Willow Biosciences Inc (WLLW) AI Stock Analysis

• Market Cap: C$5.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 571.23%
• EPS Growth: 64.24%
• Country: CA
• Employees: 19
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 147,196,760
• 10 Day Avg. Volume: 612,616
• 30 Day Avg. Volume: 1,203,130
• PEG Ratio: -0.05
• Price to Book (P/B): 25.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.12
• 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

• Rating: 53 Neutral
• Price Target: C$0.00 ▼( -100.00% Downside)

The overall score reflects significant financial challenges, despite strong revenue growth and positive corporate events. Technical indicators suggest some bullish momentum, but the valuation remains unattractive due to negative earnings.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.87M	1.17M	821.00K	133.00K	10.00K	4.58K
	Gross Profit
1.79M	-659.00K	-6.65M	-11.40M	10.00K	4.58K
	EBIT
-7.67M	-13.18M	-18.39M	-23.33M	-23.06M	-46.15M
	EBITDA
-5.79M	-11.06M	-12.09M	-2.92M	-30.72M	-43.93M
	Net Income Common Stockholders
-7.71M	-13.03M	-14.81M	-6.17M	-33.99M	-44.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.50K	3.17M	15.03M	30.12M	15.89M	19.73M
	Total Assets
1.52M	6.67M	18.15M	35.02M	21.86M	33.88M
	Total Debt
0.00	2.16M	664.00K	802.00K	869.00K	1.20M
	Net Debt
-28.50K	-989.00K	-10.34M	-29.32M	-15.03M	-18.45M
	Total Liabilities
1.14M	3.24M	1.77M	5.33M	22.42M	11.87M
	Stockholders Equity
377.72K	3.44M	16.37M	29.68M	-559.00K	22.01M
Cash Flow		Free Cash Flow
-4.53M	-11.54M	-14.54M	-19.99M	-13.78M	-15.87M
	Operating Cash Flow
-4.46M	-10.92M	-13.86M	-18.23M	-12.78M	-9.16M
	Investing Cash Flow
31.00K	3.46M	-4.55M	-1.67M	-837.00K	-6.83M
	Financing Cash Flow
1.33M	-318.00K	-723.00K	34.13M	9.89M	35.26M

Willow Biosciences Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WLLW, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WLLW.

Willow Biosciences Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLLW	53 Neutral	C$5.15M	―	-971.43%	―	571.23%	64.24%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
OVAT	39 Underperform	C$1.14M	―	62.01%	―	35.35%	31.85%
CVGR	20 Underperform	C$1.39M	―	49.80%	―	-100.00%	-42.50%

Willow Biosciences Inc Corporate Events

Willow Biosciences to Transform into Atlas Energy Corp. with New Strategic Focus

Willow Biosciences Inc. announced a significant restructuring plan involving a C$30 million private placement, a new executive team, and a rebranding to ‘Atlas Energy Corp.’ The company aims to transition into an international upstream royalty and streaming company focused on oil and gas transactions, with plans to list on the TSX Venture Exchange under the new name and symbol. This strategic shift marks a major pivot from its previous operations, potentially impacting its market positioning and stakeholder interests.

Willow Biosciences Secures $30 Million in Recapitalization Effort

Willow Biosciences Inc. has secured $30 million in firm commitments for a non-brokered private placement, exceeding initial demand. This recapitalization effort is contingent on certain conditions, including TSX Venture Exchange approval and a share consolidation. The company plans to hold a special shareholder meeting to approve these changes, positioning itself for future growth in the oil and gas sector.

Willow Biosciences Announces Recapitalization and Rebranding to Atlas Energy Corp.

Willow Biosciences Inc. has announced a $30 million recapitalization financing, along with a reorganization that includes a new executive team and board of directors, as it transitions to Atlas Energy Corp. The company aims to list on the TSX Venture Exchange and will focus on international upstream oil and gas royalty and streaming opportunities. The new leadership team, with extensive experience in the industry, is expected to drive growth and value creation, leveraging their history of successful ventures in the oil and gas sector.

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.

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.

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.