Knight Therapeutics Inc. Fundamental Analysis (TSX: GUD.TO)
Knight Therapeutics Inc. Fundamental Analysis (TSX: GUD.TO)
Knight Therapeutics Inc. (TSX: GUD.TO) shows weak financial fundamentals with a PE ratio of 65.67, profit margin of 2.72%, and ROE of 1.91%. The company generates $0.5B in annual revenue with strong year-over-year growth of 21.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GUD.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakGUD.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateGUD.TO shows balanced valuation metrics.
Growth Score
ModerateGUD.TO shows steady but slowing expansion.
Financial Health Score
ExcellentGUD.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateGUD.TO maintains healthy but balanced margins.
Key Financial Metrics
Is GUD.TO Expensive or Cheap?
P/E Ratio
GUD.TO trades at 65.67 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GUD.TO's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Knight Therapeutics Inc. at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.17 times EBITDA. This signals the market has high growth expectations.
How Well Does GUD.TO Make Money?
Net Profit Margin
For every $100 in sales, Knight Therapeutics Inc. keeps $2.72 as profit after all expenses.
Operating Margin
Core operations generate 4.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.91 in profit for every $100 of shareholder equity.
ROA
Knight Therapeutics Inc. generates $1.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Knight Therapeutics Inc. produces operating cash flow of $112.88M, showing steady but balanced cash generation.
Free Cash Flow
Knight Therapeutics Inc. generates strong free cash flow of $108.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.10 in free cash annually.
FCF Yield
GUD.TO converts 11.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
65.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How GUD.TO Stacks Against Its Sector Peers
| Metric | GUD.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 65.67 | 32.02 | Worse (Expensive) |
| ROE | 1.91% | 569.00% | Weak |
| Net Margin | 2.72% | 29961.00% | Weak |
| Debt/Equity | 0.04 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 5.67 | Strong Liquidity |
| ROA | 1.42% | -96.00% (disorted) | Weak |
GUD.TO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Knight Therapeutics Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
198.58%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-122.40%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
862.41%
Industry Style: Defensive, Growth, Innovation
High Growth