consumer and commercial markets. The company is known for its state-of-the-art extraction technology and commitment to quality, making it a key player in the rapidly evolving cannabis industry.

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.

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	44.45M	41.96M	33.06M	22.12M	21.71M	36.01M
Gross Profit	14.03M	12.80M	5.86M	-1.91M	-15.25M	-43.98M
EBITDA	-6.45M	-7.52M	-10.48M	-27.09M	-38.55M	-53.40M
Net Income	-8.66M	-10.69M	-13.08M	-29.98M	-54.80M	-67.11M
Balance Sheet
Total Assets	49.31M	53.73M	63.94M	65.50M	92.36M	118.23M
Cash, Cash Equivalents and Short-Term Investments	10.36M	11.69M	17.98M	24.14M	34.11M	19.91M
Total Debt	542.00K	388.00K	2.29M	632.00K	216.00K	18.46M
Total Liabilities	9.49M	10.55M	10.93M	9.49M	9.21M	39.82M
Stockholders Equity	39.82M	43.18M	53.01M	56.01M	83.15M	78.41M
Cash Flow
Free Cash Flow	-7.67M	-5.01M	-12.81M	-16.93M	-14.00M	-45.28M
Operating Cash Flow	-7.51M	-4.86M	-12.34M	-16.07M	-13.21M	-37.77M
Investing Cash Flow	4.08M	413.00K	6.87M	5.16M	35.00K	-7.45M
Financing Cash Flow	-2.23M	-1.85M	-368.00K	796.00K	27.80M	26.42M

MediPharm Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LABS, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.82 is Positive, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LABS.

MediPharm Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	63 Neutral	$77.85M	5.19	21.77%	―	15.11%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VEXT	51 Neutral	$59.44M	―	-21.73%	―	43.56%	-349.41%
LABS	41 Neutral	$27.35M	―	-19.10%	―	18.06%	34.58%
AVCN	41 Neutral	$28.86M	-18.28	-77.67%	―	2.41%	74.61%
AYR.A	40 Underperform	$18.10M	―	―	―	0.63%	-31.86%
IAN	38 Underperform	$34.09M	20.00	―	―	-6.05%	―

MediPharm Labs Corporate Events

MediPharm Labs Reports Strong Q2 2025 Growth

MediPharm Labs Corp., a pharmaceutical company specializing in precision-based cannabinoids, has reported a strong financial performance for the second quarter of 2025, marked by significant growth in its international medical cannabis segment. The company, known for its pharmaceutical-quality cannabis concentrates and derivatives, operates in both domestic and international medical markets.

MediPharm Labs Achieves 14% Revenue Growth in Q2 2025

MediPharm Labs reported a 14% increase in Q2 2025 revenue, reaching $11.8 million, driven by a 50% growth in international medical cannabis sales, which now account for 57% of total revenue. Despite the financial impact of a proxy contest, the company maintained a strong cash balance and continues to focus on revenue growth and cost management to enhance profitability, demonstrating resilience in its commercial strategy.

MediPharm Labs Poised for Growth Amid Potential U.S. Cannabis Rescheduling

MediPharm Labs is uniquely positioned to capitalize on the potential rescheduling of cannabis in the United States, which could shift its classification from a Schedule I to a Schedule III drug. This change would facilitate expanded research and medical cannabis programs in the U.S. MediPharm’s existing FDA site registration and licensing, along with its experience in shipping cannabis products for research, place it at a competitive advantage to support the anticipated growth in U.S.-based cannabis research and medical programs.

MediPharm Labs to Announce Q2 2025 Financial Results

MediPharm Labs announced it will release its second quarter financial results for 2025 on August 14th, accompanied by a conference call and webcast. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and strengthen its position in the pharmaceutical cannabis industry. The company’s strategic acquisitions and compliance with international standards underscore its commitment to expanding its market reach and enhancing its operational capabilities.