Incannex Healthcare Limited Sponsored ADR (IXHL) AI Stock Analysis

• Market Cap: $19.10M
• Dividend Yield: N/A
• Average Volume (3M): 112.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.75
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.20
• Shares Outstanding: 93,695,370
• 10 Day Avg. Volume: 52,462,089
• 30 Day Avg. Volume: 112,285,849
• PEG Ratio: 11.40
• Price to Book (P/B): -5.68K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.09K
• Enterprise Value/Market Cap: 87.12
• Enterprise Value/Revenue: 46.23K
• Enterprise Value/Gross Profit: 69.35K
• Enterprise Value/Ebitda: -42.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

The overall stock score for IXHL stands at 39, driven by the company's initial revenue growth but overshadowed by significant profitability and cash flow challenges. Technical indicators suggest a bearish trend, with potential for further downside. Valuation factors also weigh negatively due to ongoing losses and lack of dividends. The company's strong equity position is a minor positive, but overall financial health remains a concern.

Incannex Healthcare Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Incannex Healthcare Limited Sponsored ADR (IXHL) is a healthcare company focused on the development and commercialization of medicinal cannabinoid and psychedelic pharmaceutical products. Operating primarily within the biotechnology and pharmaceuticals sectors, Incannex leverages cutting-edge research to address various medical conditions, including chronic pain, mental health disorders, and sleep apnea. The company is dedicated to developing innovative therapies through clinical trials and collaborations with leading research institutions.

How the Company Makes Money

Incannex Healthcare generates revenue through the development and commercialization of its proprietary pharmaceutical products. The company's primary revenue streams include sales of cannabinoid-based medications and psychedelic therapies, which are developed to treat specific medical conditions. In addition to direct sales, Incannex may enter into licensing agreements, strategic partnerships, or joint ventures with other pharmaceutical companies, enabling them to leverage external distribution networks and enhance market reach. Revenue is also derived from potential milestone payments and royalties associated with these partnerships, as well as from government grants or funding related to clinical research. Key factors contributing to the company's earnings include successful clinical trial outcomes, regulatory approvals, and the expansion of its product portfolio.

Incannex Healthcare Limited Sponsored ADR Financial Statement Overview

Summary

Incannex Healthcare Limited is experiencing initial revenue growth, but the company faces significant challenges with profitability and cash flow. Negative margins and declining cash reserves highlight financial difficulties, although a strong equity position offers some stability.

Income Statement

The company demonstrates a substantial increase in revenue from zero in 2023 to $12,000 in 2024, indicating some initial growth. However, profitability remains a concern with consistent negative net income, and EBIT and EBITDA margins are negative, highlighting operating challenges. Revenue growth is a positive sign, but the company struggles with profitability, typical for early-stage pharmaceutical companies.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.03, showing limited leverage risk. However, the reduction in stockholders' equity from the previous year signals potential capital erosion. The equity ratio is strong, but the company's liabilities have increased, which could pose future risks if not managed effectively.

Cash Flow

The cash flow statement shows a concerning trend with negative operating cash flows and declining free cash flow over time. The operating cash flow to net income ratio is negative, indicating inefficient cash flow generation from operations. The lack of positive free cash flow growth highlights ongoing liquidity challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
24.00K	12.00K	0.00	540.17K	1.42M	417.45K
	Gross Profit
24.00K	12.00K	0.00	535.79K	739.07K	106.65K
	EBIT
-14.75M	-30.04M	-49.67M	-10.16M	-7.66M	-2.70M
	EBITDA
-11.40M	-18.50M	-13.55M	-11.38M	-8.57M	-2.58M
	Net Income Common Stockholders
-12.36M	-18.46M	-48.81M	-10.29M	-8.53M	-3.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	5.86M	22.12M	25.80M	6.84M	2.49M
	Total Assets
11.11M	17.05M	23.78M	26.15M	7.00M	2.92M
	Total Debt
4.10M	373.00K	521.00K	0.00	0.00	0.00
	Net Debt
2.00M	-5.49M	-21.60M	-25.89M	-6.84M	-2.49M
	Total Liabilities
10.14M	5.83M	2.96M	1.39M	566.17K	736.35K
	Stockholders Equity
965.00K	11.22M	20.82M	24.76M	6.44M	2.17M
Cash Flow		Free Cash Flow
-7.89M	-16.12M	-11.06M	-8.84M	-5.18M	-2.70M
	Operating Cash Flow
-7.87M	-15.85M	-10.75M	-8.84M	-5.18M	-2.70M
	Investing Cash Flow
-11.00K	-277.00K	-316.00K	0.00	22.00K	―
	Financing Cash Flow
4.05M	0.00	8.18M	28.33M	9.30M	5.11M

Incannex Healthcare Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 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 IXHL, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.34, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 58.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IXHL.

Incannex Healthcare Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
CRIS	53 Neutral	$29.29M	―	-2951.24%	―	14.17%	28.26%
MODV	48 Neutral	$52.39M	―	-951.52%	―	-0.70%	-2.38%
NNVC	42 Neutral	$24.43M	―	-99.84%	―	―	10.23%
IXHL	39 Underperform	$19.10M	―	-201.88%	―	―	―
UBX	31 Underperform	$15.14M	―	-231.27%	―	―	35.08%

Incannex Healthcare Limited Sponsored ADR Corporate Events

Incannex Healthcare Repays Convertible Debenture in Full

On March 13, 2025, Incannex Healthcare Inc. repaid its outstanding 10% Original Issue Discount Senior Secured Convertible Debenture in full, which was initially issued under a Securities Purchase Agreement with Arena Special Opportunities (Offshore) Master II LP on September 6, 2024. This repayment, amounting to $3,851,111.00, led to the termination of the Debenture Purchase Agreement and related Security Documents, except for indemnification and registration rights. The company’s actions reflect a strategic financial decision that impacts its financial obligations and contractual relationships, with certain warrants and registration rights agreements remaining in effect.