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DRI Healthcare
(TSX:DHT.UN)
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Rating:63Neutral
Price Target:
C$19.50
▲(9.61% Upside)
Action:Reiterated
Date:08/17/26
Overall score reflects improving operating/cash performance but ongoing net losses and higher leverage as key constraints. Technicals are moderately positive, and valuation is helped by the dividend but limited by negative earnings. The latest earnings call was a clear positive catalyst due to high-end guidance confidence and strong reported growth/margins, partially offset by portfolio and product-specific headwinds.
Positive Factors
High-Margin Cash Generation
A 92% adjusted EBITDA margin and rising cash receipts show the royalty model can convert drug-linked revenue into substantial operating cash. If margins remain near management’s high-80s to 90% outlook, this supports distributions and reinvestment.
Negative Factors
Net Losses and Leverage
TTM net margin is about -22%, ROE is roughly -10%, and debt-to-equity is about 1.01. This combination indicates operating strength is not yet translating into durable bottom-line returns and leaves less flexibility if royalty receipts weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High-Margin Cash Generation
A 92% adjusted EBITDA margin and rising cash receipts show the royalty model can convert drug-linked revenue into substantial operating cash. If margins remain near management’s high-80s to 90% outlook, this supports distributions and reinvestment.
Read all positive factors
DRI Healthcare (DHT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$931.80M
Dividend Yield3.46%
Average Volume (3M)40.34K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth6.33%
EPS Growth-1216.48%
CountryCA
Employees32
SectorHealthcare
Sector Strength45
IndustryAsset Management
Share Statistics
EPS (TTM)-0.78
Shares Outstanding54,973,545
10 Day Avg. Volume40,762
30 Day Avg. Volume40,345
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.06
Price to Sales (P/S)2.38
P/FCF Ratio-40.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.50Price Target Upside26.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)3.37
Revenue Forecast (FY)C$267.79M
DRI Healthcare Business Overview & Revenue Model
Company Description
DRI Healthcare Trust is an unincorporated open-ended company. It engages in the provision of differentiated exposure to the fast-growing pharmaceutical and biotechnology industries through ownership and acquisition of royalties on pharmaceutical p...
How the Company Makes Money
DRI Healthcare makes money primarily by purchasing (or otherwise acquiring) economic rights to future cash flows associated with pharmaceutical products and then collecting those cash flows over time. Key revenue streams typically include: (1) Pro...
DRI Healthcare Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported record quarterly performance with double-digit growth in income, cash receipts up 16%, and a 40% increase in adjusted EBITDA (92% margin). The Ekterly monetization and Lumvoa FDA approval were material strategic wins that improve liquidity and create redeployment opportunities. There are manageable near-term headwinds — individual asset softness (Omidria, Zytiga, Spinraza), a temporary increase in reported interest expense due to transaction costs, use of credit for a milestone payment, and potential shorter portfolio duration after Ekterly — but management emphasizes strong balance sheet, ample liquidity ($520M available credit), and confidence in hitting the high end of 2026 guidance. Overall, the highlights materially outweigh the lowlights.Positive Updates
Record Financial Performance and Top-Line Growth
Total income of $50.1M in Q2 2026, up 13% year-over-year; royalty income growth of 8% YoY (7% ex-milestones); ex-milestones total income up 12% YoY.
Negative Updates
Asset-Specific Revenue Headwinds
Omidria royalty receipts declined 7% YoY; Spinraza receipts down 2% YoY (shipping issues affected international inventory); Zytiga receipts declined by $0.5M due to generic entry in Europe; Rydapt experiencing expected step-downs.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Financial Performance and Top-Line Growth
Total income of $50.1M in Q2 2026, up 13% year-over-year; royalty income growth of 8% YoY (7% ex-milestones); ex-milestones total income up 12% YoY.
