Willow Biosciences Inc (WLLW) AI Stock Analysis

• Market Cap: C$1.45M
• Dividend Yield: N/A
• Average Volume (3M): 519.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 297.78%
• EPS Growth: 55.14%
• Country: CA
• Employees: 19
• Sector: Healthcare
• Sector Strength: 57
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 144,846,540
• 10 Day Avg. Volume: 1,104,229
• 30 Day Avg. Volume: 519,808
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Willow Biosciences Inc is facing significant financial challenges, with negative equity and ongoing losses being primary concerns. The recent strategic moves to sell a subsidiary and reduce debt are positive but accompanied by risks, including potential delisting. While there are signs of potential short-term stabilization in the stock price, the overall outlook remains negative due to the financial and operational difficulties.

Willow Biosciences Inc Business Overview & Revenue Model

Company Description

Willow Biosciences Inc. is a biotechnology company that operates in the field of synthetic biology. The company focuses on the production of high-purity, plant-derived compounds that are used in various industries including pharmaceuticals, consumer packaged goods, and personal care products. Using advanced biosynthetic methods, Willow Biosciences aims to provide sustainable and cost-effective alternatives to traditional production methods.

How the Company Makes Money

Willow Biosciences Inc. generates revenue primarily through the development and commercialization of biosynthetically produced cannabinoids. The company uses its proprietary yeast-based fermentation platform to produce cannabinoids at scale, offering a sustainable and consistent supply of these compounds. Revenue streams include the sale of cannabinoids to pharmaceutical companies, consumer product manufacturers, and other industries that utilize these compounds in their products. Additionally, Willow Biosciences may engage in strategic partnerships and licensing agreements to further monetize its proprietary technology and expand its market reach.

Willow Biosciences Inc Financial Statement Overview

Summary

Willow Biosciences Inc faces significant challenges in maintaining financial stability and profitability. Despite revenue growth, high operating losses and declining equity impact overall financial health. Improving operational efficiency and cash flow management are critical for future sustainability.

Income Statement

Willow Biosciences Inc shows a notable increase in revenue over the years, particularly in the latest TTM. However, the company struggles with negative profit margins, as evidenced by a negative net profit margin and EBIT margin, indicating ongoing challenges in achieving profitability. The gross profit margin has improved significantly, but the persistent operating losses weigh heavily on financial performance.

Balance Sheet

The balance sheet reflects high leverage with a concerning debt-to-equity ratio due to declining equity. The equity ratio has also decreased, reflecting a weaker financial position. Although total debt has been managed relatively well, the low stockholders' equity raises concerns about the company's ability to sustain its operations without external financing.

Cash Flow

Cash flow from operations continues to be negative, affecting the company's liquidity position. The operating cash flow to net income ratio reflects operational inefficiencies, while free cash flow remains negative, indicating a need for improved cash management strategies to support business growth.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.17M	821.00K	133.00K	10.00K	4.58K
	Gross Profit
-659.00K	-6.65M	-11.40M	10.00K	4.58K
	EBIT
-13.18M	-18.39M	-23.33M	-23.06M	-46.15M
	EBITDA
-11.06M	-12.09M	-2.92M	-30.72M	-43.93M
	Net Income Common Stockholders
-13.03M	-14.81M	-6.17M	-33.99M	-44.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.17M	15.03M	30.12M	15.89M	19.73M
	Total Assets
6.67M	18.15M	35.02M	21.86M	33.88M
	Total Debt
2.16M	664.00K	802.00K	869.00K	1.20M
	Net Debt
-989.00K	-10.34M	-29.32M	-15.03M	-18.45M
	Total Liabilities
3.24M	1.77M	5.33M	22.42M	11.87M
	Stockholders Equity
3.44M	16.37M	29.68M	-559.00K	22.01M
Cash Flow		Free Cash Flow
-11.54M	-14.54M	-19.99M	-13.78M	-15.87M
	Operating Cash Flow
-10.92M	-13.86M	-18.23M	-12.78M	-9.16M
	Investing Cash Flow
3.46M	-4.55M	-1.67M	-837.00K	-6.83M
	Financing Cash Flow
-318.00K	-723.00K	34.13M	9.89M	35.26M

Willow Biosciences Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WLLW, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 20.99 is Positive, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WLLW.

Willow Biosciences Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
LABS	51 Neutral	$35.29M	―	-22.31%	―	26.92%	27.22%
WLLW	37 Underperform	C$1.45M	―	-422.31%	―	297.78%	55.14%

Willow Biosciences Inc Corporate Events

Willow Biosciences Sells Subsidiary, Implements Management Changes

Willow Biosciences Inc. has completed the sale of its operating subsidiary, Epimeron USA, Inc., to Mycofeast Ltd.’s U.S. subsidiary for $2.76 million. This transaction, which includes management changes, will allow Willow to reduce debt and explore future opportunities, potentially enhancing shareholder value.

Spark’s Take on TSE:WLLW Stock

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

Willow Biosciences Inc is struggling with substantial financial and operational difficulties, including negative equity and potential delisting. While recent corporate strategies aim to streamline operations and adapt to market conditions, the overall risks remain high due to ongoing financial instability and bearish market sentiment.

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

Willow Biosciences Reports Key Shareholder Meeting Outcomes

Willow Biosciences Inc. announced the results of its annual general and special meeting, where shareholders approved several key resolutions, including the election of five directors and the appointment of KPMG LLP as the company’s auditor. Additionally, shareholders authorized the sale of Epimeron USA, Inc., and a potential name change for the corporation. These decisions reflect strategic moves to streamline operations and potentially rebrand, indicating a focus on future growth and adaptation in the industry.

Spark’s Take on TSE:WLLW Stock

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

Willow Biosciences Inc is facing substantial financial and operational difficulties, reflected in its negative equity and cash flow issues. The technical analysis shows oversold conditions, which might lead to short-term stabilization, but the overall market sentiment remains bearish. The recent corporate developments, including potential delisting, add to the company’s risks, making it a highly speculative investment at this point.

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

Willow Biosciences Reports 2024 Financial Results and Subsidiary Sale

Willow Biosciences Inc. reported its financial results for 2024, showing a significant increase in revenue but also a net loss, indicating financial challenges. The company announced the sale of its operating subsidiary, Epimeron, which includes its business operations and intellectual property, to a UK-based entity. This sale will result in Willow no longer meeting the Toronto Stock Exchange’s listing requirements, leading to a review process and potential suspension. The transaction is expected to impact the company’s operations significantly, including the termination of key executives.

Willow Biosciences to Sell Subsidiary Epimeron USA for $3.38 Million

Willow Biosciences Inc. has entered into an agreement to sell its wholly-owned operating subsidiary, Epimeron USA, Inc., to a UK-based entity for $3.38 million. This transaction is part of Willow’s strategic review and aims to reduce debt and explore future opportunities to maximize shareholder value. The sale, expected to close by April 30, 2025, is subject to shareholder approval, with major shareholders and directors already committed to supporting the transaction.