PharmaCielo (PCLO) AI Stock Analysis

• Market Cap: C$13.85M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.73
• Revenue Growth: 15.64%
• EPS Growth: 58.47%
• Country: CA
• Employees: 268
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 187,983,690
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.02
• Price to Book (P/B): -1.87
• Price to Sales (P/S): 4.03
• P/FCF Ratio: -7.12
• 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$0.13 ▲(227.50% Upside)

The score is primarily held down by weak financial performance (declining revenue, deeply negative margins, ongoing cash burn, and negative equity). Technicals are supportive due to the price trading above major moving averages and a positive MACD, but the extremely overbought RSI increases near-term risk. Valuation is difficult to assess with negative earnings and no stated dividend yield.

Positive Factors

Improving Gross Profit

A return to positive gross profit indicates the core production and processing operations are beginning to cover direct costs. This improvement supports long-term margin recovery potential, enabling reinvestment in scale or quality, and reduces reliance on financing if sustained over multiple quarters.

Reduced Cash Burn

Material reduction in operating cash outflows versus prior years shows progress on cash management and operational efficiency. Lower burn improves runway and the probability of reaching self-funding operations, making future capital raises less dilutive if the trend continues.

Specialized Medical Cannabis Supply Chain

A focused business model targeting medical and pharmaceutical cannabinoid inputs with Colombian cultivation offers structural advantages: lower cultivation costs, vertical integration, and regulatory positioning for medical markets. These create durable niche expertise and potential long-term differentiation.

Negative Factors

Declining Revenue Trend

A sustained revenue decline reduces operational leverage and undermines the pathway to profitability. Falling top-line curtails the ability to absorb fixed costs, hampers reinvestment in growth or R&D, and increases dependency on external financing to maintain operations over the medium term.

Deeply Negative Margins

Extremely negative net margins reflect persistent operating losses that erode capital and limit strategic flexibility. Such losses complicate achieving sustainable profitability, increase the need for external capital, and raise the risk of insolvency or significant dilution absent durable margin improvement.

Highly Stressed Balance Sheet

Negative equity and debt materially exceeding assets signal elevated leverage and solvency risk. This constrains the company's ability to fund growth, obtain affordable financing, and withstand shocks, increasing refinancing risk and limiting long-term strategic options without recapitalization.

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

PharmaCielo makes money through the cultivation, processing, and sale of cannabis extracts and related products. The company's revenue model is primarily based on the wholesale supply of cannabinoid-derived products to pharmaceutical companies, wellness brands, and other businesses that incorporate these ingredients into their products. Key revenue streams include the sale of cannabis oil extracts, isolated cannabinoids, and other derivative products. Significant partnerships with international distributors and pharmaceutical companies enhance PharmaCielo's market reach and contribute to its earnings by providing a steady demand for its high-quality cannabis products. Additionally, the company's strategic location and operational efficiency in Colombia allow for cost-effective production, further supporting its financial performance.

PharmaCielo Financial Statement Overview

Summary

PharmaCielo is experiencing financial difficulties characterized by negative profitability and cash flow metrics, alongside a deteriorating balance sheet. Revenue growth is a positive sign, but significant challenges remain in achieving operational efficiency and financial stability. The company's high financial leverage and negative equity position pose substantial risks to its long-term viability.

Income Statement

PharmaCielo's revenue has shown a growth trajectory over the latest period, increasing from $1.54M in 2023 to $3.48M in 2024. However, the company has faced persistent negative profitability metrics, with a gross profit margin of 21% and a negative net profit margin of -262% for 2024. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals a concerning negative equity position of -$7.52M in 2024, worsened from -$1.68M in 2023, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, but the increase in total debt to $20.52M suggests rising financial leverage. Overall, the balance sheet reflects significant financial risk and vulnerability.

Cash Flow

PharmaCielo's cash flow remains under pressure, with a negative operating cash flow of -$1.97M and a free cash flow of -$1.97M in 2024. The free cash flow growth rate is not meaningful given the negative figures. The operating cash flow to net income ratio is also negative, indicating cash flow challenges in covering operational expenses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13M	3.48M	1.54M	5.31M	1.94M	2.65M
Gross Profit	239.03K	730.88K	-1.37M	827.06K	-4.31M	-6.80M
EBITDA	-2.29M	-4.60M	-12.19M	-10.50M	-24.84M	-41.55M
Net Income	-6.46M	-9.14M	-16.30M	-16.04M	-26.92M	-44.26M
Balance Sheet
Total Assets	8.64M	18.39M	22.29M	25.12M	35.96M	44.02M
Cash, Cash Equivalents and Short-Term Investments	256.57K	147.94K	62.18K	325.98K	5.63M	9.61M
Total Debt	17.82M	20.52M	18.31M	12.59M	8.43M	4.47M
Total Liabilities	23.57M	25.91M	23.97M	18.72M	16.63M	17.78M
Stockholders Equity	-14.94M	-7.52M	-1.68M	6.39M	19.33M	26.25M
Cash Flow
Free Cash Flow	-1.94M	-1.97M	-5.17M	-10.23M	-21.21M	-28.00M
Operating Cash Flow	-1.94M	-1.97M	-5.15M	-9.71M	-20.07M	-22.56M
Investing Cash Flow	7.41M	41.14K	391.64K	-725.49K	-1.66M	-5.57M
Financing Cash Flow	-5.25M	2.02M	4.63M	5.30M	18.21M	23.32M

PharmaCielo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.05, and below the 200-day MA of 0.05, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OILS	51 Neutral	C$8.41M	13.16	11.57%	―	-1.14%	―
ATLE	50 Neutral	C$56.36M	-2.88	-19.76%	―	26.91%	81.01%
AVCN	46 Neutral	C$25.92M	-13.72	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$13.85M	-2.79	―	―	15.64%	58.47%
INNO	40 Neutral	C$35.81M	-8.01	-71.80%	―	-3.94%	-17.62%

PharmaCielo Corporate Events

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.