XORTX Therapeutics Inc (XRTX) AI Stock Analysis

• Market Cap: C$4.80M
• Dividend Yield: N/A
• Average Volume (3M): 11.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: N/A
• EPS Growth: -1939.32%
• Country: CA
• Employees: 2
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 6,962,218
• 10 Day Avg. Volume: 30,736
• 30 Day Avg. Volume: 11,079
• PEG Ratio: -0.11
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.97
• 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: 46 Neutral
• Price Target: C$0.68 ▼(-13.33% Downside)

The score is primarily constrained by weak financial fundamentals (no revenue, ongoing losses and cash burn, shrinking equity base) alongside a broadly weak technical trend (below key moving averages with negative MACD). Recent corporate actions are modest positives (capital raise and pipeline acquisition) but do not fully offset the reliance on external financing and dilution risk.

Positive Factors

FDA Discussions for Gout Treatment

The FDA discussions for the XRx-026 program could lead to regulatory approval, potentially transforming XORTX into a revenue-generating company by addressing a significant market need in gout treatment.

Low Debt Levels

Low debt levels provide XORTX with financial flexibility and reduce the risk of financial distress, allowing the company to focus on developing its drug pipeline without significant interest obligations.

Innovative Drug Therapies

XORTX's focus on innovative therapies for chronic diseases like kidney and cardiovascular conditions positions it well in a market with high unmet medical needs, offering potential for long-term growth and market leadership.

Negative Factors

No Revenue Generation

The lack of revenue generation highlights the company's reliance on external funding and underscores the urgency for successful commercialization of its drug candidates to achieve financial sustainability.

Nasdaq Compliance Risk

Non-compliance with Nasdaq's minimum bid price requirement poses a risk of delisting, which could limit access to capital markets and negatively impact investor confidence.

Negative Cash Flow

Sustained negative cash flow reflects ongoing operational challenges and the need for external financing, which could become difficult if investor interest wanes, impacting long-term viability.

XORTX Therapeutics Inc Business Overview & Revenue Model

Company Description

XORTX Therapeutics Inc., a bio-pharmaceutical company, engages in the development and commercialization of therapies to treat progressive kidney diseases, diabetes, insulin resistance, metabolic syndrome, diabetes, diabetic nephropathy, and infection. It develops XRx-008, a late clinical stage program therapy for autosomal dominant polycystic kidney disease; XRx-101, an uric acid lowering agent used to treat patients infected with the coronavirus COVID-19 infection and suppression of acute kidney injury and associated health consequences; and XRx-221, a xanthine oxidase inhibitor candidates for the treatment of diabetic nephropathy. The company has a partnership with the Icahn School of Medicine to study the incidence of acute kidney injury and hyperuricemia in patients hospitalized with COVID-19. XORTX Therapeutics Inc. is based in Vancouver, Canada.

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

Pre-revenue biotech with $0 revenue and persistent operating losses, though losses and cash burn have improved since 2022. Low leverage reduces balance-sheet risk, but the equity base has shrunk materially and operating/free cash flow remain negative, implying ongoing financing and dilution risk.

Income Statement

Results reflect a pre-revenue biotech profile: revenue is $0 across annual periods and TTM (Trailing-Twelve-Months), with recurring operating losses. Losses have narrowed materially versus 2022 (EBIT improved from about -$12.4M in 2022 to about -$5.6M in 2024 and about -$3.2M in TTM), but profitability remains weak and dependent on future commercialization or funding.

Balance Sheet

Leverage is low (debt-to-equity is ~0.04 in TTM and ~0.01 in 2024), which reduces financial risk. However, equity has declined meaningfully from ~$13.2M (2021) to ~$4.8M (2024) and ~$2.7M (TTM), and returns on equity are strongly negative, signaling ongoing value dilution risk if losses continue.

Cash Flow

Cash generation remains a key weakness: operating and free cash flow are consistently negative (TTM operating cash flow about -$2.9M; 2024 about -$5.0M). Burn rate has improved versus 2022–2023, but free cash flow growth is volatile (TTM down sharply versus the prior period), and cash burn continues to track closely with net losses—implying ongoing reliance on external financing.

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	-29.06K	-160.66K	―	-75.27K	-17.88K	-20.44K
EBITDA	-3.05M	-4.38M	―	-9.41M	―	-1.25M
Net Income	-1.94M	-4.54M	―	―	-1.65M	-1.28M
Balance Sheet
Total Assets	3.92M	5.89M	5.47M	12.37M	17.38M	2.29M
Cash, Cash Equivalents and Short-Term Investments	1.66M	3.56M	3.45M	10.43M	14.79M	171.27K
Total Debt	82.23K	55.78K	11.51K	77.60K	0.00	0.00
Total Liabilities	1.17M	1.09M	825.94K	5.38M	4.18M	1.03M
Stockholders Equity	2.75M	4.80M	4.64M	7.00M	13.20M	1.26M
Cash Flow
Free Cash Flow	-2.97M	-5.04M	-6.63M	-9.01M	-4.83M	-742.75K
Operating Cash Flow	-2.94M	-5.04M	-6.58M	-8.96M	-4.80M	-728.40K
Investing Cash Flow	-34.56K	-53.32K	-46.36K	-45.70K	-31.81K	-14.35K
Financing Cash Flow	1.90M	3.81M	-487.30K	4.71M	19.37M	670.82K

XORTX Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 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 0.78 is above the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.81, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 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 *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APS	51 Neutral	C$5.79M	-0.20	―	―	―	90.81%
MOOD	47 Neutral	C$6.41M	-7.94	-41.36%	―	-50.89%	-32.33%
XRTX	46 Neutral	C$4.80M	-1.05	-96.61%	―	―	-1939.32%
KNE	41 Neutral	C$7.26M	-3.28	―	―	―	―
BIOV	29 Underperform	C$5.25M	-0.81	―	―	―	25.09%

XORTX Therapeutics Inc Corporate Events

XORTX Leans Into Genetic Breakthroughs in Gout as It Reshapes Board and Advances Oxypurinol

XORTX Therapeutics highlighted newly published, large-scale genetic research showing that hundreds of genetic factors are implicated in urate biology and gout, reinforcing the central role of xanthine oxidase over-expression in hyperuricemia, gout, polycystic kidney disease and related kidney and metabolic conditions. Management framed these findings as validation of its XO-inhibition strategy and precision medicine focus, noting that its planned clinical trial of oxypurinol is a key step toward a future new drug application and could strengthen the company’s positioning in treating both diabetic and non-diabetic kidney diseases. In a corporate update, XORTX announced the appointment of veteran biotech strategist Krysta Davies Foss to its board and the resignation of three directors, moves that streamline the board and add commercialization and market-preparedness expertise as the company advances its clinical and partnering agenda.

The most recent analyst rating on (TSE:XRTX) stock is a Hold with a C$0.81 price target. To see the full list of analyst forecasts on XORTX Therapeutics Inc stock, see the TSE:XRTX Stock Forecast page.