CareRx (CRRX) AI Stock Analysis

• Market Cap: C$170.94M
• Dividend Yield: N/A
• Average Volume (3M): 14.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -1.09%
• EPS Growth: 24.02%
• Country: CA
• Employees: 1,423
• Sector: Healthcare
• Sector Strength: 57
• Industry: Medical - Care Facilities
• EPS (TTM): -0.07
• Shares Outstanding: 61,985,752
• 10 Day Avg. Volume: 5,444
• 30 Day Avg. Volume: 14,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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$3.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

CareRx receives a moderate score of 68, driven primarily by strong cash flow management and positive technical trends, despite financial and profitability challenges. The high debt levels and negative profitability metrics weigh heavily on its valuation, posing a risk. Technical indicators show positive momentum, yet the lack of profitability and dividend yield detracts from its overall attractiveness.

Positive Factors

Financial Stability

Debt is decreasing, which may improve the company's financial stability.

Growth Potential

New beds to fuel top line and margin growth.

Operational Efficiency

Infrastructure optimized.

Negative Factors

Analyst Estimates

The financial results came in below the analyst's estimates.

Earnings Performance

EBITDA fell short mainly on one time expenses.

EBITDA Challenges

Consensus EBITDA estimates were not met, indicating potential challenges.

CareRx Business Overview & Revenue Model

Company Description

CareRx (CRRX) is a leading provider of pharmacy services in Canada, specializing in the distribution and management of medications for seniors and other individuals in care facilities. The company operates within the healthcare and pharmaceuticals sector, offering comprehensive medication management services to long-term care homes, retirement residences, and other institutional healthcare settings.

How the Company Makes Money

CareRx generates revenue primarily through the provision of pharmacy services to long-term care homes and retirement residences. The company earns money by dispensing medications, providing medication management and consulting services, and offering specialized packaging and delivery services to healthcare facilities. Key revenue streams include government funding, contracts with care facilities, and partnerships with healthcare providers. Significant factors contributing to its earnings are its extensive network of pharmacy locations across Canada and its focus on providing tailored healthcare solutions to meet the needs of its clients.

CareRx Financial Statement Overview

Summary

CareRx's financial performance shows mixed results. While cash flow metrics are strong, indicating good cash management, revenue and profit margins reveal operational challenges. High debt levels raise concerns about financial leverage and risk, despite improvements in equity position. Profitability remains a critical area needing attention.

Income Statement

CareRx has shown a volatile revenue trend with a recent decrease from 2023 to 2024. Gross profit margin remains healthy around 29% but has been inconsistent year-over-year. The net profit margin is negative due to recurring net losses, which highlights a challenge in converting revenue to profit. The EBIT and EBITDA margins are low, indicating operational challenges, yet there is a slight improvement in EBITDA margin, showing potential for operational efficiency gains.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to substantial debt levels, which poses financial risk. However, the equity ratio has improved recently, reflecting better equity position relative to assets. Return on equity is negative due to net losses, indicating inefficiencies in generating returns on shareholder investments.

Cash Flow

CareRx demonstrates strong free cash flow growth, showing improvement in cash generation capabilities. Operating cash flow has consistently improved, outpacing net income, which is a positive sign of cash management. However, reliance on negative net income for cash flow ratios indicates underlying profitability issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
366.71M	370.75M	381.73M	262.63M	162.20M
	Gross Profit
108.06M	84.72M	109.93M	75.28M	47.05M
	EBIT
4.53M	4.67M	7.91M	4.71M	-2.94M
	EBITDA
23.90M	24.65M	-610.00K	9.01M	4.15M
	Net Income Common Stockholders
-4.50M	-5.41M	-34.35M	-22.73M	-18.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.08M	7.03M	28.37M	35.63M	19.62M
	Total Assets
223.54M	231.89M	264.54M	282.82M	156.11M
	Total Debt
82.63M	97.86M	135.22M	125.57M	82.19M
	Net Debt
73.55M	90.83M	106.85M	89.95M	62.57M
	Total Liabilities
139.31M	150.37M	200.08M	200.53M	144.81M
	Stockholders Equity
84.23M	81.53M	64.46M	82.29M	11.30M
Cash Flow		Free Cash Flow
29.88M	18.68M	8.72M	153.00K	-1.73M
	Operating Cash Flow
37.99M	27.38M	22.33M	7.27M	229.00K
	Investing Cash Flow
-7.92M	-12.31M	-16.60M	-93.18M	-4.17M
	Financing Cash Flow
-28.02M	-36.40M	-12.99M	101.91M	23.50M

CareRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.76 is above the 20-day moving average (MA) of 2.69, above the 50-day MA of 2.67, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, 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	71 Outperform	C$1.21B	16.24	70.86%	3.32%	12.36%	123.26%
DR	69 Neutral	C$343.40M	2.45	23.77%	2.39%	-24.96%	549.36%
CRRX	68 Neutral	C$170.94M	―	-5.43%	―	-1.09%	24.02%
SIA	63 Neutral	C$1.58B	34.15	8.99%	5.45%	13.72%	429.22%
WELL	63 Neutral	C$1.08B	13.98	3.99%	―	18.51%	―
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
PHA	50 Neutral	C$4.16M	―	-160.58%	―	44.96%	-827.30%

CareRx Corporate Events

CareRx Reports Q4 2024 Results, Positions for Growth

CareRx Corporation reported its financial results for the fourth quarter of 2024, highlighting a strategic focus on operational efficiency and automation to support growth opportunities. Despite a slight decrease in revenue and adjusted EBITDA compared to the previous quarter, the company achieved a stronger balance sheet, driven by cost-saving initiatives and improved supply terms. The opening of a new pharmacy in North Burnaby, British Columbia, is set to enhance service delivery and optimize operations. Additionally, the conversion of the company’s unsecured convertible debentures into common shares marks a significant milestone in its financial strategy.

CareRx Corporation to Discuss Q4 2024 Financial Results in Upcoming Conference Call

CareRx Corporation announced it will host a conference call to discuss its fourth quarter 2024 financial results on March 5, 2025. The announcement highlights CareRx’s commitment to transparency and stakeholder engagement, as the company continues to solidify its position as a leader in pharmacy services for seniors living communities in Canada.