THERATECHNOLOGIES INC (TH.CA) Stock Fundamental Analysis
TSX:TH - Toronto Stock Exchange - CA88338H7040 - Common Stock - Currency: CAD
Overall TH gets a fundamental rating of 3 out of 10. We evaluated TH against 25 industry peers in the Biotechnology industry. TH has a bad profitability rating. Also its financial health evaluation is rather negative. TH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TH had negative earnings in the past year.
TH had a negative operating cash flow in the past year.
TH had negative earnings in each of the past 5 years.
TH had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -4.53%, TH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 42.50%, TH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.53% | ||
| ROE | N/A | ||
| ROIC | 42.5% |
ROA(3y)-36.02%
ROA(5y)-28.27%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 11.77%, TH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TH has a Gross Margin of 76.97%. This is amongst the best in the industry. TH outperforms 95.00% of its industry peers.
In the last couple of years the Gross Margin of TH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.77% | ||
| PM (TTM) | N/A | ||
| GM | 76.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.49%
GM growth 5Y1.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TH is creating value.
Compared to 1 year ago, TH has more shares outstanding
The number of shares outstanding for TH has been reduced compared to 5 years ago.
Compared to 1 year ago, TH has a worse debt to assets ratio.
2.2 Solvency
TH has an Altman-Z score of -5.89. This is a bad value and indicates that TH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -5.89, TH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -5.89 |
ROIC/WACC4.04
WACC10.52%
2.3 Liquidity
TH has a Current Ratio of 1.08. This is a normal value and indicates that TH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.08, TH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that TH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, TH is in line with its industry, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
TH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.87%, which is quite impressive.
TH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
Measured over the past years, TH shows a quite strong growth in Revenue. The Revenue has been growing by 12.58% on average per year.
EPS 1Y (TTM)91.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y7.37%
Revenue growth 5Y12.58%
Sales Q2Q%8.37%
3.2 Future
Based on estimates for the next years, TH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.97% on average per year.
Based on estimates for the next years, TH will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y103.61%
EPS Next 2Y44.2%
EPS Next 3Y29.68%
EPS Next 5Y17.97%
Revenue Next Year1.81%
Revenue Next 2Y2.14%
Revenue Next 3Y4.05%
Revenue Next 5Y5.31%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 24.62, TH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TH indicates a rather cheap valuation: TH is cheaper than 95.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.62 |
4.2 Price Multiples
TH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TH is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
TH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TH's earnings are expected to grow with 29.68% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.2%
EPS Next 3Y29.68%
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TH (2/21/2025, 7:00:00 PM)
2.64
-0.08 (-2.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners25.27%
Inst Owner ChangeN/A
Ins Owners0.91%
Ins Owner ChangeN/A
Market Cap121.39M
Analysts84
Price Target6.02 (128.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)155.33%
Min EPS beat(2)94.17%
Max EPS beat(2)216.48%
EPS beat(4)4
Avg EPS beat(4)99.92%
Min EPS beat(4)20.75%
Max EPS beat(4)216.48%
EPS beat(8)5
Avg EPS beat(8)50.48%
EPS beat(12)6
Avg EPS beat(12)20.64%
EPS beat(16)8
Avg EPS beat(16)9.93%
Revenue beat(2)0
Avg Revenue beat(2)-5.02%
Min Revenue beat(2)-8.51%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-8.53%
Min Revenue beat(4)-21.53%
Max Revenue beat(4)-1.53%
Revenue beat(8)0
Avg Revenue beat(8)-8.48%
Revenue beat(12)0
Avg Revenue beat(12)-8.71%
Revenue beat(16)1
Avg Revenue beat(16)-9.81%
PT rev (1m)0%
PT rev (3m)-26.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4.77%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.62 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)-0.14
EYN/A
EPS(NY)0.11
Fwd EY4.06%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS2.6
BVpS-0.61
TBVpS-0.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.53% | ||
| ROE | N/A | ||
| ROCE | 59.02% | ||
| ROIC | 42.5% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.77% | ||
| PM (TTM) | N/A | ||
| GM | 76.97% | ||
| FCFM | N/A |
ROA(3y)-36.02%
ROA(5y)-28.27%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.49%
GM growth 5Y1.53%
F-Score4
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 105.49% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | -5.89 |
F-Score4
WACC10.52%
ROIC/WACC4.04
Cap/Depr(3y)21.55%
Cap/Depr(5y)22.65%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y103.61%
EPS Next 2Y44.2%
EPS Next 3Y29.68%
EPS Next 5Y17.97%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y7.37%
Revenue growth 5Y12.58%
Sales Q2Q%8.37%
Revenue Next Year1.81%
Revenue Next 2Y2.14%
Revenue Next 3Y4.05%
Revenue Next 5Y5.31%
EBIT growth 1Y152.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year201.61%
EBIT Next 3Y51.82%
EBIT Next 5Y35.88%
FCF growth 1Y64.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.34%
OCF growth 3YN/A
OCF growth 5YN/A