PharmaCielo (PCLO) AI Stock Analysis

• Market Cap: C$9.99M
• Dividend Yield: N/A
• Average Volume (3M): 40.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 125.70%
• EPS Growth: 47.09%
• Country: CA
• Employees: 268
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 187,828,800
• 10 Day Avg. Volume: 31,894
• 30 Day Avg. Volume: 40,432
• PEG Ratio: 0.04
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 24 Underperform
• Price Target: ―

PharmaCielo's overall stock score is significantly impacted by its poor financial performance, which includes negative profitability, cash flow challenges, and a deteriorating balance sheet. Despite a positive corporate event indicating strong sales growth and improved financial stability, these improvements are not yet reflected in its technical indicators or valuation, resulting in a low overall score.

PharmaCielo Business Overview & Revenue Model

Company Description

PharmaCielo Ltd., together with its subsidiary, cultivates, processes, produces, and supplies medicinal-grade cannabis extracts, tetrahydrocannabinol, and related products. The company also offers telemedicine software. It serves health and wellness product manufacturers, pharmacies, medical clinics, and cosmetic companies in Canada and Colombia. The company has a strategic alliance with AssuredTrans Inc. PharmaCielo Ltd. is headquartered in Toronto, Canada.

How the Company Makes Money

PharmaCielo makes money through the cultivation, processing, and sale of cannabis extracts and related products. The company's revenue model is primarily based on the wholesale supply of cannabinoid-derived products to pharmaceutical companies, wellness brands, and other businesses that incorporate these ingredients into their products. Key revenue streams include the sale of cannabis oil extracts, isolated cannabinoids, and other derivative products. Significant partnerships with international distributors and pharmaceutical companies enhance PharmaCielo's market reach and contribute to its earnings by providing a steady demand for its high-quality cannabis products. Additionally, the company's strategic location and operational efficiency in Colombia allow for cost-effective production, further supporting its financial performance.

PharmaCielo Financial Statement Overview

Summary

PharmaCielo is experiencing financial difficulties characterized by negative profitability and cash flow metrics, alongside a deteriorating balance sheet. Revenue growth is a positive sign, but significant challenges remain in achieving operational efficiency and financial stability. The company's high financial leverage and negative equity position pose substantial risks to its long-term viability.

Income Statement

PharmaCielo's revenue has shown a growth trajectory over the latest period, increasing from $1.54M in 2023 to $3.48M in 2024. However, the company has faced persistent negative profitability metrics, with a gross profit margin of 21% and a negative net profit margin of -262% for 2024. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals a concerning negative equity position of -$7.52M in 2024, worsened from -$1.68M in 2023, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, but the increase in total debt to $20.52M suggests rising financial leverage. Overall, the balance sheet reflects significant financial risk and vulnerability.

Cash Flow

PharmaCielo's cash flow remains under pressure, with a negative operating cash flow of -$1.97M and a free cash flow of -$1.97M in 2024. The free cash flow growth rate is not meaningful given the negative figures. The operating cash flow to net income ratio is also negative, indicating cash flow challenges in covering operational expenses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.48M	1.54M	5.31M	1.94M	2.65M
	Gross Profit
730.88K	-1.37M	827.06K	-4.31M	-6.80M
	EBITDA
-4.60M	-12.02M	-10.50M	-24.84M	-41.55M
	Net Income
-9.14M	-16.30M	-16.04M	-26.92M	-44.26M
Balance Sheet		Total Assets
18.39M	22.29M	25.12M	35.96M	44.02M
	Cash, Cash Equivalents and Short-Term Investments
147.94K	62.18K	325.98K	5.63M	9.61M
	Total Debt
20.52M	18.31M	12.59M	8.43M	4.47M
	Total Liabilities
25.91M	23.97M	18.72M	16.63M	17.78M
	Stockholders Equity
-7.52M	-1.68M	6.39M	19.33M	26.25M
Cash Flow		Free Cash Flow
-1.97M	-5.17M	-10.23M	-21.21M	-28.00M
	Operating Cash Flow
-1.97M	-5.15M	-9.71M	-20.07M	-22.56M
	Investing Cash Flow
41.14K	391.64K	-725.49K	-1.66M	-5.57M
	Financing Cash Flow
2.02M	4.63M	5.30M	18.21M	23.32M

PharmaCielo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PCLO, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PCLO.

PharmaCielo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.34B	0.29	-60.38%	2.38%	17.46%	1.71%
PCLO	24 Underperform	C$9.99M	―	184.66%	―	125.70%	47.09%
KHRNF		$5.24M	―		―	―	―
SRUTF		$5.31M	―		―	―	―
LVRLF		$4.80M	―		―	―	―
CANB	53 Neutral	C$6.22M	28.67	2.43%	―	-14.41%	-93.67%
IMCC	48 Neutral	$8.55M	―	-63.75%	―	9.34%	69.69%

PharmaCielo Corporate Events

PharmaCielo Achieves Remarkable Sales Growth and Financial Stability in Q4 2024

PharmaCielo reported a significant financial turnaround in Q4 2024, achieving a 143% year-over-year sales growth with total revenue reaching $3.54 million. The company has improved its cash flow and adjusted EBITDA, reflecting strong sales growth and reduced costs. With strategic expansion into new markets and cost optimization, PharmaCielo is well-positioned for continued revenue momentum and expects positive EBITDA and cash flow in 2025.

PharmaCielo Issues Shares to Settle Debts and Interest

PharmaCielo announced its plans to issue shares to settle certain debts and interest payments. The company has issued 2,000,000 common shares to settle $200,000 of debt with service providers and 10,259,041 shares to fulfill nearly $978,000 in interest payments for its secured debentures. This action reflects PharmaCielo’s strategic financial management and its commitment to maintaining healthy relationships with its creditors.