TSX:HLS

Stock Analysis Report

Executive Summary

HLS Therapeutics Inc., a specialty pharmaceutical company, focuses on acquiring and commercializing pharmaceutical products in the specialty central nervous system and cardiovascular markets.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

HLS

1.9%

CA Healthcare

0.1%

CA Market


1 Year Return

-4.5%

HLS

-10.3%

CA Healthcare

1.6%

CA Market

Return vs Industry: HLS exceeded the Canadian Healthcare industry which returned -10.3% over the past year.

Return vs Market: HLS underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

HLSIndustryMarket
7 Day1.1%1.9%0.1%
30 Day3.5%1.7%-2.9%
90 Day-19.7%-7.7%-1.4%
1 Year-3.3%-4.5%-7.9%-10.3%5.2%1.6%
3 Yearn/a-0.5%-14.4%13.8%3.7%
5 Yearn/a58.9%19.0%25.3%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: HLS (CA$14.66) is trading above our estimate of fair value (CA$13.73)

Significantly Undervalued: HLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HLS is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLS is good value based on its PB Ratio (1.8x) compared to the CA Healthcare industry average (2.5x).


Next Steps

Future Growth

How is HLS Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HLS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HLS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HLS's revenue (17.5% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: HLS's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has HLS Therapeutics performed over the past 5 years?

-30.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLS is unprofitable, and losses have increased over the past 5 years at a rate of -30.1% per year.

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

Earnings vs Industry: HLS is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-46%).


Return on Equity

High ROE: HLS has a negative Return on Equity (-12.79%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HLS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HLS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is HLS Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: HLS's short term assets ($66.9M) exceeds its short term liabilities ($39.3M)

Long Term Liabilities: HLS's short term assets (66.9M) do not cover its long term liabilities (102.4M)


Debt to Equity History and Analysis

Debt Level: HLS's debt to equity ratio (50.1%) is considered high

Reducing Debt: Insufficient data to determine if HLS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: HLS has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLS's debt is not covered by short term assets (assets are 0.7x debt).


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: Whilst unprofitable HLS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HLS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.3% per year.


Next Steps

Dividend

What is HLS Therapeutics's current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Upcoming Dividend Payment

Purchase HLS Therapeutics before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%6.0%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HLS's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: HLS's dividend (1.34%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).

Stable Dividend: Too early to tell whether HLS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HLS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: HLS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of HLS Therapeutics's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Greg Gubitz (62yo)

5.3yrs

Tenure

US$1,222,437

Compensation

Mr. Gregory David Gubitz, also known as Greg, B.A., LL.B, is Co-Founder of HLS Therapeutics Inc. and serves as its Chief Executive Officer and Director. Mr. Gubitz serves as an Executive Officer for MDS, I ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Greg's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: HLS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: HLS's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$9,087,45706 Sep 19
OrbiMed Advisors LLC
EntityCompany
Shares673,145
Max PriceUS$13.50
BuyUS$6,75030 Aug 19
Ryan Lennox
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares500
Max PriceUS$13.50
BuyUS$43,62020 Aug 19
Gregory Gubitz
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares3,000
Max PriceUS$14.54
BuyUS$71,46119 Aug 19
Gilbert Godin
EntityIndividual
Role
President
President & COO
Shares5,000
Max PriceUS$14.30
BuyUS$280,00016 Aug 19
William Wells
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares20,000
Max PriceUS$14.00
BuyUS$155,00014 Aug 19
William Wells
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares10,000
Max PriceUS$15.50
SellUS$3,100,00007 Jun 19
William Wells
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares200,000
Max PriceUS$15.50

Ownership Breakdown


Management Team

  • Greg Gubitz (62yo)

    Co-Founder

    • Tenure: 5.3yrs
    • Compensation: US$1.22m
  • Bill Wells (58yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$907.12k
  • Gilbert Godin (60yo)

    President & COO

    • Tenure: 5.5yrs
    • Compensation: US$1.20m
  • Sanjiv Sharma (63yo)

    Chief Commercial Officer

    • Tenure: 1.1yrs
    • Compensation: US$658.52k
  • Hemanth Varghese (43yo)

    Head of Corporate Strategy & Business Development

    • Tenure: 2.1yrs
  • Tim Hendrickson (47yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$481.59k
  • Ryan Lennox (38yo)

    General Counsel & Corporate Secretary

    • Tenure: 1.4yrs

Board Members

  • Greg Gubitz (62yo)

    Co-Founder

    • Tenure: 5.3yrs
    • Compensation: US$1.22m
  • Laura Brege (61yo)

    Independent Director

    • Tenure: 0.8yrs
  • J. Lanthier (78yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$194.95k
  • Bill Wells (58yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$907.12k
  • Don DeGolyer (57yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$54.15k
  • Yvon Bastien (72yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$178.92k
  • Rodney Hill (51yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$54.82k

Company Information

HLS Therapeutics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HLS Therapeutics Inc.
  • Ticker: HLS
  • Exchange: TSX
  • Founded:
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: CA$450.664m
  • Shares outstanding: 30.74m
  • Website: https://www.hlstherapeutics.com

Number of Employees


Location

  • HLS Therapeutics Inc.
  • 10 Carlson Court
  • Suite 701
  • Toronto
  • Ontario
  • M9W 6L2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLSTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2018
HLTR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2018

Biography

HLS Therapeutics Inc., a specialty pharmaceutical company, focuses on acquiring and commercializing pharmaceutical products in the specialty central nervous system and cardiovascular markets. It markets Cl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:51
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.