TSX:CTX

Stock Analysis Report

Executive Summary

Crescita Therapeutics Inc., a dermatology company, provides non-prescription skincare products and prescription drug products for the treatment and care of skin conditions, diseases, and their symptoms in Canada, Europe, the United States, Asia, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

CTX

-9.2%

CA Pharmaceuticals

-0.1%

CA Market


1 Year Return

80.9%

CTX

-60.2%

CA Pharmaceuticals

0.9%

CA Market

Return vs Industry: CTX exceeded the Canadian Pharmaceuticals industry which returned -60.2% over the past year.

Return vs Market: CTX exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

CTXIndustryMarket
7 Day-2.3%-9.2%-0.1%
30 Day-10.5%-26.9%-2.1%
90 Day-19.0%-37.2%-1.6%
1 Year80.9%80.9%-60.2%-60.2%4.4%0.9%
3 Year-48.5%-48.5%77.3%76.0%15.5%5.2%
5 Yearn/a266.3%266.3%25.7%7.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CTX (CA$0.85) is trading below our estimate of fair value (CA$19.22)

Significantly Undervalued: CTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTX is good value based on its PE Ratio (3.1x) compared to the Pharmaceuticals industry average (11.9x).

PE vs Market: CTX is good value based on its PE Ratio (3.1x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTX is good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

How is Crescita Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

89.5%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Crescita Therapeutics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Crescita Therapeutics performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTX's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: CTX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.6%).


Return on Equity

High ROE: CTX's Return on Equity (26.4%) is considered high.


Return on Assets

ROA vs Industry: CTX has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: CTX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Crescita Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: CTX's short term assets (CA$19.8M) exceeds its short term liabilities (CA$4.8M)

Long Term Liabilities: CTX's short term assets (19.8M) exceeds its long term liabilities (5.0M)


Debt to Equity History and Analysis

Debt Level: CTX's debt to equity ratio (20.5%) is considered satisfactory

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

Debt Coverage: CTX's debt is well covered by operating cash flow (77.8%).

Interest Coverage: CTX's interest payments on its debt are well covered by EBIT (15.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTX's debt is covered by short term assets (assets are 4.462240x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if CTX'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 CTX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Serge Verreault 0

1.5yrs

Tenure

CA$554,708

Compensation

Mr. Serge Verreault, BA, MBA has been the President of Crescita Therapeutics Inc. since April 17, 2017 and also has been its CEO since April 2, 2018. He served as General Manager of Crescita Therapeutics I ...


CEO Compensation Analysis

Compensation vs. Market: Serge has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Serge's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: CTX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: CTX's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$22,00012 Aug 19
Knight Therapeutics Inc.
EntityCompany
Shares20,000
Max PriceCA$1.10
SellCA$750,00005 Aug 19
Knight Therapeutics Inc.
EntityCompany
Shares750,000
Max PriceCA$1.00
SellCA$39,64226 Jul 19
Knight Therapeutics Inc.
EntityCompany
Shares37,100
Max PriceCA$1.08
SellCA$5,25023 Jul 19
Knight Therapeutics Inc.
EntityCompany
Shares5,000
Max PriceCA$1.05
SellCA$99,93119 Jul 19
Knight Therapeutics Inc.
EntityCompany
Shares87,100
Max PriceCA$1.19

Ownership Breakdown


Management Team

  • Dan Chicoine

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$458.02k
  • Greg Orleski (63yo)

    Consultant

    • Tenure: 2.9yrs
    • Compensation: CA$463.71k
  • Serge Verreault

    President & CEO

    • Tenure: 1.5yrs
    • Compensation: CA$554.71k
  • Jose DaRocha

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: CA$295.52k
  • Dominic King-Smith

    Vice President of Business Development

    • Tenure: 0yrs
    • Compensation: CA$329.40k

Board Members

  • Anthony Dobranowski

    Lead Director

    • Tenure: 3.6yrs
    • Compensation: CA$67.44k
  • John London

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CA$37.44k
  • Dan Chicoine

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$458.02k
  • David Copeland

    Director

    • Tenure: 3.6yrs
    • Compensation: CA$51.44k
  • Thomas Schlader

    Director

    • Tenure: 3.1yrs
    • Compensation: CA$43.44k
  • Jean-François Tremblay

    Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Crescita Therapeutics Inc.
  • Ticker: CTX
  • Exchange: TSX
  • Founded: 2016
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$17.834m
  • Shares outstanding: 20.98m
  • Website: https://www.crescitatherapeutics.com

Number of Employees


Location

  • Crescita Therapeutics Inc.
  • 2805 Place Louis-R Renaud
  • Laval
  • Quebec
  • H7V 0A3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTXTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2016
CRRT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2016

Biography

Crescita Therapeutics Inc., a dermatology company, provides non-prescription skincare products and prescription drug products for the treatment and care of skin conditions, diseases, and their symptoms in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:16
End of Day Share Price2019/10/15 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.