TSX:TH

Stock Analysis Report

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Executive Summary

Theratechnologies Inc., a biopharmaceutical company, markets prescription products in the United States, Europe, and Canada. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-13.8%

TH

-4.4%

CA Biotechs

-3.3%

CA Market


1 Year Return

-45.6%

TH

72.8%

CA Biotechs

-9.7%

CA Market

Return vs Industry: TH underperformed the Canadian Biotechs industry which returned 72.8% over the past year.

Return vs Market: TH underperformed the Canadian Market which returned -9.7% over the past year.


Shareholder returns

THIndustryMarket
7 Day-13.8%-4.4%-3.3%
30 Day-11.2%12.9%-4.4%
90 Day4.9%3.5%5.1%
1 Year-45.6%-45.6%72.8%72.8%-6.5%-9.7%
3 Year-59.9%-59.9%40.5%40.5%5.3%-4.9%
5 Year44.0%44.0%-8.4%-8.4%38.7%17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Theratechnologies 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: TH (CA$3.01) is trading below our estimate of fair value (CA$18.26)

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


Price To Earnings Ratio

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

PE vs Market: TH 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 TH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TH is overvalued based on its PB Ratio (11.2x) compared to the CA Biotechs industry average (6.1x).


Next Steps

Future Growth

How is Theratechnologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

65.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TH's is expected to become profitable in the next 3 years.

Revenue vs Market: TH's revenue (22.1% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: TH's revenue (22.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Theratechnologies performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TH is currently unprofitable.

Growing Profit Margin: TH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TH is unprofitable, and losses have increased over the past 5 years at a rate of 38.6% per year.

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

Earnings vs Industry: TH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-3.2%).


Return on Equity

High ROE: TH has a negative Return on Equity (-119.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Theratechnologies's financial position?


Financial Position Analysis

Short Term Liabilities: TH's short term assets ($72.2M) exceed its short term liabilities ($37.5M).

Long Term Liabilities: TH's short term assets ($72.2M) exceed its long term liabilities ($58.8M).


Debt to Equity History and Analysis

Debt Level: TH's debt to equity ratio (334.3%) is considered high.

Reducing Debt: Insufficient data to determine if TH'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: TH has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TH'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 TH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TH'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 TH'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?

2.2yrs

Average management tenure


CEO

Paul Lévesque (56 yo)

0.42

Tenure

Mr. Paul Lévesque has been President, Chief Executive Officer and Director at Theratechnologies Inc. since April 6, 2020. Mr. Lévesque boasts over 30 years of experience in the pharmaceutical field. After ...


Leadership Team

NamePositionTenureCompensationOwnership
Philippe Dubuc
Senior VP & CFO4.58yrsUS$608.25k0.036%
$ 84.3k
Christian Marsolais
Senior VP & Chief Medical Officer4.17yrsUS$949.25k0.077%
$ 178.5k
Jovan Antunovic
Senior VP & Chief Commercial Officer1.75yrsUS$656.20k0.0065%
$ 15.0k
Conor Walshe
General Manager of Theratechnologies Europe Limited1.5yrsUS$810.94kno data
Paul Lévesque
President0.42yrno data0.025%
$ 57.8k
Jocelyn Lafond
VP of Legal Affairs & Corporate Secretaryno dataUS$444.16k0.023%
$ 54.2k
Denis Boucher
Vice President of Communications & Corporate Affairs2.67yrsUS$457.30k0.0078%
$ 18.0k

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: TH's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Lévesque
President0.42yrno data0.025%
$ 57.8k
Roger Guillemin
Member of the Scientific Advisory Boardno datano datano data
Gary Littlejohn
Independent Director1.92yrsUS$106.33k0.014%
$ 33.4k
George Merriam
Member of the Scientific Advisory Boardno datano datano data
David Clemmons
Member of the Scientific Advisory Boardno datano datano data
Paul Pommier
Independent Director23.67yrsUS$120.00k0.51%
$ 1.2m
Gérald Lacoste
Independent Director14.58yrsUS$118.00k0.13%
$ 301.0k
Dawn Svoronos
Independent Chair of the Board7.33yrsUS$213.00k0.36%
$ 823.5k
Steven Grinspoon
Member of the Scientific Advisory Boardno datano datano data
Peter Reiss
Member of the Scientific Advisory Boardno datano datano data
Julian Falutz
Member of the Scientific Advisory Boardno datano datano data
Dale MacCandlish-Weil
Independent Director3.33yrsUS$97.50k0.022%
$ 50.3k

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: TH's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Theratechnologies Inc.
  • Ticker: TH
  • Exchange: TSX
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$231.810m
  • Shares outstanding: 77.01m
  • Website: https://www.theratech.com

Number of Employees


Location

  • Theratechnologies Inc.
  • 2015 Peel Street
  • 11th Floor
  • Montreal
  • Quebec
  • H3A 1T8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1993
TQ8DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1993
THTXNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDDec 1993

Biography

Theratechnologies Inc., a biopharmaceutical company, markets prescription products in the United States, Europe, and Canada. It offers EGRIFTA and EGRIFTA SV, for the reduction of excess abdominal fat in h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 06:08
End of Day Share Price2020/09/24 00:00
Earnings2020/05/31
Annual Earnings2019/11/30


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.