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CareRx (CRRX) AI Stock Analysis
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CareRx
(TSX:CRRX)
The score is driven primarily by improved financial performance (return to profitability, strong revenue growth, and solid free-cash-flow conversion) and supportive valuation (low P/E plus dividend yield). Technicals are moderately positive but not fully aligned with the long-term trend (below the 200-day average). The latest earnings call adds some near-term risk due to the identified 2026 funding headwind and softer liquidity metrics, partially offset by the 3,000-bed onboarding catalyst and dividend increase.
CareRx (CRRX) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 213.76M
- Dividend Yield
- 2.43%
- Average Volume (3M)
- 32.26K
- Price to Earnings (P/E)
- 7.9
- Beta (1Y)
- 0.07
- Revenue Growth
- 2.96%
- EPS Growth
- ―
- Country
- Canada
- Employees
- 1,483
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Care Facilities
CareRx Business Overview & Revenue Model
Company Description
CareRx Corporation, operating with its subsidiaries, specializes in delivering tailored pharmaceutical services to Canada's senior demographic. The company manages a vast network of medication dispensing facilities, which are responsible for providin...
CareRx Earnings Call Summary
The call presented a mix of positive operational and commercial progress (modest revenue and bed growth, a material ~3,000-bed contract win, dividend increase, ongoing efficiency actions and clinical/brand recognition) alongside near-term financial headwinds (a ~$2.0M funding hit from Ontario ward-bed changes, lower net income, slight margin compression, reduced quarter-end cash and higher net debt). Management expects the 3,000-bed win to be accretive over time and recovery of the ward-bed impact only after redevelopment in 2027. Overall the company shows constructive operational momentum but faces identifiable short-term funding and liquidity pressures.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that the Ontario ward‑bed funding change will be a roughly $2.0M headwind for 2026 (about $667k hit was realized in Q2), with the company expecting to recapture that revenue once ward rooms are redeveloped—likely by late 2027; they also confirmed semaglutide generic supply/margin benefits are expected to materialize in 2027. They will onboard approximately 3,000 retirement beds in Q3 (all onboarding to complete within the quarter, with the full revenue/EBITDA benefit showing in Q4) and remain focused on an organic target of 6,000–8,000 bed additions by year‑end (about halfway to the low end today). Key Q2 metrics cited alongside this guidance: revenue $93.6M (vs. $91.4M LY), adjusted EBITDA $8.0M (margin 8.6% vs. 8.8% LY), net income ≈ $0.4M (vs. $0.6M LY), cash from operations $3.7M, cash $9.6M, net debt $29.1M (net debt/adjusted EBITDA 0.9x), and a 10% dividend increase to $0.022/share (payable Oct 8; $1.3M of dividends paid subsequent).
CareRx Financial Statement Overview
Summary
Financials show a clear turn to profitability with strong TTM revenue growth (58.2%) and positive net margin (7.2%), supported by solid free cash flow ($23.8M) and healthy cash conversion (~84% of net income). Balance sheet leverage has improved (debt-to-equity ~0.71 vs. much higher in 2022), but operating leverage remains limited with thin EBIT margin (3.2%) and some potential variability in cash generation.
Income Statement
74PositiveBalance Sheet
63PositiveCash Flow
77Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 376.80M | 370.24M | 366.71M | 370.75M | 381.73M | 262.63M |
| Gross Profit | 95.15M | 92.63M | 108.06M | 84.72M | 109.93M | 75.28M |
| EBITDA | 29.64M | 28.53M | 23.90M | 24.65M | -610.00K | 9.01M |
| Net Income | 26.87M | 26.13M | -4.50M | -5.41M | -34.35M | -22.73M |
Balance Sheet | ||||||
| Total Assets | 243.16M | 253.02M | 223.54M | 231.89M | 264.54M | 282.82M |
| Cash, Cash Equivalents and Short-Term Investments | 10.05M | 14.40M | 9.08M | 7.03M | 28.37M | 35.63M |
| Total Debt | 76.33M | 77.92M | 82.63M | 97.86M | 135.22M | 125.57M |
| Total Liabilities | 133.56M | 143.51M | 139.31M | 150.37M | 200.08M | 200.53M |
| Stockholders Equity | 109.60M | 109.50M | 84.23M | 81.53M | 64.46M | 82.29M |
Cash Flow | ||||||
| Free Cash Flow | 23.80M | 21.95M | 29.88M | 18.68M | 8.72M | 153.00K |
| Operating Cash Flow | 27.40M | 27.54M | 37.99M | 27.38M | 22.33M | 7.27M |
| Investing Cash Flow | -9.00M | -8.26M | -7.92M | -12.31M | -16.60M | -93.18M |
| Financing Cash Flow | -17.52M | -14.44M | -28.02M | -36.40M | -12.99M | 101.91M |
CareRx Technical Analysis
Price Trends
Market Momentum
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 3.37 is above the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.24, and below the 200-day MA of 3.46, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.75 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
Overall Rating
- TSE:CRRX72Outperform
TSE:NLH71Outperform
TSE:DR62Neutral
TSE:WELL62Neutral
TSE:EXE57Neutral
TSE:SIA56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:CRRX | 72Outperform | CAD 213.86M | 7.86 | 25.79% | 2.43% | 2.96% | ― |
| TSE:NLH | 71Outperform | CAD 43.66M | 23.54 | 6.95% | ― | 18.35% | 1021.05% |
| TSE:DR | 62Neutral | CAD 237.42M | 8.20 | 45.36% | 2.45% | 2.64% | -56.04% |
| TSE:WELL | 62Neutral | CAD 1.07B | 165.22 | 0.44% | ― | 38.54% | ― |
| TSE:EXE | 57Neutral | CAD 2.53B | 20.13 | 36.33% | 1.96% | 31.14% | 34.48% |
| TSE:SIA | 56Neutral | CAD 2.18B | 37.83 | 6.58% | 4.76% | 16.11% | 31.75% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:CRRX | Carerx Corporation | 3.37 | -0.05 | -1.40% | |
| TSE:EXE | Extendicare Inc. | 26.57 | 10.57 | 66.03% | |
| TSE:NLH | Nova Leap Health | 0.50 | 0.22 | 78.57% | |
| TSE:SIA | Sienna Senior Living | 19.67 | 1.39 | 7.57% | |
| TSE:DR | Medical Facilities Corp | 14.68 | 0.56 | 3.95% | |
| TSE:WELL | Well Health Technologies | 4.18 | -0.98 | -18.99% |
CareRx Corporate Events
CareRx Sets November 5 Call to Discuss Q3 2026 Results
NeutralCareRx Corporation said it will release its third quarter 2026 financial results for the period ended September 30, 2026, after markets close on November 4, before hosting a conference call the following morning at 8:30 a.m. ET. The webcast, which wi...
CareRx Secures Larger, More Flexible Credit Facility with National Bank of Canada
PositiveCareRx Corporation has entered into a new credit agreement with National Bank of Canada that replaces its existing credit facility and significantly expands its access to capital. The arrangement is designed to support continued growth in its pharmac...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 31, 2026