Psyence Group (PSYG) AI Stock Analysis

• Market Cap: C$2.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: N/A
• EPS Growth: 99.45%
• Country: CA
• Employees: 21
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - General
• EPS (TTM): N/A
• Shares Outstanding: 15,638,267
• 10 Day Avg. Volume: 750
• 30 Day Avg. Volume: 1,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 27 Underperform
• Price Target: ―

Psyence Group faces significant financial challenges with persistent losses and no revenue generation, which severely impacts its stock score. Technical indicators suggest weak market momentum. While recent corporate events show potential strategic improvements, the overall negative valuation and financial instability dominate the score.

Psyence Group Business Overview & Revenue Model

Company Description

Psyence Group Inc., a life science biotechnology company, engages in the commercial psilocybin mushroom cultivation and production activities. Its natural psilocybin is used for the treatment of a range of mental health disorders and other medical conditions. The company is developing pharmaceutical preparations of psilocybin doses to help heal psychological trauma and diagnosable disorders, including anxiety, depression, post-traumatic stress disorder, and grief and bereavement. It also focuses on the development, distribution, and sale of over-the-counter non psilocybin containing functional mushroom nutraceutical products under the GOODMIND brand. Psyence Group Inc. was founded in 2019 and is based in Toronto, Canada.

How the Company Makes Money

Psyence Group makes money primarily through the development and commercialization of psychedelic therapies. Key revenue streams include licensing agreements with pharmaceutical companies for the use of their psilocybin-based formulations, and partnerships with research organizations and universities to conduct clinical trials. The company may also generate income from intellectual property rights, such as patents on their unique formulations and cultivation processes. Additionally, Psyence might have potential earnings from future sales of approved therapeutic products and services in markets where psychedelic treatments are legally recognized. Significant partnerships with healthcare providers and mental health organizations also contribute to their revenue generation.

Psyence Group Financial Statement Overview

Summary

Psyence Group's financial statements reflect significant challenges, with persistent losses, negative margins, and a troubling balance sheet characterized by negative equity. The lack of revenue generation and poor cash flow management raise concerns about the company's ability to sustain operations without external support.

Income Statement

The company has consistently generated no revenue over the years, resulting in negative gross and net profit margins. The EBIT and EBITDA margins are also negative, indicating a lack of profitability. The absence of revenue growth further reflects a stagnant financial performance.

Balance Sheet

The company's balance sheet is weak, with negative stockholders' equity indicating insolvency. The debt-to-equity ratio is unfavorable due to the negative equity, and the equity ratio is also negative, highlighting financial instability. These factors pose significant risks to the company's financial health.

Cash Flow

The company has negative free cash flow, and both the operating and free cash flow to net income ratios are unfavorable, indicating cash flow issues. Financing cash flow is positive, suggesting reliance on external funding, but overall cash flow management is poor, leading to liquidity concerns.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-97.93K	-97.93K	-92.27K	-52.64K	-24.50K	0.00
EBITDA	-5.10M	-5.16M	-6.00M	-4.54M	-92.51K	-19.06K
Net Income	-69.45M	-69.45M	-6.08M	-4.60M	-92.51K	-19.06K
Balance Sheet
Total Assets	3.27M	3.27M	4.00M	4.35M	124.51K	140.74K
Cash, Cash Equivalents and Short-Term Investments	1.11M	1.11M	2.38M	3.49M	95.91K	140.74K
Total Debt	12.41M	12.41M	47.07K	1.33M	56.78K	0.00
Total Liabilities	15.11M	15.11M	2.67M	1.64M	136.77K	60.49K
Stockholders Equity	-23.88M	-23.88M	1.33M	2.71M	-12.26K	80.25K
Cash Flow
Free Cash Flow	-5.90M	-5.90M	-3.91M	-3.72M	-422.49K	-32.48K
Operating Cash Flow	-4.92M	-4.92M	-3.64M	-3.56M	-46.23K	-32.48K
Investing Cash Flow	-990.07K	-990.07K	-430.19K	-311.46K	-372.77K	0.00
Financing Cash Flow	4.58M	4.58M	2.96M	1.27M	30.00K	0.00

Psyence Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSYG, the sentiment is Neutral. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PSYG.

Psyence Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
PSYG	27 Underperform	C$2.58M	―		―	―	99.45%
BRAXF	―	$1.03M	―		―	―	―
NLVVF	―	$970.68K	―		―	―	―
ENTBF	―	$951.88K	―	-96.55%	―	―	―
SILO	―	C$1.43M	―		―	―	―
CALM	―	C$1.37M	―		―	―	―

Psyence Group Corporate Events

Psyence Group Announces Share Consolidation for Strategic Growth

Psyence Group Inc. announced a share consolidation, converting every fifteen old shares into one new share, effective April 23, 2025. This move, approved by shareholders and the board, aims to provide the company with greater flexibility for business development and growth, potentially impacting its market positioning and stakeholder interests.

Spark’s Take on TSE:PSYG Stock

According to Spark, TipRanks’ AI Analyst, TSE:PSYG is a Underperform.

Psyence Group faces significant financial challenges with ongoing losses and negative equity, which heavily impacts its overall score. While technical indicators show some positive momentum, the company’s negative P/E and lack of dividends reflect poor valuation. Recent corporate events offer a glimmer of hope for future growth, but the company’s financial instability and reliance on external funding remain key risks.

To see Spark’s full report on TSE:PSYG stock, click here.

Psyence Biomedical Enhances Scientific Advisory Board with New Appointment

Psyence Biomedical, an associate of Psyence Group, has strengthened its Scientific Advisory Board by appointing Dr. Dan J. Stein, a leader in psychopharmacology. This move supports their ongoing Phase IIb clinical trial of psilocybin for Adjustment Disorder in Palliative Care and plans to explore Alcohol Use Disorder treatment. This expansion aims to introduce new psilocybin-based therapeutics to meet unmet needs in mental health and addiction, potentially enhancing the company’s positioning in the psychedelic therapeutics industry.

Psyence Biomedical Strengthens Research with New Advisory Board Chair

Psyence Biomedical, an associate of Psyence Group, has appointed Dr. Albert P. Garcia-Romeu as the chair of its newly formed Scientific Advisory Board, enhancing its research capabilities in psilocybin-based treatments. Additionally, Psyence Group has settled a debt of C$120,000 by issuing shares, reflecting strategic financial management.