PharmaCielo (PCLO) AI Stock Analysis

• Market Cap: C$10.00M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 5.2
• Beta (1Y): -2.02
• Revenue Growth: 15.64%
• EPS Growth: 58.47%
• Country: CA
• Employees: 268
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 187,893,690
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.01
• Price to Book (P/B): -0.55
• Price to Sales (P/S): 3.24
• P/FCF Ratio: -8.30
• 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: 44 Neutral
• Price Target: C$0.06 ▲(52.50% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial performance (declining revenue, large losses, negative equity, high leverage, and negative free cash flow). Technicals also point to a weak trend with negative momentum signals. Valuation is the main offset, with a low P/E, but it is not enough to outweigh the financial and trend risks.

Positive Factors

Product-level gross margins

A positive gross margin (~29%) indicates the core cultivation and extraction operations generate unit-level profit potential. That suggests the company’s production processes and pricing can cover direct costs, providing a structural foundation to absorb overheads as revenue recovers and scale improves.

Improving cash burn

Operating and free cash outflows have materially improved from earlier multi-year extremes, now around -1.0M TTM. Sustained reduction in cash burn lessens near-term refinancing pressure and, if maintained, provides a clearer path to break-even and reinvestment capacity over the next several quarters.

Vertical supply-chain position

Owning cultivation and processing in Colombia gives structural advantages: potential lower production costs, control over quality, and integrated supply for medical/research customers. Vertical integration supports margin recovery and market access as regulated cannabinoid demand grows.

Negative Factors

Negative shareholders' equity

Significantly negative equity (~-15.4M) signals cumulative losses and eroded capital, limiting ability to raise debt or equity on favorable terms. This structural solvency concern constrains strategic options and raises the risk of dilution or restructuring if turnaround lags.

High leverage vs assets

Debt materially exceeds the asset base (18.6M debt vs ~8.6M assets), creating chronic refinancing and interest-service risk. In a capital-intensive, regulated cannabis sector, such leverage limits investment in growth, raises default risk, and reduces operational flexibility during market stress.

Declining revenue and deep losses

Persistent revenue decline (16.6% TTM) alongside very negative EBIT and net margins means the cost base is not covered by current sales. Structural top-line weakness and deep losses impair cash generation, hamper reinvestment, and make sustained recovery dependent on material revenue improvement.

PharmaCielo Business Overview & Revenue Model

Company Description

PharmaCielo Ltd., together with its subsidiary, cultivates, processes, produces, and supplies medicinal-grade cannabis extracts, tetrahydrocannabinol, and related products. The company also offers telemedicine software. It serves health and wellness product manufacturers, pharmacies, medical clinics, and cosmetic companies in Canada and Colombia. The company has a strategic alliance with AssuredTrans Inc. PharmaCielo Ltd. is headquartered in Toronto, Canada.

How the Company Makes Money

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PharmaCielo Financial Statement Overview

Summary

Financial profile remains high risk: TTM revenue declined 16.6% (~2.6M), profitability is deeply negative (EBIT margin ~-77%, net margin ~-174%), equity is significantly negative (~-15.4M), leverage is high (debt ~18.6M vs assets ~8.6M), and cash flow is still negative (OCF and FCF about -1.0M). While losses and cash burn improved versus prior years, the company is still far from breakeven with balance-sheet stress.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined 16.6% to ~2.6M, continuing a pattern of volatile sales. Profitability remains very weak: gross margin is positive (~29%) but operating results are deeply negative (EBIT margin ~-77%) and net losses are substantial (net margin ~-174%), indicating the cost structure is not supported by the current revenue base. While margins improved materially versus the extreme losses seen in 2020–2023, the business is still far from breakeven.

Balance Sheet

The balance sheet is stressed, with stockholders’ equity turning significantly negative in TTM (~-15.4M) versus positive equity in 2022, reflecting accumulated losses and/or balance sheet deterioration. Debt remains high (~18.6M TTM) relative to the asset base (~8.6M), limiting financial flexibility and raising refinancing/solvency risk. Leverage metrics are distorted by negative equity, but directionally they point to a highly leveraged capital structure.

Cash Flow

Cash generation is still negative, with TTM operating cash flow of about -1.0M and free cash flow also about -1.0M, meaning the company continues to consume cash. The scale of cash burn has improved significantly versus prior years (e.g., much larger outflows in 2020–2022), but free cash flow growth is sharply negative in TTM, showing progress is not yet consistent. Cash flow is also not yet providing support for debt service or reinvestment without external funding.

