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Apotex Health Corp.
(TSX:APTX)
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Rating:64Neutral
Price Target:
C$36.00
▲(8.60% Upside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by improved profitability and cash generation, but is held back by balance-sheet stress (high leverage and negative equity). The latest earnings call adds support via clear FY27 guidance, deleveraging progress, and pipeline/launch visibility, while technical signals remain weak-to-neutral and valuation is helped by a very high dividend yield.
Positive Factors
Profitability turnaround
The shift from losses to solid profitability, alongside materially higher gross and EBIT margins, indicates stronger operating execution and earnings quality. If maintained, the improved margin structure can support reinvestment, absorb moderate revenue pressure, and strengthen cash generation over coming quarters.
Negative Factors
Highly stressed capital structure
Debt growth combined with negative shareholders’ equity materially reduces balance-sheet resilience and financial flexibility. Even with improving earnings and cash flow, the stressed structure can constrain investment, increase sensitivity to operating setbacks, and make deleveraging a central requirement for sustained stability.
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Positive Factors
Negative Factors
Profitability turnaround
The shift from losses to solid profitability, alongside materially higher gross and EBIT margins, indicates stronger operating execution and earnings quality. If maintained, the improved margin structure can support reinvestment, absorb moderate revenue pressure, and strengthen cash generation over coming quarters.
Read all positive factors
Apotex Health Corp. (APTX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.33B
Dividend Yield0.19%
Average Volume (3M)581.19K
Price to Earnings (P/E)19.9
Beta (1Y)-0.32
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees6,000
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.70
Shares Outstanding228,499,020
10 Day Avg. Volume254,489
30 Day Avg. Volume581,192
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)-11.21
Price to Sales (P/S)1.79
P/FCF Ratio13.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$41.60Price Target Upside25.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.68
Revenue Forecast (FY)C$3.40B
Apotex Health Corp. Business Overview & Revenue Model
Company Description
Apotex Health Corp. operates as a pharmaceutical manufacturing company in Canada, the United States, Mexico, and India. The company develops, manufactures, and distributes a broad portfolio of prescription and generic pharmaceuticals, oncology bio...
Apotex Health Corp. Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial start to fiscal 2027: revenue growth, strong margins, improved leverage and liquidity following an upsized IPO, execution on a deep launch pipeline (>10% of revenue from launches) and strategic portfolio expansion (Cumberland). Key challenges were one‑time IPO accounting and FX impacts that produced a net loss, a pullback in U.S. and specialty generics year‑over‑year due to prior‑year exclusivity comparisons and a planned ophthalmic production pause tied to Richmond Hill remediation. Management provided clear remediation timelines, targets for >$100M of productivity savings, and fiscal‑year guidance (upper mid‑single‑digit revenue growth ex‑VLLP, ~30% adjusted EBITDA margin). Overall, the positive operational momentum, balance sheet strengthening and pipeline visibility outweigh the episodic and largely explained headwinds disclosed on the call.Positive Updates
Quarterly Revenue and Margin Performance
Revenue of $848M in Q1, up ~2% year-over-year on an ex-VLLP basis; gross profit $421M with gross margin near 50%; adjusted EBITDA $259M with an adjusted EBITDA margin of ~31% (30.6% reported for the quarter).
Negative Updates
Net Loss Driven by One‑Time IPO Accounting and FX
Reported net loss of $38M in Q1 largely driven by a ~$103M non‑cash, one‑time share‑based compensation charge (IPO-related modifications) and an unfavorable foreign exchange translation loss on U.S. dollar‑denominated debt.
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue and Margin Performance
Revenue of $848M in Q1, up ~2% year-over-year on an ex-VLLP basis; gross profit $421M with gross margin near 50%; adjusted EBITDA $259M with an adjusted EBITDA margin of ~31% (30.6% reported for the quarter).
Read all positive updates
Company Guidance
Apotex introduced fiscal 2027 guidance targeting upper mid‑single‑digit revenue growth (excluding the prior‑year VLLP) and an adjusted EBITDA margin of approximately 30%, with in‑year launch revenue expected to exceed 10% of total revenue (including a planned 180‑day U.S. exclusivity in H2) and productivity initiatives targeting more than $100 million of savings in FY27. For context, Q1 revenue was $848 million (≈+2% ex‑VLLP), gross profit $421 million (gross margin ~50%), adjusted EBITDA $259 million (~31% margin), adjusted net income $142 million (down 19% YoY), operating free cash flow $142 million, net debt ~$2.2 billion (down from $2.9 billion; net leverage 2.2x) with $259 million cash on hand, and a one‑time share‑based compensation charge of ~$103 million contributed to a reported net loss of $38 million; management also reiterated a pipeline of >480 planned launches over five years.Apotex Health Corp. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 3.49B | 3.35B | 2.94B |
| Gross Profit | 1.94B | 1.79B | 1.10B |
| EBITDA | 911.77M | 668.03M | 161.91M |
| Net Income | 373.78M | 151.70M | -146.92M |
Balance Sheet | |||
| Total Assets | 4.54B | 4.85B | 4.04B |
| Cash, Cash Equivalents and Short-Term Investments | 56.99M | 77.97M | 421.35M |
| Total Debt | 3.52B | 2.65B | 1.87B |
| Total Liabilities | 5.10B | 4.56B | 3.31B |
| Stockholders Equity | -557.93M | 290.59M | 732.53M |
Cash Flow | |||
| Free Cash Flow | 458.98M | 310.33M | 459.38M |
| Operating Cash Flow | 640.96M | 554.41M | 570.90M |
| Investing Cash Flow | -177.07M | -627.87M | -2.70B |
| Financing Cash Flow | -483.46M | -279.19M | -281.67M |
Apotex Health Corp. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$340.31M | 8.39 | 22.74% | ― | 3.18% | 140.09% | |
73 Outperform | C$212.60M | 7.81 | 25.79% | 2.45% | 2.96% | ― | |
67 Neutral | C$1.14B | 78.93 | 1.91% | ― | 42.32% | 4332.35% | |
64 Neutral | C$7.33B | 19.91 | -279.63% | 0.19% | ― | ― | |
63 Neutral | C$154.93M | -46.15 | -4.69% | ― | -3.16% | -345.50% | |
57 Neutral | C$3.38B | -2.18 | 88.77% | 5.04% | 9.12% | -1203.19% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
TSE:APTX
Apotex Health Corp.
32.06
5.11
18.94%
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Apotex Health Corp. Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Apotex Q1 2027 Results Show Strong Canadian Growth and Post-IPO Deleveraging
Positive
Aug 12, 2026
Apotex reported first-quarter Fiscal 2027 revenue of $848 million, broadly flat year over year once the prior contribution from generic Revlimid is excluded, with Canada leading growth at 11% on strong new product launches including semaglutide. A...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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