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Knight Therapeutics (TSE:GUD)
TSX:GUD
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Knight Therapeutics
(TSX:GUD)
59Neutral
Positive Factors
Future Outlook
Mid-term outlook for Knight Therapeutics is strengthening.
Product Performance
Oncology/hematology product sales grew 18% to $36.8M driven by continued growth of key promoted products.
Revenue Growth
Knight reported 3Q-2024 results that beat consensus revenue estimates, with revenues growing 13% year over year.
Negative Factors
Product Sales
Declining sales of mature innovative and branded generic products.
Profitability
EBITDA margin was lower despite the revenue growth.
Knight Therapeutics (GUD) vs. S&P 500 (SPY)
Market Cap
$598.29M
Dividend YieldN/A
Average Volume (3M)65.36K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth3.87%
EPS Growth-378.27%
CountryCA
Employees725
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.30
Shares Outstanding99,715,270
10 Day Avg. Volume104,719
30 Day Avg. Volume65,361
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.58
Price to Cash Flow (P/CF)27.50
P/FCF Ratio42.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$8.16Price Target Upside35.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Knight Therapeutics Business Overview & Revenue Model
Company DescriptionKnight Therapeutics Inc. (GUD) is a Canadian-based specialty pharmaceutical company focused on acquiring, in-licensing, and commercializing innovative pharmaceutical products for the Canadian and select international markets. The company operates in the healthcare sector, offering a portfolio of prescription and over-the-counter medicines that address unmet medical needs.
How the Company Makes MoneyKnight Therapeutics generates revenue primarily through the sale of its pharmaceutical products. The company acquires and in-licenses innovative drugs and medical products, subsequently managing their regulatory approval, marketing, and distribution within targeted markets. Key revenue streams include the sales of branded and specialty pharmaceuticals, leveraging partnerships with other pharmaceutical companies to expand its product offerings. Knight Therapeutics' earnings are significantly influenced by its ability to successfully commercialize its portfolio and establish strategic partnerships to enhance market reach and product accessibility.
Knight Therapeutics Financial Statement Overview
Summary
Knight Therapeutics shows a mixed financial picture. Revenue growth is positive, but profitability is challenged by consistent net losses. The balance sheet is stable with low leverage, but declining free cash flow and negative net income are concerns. Improvements in cost management and operational efficiency are needed.Income Statement
The company has shown revenue growth with a 6.23% increase from the previous year. However, profitability metrics such as the net profit margin and EBIT margin are concerning, with a negative net income of -$30.73M for the TTM period. Gross profit margin for the TTM is 38.59%, which indicates some ability to cover the cost of goods sold but is not translating into net profits.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity base with a debt-to-equity ratio of 0.08, indicating low leverage. The equity ratio stands at 80.42%, suggesting financial stability. However, the return on equity is negative due to the net loss, limiting the overall effectiveness of the equity.65
Positive
Cash Flow
Free cash flow has decreased from the previous year, with a negative free cash flow growth rate of -53.9%. However, the operating cash flow to net income ratio is positive, indicating that operating cash flow is robust relative to the net loss. The company demonstrates some ability to generate cash from operations despite profitability challenges.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 348.64M | 328.20M | 293.56M | 243.48M | 199.52M | 47.46M | Gross Profit |
| 134.61M | 152.65M | 138.06M | 115.41M | 81.69M | 26.92M | EBIT |
| 10.33M | -2.89M | -2.40M | -5.32M | -3.44M | 13.99M | EBITDA |
| 30.98M | 40.90M | 25.26M | 42.59M | 67.56M | 27.16M | Net Income Common Stockholders |
| -30.73M | -16.84M | -29.89M | 15.68M | 31.76M | 14.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 703.82M | 154.42M | 191.22M | 162.99M | 411.34M | 430.62M | Total Assets |
| 1.05B | 945.49M | 1.05B | 991.89M | 1.04B | 1.31B | Total Debt |
| 0.00 | 69.09M | 77.70M | 40.96M | 56.19M | 62.18M | Net Debt |
| -244.78M | 10.33M | 6.02M | -45.01M | -173.40M | -107.09M | Total Liabilities |
| 21.80M | 198.62M | 228.98M | 149.87M | 153.44M | 390.20M | Stockholders Equity |
| 1.03B | 746.87M | 825.86M | 842.02M | 886.24M | 810.73M |
| Cash Flow | Free Cash Flow | ||||
| 11.98M | 25.98M | 14.66M | -179.56M | -32.87M | 1.65M | Operating Cash Flow |
| 43.06M | 35.94M | 40.48M | 44.62M | -12.21M | 4.60M | Investing Cash Flow |
| -7.37M | 29.34M | -63.08M | -105.28M | 101.35M | -11.86M | Financing Cash Flow |
| -43.10M | -81.00M | 1.76M | -78.31M | -29.23M | -62.80M |
Knight Therapeutics Technical Analysis
Positive
6.00
Price Trends
5.55
Positive
5.46
Positive
5.60
Positive
Market Momentum
0.02
Negative
70.29
Negative
35.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GUD, the sentiment is Positive. The current price of 6 is above the 20-day moving average (MA) of 5.60, above the 50-day MA of 5.55, and above the 200-day MA of 5.60, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GUD.
