PharmaCielo (PCLO) AI Stock Analysis

• Market Cap: $11.33M
• Dividend Yield: N/A
• Average Volume (3M): 47.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: -7.62%
• EPS Growth: -2.33%
• Country: CA
• Employees: 268
• Sector: Healthcare
• Sector Strength: 78
• Industry: Pharmaceuticals
• EPS (TTM): -0.05
• Shares Outstanding: 175,724,660
• 10 Day Avg. Volume: 54,296
• 30 Day Avg. Volume: 47,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.66
• Price to Cash Flow (P/CF): -8.10
• P/FCF Ratio: 8.00
• 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

PharmaCielo is facing severe financial challenges with negative profitability, high leverage, and liquidity concerns. These factors significantly impact its overall stock score. The technical indicators also signal weak momentum and a bearish trend, further weighing on the stock's outlook. Valuation metrics do not provide a compelling case for investment, resulting in a low overall score.

PharmaCielo Business Overview & Revenue Model

Company Description

PharmaCielo (PCLO) is a Canadian-based company that operates in the pharmaceutical and wellness sectors, focusing on the production and supply of cannabis oil extracts. The company is headquartered in Toronto, Canada, and operates its cultivation and processing facilities in Colombia. PharmaCielo is dedicated to providing high-quality, natural cannabis products to international markets, leveraging Colombia's ideal climatic conditions for cannabis cultivation.

How the Company Makes Money

PharmaCielo makes money primarily through the production and sale of cannabis-derived products, including cannabis oil extracts. The company's revenue model involves cultivating cannabis plants in Colombia, where it benefits from cost-effective growing conditions and a skilled agricultural workforce. The harvested cannabis is processed into various oil extracts and sold to business customers, such as pharmaceutical companies and wellness product manufacturers, across different international markets. Key revenue streams include bulk sales of cannabis oil as well as white-label production for other brands. PharmaCielo's strategic partnerships and distribution agreements with companies around the world contribute significantly to its earnings by expanding its market reach and facilitating the entry of its products into new regions.

PharmaCielo Financial Statement Overview

Summary

PharmaCielo exhibits serious financial distress across all major financial statements, with ongoing operational losses, a weak balance sheet with negative equity, and negative cash flows. The company faces significant challenges in achieving profitability and financial stability, with high leverage and liquidity concerns posing substantial risks.

Income Statement

The income statement for PharmaCielo reveals significant challenges in profitability, with TTM (Trailing-Twelve-Months) showing a negative gross profit margin and net profit margin, both at concerning levels. The revenue growth rate is volatile, with a decline from previous annual reports. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. The overall financial health from an income perspective is poor, with consistent losses over the years.

Balance Sheet

PharmaCielo's balance sheet presents a precarious financial position, with negative stockholders' equity in the TTM period, indicating liabilities exceeding assets. The debt-to-equity ratio is not calculable due to negative equity, which signals high financial risk. The equity ratio is negative, reflecting a critical need for capital restructuring. Overall, the balance sheet highlights a significant imbalance in financial structure and high leverage risk.

Cash Flow

The cash flow statement illustrates substantial negative operating and free cash flows, indicating ongoing cash burn and potential liquidity issues. The TTM data shows minimal improvement in free cash flow compared to previous periods, but it remains negative. The operating cash flow to net income ratio is not favorable, and free cash flow growth is inconsistent. This suggests significant challenges in generating positive cash flow from operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.60M	1.54M	5.31M	1.94M	2.65M	786.90K
	Gross Profit
-2.09M	-1.37M	827.06K	-4.31M	-6.80M	-1.66M
	EBIT
-6.91M	-9.70M	-11.46M	-25.46M	-43.12M	-33.96M
	EBITDA
-8.40M	-12.02M	-10.50M	-24.84M	-41.55M	-33.21M
	Net Income Common Stockholders
-14.03M	-16.30M	-16.04M	-26.92M	-44.26M	-34.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.18K	62.18K	325.98K	5.63M	9.61M	13.78M
	Total Assets
22.29M	22.29M	25.12M	35.96M	44.02M	50.20M
	Total Debt
18.31M	18.31M	12.59M	8.43M	4.47M	1.57M
	Net Debt
18.25M	18.25M	12.41M	3.09M	-4.39M	-12.10M
	Total Liabilities
23.97M	23.97M	18.72M	16.63M	17.78M	4.73M
	Stockholders Equity
-1.68M	-1.68M	6.39M	19.33M	26.25M	45.47M
Cash Flow		Free Cash Flow
-3.25M	-5.17M	-10.23M	-21.21M	-28.00M	-35.88M
	Operating Cash Flow
-3.25M	-5.15M	-9.71M	-20.07M	-22.56M	-25.16M
	Investing Cash Flow
263.68K	391.64K	-725.49K	-1.66M	-5.57M	-11.27M
	Financing Cash Flow
2.98M	4.63M	5.30M	18.21M	23.32M	4.51M

PharmaCielo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PCLO, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PCLO.

PharmaCielo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OILS	58 Neutral	C$10.81M	―	-22.82%	―	19.28%	-214.04%
ACB	53 Neutral	$351.26M	27.53	4.78%	―	16.39%	-98.10%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
PCLO	28 Underperform	$11.33M	―	184.66%	―	-7.62%	-2.33%

PharmaCielo Corporate Events

PharmaCielo’s Revenue Soars with Strategic Growth

PharmaCielo reported an impressive 85% year-over-year sales growth, achieving a total revenue of $2.4 million for Q3 2024. The company expanded its market presence internationally and improved its cash flow and EBITDA, reflecting strong sales and cost reduction strategies. This progress highlights PharmaCielo’s strategic initiatives to serve diverse markets and drive further growth.

PharmaCielo Extends Warrant Expiry to Boost Market Position

PharmaCielo Ltd. has announced its plan to extend the expiry date of 9,007,200 share purchase warrants by one year, pending approval from the TSX Venture Exchange. This move reflects the company’s strategic focus on leveraging its Colombian operations to strengthen its position in the global medical cannabis market.