TSX:CTX

Stock Analysis Report

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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, the United States, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTX is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: CTX's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

-8.6%

CTX

6.8%

CA Pharmaceuticals

0.3%

CA Market


1 Year Return

-22.1%

CTX

30.0%

CA Pharmaceuticals

1.8%

CA Market

Return vs Industry: CTX underperformed the Canadian Pharmaceuticals industry which returned 29.3% over the past year.

Return vs Market: CTX underperformed the Canadian Market which returned 1.3% over the past year.


Shareholder returns

CTXIndustryMarket
7 Day-8.6%6.8%0.3%
30 Day59.1%30.1%9.7%
90 Day27.6%50.5%8.7%
1 Year-22.1%-22.1%30.0%30.0%5.5%1.8%
3 Year23.3%23.3%-24.6%-25.6%13.3%2.2%
5 Yearn/a291.4%288.8%53.9%30.3%

Long-Term 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

Below Fair Value: CTX (CA$0.74) is trading below our estimate of fair value (CA$3.78)

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


Price To Earnings Ratio

PE vs Industry: CTX is poor value based on its PE Ratio (104.9x) compared to the CA Pharmaceuticals industry average (28x).

PE vs Market: CTX is poor value based on its PE Ratio (104.9x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

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 (0.7x) compared to the CA Pharmaceuticals industry average (1.7x).


Next Steps

Future Growth

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

61.0%

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?

45.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTX has a large one-off loss of CA$1.3M impacting its September 30 2020 financial results.

Growing Profit Margin: CTX's current net profit margins (0.9%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: CTX has become profitable over the past 5 years, growing earnings by 45.6% per year.

Accelerating Growth: CTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTX had negative earnings growth (-97.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-45%).


Return on Equity

High ROE: CTX's Return on Equity (0.7%) is considered low.


Next Steps

Financial Health

How is Crescita Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: CTX's short term assets (CA$20.1M) exceed its short term liabilities (CA$4.9M).

Long Term Liabilities: CTX's short term assets (CA$20.1M) exceed its long term liabilities (CA$1.1M).


Debt to Equity History and Analysis

Debt Level: CTX's debt to equity ratio (3.8%) 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 (619.8%).

Interest Coverage: CTX's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CTX'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 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

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

4.5yrs

Average board tenure


CEO

Serge Verreault

2.67yrs

Tenure

CA$823,032

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's total compensation ($USD639.11K) is above average for companies of similar size in the Canadian market ($USD166.09K).

Compensation vs Earnings: Serge's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Daniel Chicoine
Executive Chairmanno dataCA$214.23k5.06%
CA$ 784.1k
Anthony Dobranowski
Independent Lead Director4.75yrsCA$74.73k0.44%
CA$ 67.4k
John London
Independent Vice Chairmanno dataCA$47.73k0.94%
CA$ 145.1k
David Copeland
Independent Director4.75yrsCA$61.73k0.46%
CA$ 71.6k
Thomas Schlader
Independent Director4.25yrsCA$50.73k0.18%
CA$ 27.5k
Jean-François Tremblay
Director1.58yrsCA$27.29kno data

4.5yrs

Average Tenure

Experienced Board: CTX's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$15.486m
  • Shares outstanding: 20.65m
  • 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 Analysis2020/12/04 00:12
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
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.