Steep Hill Inc (STPH) AI Stock Analysis

• Market Cap: C$889.83K
• Dividend Yield: N/A
• Average Volume (3M): 12.40K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 16,167,885
• 10 Day Avg. Volume: 9,973
• 30 Day Avg. Volume: 12,401
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.64
• 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: 49 Neutral
• Price Target: C$0.06 ▼(-8.33% Downside)

The score is held back primarily by weak and unstable operating results and recent cash burn despite a low-debt balance sheet. Technical signals are neutral-to-soft, while valuation looks optically cheap on P/E but is discounted by earnings quality concerns. The reverse takeover and related restructuring/financing are meaningful potential catalysts but introduce significant execution and transition risk.

Positive Factors

Strategic Acquisition

The acquisition of Lir Life Sciences positions Steep Hill in the biopharmaceutical sector, potentially expanding its market reach and product offerings, which could enhance long-term growth prospects.

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing Steep Hill to invest in growth opportunities without the burden of leverage.

Industry Partnerships

Partnerships with industry players and regulatory bodies enhance Steep Hill's credibility and revenue potential, supporting long-term business sustainability and compliance.

Negative Factors

Lack of Revenue

The absence of revenue poses a significant risk to Steep Hill's long-term sustainability, as it limits the company's ability to fund operations and growth initiatives.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and potential liquidity challenges, which could hinder Steep Hill's ability to sustain operations without external financing.

Operational Inefficiencies

Persistent operational inefficiencies, as indicated by negative margins, suggest challenges in cost management and profitability, affecting long-term business viability.

Steep Hill Inc Business Overview & Revenue Model

Company Description

Steep Hill Inc., a cannabis science and technology company, provides laboratory testing, quality assurance, and data analytics services in Canada and the United States. It offers analytical testing services, such as cannabinoids, terpenes, pesticides analysis, mycotoxins analysis, heavy metals analysis, residual solvents analysis, microbial analysis, foreign matter inspection, moisture content analysis, water activity analysis, vitamin E acetate, homogeneity testing, and hemp analysis, as well as consulting services in the areas of analytical testing, cannabis testing regulations, test methods, laboratory information management systems, and product quality and safety. The company was formerly known as Cannabis Clonal Corporation and changed its name to Steep Hill Inc. in February 2022. Steep Hill Inc. was founded in 2008 and is based in Toronto, Canada.

How the Company Makes Money

Steep Hill Inc generates revenue primarily through its laboratory testing services. Key revenue streams include fees charged for cannabis potency testing, which measures the levels of THC and CBD present in products, and safety screening for contaminants such as pesticides, heavy metals, and microbial impurities. The company also earns from providing consulting services to cannabis businesses, aiding them in meeting regulatory standards and improving product quality. Steep Hill has established significant partnerships with cannabis producers and government agencies to support industry standards and compliance, enhancing its revenue potential through long-term contracts and collaborative projects.

Steep Hill Inc Financial Statement Overview

Summary

Steep Hill Inc's financial health presents concerns, primarily due to the lack of revenue and negative operating cash flows. Although the balance sheet shows a strong equity position, the company's long-term sustainability is at risk without revenue generation. Continued focus on operational efficiency and revenue growth is critical for future stability.

Income Statement

Steep Hill Inc has exhibited a challenging financial performance, with no revenue reported for the latest TTM period, and a history of negative EBIT and EBITDA margins, indicating persistent operational inefficiencies. Although there was a positive net income in the latest TTM, this is likely due to non-operational factors, given the absence of revenue.

Balance Sheet

The company's balance sheet shows a strong equity position with no debt reported in the latest TTM, indicating financial stability and low leverage risk. However, the equity ratio has fluctuated, reflecting changes in asset composition. The return on equity is positive due to net income, but sustainability remains questionable without revenue.

Cash Flow

Operating cash flow has been negative in the latest TTM period, reflecting cash usage in operations without corresponding revenue inflows. The free cash flow growth rate has been negative, indicating a deteriorating cash position. The company's reliance on financing activities suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	1.18M	938.57K	0.00
Gross Profit	-3.84K	-15.37K	-16.64K	1.18M	938.57K	-118.78K
EBITDA	-197.36K	-188.23K	-444.66K	-3.73M	-3.97M	-1.95M
Net Income	384.74K	337.71K	793.30K	-7.12M	-4.53M	-2.08M
Balance Sheet
Total Assets	2.08M	2.28M	2.76M	3.02M	7.43M	1.70M
Cash, Cash Equivalents and Short-Term Investments	2.03M	2.21M	2.61M	1.91M	2.58M	438.63K
Total Debt	0.00	0.00	18.55K	79.97K	718.20K	442.48K
Total Liabilities	162.30K	258.56K	1.11M	2.17M	1.73M	551.85K
Stockholders Equity	1.91M	2.02M	1.65M	842.34K	5.77M	1.20M
Cash Flow
Free Cash Flow	-206.75K	-381.46K	742.34K	-1.82M	-1.57M	-1.56M
Operating Cash Flow	-206.75K	-381.46K	742.34K	-1.82M	-1.57M	-1.25M
Investing Cash Flow	150.00K	0.00	-2.00M	1.48M	-336.96K	-280.03K
Financing Cash Flow	-3.46K	-19.06K	-53.22K	-253.84K	4.04M	402.02K

Steep Hill Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STPH, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STPH.

Steep Hill Inc 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%
STPH	49 Neutral	C$889.83K	2.31	-13.46%	―	―	―
PHRX	45 Neutral	C$1.62M	-6.52	―	―	―	98.93%
RAMM	45 Neutral	C$4.78M	-0.36	-69.77%	―	-15.51%	-49.26%
OVAT	43 Neutral	C$1.41M	-3.36	―	―	-42.98%	35.33%
MGW	21 Underperform	C$969.81K	0.44	―	―	―	―

Steep Hill Inc Corporate Events

Steep Hill Advances Reverse Takeover and Rebrand with Good Purpose Investments

Steep Hill Inc. has amended and advanced its previously announced three‑cornered amalgamation with Good Purpose Investments Inc., under which Steep Hill will acquire all issued and outstanding Good Purpose securities in a reverse takeover that constitutes a Fundamental Change under CSE rules. The deal will see Good Purpose shareholders receive post-consolidation shares of the resulting issuer at a 1:1 exchange ratio, up to a cap of 30,818,614 shares, while Steep Hill plans to change its name to Good Purpose Investments Inc., consolidate its share capital on a 6‑for‑1 basis, adopt a new ticker symbol, and overhaul its board and management, subject to customary closing conditions, shareholder approvals on both sides, CSE listing consent, escrow and hold-period requirements, and completion of a concurrent Good Purpose private placement financing.

Steep Hill Inc. to Merge with Good Purpose Investments in Strategic Shift

Steep Hill Inc. has announced an amalgamation agreement with Good Purpose Investments, marking a significant shift in its business operations. This transaction, which involves a reverse takeover, will result in Steep Hill changing its name to Good Purpose Investments Inc. and focusing on the textile business of Good Purpose. The deal is subject to regulatory and shareholder approvals, and upon completion, it will constitute a ‘Fundamental Change’ as per Canadian Securities Exchange policies.