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MediPharm Labs (TSE:LABS)
TSX:LABS
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MediPharm Labs
(TSX:LABS)
46Neutral
MediPharm Labs (LABS) vs. S&P 500 (SPY)
Market Cap
$35.29M
Dividend YieldN/A
Average Volume (3M)409.91K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth26.92%
EPS Growth27.22%
CountryCA
Employees166
SectorHealthcare
Sector Strength71
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.03
Shares Outstanding415,138,980
10 Day Avg. Volume211,556
30 Day Avg. Volume409,909
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.16
Price to Cash Flow (P/CF)-4.40
P/FCF Ratio48.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
MediPharm Labs Business Overview & Revenue Model
Company DescriptionMediPharm Labs (LABS) is a pharmaceutical company specializing in the production and distribution of cannabis-based products. The company operates in the health and wellness sector, focusing on manufacturing pharmaceutical-grade cannabis oil and concentrates. MediPharm Labs is dedicated to creating high-quality, cannabinoid-based therapies and has established itself as a leader in the cannabis extraction industry, providing innovative solutions for both medical and adult-use markets.
How the Company Makes MoneyMediPharm Labs generates revenue primarily through the sale of cannabis oil and concentrates to both domestic and international markets. The company's revenue streams include wholesale bulk sales to other licensed producers, private label production for third-party brands, and the development of proprietary products. Key factors contributing to its earnings include strategic partnerships with other cannabis companies, long-term supply agreements, and its state-of-the-art extraction facilities that ensure high-quality output. By leveraging its expertise in extraction and purification, MediPharm Labs capitalizes on the growing demand for cannabis derivatives, positioning itself as a preferred supplier in the industry.
MediPharm Labs Financial Statement Overview
Summary
MediPharm Labs shows potential in revenue growth but struggles with profitability and cash flow. The balance sheet is strong with low leverage, but asset reduction could be a concern. There is a pressing need to enhance operational efficiency and cash flow management to support sustainable growth.Income Statement
Revenue growth has been inconsistent, with recent TTM revenue showing an increase to $39.05M from $33.06M in the previous annual period. However, the company has been operating at a loss, with negative EBIT and net income margins. Gross profit margin improved in the TTM to 29.14% from 17.71% in the prior year, but net profit margins remain negative.40
Negative
Balance Sheet
The company maintains a strong equity position with stockholders' equity at $45.05M and a low debt-to-equity ratio of 0.01. The equity ratio is robust at 80.63%, reflecting stability. However, the company's total assets have decreased over time, signaling potential challenges.60
Neutral
Cash Flow
Free cash flow remains negative at -$2.20M in the TTM, with a slight improvement from the previous year's -$12.81M. The operating cash flow to net income ratio is negative, indicating cash flow struggles. The company needs to improve cash generation relative to its net income.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 39.05M | 33.06M | 22.12M | 21.71M | 36.01M | 129.25M | Gross Profit |
| 11.38M | 5.85M | -1.91M | -15.25M | -43.98M | 42.91M | EBIT |
| -12.28M | -18.25M | -29.53M | -48.92M | -72.58M | 6.94M | EBITDA |
| -8.79M | -10.48M | -27.09M | -38.55M | -53.40M | 9.98M | Net Income Common Stockholders |
| -11.93M | -13.08M | -29.98M | -54.80M | -67.11M | 1.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 262.19K | 17.98M | 24.14M | 34.11M | 19.91M | 38.63M | Total Assets |
| 0.00 | 63.94M | 65.50M | 92.36M | 118.23M | 168.83M | Total Debt |
| 0.00 | 2.29M | 632.00K | 216.00K | 18.46M | 10.58M | Net Debt |
| 262.19K | -15.69M | -23.51M | -33.89M | -1.46M | -28.05M | Total Liabilities |
| 0.00 | 10.93M | 9.49M | 9.21M | 39.82M | 37.60M | Stockholders Equity |
| 215.46K | 53.01M | 56.01M | 83.15M | 78.41M | 131.55M |
| Cash Flow | Free Cash Flow | ||||
| -2.20M | -12.81M | -16.93M | -14.00M | -45.28M | -57.70M | Operating Cash Flow |
| -1.97M | -12.34M | -16.07M | -13.21M | -37.77M | -25.27M | Investing Cash Flow |
| 4.76M | 6.87M | 5.16M | 35.00K | -7.45M | -32.55M | Financing Cash Flow |
| -2.20M | -368.00K | 796.00K | 27.80M | 26.42M | 88.50M |
MediPharm Labs Technical Analysis
Positive
0.08
Price Trends
0.08
Positive
0.07
Positive
0.07
Positive
Market Momentum
<0.01
Positive
45.61
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LABS, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LABS.