Breakdown	Dec 2025	Dec 2024	Jun 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.61M	3.48M	1.54M	5.31M	1.94M
Gross Profit	756.40K	730.88K	-1.37M	827.06K	-4.31M
EBITDA	-1.00M	-4.60M	-12.19M	-10.50M	-24.84M
Net Income	-4.55M	-9.14M	-16.30M	-16.04M	-26.92M
Balance Sheet
Total Assets	8.56M	18.39M	22.29M	25.12M	35.96M
Cash, Cash Equivalents and Short-Term Investments	289.24K	147.94K	62.18K	325.98K	5.63M
Total Debt	18.65M	20.52M	18.31M	12.59M	8.43M
Total Liabilities	23.92M	25.91M	23.97M	18.72M	16.63M
Stockholders Equity	-15.35M	-7.52M	-1.68M	6.39M	19.33M
Cash Flow
Free Cash Flow	-1.02M	-1.97M	-5.17M	-10.23M	-21.21M
Operating Cash Flow	-1.02M	-1.97M	-5.15M	-9.71M	-20.07M
Investing Cash Flow	6.66M	41.14K	391.64K	-725.49K	-1.66M
Financing Cash Flow	-5.52M	2.02M	4.63M	5.30M	18.21M

PharmaCielo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Negative
• 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:PCLO, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.08, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PCLO.

PharmaCielo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OILS	61 Neutral	C$10.09M	8.94	11.57%	―	-1.14%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATLE	50 Neutral	C$56.36M	-2.79	-19.76%	―	26.91%	81.01%
AVCN	46 Neutral	C$21.99M	-5.08	-68.32%	―	2.41%	74.61%
INNO	46 Neutral	C$29.02M	-6.72	-71.80%	―	-3.94%	-17.62%
LABS	45 Neutral	C$27.35M	-3.68	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$10.00M	5.19	―	―	15.64%	58.47%

PharmaCielo Corporate Events

PharmaCielo Turns EBITDA Positive as It Refocuses on Higher-Margin Exports

PharmaCielo reported results for the quarter and nine months ended December 31, 2025, highlighting a swing to positive adjusted EBITDA of $293,000 from a loss of $2.3 million a year earlier, despite revenue declining to $1.8 million from $3.2 million. Management said the improvement reflects cost controls, organizational rightsizing and a strategic shift toward higher-margin export opportunities, while the company continues to post a net loss of $2.3 million or $0.01 per share.

Chairman and CEO Marc Lustig described the period as a turning point, noting that the company has rebuilt a foundation to pursue consistent export volumes, deeper relationships with strategic international partners and repeat purchase agreements to support more predictable revenue growth. PharmaCielo also set April 2, 2026, as the date for its next annual general and special meeting in Toronto, where shareholders will vote on directors, auditors and other routine corporate matters.

The most recent analyst rating on (TSE:PCLO) stock is a Hold with a C$0.08 price target. To see the full list of analyst forecasts on PharmaCielo stock, see the TSE:PCLO Stock Forecast page.

PharmaCielo Sets AGM Date and Moves to Pay Debenture Interest in Shares

PharmaCielo Ltd. has scheduled its annual general meeting of shareholders for April 2, 2026, with a record date of February 23, 2026 for investors entitled to receive notice and vote. Meeting materials will be made available to shareholders in line with applicable securities regulations.

The company also plans to issue 12,153,937 common shares at an effective price of $0.08 per share to satisfy $972,317.12 in accrued semi-annual interest owed on its 11% secured debentures, subject to TSX Venture Exchange approval. The move converts cash interest obligations into equity, easing near-term cash outflows while modestly diluting existing shareholders, and the new shares will remain subject to any remaining statutory hold periods under Canadian securities laws.

The most recent analyst rating on (TSE:PCLO) stock is a Hold with a C$0.08 price target. To see the full list of analyst forecasts on PharmaCielo stock, see the TSE:PCLO Stock Forecast page.

PharmaCielo Shares to Resume Trading as Cease Trade Order Lifted and Insider Financing Detailed

PharmaCielo has had its failure-to-file cease trade order revoked by the Ontario Securities Commission after filing overdue audited financial statements, clearing the way for its shares to resume trading on the TSX Venture Exchange. Management says the company is now focused on strengthening its operational footing by building consistent export volumes, deepening relationships with international partners, and selectively expanding into profitable markets, even as recent financials show lower revenue year-over-year but significantly reduced adjusted EBITDA losses. The update also details $2.15 million in secured related-party bridge loans from senior insiders and the completion of a $985,000 debenture unit tranche, underscoring the company’s continued reliance on insider and debenture financing to support operations while it works to stabilize its balance sheet and improve performance.