DRI Healthcare (DHT.UN) AI Stock Analysis

• Market Cap: C$630.68M
• Dividend Yield: 4.44%
• Average Volume (3M): 38.58K
• Price to Earnings (P/E): 41.1
• Beta (1Y): -0.19
• Revenue Growth: 14.11%
• EPS Growth: -102.18%
• Country: CA
• Employees: 37
• Sector: Healthcare
• Sector Strength: 71
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.07
• Shares Outstanding: 56,310,920
• 10 Day Avg. Volume: 38,195
• 30 Day Avg. Volume: 38,581
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.97
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 1.90
• 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$16.67
• Price Target Upside: 48.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

DRI Healthcare Trust has a solid equity position and strong cash generation, but faces challenges with recent revenue declines and net losses. Although the stock's technical indicators suggest a bearish trend, the oversold stochastic hints at potential recovery. Valuation is challenging due to a negative P/E ratio, but the dividend yield provides some investor appeal. The positive corporate event, highlighting financial growth and an optimistic outlook, adds to the stock's potential for future performance.

Positive Factors

Governance Improvements

DHT has improved its governance structure by requiring independent trustees to take at least half their retainer in equity, aligning interests with shareholders.

Management Confidence

Ali Hedayat, with extensive experience from Goldman Sachs and hedge funds, is involved in DHT's strategy and owns shares personally, indicating confidence in the company's direction.

Regulatory Approvals

CASGEVY has been approved by the FDA and EMA for use in sickle cell disease and transfusion-dependent beta-thalassemia, indicating strong regulatory backing.

Negative Factors

Auditing Issues

There are gaps in DHT's auditing process, with speculation that Deloitte was not effectively sampling invoices for audit.

Fraudulent Charges

DHT has faced fraudulent consulting charges put through by Behzad Khosrowshahi, with capital siphoned into his personal account.

DRI Healthcare Business Overview & Revenue Model

Company Description

DRI Healthcare Trust focuses on managing and growing a portfolio of pharmaceutical royalties. It owns a portfolio of 18 royalties derived from the sale of 14 various pharmaceutical products that focuses on eight therapeutic areas. The company was incorporated in 2020 and is headquartered in Toronto, Canada.

How the Company Makes Money

DRI Healthcare Trust makes money primarily through the acquisition and management of royalties from pharmaceutical products. The company invests in a portfolio of royalties, which are payments made based on the sales of specific drugs or biopharmaceutical products. These royalties provide a steady stream of revenue as they are often structured as a percentage of sales. The company's revenue model is built on identifying promising pharmaceutical products and securing royalty agreements that capitalize on the long-term sales potential of these drugs. Additionally, DRI Healthcare Trust benefits from its strategic partnerships with pharmaceutical companies and other stakeholders in the healthcare industry, which can enhance its ability to identify and acquire valuable royalty opportunities. The company's earnings are influenced by factors such as the performance of the underlying pharmaceutical products, market demand, and its ability to effectively manage and expand its royalty portfolio.

DRI Healthcare Financial Statement Overview

Summary

DRI Healthcare shows robust gross profit margins and a solid equity base with no leverage. However, the recent revenue decline and net losses pose profitability challenges. Strong operating cash flows highlight effective cash management despite high capital expenditure impacting free cash flow.

Income Statement

The company has experienced volatility in revenue, with a recent decline from $217.98 million to $138.55 million. Gross profit margins remained strong at 100%, but the net profit margin turned negative due to a net loss. The absence of EBIT and EBITDA in the latest period indicates operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is healthy, reflecting financial stability. However, the negative net income affects return on equity.

Cash Flow

Operating cash flow is significantly higher than net income, indicating strong cash generation. However, free cash flow is negative due to substantial capital expenditures, suggesting high investment levels but potential cash flow concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
138.55M	217.98M	79.87M	73.33M	0.00
	Gross Profit
138.55M	166.28M	79.87M	73.33M	0.00
	EBIT
0.00	92.40M	18.23M	21.56M	-2.17K
	EBITDA
0.00	92.00K	78.10M	66.28M	0.00
	Net Income Common Stockholders
-3.36M	91.50M	4.97M	21.56M	-2.17K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.50M	62.84M	36.69M	61.71M	10.00
	Total Assets
984.87M	833.16M	633.42M	436.69M	10.00
	Total Debt
0.00	145.48M	244.99M	43.92M	0.00
	Net Debt
-36.50M	-62.84M	208.30M	-17.79M	-10.00
	Total Liabilities
457.34M	273.46M	261.08M	57.71M	362.00
	Stockholders Equity
527.53M	559.70M	372.34M	378.99M	-352.00
Cash Flow		Free Cash Flow
-129.84M	-313.90M	-197.03M	-232.46M	0.00
	Operating Cash Flow
155.41M	76.38M	77.47M	91.86M	0.00
	Investing Cash Flow
-293.31M	-128.81M	-273.67M	-372.33M	0.00
	Financing Cash Flow
111.56M	78.57M	171.17M	342.18M	60.00

DRI Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.20
• 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:DHT.UN, the sentiment is Negative. The current price of 11.2 is below the 20-day moving average (MA) of 11.36, below the 50-day MA of 11.57, and below the 200-day MA of 12.16, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DHT.UN.

DRI Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	67 Neutral	C$368.05M	―	-3.15%	4.54%	-15.41%	-69.47%
DHT.UN	63 Neutral	C$630.68M	41.07	-0.51%	4.44%	14.11%	-102.18%
HLS	54 Neutral	C$128.13M	―	-23.20%	―	-8.80%	26.77%
Sector *	48 Neutral	$6.46B	1.17	-47.75%	2.67%	19.50%	0.61%

DRI Healthcare Corporate Events

DRI Healthcare Trust Reports Robust 2024 Financial Results and Sets Positive Outlook for 2025

DRI Healthcare Trust reported strong financial results for the fourth quarter and fiscal year 2024, highlighting a 45% increase in Normalized Total Cash Receipts, which underscores the company’s growth and effective portfolio management. The Trust has completed the remediation of material weaknesses, increased its quarterly distribution, and announced 2025 royalty income guidance, positioning itself for continued success and stakeholder alignment in the upcoming year.

DRI Healthcare Trust to Discuss 2024 Financial Results in Upcoming Conference Call

DRI Healthcare Trust has announced a conference call on March 4, 2025, to discuss its fourth quarter and full year 2024 financial results. This event is significant as it provides stakeholders with insights into the Trust’s financial performance and its strategic positioning within the life sciences financing industry.