Medicure (MPH) AI Stock Analysis

• Market Cap: C$12.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 24.30%
• EPS Growth: -68.60%
• Country: CA
• Employees: 25
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 10,436,313
• 10 Day Avg. Volume: 717
• 30 Day Avg. Volume: 1,717
• PEG Ratio: -0.83
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 14.39
• 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: 54 Neutral
• Price Target: C$1.00 ▼(-20.00% Downside)

The score is held back primarily by ongoing losses and margin compression despite improving revenue growth. A low-debt balance sheet and positive free cash flow provide support, while technicals are neutral-to-soft and valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Revenue Growth Trajectory

Sustained TTM revenue growth (~13% to ~$26.2M) signals improving market traction for core products and deeper hospital uptake. Over a 2–6 month horizon this trend supports scaling fixed-cost absorption, funding incremental R&D, and strengthening commercial leverage.

Conservative Capital Structure

Very low leverage (debt-to-equity ~0.06) and a solid equity base provide durable financial flexibility. This conservatism reduces refinancing risk, enables strategic spending or partnerships during loss-making periods, and preserves optionality over the medium term.

Positive Cash Generation

Positive operating (~$1.7M) and free cash flow (~$1.3M), with FCF up ~38%, indicate the business can generate internal funding despite net losses. Cash generation is a durable buffer for working capital and selective investment, lowering near-term dilution risk.

Negative Factors

Ongoing Net Losses

A persistent TTM net margin around -13.1% reflects ongoing unprofitability. Over months this erodes retained earnings, limits reinvestment capacity, and increases the probability management must seek external capital, which can dilute shareholders or constrain strategy.

Gross Margin Compression

Sharp gross margin decline from ~59.7% to ~47.7% materially reduces profit potential and resilience to cost pressures. If structural (mix, pricing, or cost increases), this undermines the pathway to sustainable operating profits despite revenue growth, pressuring long-term margins.

Negative Returns & Limited Leverage

A TTM ROE of ~-17.9% shows capital is not generating positive shareholder returns. Coupled with low EBITDA margin (~5.3%), this indicates limited operating leverage: revenue gains may not translate into meaningful profitability without structural margin improvements or cost discipline.

Medicure Business Overview & Revenue Model

Company Description

Medicure Inc., a biopharmaceutical company, engages in the research, development, and commercialization of human therapies for the cardiovascular market in Canada and the United States. The company markets and distributes AGGRASTAT injection, a glycoprotein GP IIb/IIIa receptor antagonist for the treatment of acute coronary syndrome, including unstable angina and non-Q-wave myocardial infarction. It also offers ZYPITAMAG to treat patients with primary hyperlipidemia or mixed dyslipidemia. In addition, the company offers ReDS, a non-invasive medical device that offers measurement of lung fluid for the management of congestive heart failure. Further, the company offers Sodium Nitroprusside injection for the reduction of blood pressure for adult and pediatric patients in hypertensive crisis, as well as for producing controlled hypotension to reduce bleeding during surgery, and for the treatment of acute congestive heart failure. It offers products through retail pharmacies, as well as online. The company was incorporated in 1997 and is headquartered in Winnipeg, Canada.

How the Company Makes Money

Medicure generates revenue primarily through the sales of its pharmaceutical products, including Aggrastat, which is marketed to hospitals and healthcare providers. The company earns income from product sales, which are driven by prescription volume and market demand. Additionally, Medicure may engage in strategic partnerships and licensing agreements with other pharmaceutical companies to co-develop or market products, contributing to its revenue through upfront payments, milestone payments, and royalties on sales. These partnerships are crucial for expanding its market reach and enhancing its product portfolio, thereby increasing potential earnings.

Medicure Financial Statement Overview

Summary

Medicure's financial performance is mixed, with modest revenue growth but challenges in profitability and cash flow. The income statement shows negative net profit and EBIT margins, while the balance sheet is stable with low leverage. Cash flow generation is weak, with a significant decline in free cash flow growth.

Income Statement

Medicure's income statement shows a mixed performance. The company has seen a modest revenue growth rate of 6.93% in the TTM period, but it is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains relatively healthy at 53.95%, indicating some efficiency in production. However, the negative net profit margin of -5.83% highlights ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.06, suggesting conservative leverage. However, the return on equity is negative at -6.84%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is strong, showing a solid capital structure, but the negative ROE points to inefficiencies in utilizing equity capital.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with a significant decline in free cash flow growth by -39.33% in the TTM period. The operating cash flow to net income ratio is positive at 0.15, indicating some ability to convert income into cash. However, the free cash flow to net income ratio of 0.63 suggests limited cash flow relative to net income, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.21M	21.91M	21.69M	23.07M	21.74M	11.61M
Gross Profit	12.49M	13.09M	13.99M	16.07M	12.71M	5.13M
EBITDA	1.38M	1.54M	1.27M	3.44M	2.39M	-4.04M
Net Income	-3.43M	-1.04M	-922.00K	1.36M	-727.00K	-6.84M
Balance Sheet
Total Assets	26.72M	29.68M	28.06M	29.90M	28.41M	34.05M
Cash, Cash Equivalents and Short-Term Investments	4.12M	7.19M	6.37M	4.86M	3.69M	2.72M
Total Debt	1.00M	874.00K	544.00K	849.00K	1.17M	1.45M
Total Liabilities	9.41M	8.90M	8.16M	8.89M	10.00M	14.91M
Stockholders Equity	17.31M	20.78M	19.90M	21.00M	18.41M	19.15M
Cash Flow
Free Cash Flow	1.27M	638.00K	1.81M	1.52M	3.17M	-2.24M
Operating Cash Flow	1.72M	1.38M	2.08M	1.83M	3.99M	-2.24M
Investing Cash Flow	-2.63M	-739.00K	-270.00K	-310.00K	-2.69M	-7.24M
Financing Cash Flow	-424.00K	-370.00K	-297.00K	-355.00K	-316.00K	-766.00K

Medicure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Positive
• 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:MPH, the sentiment is Neutral. The current price of 1.25 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.22, and above the 200-day MA of 1.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MPH.

Medicure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	58 Neutral	C$95.64M	133.80	0.87%	―	2.14%	-83.06%
MPH	54 Neutral	C$12.52M	-3.59	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XBRA	49 Neutral	C$420.72K	-0.31	―	―	―	―
PHRX	45 Neutral	C$1.62M	-6.52	―	―	―	98.93%
MVMD	44 Neutral	C$5.29M	-0.95	-148.48%	―	-46.59%	8.26%
AQS	38 Underperform	C$663.17K	-2.04	―	―	122.30%	75.74%

Medicure Corporate Events

Medicure Sees Revenue Growth Amidst Challenges in Q3 2025

Medicure reported a significant increase in total net revenue for the quarter ended September 30, 2025, reaching $8.2 million compared to $5.2 million in the same period the previous year. Despite a decrease in AGGRASTAT® sales due to generic competition, the company saw growth in its Marley Drug business and new acquisitions like Gateway and West Olympia Pharmacies. However, the quarter ended with a net loss of $1.4 million, attributed to increased R&D investments and pricing pressures, impacting its overall financial performance.

The most recent analyst rating on (TSE:MPH) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Medicure stock, see the TSE:MPH Stock Forecast page.

Medicure Inc. to Announce Q3 2025 Financial Results

Medicure Inc. announced it will present its financial results for the quarter ended September 30, 2025, via a conference call on November 20, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:MPH) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Medicure stock, see the TSE:MPH Stock Forecast page.