CareRx (CRRX) AI Stock Analysis

• Market Cap: C$223.39M
• Dividend Yield: 0.56%
• Average Volume (3M): 71.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -0.16%
• EPS Growth: 75.25%
• Country: CA
• Employees: 1,423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 62,980,570
• 10 Day Avg. Volume: 18,484
• 30 Day Avg. Volume: 71,092
• PEG Ratio: 1.33
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 4.15
• 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$4.38
• Price Target Upside: 22.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: C$3.50 ▼(-2.51% Downside)

CareRx's overall stock score reflects significant financial performance challenges, particularly with declining revenues and negative profitability metrics. Despite some technical indicators showing bullish momentum, the valuation remains concerning due to a negative P/E ratio. The lack of earnings call data and corporate events further limits the assessment of future prospects.

Positive Factors

Increased Bed Count

The increase in bed count enhances CareRx's service capacity, potentially driving revenue growth and strengthening its market position in the long-term care sector.

Regulatory Stability

The pause in regulatory changes provides financial stability, allowing CareRx to maintain its revenue streams and focus on strategic growth without immediate funding cuts.

Board Election Success

The successful board election reinforces strategic continuity and leadership stability, which can enhance investor confidence and support long-term strategic initiatives.

Negative Factors

Declining Revenue

The declining revenue trend highlights challenges in maintaining market share and could impact long-term profitability unless reversed through strategic initiatives.

Profitability Issues

Persistent profitability issues, as indicated by negative net margins, could limit CareRx's ability to reinvest in growth and innovation, affecting its competitive position.

Negative Free Cash Flow Growth

Negative free cash flow growth may constrain future investments and strategic initiatives, potentially impacting CareRx's ability to expand and innovate in the long term.

CareRx Business Overview & Revenue Model

Company Description

CareRx Corporation, together with its subsidiaries, provides specialty pharmacy services to seniors in Canada. The company operates a network of pharmacy fulfilment centers that provide chronic medication and other specialty clinical pharmacy services. It serves approximately 50,000 residents in approximately 900 seniors and other communities, including long-term care homes, retirement homes, assisted living facilities, and group homes. The company was formerly known as Centric Health Corporation and changed its name to CareRx Corporation in June 2020. CareRx Corporation was incorporated in 2001 and is headquartered in Toronto, Canada.

How the Company Makes Money

CareRx generates revenue through multiple streams, primarily by providing pharmacy services to long-term care facilities, which include nursing homes and assisted living centers. The company charges these facilities for prescription medications and related services, such as medication management and compliance packaging. Additionally, CareRx may have partnerships with healthcare providers and payers, which can enhance its service offerings and revenue potential. The company's ability to streamline medication processes and improve health outcomes for residents also positions it favorably for potential reimbursement incentives from government and insurance programs.

CareRx Financial Statement Overview

Summary

CareRx demonstrates strong cash flow management and a healthy gross profit margin. However, challenges include stagnant revenue growth, negative net income, and significant debt levels, necessitating strategic focus on operational efficiency and growth opportunities.

Income Statement

CareRx's income statement shows moderate financial performance. The company has been struggling with profitability, as seen in the negative net income for TTM and annual periods. However, the gross profit margin is healthy at 29.5% TTM, demonstrating strong cost management relative to revenue. Revenue growth has been stagnant recently, indicating limited top-line expansion. The EBIT and EBITDA margins are modest, reflecting potential operational efficiencies but also suggesting room for improvement in cost control and revenue growth.

Balance Sheet

The balance sheet indicates a relatively high leverage, with a debt-to-equity ratio of 0.95 TTM, suggesting significant reliance on debt financing. Stockholders' equity has shown growth, albeit slowly, from 2021 to TTM. The equity ratio is moderate at 38.6% TTM, implying a balanced approach between debt and equity. However, the company's return on equity remains negative due to persistent net losses, indicating underperformance in generating returns on shareholders' investments.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio, indicating robust cash generation relative to net income losses. The free cash flow is positive and has shown growth, providing a buffer for investment and debt service. Despite investment in capital expenditures, the company maintains a positive free cash flow, which is a positive indicator of financial health. The company seems to manage its cash flows effectively, balancing operating needs with investment and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	365.96M	366.71M	370.75M	381.73M	262.63M	162.20M
Gross Profit	108.09M	108.06M	84.72M	109.93M	75.28M	47.05M
EBITDA	25.14M	23.90M	24.65M	-610.00K	9.01M	4.15M
Net Income	-1.82M	-4.50M	-5.41M	-34.35M	-22.73M	-18.18M
Balance Sheet
Total Assets	218.31M	223.54M	231.89M	264.54M	282.82M	156.11M
Cash, Cash Equivalents and Short-Term Investments	8.69M	9.08M	7.03M	28.37M	35.63M	19.62M
Total Debt	81.87M	82.63M	97.86M	135.22M	125.57M	82.19M
Total Liabilities	131.36M	139.31M	150.37M	200.08M	200.53M	144.81M
Stockholders Equity	86.95M	84.23M	81.53M	64.46M	82.29M	11.30M
Cash Flow
Free Cash Flow	23.95M	29.88M	18.68M	8.72M	153.00K	-1.73M
Operating Cash Flow	31.78M	37.99M	27.38M	22.33M	7.27M	229.00K
Investing Cash Flow	-9.15M	-7.92M	-12.31M	-16.60M	-93.18M	-4.17M
Financing Cash Flow	-21.16M	-28.02M	-36.40M	-12.99M	101.91M	23.50M

CareRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRRX, the sentiment is Positive. The current price of 3.59 is above the 20-day moving average (MA) of 3.56, above the 50-day MA of 3.35, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRRX.

CareRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	―	C$1.36B	16.46	65.09%	3.19%	8.68%	39.93%
DR	―	C$267.45M	2.12	41.13%	2.49%	-35.35%	948.72%
SIA	―	C$1.82B	49.45	6.94%	4.89%	10.13%	1.30%
CRRX	―	C$223.39M	―	-2.17%	0.56%	-0.16%	75.25%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
WELL	―	C$1.26B	―	-14.61%	―	20.36%	-186.10%
PHA	―	C$1.39M	-0.12	-1473.72%	―	-22.61%	7.72%

CareRx Corporate Events

CareRx to Discuss Q3 2025 Financial Results in Upcoming Conference Call

CareRx Corporation announced it will host a conference call on November 4, 2025, to discuss its third quarter financial results, which will be released after market close on November 3, 2025. This announcement reflects CareRx’s ongoing commitment to transparency and communication with stakeholders, potentially impacting investor confidence and market positioning as the company continues to lead in the pharmacy services sector for senior care communities.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$3.50 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.

CareRx Initiates Dividend and Renews Share Repurchase Program

CareRx Corporation announced the initiation of a quarterly dividend and received regulatory approval for the renewal of its normal course issuer bid to repurchase outstanding common shares. This move reflects the company’s commitment to a disciplined capital allocation strategy, allowing it to return capital to shareholders while maintaining financial flexibility for growth initiatives. The dividend is set at $0.02 per share, and the issuer bid allows for the repurchase of up to 1,500,000 common shares, representing approximately 2.4% of the total shares. This strategy is part of CareRx’s broader approach to manage capital effectively and reward shareholder confidence.

The most recent analyst rating on (TSE:CRRX) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on CareRx stock, see the TSE:CRRX Stock Forecast page.