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Psyence Group Inc. (TSE:PSYG)
:PSYG
Canadian Market
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Psyence Group (PSYG) AI Stock Analysis

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TSE:PSYG

Psyence Group

(PSYG)

Rating:27Underperform
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 (PSYG) vs. iShares MSCI Canada ETF (EWC)

Psyence Group Business Overview & Revenue Model

Company DescriptionPsyence Group (PSYG) is a biotechnology company focused on advancing psychedelic therapy and natural-based medicine. The company operates in the life sciences sector, leveraging the therapeutic potential of psychedelic compounds to address mental health issues and neurological disorders. Psyence’s core products and services include the development of natural psilocybin-based therapies, cultivating and processing psilocybin mushrooms, and conducting clinical trials to establish the efficacy and safety of their treatments.
How the Company Makes MoneyPsyence 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
15
Very Negative
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
20
Very Negative
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
25
Negative
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.
BreakdownMar 2024Mar 2023Mar 2022Dec 2020Dec 2019
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-97.93K-92.27K-52.64K-24.50K0.00
EBITDA-5.16M-6.00M-4.54M-92.51K-19.06K
Net Income-69.45M-6.08M-4.60M-92.51K-19.06K
Balance Sheet
Total Assets3.27M4.00M4.35M124.51K140.74K
Cash, Cash Equivalents and Short-Term Investments1.11M2.38M3.49M95.91K140.74K
Total Debt12.41M47.07K1.33M56.78K0.00
Total Liabilities15.11M2.67M1.64M136.77K60.49K
Stockholders Equity-23.88M1.33M2.71M-12.26K80.25K
Cash Flow
Free Cash Flow-5.90M-3.91M-3.72M-422.49K-32.48K
Operating Cash Flow-4.92M-3.64M-3.56M-46.23K-32.48K
Investing Cash Flow-990.07K-430.19K-311.46K-372.77K0.00
Financing Cash Flow4.58M2.96M1.27M30.00K0.00

Psyence Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.17
Price Trends
50DMA
0.15
Positive
100DMA
0.18
Negative
200DMA
0.19
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
64.23
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSYG, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.23 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 Positive sentiment for TSE:PSYG.

Psyence Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.39B0.40-62.86%2.37%15.56%-1.99%
46
Neutral
C$8.37M-50.76%-4.84%
37
Underperform
C$1.97M-42.90%51.37%
27
Underperform
C$2.66M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PSYG
Psyence Group
0.17
-0.28
-62.22%
TSE:CYBN
Cybin
0.14
0.00
0.00%
TSE:RVV
Revive Therapeutics
0.02
0.00
0.00%

Psyence Group Corporate Events

Delistings and Listing ChangesStock Split
Psyence Group Announces Share Consolidation for Strategic Growth
Neutral
Apr 17, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Psyence Biomedical Enhances Scientific Advisory Board with New Appointment
Positive
Mar 25, 2025

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.

Executive/Board ChangesPrivate Placements and Financing
Psyence Biomedical Strengthens Research with New Advisory Board Chair
Positive
Mar 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 28, 2025