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Ovation Science Inc (TSE:OVAT)
:OVAT
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Ovation Science (OVAT) AI Stock Analysis

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TSE:OVAT

Ovation Science

(OTC:OVAT)

Rating:39Underperform
Price Target:
Ovation Science's overall stock score is low due to severe financial challenges, including declining revenues, negative margins, high leverage, and liquidity issues. Despite some positive technical indicators, the negative valuation metrics and lack of earnings guidance or corporate events further weigh down the score.

Ovation Science (OVAT) vs. iShares MSCI Canada ETF (EWC)

Ovation Science Business Overview & Revenue Model

Company DescriptionOvation Science Inc. engages in the production of cannabis or hemp products in Canada, the United States, and Mexico. The company's Invisicare is a patented drug delivery technology for use in topical and transdermal skin care products containing hemp seed oil and cannabis under the Ovation and BASKiN brands. It offers cannabidiol infused health and wellness solutions under the Invibe MD name; skincare solutions under the ARLO CBD name; and hand sanitizers under the DermSafe name. The company holds sublicenses for cannabis based products; and Lighthouse for licensed dispensaries in the United States. Ovation Science Inc. was incorporated in 2017 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyOvation Science generates revenue through the licensing and sale of its proprietary Invisicare technology to pharmaceutical and skincare companies. This technology is used to create more effective topical and transdermal products, enhancing the performance of active ingredients. The company's revenue streams include royalties from licensed products, direct product sales, and potential partnership agreements with other companies looking to incorporate Invisicare into their own product lines. Collaborations with established industry players also play a significant role in driving the company's earnings.

Ovation Science Financial Statement Overview

Summary
Ovation Science is experiencing significant financial distress. The income statement reveals consistent revenue decline, negative profit margins, and operational losses. The balance sheet shows negative equity and high leverage, raising solvency concerns. Cash flow analysis indicates liquidity constraints with negative operating and free cash flows.
Income Statement
15
Very Negative
Ovation Science has demonstrated a consistent decline in revenue over the years, with the latest TTM revenue growth rate showing negative growth. The company has negative gross profit and net income, leading to negative gross and net profit margins. The EBIT and EBITDA margins are also negative, indicating operational challenges.
Balance Sheet
20
Very Negative
The company has a negative stockholders' equity, which indicates high leverage and a concerning financial position. The debt-to-equity ratio cannot be calculated due to negative equity, but the total liabilities exceed total assets, indicating potential solvency issues. The equity ratio is also negative, further highlighting financial instability.
Cash Flow
30
Negative
The cash flow analysis shows negative operating cash flow and free cash flow, suggesting liquidity constraints. There is no improvement in free cash flow growth, and the operating cash flow to net income ratio is negative. This indicates that the company is struggling to generate cash from its operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue113.22K61.93K138.15K224.95K750.01K
Gross Profit85.72K43.27K134.11K188.00K548.02K
EBITDA-404.15K-778.83K-786.73K-2.39M-1.16M
Net Income-456.20K-813.15K-794.05K-2.39M-1.18M
Balance Sheet
Total Assets63.90K76.89K104.89K769.90K3.25M
Cash, Cash Equivalents and Short-Term Investments3.31K48.85K28.90K647.56K1.54M
Total Debt268.48K192.62K41.13K0.000.00
Total Liabilities1.15M728.99K187.84K63.74K143.38K
Stockholders Equity-1.09M-652.10K-82.95K706.15K3.11M
Cash Flow
Free Cash Flow-178.82K-336.02K-670.80K-885.75K-1.52M
Operating Cash Flow-178.82K-336.02K-670.80K-885.75K-1.39M
Investing Cash Flow0.000.000.001.16M-685.18K
Financing Cash Flow133.28K356.16K47.24K0.002.05M

Ovation Science Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.05
Positive
100DMA
0.04
Positive
200DMA
0.04
Positive
Market Momentum
MACD
<0.01
Negative
RSI
61.60
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OVAT, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OVAT.

Ovation Science Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
HK$17.39B5.75-7.44%3.10%11.55%-28.15%
39
Underperform
$2.11M62.01%35.35%31.85%
29
Underperform
C$1.62M-405.57%-2291.11%
C$577.62K
C$1.24M
$977.29K
40
Underperform
C$1.19M-70.13%-10.69%-53.89%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OVAT
Ovation Science
0.06
0.02
71.43%
TSE:PHRX
Pharmadrug
0.02
0.01
100.00%
TSE:LRDS
Lords & Company Worldwide Holdings Inc
0.02
0.00
0.00%
TSE:TCAN
TransCanna Holdings Inc
0.01
0.00
0.00%
NLVVF
New Leaf Ventures
0.01
0.00
0.00%
TSE:RAMM
Ramm Pharma
0.01
-0.01
-50.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 14, 2025