XORTX Therapeutics Inc (XRTX) AI Stock Analysis

• Market Cap: C$5.01M
• Dividend Yield: N/A
• Average Volume (3M): 8.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: N/A
• EPS Growth: 99.37%
• Country: CA
• Employees: 2
• Sector: Healthcare
• Sector Strength: 62
• Industry: Biotechnology
• EPS (TTM): -1.81
• Shares Outstanding: 3,788,246
• 10 Day Avg. Volume: 4,077
• 30 Day Avg. Volume: 8,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.20
• P/FCF Ratio: 0.00
• 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: C$19.95
• Price Target Upside: 1285.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The overall stock score for XORTX Therapeutics Inc is low, driven primarily by its poor financial performance with no revenue and consistent losses. The technical analysis indicates bearish market conditions, further weighing down the score. Valuation metrics also reflect a negative assessment as the P/E ratio is negative, with no dividends to offset the lack of earnings. The combination of these factors suggests significant challenges ahead for the company.

XORTX Therapeutics Inc Business Overview & Revenue Model

Company Description

XORTX Therapeutics Inc (XRTX) is a clinical-stage biopharmaceutical company focused on developing innovative therapies to treat progressive kidney disease and other health conditions associated with chronic high uric acid levels. The company operates within the biotechnology and pharmaceutical sectors, primarily concentrating on the development of drug therapies aimed at addressing unmet medical needs.

How the Company Makes Money

XORTX Therapeutics Inc generates revenue through its drug development and commercialization efforts. The company primarily earns money by advancing its proprietary drug candidates through clinical trials, seeking regulatory approvals, and subsequently entering into licensing or partnership agreements with larger pharmaceutical companies for commercialization. These partnerships may involve upfront payments, milestone payments, and royalties on sales. Additionally, XORTX may receive research grants and funding from public or private sources to support its research and development activities. The company's revenue streams are heavily reliant on the successful progression and approval of its drug candidates.

XORTX Therapeutics Inc Financial Statement Overview

Summary

XORTX Therapeutics Inc is facing significant financial challenges with no revenue generation and consistent operating and net losses. While the company manages to maintain low debt levels, the depletion of assets and reliance on external financing highlight potential financial instability. The negative cash flow positions further emphasize the need for strategic redirection to achieve financial sustainability.

Income Statement

The company has consistently reported zero revenue across all periods, indicating a lack of generated sales or commercialization. Significant negative EBIT and EBITDA margins highlight operational inefficiencies and high costs relative to revenue, which is nonexistent. The net profit margin is negative due to ongoing losses, reflecting poor profitability. No positive growth trajectory is observed in revenue or profit-related metrics.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting minimal reliance on debt financing. However, the stockholders' equity has decreased significantly over time, primarily due to accumulating losses. The equity ratio indicates a reasonable proportion of equity financing, but declining equity levels represent a potential risk. The company shows a history of asset depletion, affecting financial stability.

Cash Flow

Operating cash flow remains negative, indicating cash outflow from operations, which is unsustainable in the long run. The free cash flow is consistently negative, reflecting ongoing cash deficits. The company has relied heavily on financing activities to sustain operations, which could pose a risk if external funding sources diminish. Growth in free cash flow is negative, showing no improvement in cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-76.51K	―	-75.27K	-17.88K	-20.44K	-19.90K
	EBIT
-6.86M	―	―	―	-1.30M	-565.97K
	EBITDA
-2.31M	―	-9.41M	-1.63M	-1.25M	-572.47K
	Net Income Common Stockholders
-736.66K	―	―	―	-1.28M	-629.58K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
260.02K	3.45M	10.41M	14.79M	171.27K	58.61K
	Total Assets
1.27M	5.47M	12.34M	17.28M	2.29M	1.09M
	Total Debt
43.26K	11.51K	77.44K	0.00	0.00	50.81K
	Net Debt
-216.76K	-3.44M	-10.33M	-14.79M	-171.27K	-7.80K
	Total Liabilities
943.70K	825.94K	5.37M	4.16M	1.03M	1.30M
	Stockholders Equity
321.54K	4.64M	6.97M	13.13M	1.26M	-211.72K
Cash Flow		Free Cash Flow
-4.13M	-6.63M	―	―	-742.75K	-256.62K
	Operating Cash Flow
-4.09M	-6.58M	―	―	-728.40K	-249.58K
	Investing Cash Flow
-44.68K	-46.36K	―	―	-14.35K	-7.04K
	Financing Cash Flow
1.36M	-361.04K	4.74M	19.18M	855.41K	55.21K

XORTX Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.44
• 50DMA: Positive
• 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:XRTX, the sentiment is Negative. The current price of 1.44 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.36, and below the 200-day MA of 1.95, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.78 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
CRON	68 Neutral	$979.28M	17.52	3.80%	―	35.87%	―
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
XRTX	34 Underperform	C$5.01M	―	-81.83%	―	―	99.37%

XORTX Therapeutics Inc Corporate Events

XORTX Therapeutics Announces Auditor Transition

XORTX Therapeutics Inc. announced a change of auditor, appointing Davidson & Company LLP as the new auditor effective January 16, 2025, following the resignation of Smythe LLP. This change has been reviewed by the audit committee and board of directors and filed on SEDAR+. There were no reservations or reportable events in the audit reports by the former auditor. The change is part of routine corporate governance and is not expected to impact the company’s operations or stakeholder relationships.

XORTX Therapeutics Expands Pipeline with Late-Stage Gout Program

XORTX Therapeutics Inc. announced the addition of a late-stage program aimed at treating gout in patients intolerant to allopurinol, a common xanthine oxidase inhibitor. The new program, XRx-026, will involve discussions with the FDA for a New Drug Application and potential orphan drug designation. The initiative highlights XORTX’s commitment to addressing significant unmet medical needs in the gout treatment market, particularly given the decline in use of alternative treatment Febuxostat due to safety concerns.

XORTX Therapeutics Welcomes New CFO Dr. Bumby

XORTX Therapeutics Inc. has appointed Dr. Michael Bumby as the new Chief Financial Officer, bringing his extensive experience in finance and leadership within the biotech and pharma industries. The appointment is expected to provide strategic financial guidance to the company as it advances its clinical development programs.

XORTX Therapeutics Unveils New Kidney Disease Discoveries

XORTX Therapeutics Inc. has unveiled groundbreaking discoveries in the field of Autosomal Dominant Polycystic Kidney Disease (ADPKD) at the Rare and Genetic Kidney Disease Summit. These findings highlight the role of genetic factors in disease progression and suggest a potential for personalized therapies targeting xanthine oxidase inhibition.