PharmaCielo (PCLO) AI Stock Analysis

• Market Cap: C$12.31M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.78
• 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$0.08 ▲(95.00% 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

Return to Positive Gross Profit

A return to positive gross profit indicates that core production and processing economics have improved, which is a durable step toward margin recovery. If sustained, positive gross margins reduce reliance on financing to cover direct costs and support incremental scaling of revenue.

Reduced Cash Burn vs Prior Years

Progressively smaller operating cash outflows represent a meaningful structural improvement in liquidity dynamics. A declining burn rate lengthens runway, lowers near-term financing pressure, and, if continued, increases likelihood of reaching self-funded operations without frequent external capital raises.

Established Medical/Pharma Supply Chain in Colombia

An established cultivation and processing foothold in Colombia affords a durable cost and production advantage versus higher-cost jurisdictions. Focus on medical/pharma end-markets supports higher-quality customers and regulatory pathways, improving long-term contract and export opportunities.

Negative Factors

Negative Stockholders' Equity

Negative equity reflects accumulated losses that weaken the capital base and constrain strategic flexibility. This structural balance-sheet impairment raises refinancing risk, limits borrowing capacity, and can force dilutive equity raises or asset sales to restore solvency over a multi‑quarter horizon.

Persistent Negative Operating and Free Cash Flow

Sustained negative operating and free cash flow means the company cannot internally finance growth or service debt, creating an ongoing dependency on external capital. This structural cash shortfall heightens dilution risk and may limit long-term investment in capacity or R&D.

Declining Revenue and Very Negative Net Margins

A revenue decline coupled with very low gross margins and outsized net losses undermines sustainable profitability. Structural weaknesses in demand mix or pricing power reduce resilience to cost pressures and slow the path to break-even without meaningful margin expansion or revenue stabilization.

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

Financials are highly stressed: TTM revenue declined (~12%), margins and profitability are deeply negative (net margin ~-206%), operating and free cash flow remain negative, and stockholders’ equity is negative with sizable debt relative to a small asset base. Positives (reduced cash burn vs earlier years and return to positive gross profit) are not yet enough to show a durable path to self-funded operations or profitability.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined ~12% and profitability remains deeply negative, with a low gross margin (~8%) and very large operating and net losses (net margin about -206%). While gross profit is positive in TTM and improved versus 2023’s negative gross profit, the company has not shown a sustained path to operating profitability across the period.

Balance Sheet

The balance sheet is highly stressed: stockholders’ equity is negative in TTM and the annual periods since 2023, indicating accumulated losses and a weak capital base. Debt remains sizable (TTM total debt ~17.8M) relative to a small asset base (TTM total assets ~8.6M), and the negative equity makes leverage risk materially higher despite some debt reduction versus 2024.

Cash Flow

Cash generation is persistently weak with negative operating cash flow and negative free cash flow in TTM and each annual period shown. TTM cash burn is smaller than prior years (operating cash flow about -1.9M vs much larger outflows in 2020–2022), but the business is still not self-funding and free cash flow growth in TTM is sharply worse than the prior annual figure.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 0.10, below the 50-day MA of 0.07, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, 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	-55.56	11.57%	―	-1.14%	―
ATLE	50 Neutral	C$56.36M	-2.79	-19.76%	―	26.91%	81.01%
AVCN	46 Neutral	C$24.18M	-11.89	-77.67%	―	2.41%	74.61%
INNO	46 Neutral	C$33.07M	-9.95	-71.80%	―	-3.94%	-17.62%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$12.31M	-2.23	―	―	15.64%	58.47%

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.