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Knight Therapeutics
(TSX:GUD)
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Rating:67Neutral
Price Target:
C$12.00
▲(23.08% Upside)
Action:Downgraded
Date:09/07/26
The score is driven primarily by solid financial strength (low leverage and improved TTM cash flow) and supportive technical trends with the stock above major moving averages. Offsetting these positives, profitability remains inconsistent with compressed margins, and valuation is a key headwind given the high P/E and no dividend yield data.
Positive Factors
Revenue Growth
Consistent revenue expansion indicates improving commercial traction across Knight Therapeutics’ specialty pharmaceutical portfolio. Continued sales growth can support operating leverage, broaden the company’s market presence, and provide a stronger base for sustainable cash generation over the next several quarters.
Negative Factors
Margin Compression
The substantial gross-margin decline and very thin net margin indicate that higher costs, product mix, or pricing and royalty dynamics are limiting the conversion of revenue into profit. Unless margins stabilize, rising sales may produce only modest earnings growth and weak operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue expansion indicates improving commercial traction across Knight Therapeutics’ specialty pharmaceutical portfolio. Continued sales growth can support operating leverage, broaden the company’s market presence, and provide a stronger base for sustainable cash generation over the next several quarters.
Read all positive factors
Knight Therapeutics (GUD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.11B
Dividend YieldN/A
Average Volume (3M)64.82K
Price to Earnings (P/E)76.6
Beta (1Y)0.32
Revenue Growth42.32%
EPS Growth4332.35%
CountryCA
Employees830
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.15
Shares Outstanding98,231,610
10 Day Avg. Volume62,023
30 Day Avg. Volume64,817
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.79
Price to Sales (P/S)1.34
P/FCF Ratio8.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.75Price Target Upside20.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)C$552.22M
Knight Therapeutics Business Overview & Revenue Model
Company Description
Knight Therapeutics Inc., a specialty pharmaceutical enterprise established in Montreal, Canada in 2013, operates globally, with a strong presence across Canada and Latin America. The company's core business revolves around the development, acquis...
Knight Therapeutics Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum—record quarterly revenues and adjusted EBITDA, improved gross margin, a stronger balance sheet and an active launch and BD pipeline—supported by raised 2026 guidance. Key challenges include a withdrawal and delayed resubmission of Qelbree's Health Canada filing due to manufacturing changes, a meaningful YoY increase in operating expenses, a small Q1 net loss from investment revaluations, and medium-term risks from potential generic competition and Argentina hyperinflation exposure. Overall, the positive financial results, strengthened liquidity and well-filled launch pipeline materially outweigh the identifiable near-term execution and macro risks.Positive Updates
Record Revenue Growth
Reported record Q1 2026 revenues of $148 million, an increase of approximately $59.6–$60 million year-over-year (about +68–69% YoY). Growth drivers included incremental revenues from the Sumitomo and Paladin portfolios, promoted products and customer purchasing patterns.
Negative Updates
Withdrawal of Qelbree New Drug Submission in Canada
Withdrew Health Canada NDS for Qelbree due to partner manufacturing changes; resubmission expected later with required manufacturing data and previously requested technical information. Launch delay estimated at around 1–2 years, postponing anticipated revenues.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue Growth
Reported record Q1 2026 revenues of $148 million, an increase of approximately $59.6–$60 million year-over-year (about +68–69% YoY). Growth drivers included incremental revenues from the Sumitomo and Paladin portfolios, promoted products and customer purchasing patterns.
Read all positive updates
Company Guidance
Knight raised its fiscal 2026 outlook, now expecting revenues of $510–$525 million and adjusted EBITDA of ~15% of revenues (roughly $76.5–$78.8 million), an increase management attributes to stronger promoted‑product performance across Canada, Mexico and Colombia and an FX tailwind they estimate at ~$5–$10 million; the guidance assumes no material hyperinflation accounting adjustment in Argentina and other press‑release assumptions. For context, Q1 results included record revenues of $148 million, adjusted EBITDA of $28 million (adjusted EBITDA per share $0.28), adjusted gross margin of $70.6 million (48% of revenues), operating expenses of $43 million, operating cash inflows of $41 million, cash & marketable securities of $127 million, debt of ~$58 million (net cash ~$69 million), and management expects ~10 launches in 2026 after 15 launches over the last two years.Knight Therapeutics Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 547.30M | 450.09M | 371.30M | 328.20M | 293.56M | 243.48M |
| Gross Profit | 201.84M | 150.74M | 174.41M | 152.65M | 138.06M | 115.41M |
| EBITDA | 90.25M | 54.37M | 64.38M | 40.90M | 25.26M | 42.59M |
| Net Income | 14.87M | -5.37M | 4.33M | -16.84M | -29.89M | 15.68M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.05B | 963.80M | 945.49M | 1.05B | 991.89M |
| Cash, Cash Equivalents and Short-Term Investments | 109.60M | 95.28M | 172.84M | 154.42M | 185.61M | 162.99M |
| Total Debt | 34.28M | 77.91M | 49.46M | 69.09M | 77.70M | 40.96M |
| Total Liabilities | 246.25M | 279.03M | 168.69M | 198.62M | 228.98M | 149.87M |
| Stockholders Equity | 798.59M | 767.27M | 795.11M | 746.87M | 825.86M | 842.02M |
Cash Flow | ||||||
| Free Cash Flow | 108.04M | 68.40M | 4.81M | 25.98M | 14.66M | -179.56M |
| Operating Cash Flow | 112.90M | 70.30M | 36.28M | 35.94M | 40.48M | 44.62M |
| Investing Cash Flow | -4.69M | -84.11M | 16.96M | 29.34M | -63.08M | -105.28M |
| Financing Cash Flow | -96.17M | 13.01M | -33.54M | -81.00M | 1.76M | -78.31M |
Knight Therapeutics Technical Analysis
Positive
9.75
Price Trends
10.41
Positive
10.01
Positive
8.52
Positive
Market Momentum
0.31
Positive
59.34
Neutral
32.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GUD, the sentiment is Positive. The current price of 9.75 is below the 20-day moving average (MA) of 11.06, below the 50-day MA of 10.41, and above the 200-day MA of 8.52, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GUD.
Knight Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$1.70B | 17.61 | 6.46% | ― | 36.21% | 264.71% | |
74 Outperform | C$331.67M | 8.19 | 22.74% | ― | 3.18% | 140.09% | |
67 Neutral | C$1.11B | 76.61 | 1.91% | ― | 42.32% | 4332.35% | |
61 Neutral | C$186.13M | 2.05 | 21.99% | ― | 38.14% | 2030.00% | |
58 Neutral | C$139.52M | -12.23 | -14.43% | 3.42% | -1.18% | 42.93% | |
52 Neutral | C$372.12M | -2.93 | -21.00% | ― | -18.93% | -472.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TSE:GUD
Knight Therapeutics
11.27
5.43
92.98%
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13.05
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-11.82%
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1.32
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-41.85%
TSE:ACB
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5.66
-1.30
-18.68%
TSE:CRON
Cronos Group
4.62
1.09
30.88%
TSE:HLS
HLS Therapeutics Inc
4.51
-1.07
-19.18%
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.