TSX:CRRX

Stock Analysis Report

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Executive Summary

CareRx Corporation provides specialty pharmacy services to seniors in Canada. More Details


Snowflake Analysis

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has CareRx's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRRX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

CRRX

-2.5%

CA Consumer Retailing

-0.4%

CA Market


1 Year Return

46.3%

CRRX

4.0%

CA Consumer Retailing

-3.9%

CA Market

Return vs Industry: CRRX exceeded the Canadian Consumer Retailing industry which returned 5.6% over the past year.

Return vs Market: CRRX exceeded the Canadian Market which returned -4.3% over the past year.


Shareholder returns

CRRXIndustryMarket
7 Day-0.8%-2.5%-0.4%
30 Day-6.6%-5.2%3.1%
90 Day-14.3%-2.2%2.4%
1 Year46.3%46.3%5.4%4.0%-0.4%-3.9%
3 Year-73.3%-73.3%35.6%23.5%6.7%-3.8%
5 Year-28.2%-28.2%41.3%25.1%35.5%14.7%

Price Volatility Vs. Market

How volatile is CareRx's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CareRx undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRRX (CA$4) is trading below our estimate of fair value (CA$28.39)

Significantly Below Fair Value: CRRX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CRRX is unprofitable, so we can't compare its PE Ratio to the CA Consumer Retailing industry average.

PE vs Market: CRRX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CRRX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CRRX has negative assets, so we can't compare its PB Ratio to the CA Consumer Retailing industry average.


Next Steps

Future Growth

How is CareRx forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CRRX's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CRRX's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CRRX's revenue (17.3% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: CRRX's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CRRX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CareRx performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRRX is currently unprofitable.

Growing Profit Margin: CRRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CRRX is unprofitable, and losses have increased over the past 5 years at a rate of 0.5% per year.

Accelerating Growth: Unable to compare CRRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CRRX is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (35.3%).


Return on Equity

High ROE: CRRX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is CareRx's financial position?


Financial Position Analysis

Short Term Liabilities: CRRX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CRRX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CRRX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CRRX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CRRX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CRRX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is CareRx current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CRRX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CRRX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CRRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRRX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRRX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

David Murphy

2.42yrs

Tenure

CA$1,185,800

Compensation

Mr. David Murphy has been the President at Cardinal Health Canada Inc. since April 2016 to 2018. He has been the President and Chief Executive Officer at CareRx Corporation (formerly known as Centric Healt ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD903.25K) is above average for companies of similar size in the Canadian market ($USD171.76K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Murphy
President2.42yrsCA$1.19m0.010%
CA$ 10.0k
Andrew Mok
Chief Financial Officer1.92yrsCA$482.45k0.025%
CA$ 25.0k
Paul Rakowski
VP, General Counsel & Corporate Secretary3.08yrsCA$446.70k0.010%
CA$ 10.0k
Nina Freier
Chief Human Resources Officer2yrsCA$382.40kno data
Jeffrey May
Chief Operating Officer0.42yrno data0.39%
CA$ 388.8k
Harold Becker
Head of Catastrophic Injury Assessment Field14.5yrsno datano data
Ryan Stempfle
VP & GM of Western Canada for the Specialty Pharmacy Division3.75yrsCA$234.67k0.17%
CA$ 164.6k

2.4yrs

Average Tenure

Experienced Management: CRRX's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Murphy
President2.42yrsCA$1.19m0.010%
CA$ 10.0k
Matthew Hills
Independent Member of the Board of Directors1.25yrsCA$48.00k0.41%
CA$ 400.0k
Peter Brown
Director0.42yrno data0.20%
CA$ 196.4k
Jack Shevel
Chairman Emeritus2.33yrsCA$94.80k3.52%
CA$ 3.5m
Darren Youngleson
Director11.33yrsCA$59.35k0%
CA$ 0
Christiane Bergevin
Independent Director0.33yrno datano data
John Ewing
Independent Director1.58yrsCA$47.30kno data
Kevin Dalton
Independent Chairman of the Board2.33yrsCA$145.60k0.57%
CA$ 567.7k
Raffaele Desando
Director0.92yrCA$750.00no data
Lyle Oberg
Director0.92yrCA$750.00no data
Bruce Moody
Director0.42yrno datano data

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CRRX's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CRRX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 128.3%.


Top Shareholders

Company Information

CareRx Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CareRx Corporation
  • Ticker: CRRX
  • Exchange: TSX
  • Founded: 2001
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$98.755m
  • Shares outstanding: 24.69m
  • Website: https://www.carerx.ca

Number of Employees


Location

  • CareRx Corporation
  • 20 Eglinton Avenue West
  • Suite 2100
  • Toronto
  • Ontario
  • M4R 1K8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRRXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2003
CHHH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2003
29C1DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2003

Biography

CareRx Corporation provides specialty pharmacy services to seniors in Canada. The company operates a network of pharmacy fulfilment centers that provide chronic medication and other specialty clinical phar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:14
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.