Knight Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$322.89M | ― | -0.53% | 5.15% | -21.32% | 82.85% | |
66 Neutral | C$51.95M | 25.70 | 6.85% | ― | 2.72% | -47.79% | |
63 Neutral | C$124.63M | ― | -24.49% | ― | -8.60% | 21.06% | |
59 Neutral | $598.29M | ― | -3.84% | ― | 3.87% | -378.27% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
TSE:GUD
Knight Therapeutics
6.00
0.72
13.64%
TSE:HLS
HLS Therapeutics Inc
3.92
-0.42
-9.68%
TSE:NEO
Neo Performance Materials Inc
7.73
1.18
18.02%
TSE:MBX
Microbix Biosystms
0.36
-0.02
-5.26%
Knight Therapeutics Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: 4.53% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted record revenue growth and successful product launches, along with a strong pipeline. However, challenges such as declining gross margins, decreased adjusted EBITDA, and currency depreciation were noted.Highlights
Record Revenue and Growth
For the 9 months ended September 30, 2024, Knight Therapeutics delivered record revenues of over $271 million and adjusted EBITDA of over $42 million, with a growth of 17% on a constant currency basis driven by key products.
Successful Product Launches and Pipeline Advancements
The company launched Imvexxy and Bijuva in Canada, Minjuvi in Brazil, and received regulatory approval for Minjuvi in Mexico. The pipeline has been expanded with 18 products expected to generate over $150 million in revenue.
Revenue Growth in Key Segments
Oncology and hematology portfolio revenues grew by 18%, and the infectious disease portfolio grew by 16% compared to the same period last year.
Financial Assets Gain
Knight recorded a total net unrealized gain of $11.7 million on financial assets, driven by the revaluation of Synergy shares following their IPO.
Lowlights
Gross Margin Decline
Gross margin decreased to 47% of revenues from 52% in the same period last year, primarily due to product mix changes.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 13% in the third quarter compared to last year, impacted by higher operating expenses from new product launches.
Currency Depreciation Impact
Foreign exchange depreciation impacted results, with a 7-13% depreciation against the Canadian dollar in Q3 2024 compared to Q3 2023.
Company Guidance
During the Knight Therapeutics Q3 2024 earnings call, the company highlighted robust financial performance and strategic initiatives. For the nine months ending September 30, 2024, Knight reported record revenues of over $271 million and adjusted EBITDA of over $42 million, with a growth of 17% in their innovative promoted portfolio on a constant currency basis. Key products driving this growth included Lenvima, Trelstar, AKYNZEO, and Cresemba, alongside recent launches like Imvexxy and Bijuva in Canada and Minjuvi in Brazil. The company also reported purchasing 437,500 common shares at an average price of $5.65 under their NCIB. The Q3 2024 revenues were over $91 million, a 12% increase from the previous year, with oncology and hematology revenues contributing approximately $37 million, a growth of 18%. Knight's infectious disease portfolio saw revenues of around $34 million, a 16% increase, primarily due to AmBisome orders and Cresemba's growth. Despite currency headwinds, the company maintains its 2024 guidance of $355 million to $365 million in revenues, with adjusted EBITDA expected to be approximately 16% of revenues.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.