Ovation Science (OVAT) AI Stock Analysis

• Market Cap: $2.11M
• Dividend Yield: N/A
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.85
• Revenue Growth: 35.35%
• EPS Growth: 31.85%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 35,244,682
• 10 Day Avg. Volume: 2,300
• 30 Day Avg. Volume: 4,956
• PEG Ratio: -0.40
• Price to Book (P/B): -1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.84
• 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

• Rating: 39 Underperform
• 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 Business Overview & Revenue Model

Company Description

Ovation 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 Money

Ovation 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.22K	61.93K	138.15K	224.95K	750.01K
Gross Profit	85.72K	43.27K	134.11K	188.00K	548.02K
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 Assets	63.90K	76.89K	104.89K	769.90K	3.25M
Cash, Cash Equivalents and Short-Term Investments	3.31K	48.85K	28.90K	647.56K	1.54M
Total Debt	268.48K	192.62K	41.13K	0.00	0.00
Total Liabilities	1.15M	728.99K	187.84K	63.74K	143.38K
Stockholders Equity	-1.09M	-652.10K	-82.95K	706.15K	3.11M
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 Flow	0.00	0.00	0.00	1.16M	-685.18K
Financing Cash Flow	133.28K	356.16K	47.24K	0.00	2.05M

Ovation Science Technical Analysis

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$17.39B	5.75	-7.44%	3.10%	11.55%	-28.15%
OVAT	39 Underperform	$2.11M	―	62.01%	―	35.35%	31.85%
PHRX	29 Underperform	C$1.62M	―	-405.57%	―	―	-2291.11%
LRDS	―	C$577.62K	―		―	―	―
TCAN	―	C$1.24M	―		―	―	―
NLVVF	―	$977.29K	―		―	―	―
RAMM	40 Underperform	C$1.19M	―	-70.13%	―	-10.69%	-53.89%