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 Analysis

Mediocre balance sheet with limited growth.


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

Stable Share Price: HLS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

HLS

0.5%

CA Healthcare

2.1%

CA Market


1 Year Return

4.4%

HLS

-42.6%

CA Healthcare

-21.2%

CA Market

Return vs Industry: HLS exceeded the Canadian Healthcare industry which returned -42.6% over the past year.

Return vs Market: HLS exceeded the Canadian Market which returned -21.2% over the past year.


Shareholder returns

HLSIndustryMarket
7 Day4.3%0.5%2.1%
30 Day-15.1%-20.8%-13.8%
90 Day-21.7%-25.6%-21.9%
1 Year5.6%4.4%-40.9%-42.6%-18.6%-21.2%
3 Yearn/a-50.7%-56.8%-11.0%-19.3%
5 Yearn/a-23.5%-40.8%1.6%-13.6%

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?

2.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HLS (CA$17.21) is trading above our estimate of fair value (CA$8.34)

Significantly Below Fair Value: 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

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 (2.1x) compared to the CA Healthcare industry average (2.1x).


Next Steps

Future Growth

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

56.5%

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 (27.9% per year) is forecast to grow faster than the Canadian market (3.4% per year).

High Growth Revenue: HLS's revenue (27.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has HLS Therapeutics performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLS is currently unprofitable.

Growing Profit Margin: HLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HLS is unprofitable, and losses have increased over the past 5 years at a rate of -19.1% 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 (7%).


Return on Equity

High ROE: HLS has a negative Return on Equity (-10.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is HLS Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: HLS's short term assets ($63.1M) exceed its short term liabilities ($47.1M).

Long Term Liabilities: HLS's short term assets ($63.1M) do not cover its long term liabilities ($94.3M).


Debt to Equity History and Analysis

Debt Level: HLS's debt to equity ratio (53%) 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


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 133.3% per year.


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HLS's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.57%).

High Dividend: HLS's dividend (1.12%) is low compared to the top 25% of dividend payers in the Canadian market (8.24%).


Stability and Growth of Payments

Stable Dividend: HLS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: HLS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HLS is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLS'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?

2.3yrs

Average management tenure


CEO

Greg Gubitz (62yo)

5.83s

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: Greg's total compensation ($USD1.22M) is about average for companies of similar size in the Canadian market ($USD1.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Wells
Co-Founder & Executive Chairman5.83yrsUS$907.12k3% $16.4m
Gregory Gubitz
Co-Founder5.83yrsUS$1.22m2.11% $11.5m
Gilbert Godin
President & COO6yrsUS$1.20m2.87% $15.7m
Tim Hendrickson
Chief Financial Officer1.58yrsUS$481.59k0.069% $378.6k
Sanjiv Sharma
Chief Commercial Officer1.58yrsUS$658.52kno data
Ryan Lennox
General Counsel & Corporate Secretary1.92yrsno data0.0016% $8.6k
Hemanth Varghese
Head of Corporate Strategy & Business Development2.58yrsno datano data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: HLS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Wells
Co-Founder & Executive Chairman5.83yrsUS$907.12k3% $16.4m
Gregory Gubitz
Co-Founder5.83yrsUS$1.22m2.11% $11.5m
Laura Brege
Independent Director1.25yrsno datano data
J. Lanthier
Lead Independent Directorno dataUS$194.95kno data
Donald DeGolyer
Independent Director2.08yrsUS$54.15kno data
Yvon Bastien
Independent Director4.67yrsUS$178.92kno data
Rodney Hill
Independent Director5.08yrsUS$54.82kno data

4.9yrs

Average Tenure

61yo

Average Age

Experienced Board: HLS's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 diluted in the past year, with total shares outstanding growing by 8.9%.


Top Shareholders

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$546.216m
  • Shares outstanding: 31.74m
  • 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 Clozaril, a pharmaceutical product used in the treatment of schizophrenia in Canada and the United States. The company also holds the U.S. marketing rights to Absorica, a commercial stage dermatology product. It has license agreement with Amarin Corporation plc to register, commercialize, and distribute Vascepa capsules in Canada. The company is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 01:21
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.