XORTX Therapeutics Inc (XRTX) AI Stock Analysis

• Market Cap: C$4.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: N/A
• EPS Growth: -22.96%
• Country: CA
• Employees: 2
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.26
• Shares Outstanding: 3,788,246
• 10 Day Avg. Volume: 4,453
• 30 Day Avg. Volume: 2,884
• PEG Ratio: 0.02
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.65
• 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: C$19.23
• Price Target Upside: 1476.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: ―

XORTX Therapeutics Inc faces significant challenges with no revenue and consistent losses, leading to a low financial performance score. Technical analysis indicates a neutral to bearish outlook, which, along with poor valuation metrics, weighs down the overall stock score. However, potential advancements in FDA discussions for gout treatment provide a glimmer of hope for future revenue generation, but current financial and compliance risks remain substantial.

XORTX Therapeutics Inc Business Overview & Revenue Model

Company Description

XORTX Therapeutics Inc (XRTX) is a clinical-stage biopharmaceutical company engaged in the development and commercialization of therapies to treat progressive kidney disease, diabetes, and cardiovascular disease. The company focuses on developing innovative drug therapies that target uric acid as a primary cause of these chronic diseases. XORTX's lead product candidate, XORLO, is aimed at treating autosomal dominant polycystic kidney disease (ADPKD), with additional applications being explored for other forms of kidney disease and metabolic syndrome.

How the Company Makes Money

XORTX Therapeutics Inc primarily generates revenue through the development and potential commercialization of its proprietary drug therapies. The company seeks to advance its lead product candidates through clinical trials, with the ultimate goal of obtaining regulatory approval for marketing and sales. Revenue streams are expected to come from licensing agreements, partnerships with larger pharmaceutical companies, and potential milestone and royalty payments based on the successful development and commercialization of its therapies. As a clinical-stage company, XORTX may also rely on funding through public or private investments to support its research and development activities until its products reach the market.

XORTX Therapeutics Inc Financial Statement Overview

Summary

XORTX Therapeutics Inc is facing significant financial challenges with no revenue generation and consistent operating and net losses. While the company manages to maintain low debt levels, the depletion of assets and reliance on external financing highlight potential financial instability. The negative cash flow positions further emphasize the need for strategic redirection to achieve financial sustainability.

Income Statement

The company has consistently reported zero revenue across all periods, indicating a lack of generated sales or commercialization. Significant negative EBIT and EBITDA margins highlight operational inefficiencies and high costs relative to revenue, which is nonexistent. The net profit margin is negative due to ongoing losses, reflecting poor profitability. No positive growth trajectory is observed in revenue or profit-related metrics.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting minimal reliance on debt financing. However, the stockholders' equity has decreased significantly over time, primarily due to accumulating losses. The equity ratio indicates a reasonable proportion of equity financing, but declining equity levels represent a potential risk. The company shows a history of asset depletion, affecting financial stability.

Cash Flow

Operating cash flow remains negative, indicating cash outflow from operations, which is unsustainable in the long run. The free cash flow is consistently negative, reflecting ongoing cash deficits. The company has relied heavily on financing activities to sustain operations, which could pose a risk if external funding sources diminish. Growth in free cash flow is negative, showing no improvement in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-76.51K	-160.66K	―	-75.27K	-17.88K	-20.44K
	EBIT
-3.12M	-5.64M	―	-12.43M	―	-1.08M
	EBITDA
-2.31M	-4.38M	―	-9.41M	―	-1.25M
	Net Income Common Stockholders
-736.66K	-4.54M	―	―	-1.65M	-1.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
142.77K	3.56M	3.45M	10.43M	14.79M	171.27K
	Total Assets
1.13M	5.89M	5.47M	12.37M	17.38M	2.29M
	Total Debt
45.13K	55.78K	11.51K	77.60K	0.00	0.00
	Net Debt
-97.63K	-3.50M	-3.44M	-10.36M	-14.87M	-171.27K
	Total Liabilities
965.86K	1.09M	825.94K	5.38M	4.18M	1.03M
	Stockholders Equity
162.29K	4.80M	4.64M	7.00M	13.20M	1.26M
Cash Flow		Free Cash Flow
-4.13M	-5.04M	-6.63M	-9.01M	-4.83M	-742.75K
	Operating Cash Flow
-4.09M	-5.04M	-6.58M	-8.96M	-4.80M	-728.40K
	Investing Cash Flow
-47.97K	-53.32K	-46.36K	-45.70K	-31.81K	-14.35K
	Financing Cash Flow
1.36M	3.81M	-487.30K	4.71M	19.37M	670.82K

XORTX Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.22
• 50DMA: Negative
• 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:XRTX, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.34, and below the 200-day MA of 1.69, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XRTX.

XORTX Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.25B	3.29	-44.34%	6.27%	16.79%	-0.10%
APLI	47 Neutral	$1.82M	―	34.61%	―	-89.15%	25.91%
AGN	43 Neutral	C$2.73M	3.00	32.87%	―	―	―
XRTX	36 Underperform	C$4.62M	―	-38.24%	―	―	-22.96%
MRVL	22 Underperform	C$6.68M	―	45.74%	―	―	―

XORTX Therapeutics Inc Corporate Events

XORTX Receives Nasdaq Notification for Minimum Bid Price Deficiency

XORTX Therapeutics Inc. has received a notification from the Nasdaq Stock Market regarding non-compliance with the minimum bid price requirement, as its shares have closed below $1.00 for 30 consecutive business days. The company has 180 days to regain compliance, during which its shares will continue to trade on the Nasdaq Capital Market. XORTX is evaluating options to address this deficiency, while its listing on the TSX Venture Exchange remains unaffected.

Spark’s Take on TSE:XRTX Stock

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

The overall stock score for XORTX Therapeutics Inc is low, driven primarily by its poor financial performance with no revenue and consistent losses. The technical analysis indicates bearish market conditions, further weighing down the score. Valuation metrics also reflect a negative assessment as the P/E ratio is negative, with no dividends to offset the lack of earnings. The combination of these factors suggests significant challenges ahead for the company.

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

XORTX Advances Gout Treatment Program with FDA Discussions

XORTX Therapeutics Inc. has announced an update regarding its communications with the FDA, aiming to accelerate the development of its XRx-026 program for gout treatment. The company is preparing for a Type B meeting with the FDA to discuss the readiness of its XORLO™ drug formulation for a New Drug Application, which could significantly impact its market positioning by providing a much-needed therapeutic option for gout sufferers and potentially transforming the company into a revenue-positive state.

XORTX Advances Gout Treatment Program with FDA Meeting Request

XORTX Therapeutics Inc. has submitted a request for a Type C meeting with the FDA to discuss its XRx-026 gout treatment program, aiming to advance its XORLO™ drug formulation toward a New Drug Application (NDA). This move is part of XORTX’s strategy to secure marketing approval in the US, utilizing the FDA’s 505(b)2 development pathway. With the meeting expected within 75 days, XORTX anticipates potentially significant revenue impacts within two years, highlighting the urgent need for alternative gout therapies due to the limitations of current treatments like allopurinol and Febuxostat.