Acasti Pharma (TSXV:ACST) - Share price, News & Analysis

Q: What is the Fair Price of ACST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ACST (CA$1.13) is trading below our estimate of [[fair value]] (CA$118.27)

ACST fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

ACST Stock Overview

Acasti Pharma Inc., a biopharmaceutical company, engages in the development and commercialization of pharmaceutical products for cardiovascular diseases.

Rewards

Trading at 99% below our estimate of its fair value

Earnings have grown 14.7% per year over the past 5 years

Risk Analysis

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($0)

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (CA$50M)

Acasti Pharma Competitors

IM Cannabis

CNSX:IMCC

CA$59.9m

Auxly Cannabis Group

TSX:XLY

CA$67.4m

Decibel Cannabis

TSXV:DB

CA$36.4m

Rubicon Organics

TSXV:ROMJ

CA$49.3m

Price History & Performance

Summary of all time highs, changes and price drops for Acasti Pharma
Historical stock prices
Current Share Price	CA$1.13
52 Week High	CA$5.68
52 Week Low	CA$1.01
Beta	1.47
1 Month Change	-5.83%
3 Month Change	-24.67%
1 Year Change	-79.53%
3 Year Change	-92.64%
5 Year Change	-91.54%
Change since IPO	-97.79%

Shareholder Returns

	ACST	CA Pharmaceuticals	CA Market
7D	1.8%	-10.1%	-1.2%
1Y	-79.5%	-73.4%	-4.5%

Return vs Industry: ACST underperformed the Canadian Pharmaceuticals industry which returned -73.4% over the past year.

Return vs Market: ACST underperformed the Canadian Market which returned -4.5% over the past year.

Price Volatility

Is ACST's price volatile compared to industry and market?
ACST volatility
ACST Average Weekly Movement	8.6%
Pharmaceuticals Industry Average Movement	12.5%
Market Average Movement	10.1%
10% most volatile stocks in CA Market	17.5%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: ACST is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ACST's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	n/a	Jan D'Alvise	https://www.acastipharma.com

Acasti Pharma Inc., a biopharmaceutical company, engages in the development and commercialization of pharmaceutical products for cardiovascular diseases. It is evaluating strategic partnerships for the clinical development of CaPre. The company was incorporated in 2002 and is headquartered in Laval, Canada.

Acasti Pharma Fundamentals Summary

How do Acasti Pharma's earnings and revenue compare to its market cap?
ACST fundamental statistics
Market Cap	US$34.36m
Earnings (TTM)	-US$9.82m
Revenue (TTM)	n/a

0.0x

P/S Ratio

-3.9x

P/E Ratio

Is ACST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACST income statement (TTM)
Revenue	US$0
Cost of Revenue	US$0
Gross Profit	US$0
Other Expenses	US$9.82m
Earnings	-US$9.82m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.22
Gross Margin	0.00%
Net Profit Margin	0.00%
Debt/Equity Ratio	0%

How did ACST perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ACST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACST?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ACST. This is calculated by dividing ACST's market cap by their current preferred multiple.
What is ACST's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$34.36m

ACST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does ACST's PB Ratio compare to its peers?

ACST PB Ratio vs Peers

The above table shows the PB ratio for ACST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.7x
IMCC IM Cannabis	0.3x	131.1%	CA$59.9m
XLY Auxly Cannabis Group	0.4x	80.6%	CA$67.4m
DB Decibel Cannabis	0.8x	100.4%	CA$36.4m
ROMJ Rubicon Organics	1.3x	86.8%	CA$49.3m
ACST Acasti Pharma	0.4x	42.6%	CA$50.2m

Price-To-Book vs Peers: ACST is good value based on its Price-To-Book Ratio (0.4x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does ACST's PE Ratio compare vs other companies in the CA Pharmaceuticals Industry?

Price-To-Book vs Industry: ACST is good value based on its Price-To-Book Ratio (0.4x) compared to the Canadian Pharmaceuticals industry average (1x)

Price to Book Ratio vs Fair Ratio

What is ACST's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACST PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.4x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate ACST's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ACST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACST (CA$1.13) is trading below our estimate of fair value (CA$118.27)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

42.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ACST is forecast to have no revenue next year.

High Growth Revenue: ACST is forecast to have no revenue next year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Discover growth companies

Past Performance

How has Acasti Pharma performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACST is currently unprofitable.

Growing Profit Margin: ACST is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ACST is unprofitable, but has reduced losses over the past 5 years at a rate of 14.7% per year.

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

Earnings vs Industry: ACST is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (118.1%).

Return on Equity

High ROE: ACST has a negative Return on Equity (-9.07%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Acasti Pharma's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ACST's short term assets ($45.5M) exceed its short term liabilities ($3.3M).

Long Term Liabilities: ACST's short term assets ($45.5M) exceed its long term liabilities ($17.1M).

Debt to Equity History and Analysis

Debt Level: ACST is debt free.

Reducing Debt: ACST has no debt compared to 5 years ago when its debt to equity ratio was 6.5%.

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: ACST has sufficient cash runway for more than a year based on its current free cash flow.

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

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Dividend

What is Acasti Pharma current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ACST's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACST has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.7yrs

Average management tenure

CEO

Jan D'Alvise (66 yo)

6.08yrs

Tenure

US$428,040

Compensation

Ms. Janelle D’Alvise, also known as Jan, has been an Independent Director of Spectral Medical Inc. since June 03, 2021. She is the Chairman of the board of The ObG Project. She has been the Chief Executive...

CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD428.04K) is above average for companies of similar size in the Canadian market ($USD191.58K).

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

Leadership Team

Experienced Management: ACST's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: ACST's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.

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 been substantially diluted in the past year, with total shares outstanding growing by 70.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31