MediPharm Labs Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Performance Comparison
TSE:LABS
MediPharm Labs
0.09
<0.01
6.25%
TSE:WEED
Canopy Growth
1.43
-8.16
-85.09%
TSE:ACB
Aurora Cannabis
5.88
-2.75
-31.87%
MediPharm Labs Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -20.00% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, with significant progress towards profitability and strong international sales growth, particularly in Germany and Australia. The company also highlighted a strong balance sheet with minimal debt. However, challenges remain in the Canadian market and the broader cannabis industry, impacting overall sentiment.Highlights
Approaching Profitability
The company reported being close to breakeven with an adjusted EBITDA loss of $124,000, improving from a loss of over $6 million per quarter in Q2 2022.
International Sales Growth
International sales contributed over 40% of total revenues, with significant growth in markets like Germany and Australia.
Strong Balance Sheet
The company ended the quarter with $16 million in cash and plans to sell underutilized assets, potentially generating an additional $4-5 million.
High Gross Margin
Gross profit for Q2 was 33%, which is the highest in over four years, driven by increased international medical cannabis revenue.
Expansion in Germany
Sales to German pharma partner STADA increased by 35% compared to the first half of 2023, with significant growth in oil and flower units.
Lowlights
Decline in Canadian Adult Use Sales
Revenue from Canadian adult use and wellness declined due to increased competitive pressures, decreasing from $2.1 million in Q1 2024 to $1.5 million in Q2 2024.
Industry Challenges
The cannabis industry continues to face profitability challenges, with many LPs filing for CCAA protection and ongoing consolidations.
Company Guidance
During MediPharm Labs' Q2 2024 earnings call, the company provided an optimistic outlook as it approaches profitability, reporting an adjusted EBITDA loss of only $124,000, a substantial improvement from over $6 million in losses two years prior. The call highlighted strategic initiatives, including the recent integration of Canna Farms Medical into the Barrie operation, which reduced costs, and the planned sale of the Hope Facility to enhance financials further. With international sales comprising over 40% of revenues, the company emphasized its strong international presence, particularly in Europe, Australia, and Brazil, and expects future growth with ongoing pharmaceutical partnerships. The company's revenue reached $10.3 million, the highest in over three years, with gross profit margins also at a four-year high of 37%. The management expressed confidence in leveraging its strong cash position of $16 million and minimal debt of less than $3 million to pursue growth opportunities while maintaining a focus on cost efficiency.MediPharm Labs Corporate Events
Business Operations and StrategyFinancial Disclosures
MediPharm Labs Achieves 27% Revenue Growth in 2024 with Strong International Sales
Positive
Mar 31, 2025
MediPharm Labs reported a 27% increase in annual net revenue to $42 million for 2024, driven by significant growth in international medical cannabis revenue. The company improved its profitability, reduced operating expenses, and enhanced its gross profit margin. Key operational changes included transitioning operations to the Barrie facility, resulting in cost savings, and the sale of the Hope facility. MediPharm’s strong cash position and debt-free status, along with its focus on international markets and clinical research, position it well for future growth.
Business Operations and StrategyFinancial Disclosures
MediPharm Labs to Announce 2024 Financial Results
Neutral
Mar 26, 2025
MediPharm Labs announced it will release its full year and fourth quarter financial results for 2024 on March 31, 2025. This announcement reflects the company’s ongoing commitment to transparency and its strategic positioning in the pharmaceutical cannabis industry. The release of these financial results is expected to provide insights into the company’s operational performance and its impact on stakeholders, as well as its continued expansion in international markets.
M&A TransactionsBusiness Operations and Strategy
MediPharm Labs Sells Hope Facility to Enhance Strategic Growth
Positive
Mar 3, 2025
MediPharm Labs has agreed to sell its Hope Facility in British Columbia to Rubicon Organics for $4.5 million, a move that will bolster its debt-free balance sheet without affecting operations. The sale allows MediPharm to focus on strategic growth and international expansion in the pharmaceutical cannabinoid sector, enhancing its position as a global leader while maximizing shareholder value.
M&A TransactionsBusiness Operations and Strategy
MediPharm Labs Halts Napanee Facility Sale to Kensana Health, Strengthens International Focus
Neutral
Feb 10, 2025
MediPharm Labs has terminated the proposed sale of its Napanee Facility to Kensana Health due to unmet conditions by the latter, retaining non-refundable deposits as per the agreement. The decision ensures continued operations at the Napanee site, aligning with the company’s strategy to leverage international opportunities and grow its business-to-business services, reinforcing its position in the global cannabis market.
MediPharm Labs Extends Sale Deadline for Napanee Facility to Kensana Health
Jan 16, 2025
MediPharm Labs has announced the extension of the closing date for the sale of its Napanee Facility to Kensana Health, a transaction valued at $5.5 million. The sale, which involves the transfer of all equity interests in ABcann Medicinals Inc., is expected to conclude by January 31, 2025, subject to customary conditions and approvals. The ongoing operations at the facility remain uninterrupted, highlighting MediPharm’s strategic move to streamline its operations and focus on its core strengths in cannabis product development. This development may enhance MediPharm’s industry position by allowing it to allocate resources more effectively while also providing Kensana Health, a company with a strong biotechnology foundation, an opportunity to expand its operations.
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.