Read all positive updates
Company Guidance
Management said they remain on track to deliver toward the high end of 2026 adjusted EBITDA guidance, pointing to Q2 adjusted EBITDA of $42.6 million (up 40% YoY) and a 92% adjusted EBITDA margin (versus ~76–82% a year ago), with H2 margins expected in the high‑80s to 90% range; Q2 total income was $50.1 million (+13% YoY), royalty income growth was 8% (royalties have grown from $41.0M in Q2‑2024 to $48.2M this quarter, nearly +18% over two years), cash receipts were $46.5 million (+16% YoY) and adjusted cash earnings per unit were $0.56 (TTM adjusted cash earnings/unit $2.56). They cited strong liquidity and balance‑sheet flexibility—$55.2M cash, $54.7M receivables and $520M credit availability—plus the imminent Ekterly put monetization (~$178M at a 1.5x realized return / high‑20s IRR) and the $75M Lumvoa milestone (royalties to begin in Q3), all of which support their guidance and planned redeployments.DRI Healthcare Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 203.37M | 195.17M | 138.55M | 117.44M | 79.87M | 73.33M |
| Gross Profit | 39.09M | -21.51M | 66.60M | -20.36M | 79.87M | 73.33M |
| EBITDA | 154.04M | 92.25M | -4.94M | 107.52M | 76.77M | 66.06M |
| Net Income | -43.91M | -51.35M | -3.36M | 91.50M | 11.60M | 21.56M |
Balance Sheet | ||||||
| Total Assets | 978.03M | 941.10M | 984.87M | 833.16M | 633.42M | 436.69M |
| Cash, Cash Equivalents and Short-Term Investments | 55.16M | 42.35M | 36.50M | 62.84M | 36.69M | 61.71M |
| Total Debt | 439.44M | 482.06M | 432.12M | 145.48M | 244.99M | 43.92M |
| Total Liabilities | 543.03M | 503.32M | 457.34M | 273.46M | 261.08M | 57.71M |
| Stockholders Equity | 435.00M | 437.78M | 527.53M | 561.50M | 372.34M | 378.99M |
Cash Flow | ||||||
| Free Cash Flow | 16.63M | -11.42M | -129.84M | -313.90M | -197.03M | -232.46M |
| Operating Cash Flow | 102.06M | 78.11M | 155.41M | 76.38M | 77.47M | 91.86M |
| Investing Cash Flow | -74.27M | -81.64M | -293.31M | -128.81M | -273.67M | -372.33M |
| Financing Cash Flow | -55.16M | 9.56M | 111.56M | 78.57M | 171.17M | 342.18M |
DRI Healthcare Technical Analysis
Negative
17.79
Price Trends
17.89
Negative
17.47
Negative
16.78
Positive
Market Momentum
-0.19
Positive
35.03
Neutral
29.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DHT.UN, the sentiment is Negative. The current price of 17.79 is above the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.89, and above the 200-day MA of 16.78, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DHT.UN.
DRI Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$2.17B | 13.10 | 6.82% | ― | 3.81% | 344.13% | |
63 Neutral | C$931.80M | -16.13 | -10.07% | 3.46% | 6.33% | -1216.48% | |
53 Neutral | C$3.52B | -69.75 | -4.47% | ― | 1.50% | 81.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | C$2.17B | -1.62 | -35.22% | ― | -2.30% | 26.63% | |
45 Neutral | C$456.65M | -2.35 | -28.27% | ― | -5.83% | -115.39% |
* Healthcare Sector Average
TSE:DHT.UN
DRI Healthcare
16.95
2.96
21.14%
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DRI Healthcare Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
DRI Healthcare Posts Record Q1 Income and Bolsters Balance Sheet With New Funding
Positive
Aug 14, 2026
DRI Healthcare Trust reported record first-quarter total income of $50.6 million for 2026, supported by total cash receipts of $58.4 million and adjusted EBITDA of $52.8 million with a 90% margin. Despite modest net earnings of $0.5 million and co...
Business Operations and StrategyM&A Transactions
DRI Healthcare Realizes US$178 Million from EKTERLY Royalty Exit
Positive
Aug 11, 2026
DRI Healthcare Trust has received approximately US$178 million from the exercise of its contractual put option on its royalty participation right in EKTERLY, triggered by Chiesi Group’s acquisition of KalVista Pharmaceuticals, Inc., bringing...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
DRI Healthcare Posts Record Q2 Results, Executes Ekterly Put and Adds Biopharma Experts to Board
Positive
Aug 7, 2026
DRI Healthcare reported record second-quarter 2026 results, with total income of $50.1 million, total cash receipts of $46.5 million and adjusted EBITDA of $42.6 million, reflecting a 92% adjusted EBITDA margin. The trust also repurchased units un...
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.
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.