CareRx Corporation Fundamental Analysis (TSX: CRRX.TO)
CareRx Corporation Fundamental Analysis (TSX: CRRX.TO)
CareRx Corporation (TSX: CRRX.TO) shows moderate financial fundamentals with a PE ratio of 7.55, profit margin of 7.13%, and ROE of 25.79%. The company generates $0.4B in annual revenue with weak year-over-year growth of 0.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CRRX.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCRRX.TO demonstrates superior asset utilization.
Valuation Score
ExcellentCRRX.TO trades at attractive valuation levels.
Growth Score
WeakCRRX.TO faces weak or negative growth trends.
Financial Health Score
ExcellentCRRX.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateCRRX.TO maintains healthy but balanced margins.
Key Financial Metrics
Is CRRX.TO Expensive or Cheap?
P/E Ratio
CRRX.TO trades at 7.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRRX.TO's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values CareRx Corporation at 1.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.70 times EBITDA. This is generally considered low.
How Well Does CRRX.TO Make Money?
Net Profit Margin
For every $100 in sales, CareRx Corporation keeps $7.13 as profit after all expenses.
Operating Margin
Core operations generate 3.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.79 in profit for every $100 of shareholder equity.
ROA
CareRx Corporation generates $11.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CareRx Corporation generates limited operating cash flow of $27.42M, signaling weaker underlying cash strength.
Free Cash Flow
CareRx Corporation produces free cash flow of $23.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
CRRX.TO converts 11.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CRRX.TO Stacks Against Its Sector Peers
| Metric | CRRX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.55 | 32.14 | Better (Cheaper) |
| ROE | 25.79% | 550.00% | Weak |
| Net Margin | 7.13% | 30133.00% | Weak |
| Debt/Equity | 0.70 | 0.56 | Weak (High Leverage) |
| Current Ratio | 1.08 | 5.70 | Neutral |
| ROA | 11.05% | 3.00% | Excellent |
CRRX.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CareRx Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.26%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
146.42%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
3784.46%
Industry Style: Defensive, Growth, Innovation
High Growth