Thinkific Labs Inc. Fundamental Analysis (TSX: THNC.TO)
Thinkific Labs Inc. (TSX: THNC.TO) shows moderate financial fundamentals with a PE ratio of -81.45, profit margin of -1.21%, and ROE of -2.12%. The company generates $0.1B in annual revenue with strong year-over-year growth of 11.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze THNC.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTHNC.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTHNC.TO shows balanced valuation metrics.
Growth Score
ModerateTHNC.TO shows steady but slowing expansion.
Financial Health Score
ExcellentTHNC.TO maintains a strong and stable balance sheet.
Profitability Score
WeakTHNC.TO struggles to sustain strong margins.
Key Financial Metrics
Is THNC.TO Expensive or Cheap?
P/E Ratio
THNC.TO trades at -81.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, THNC.TO's PEG of 4.51 indicates potential overvaluation.
Price to Book
The market values Thinkific Labs Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -49.28 times EBITDA. This is generally considered low.
How Well Does THNC.TO Make Money?
Net Profit Margin
For every $100 in sales, Thinkific Labs Inc. keeps $-1.21 as profit after all expenses.
Operating Margin
Core operations generate -3.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.12 in profit for every $100 of shareholder equity.
ROA
Thinkific Labs Inc. generates $-1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Thinkific Labs Inc. generates limited operating cash flow of $1.62M, signaling weaker underlying cash strength.
Free Cash Flow
Thinkific Labs Inc. generates weak or negative free cash flow of $1.47M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
THNC.TO converts 2.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-81.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.008
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
-0.07
vs 25 benchmark
How THNC.TO Stacks Against Its Sector Peers
| Metric | THNC.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -81.45 | 34.93 | Better (Cheaper) |
| ROE | -2.12% | 750.00% | Weak |
| Net Margin | -1.21% | -3058.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 3.01 | 6.21 | Strong Liquidity |
| ROA | -1.45% | 308.00% | Weak |
THNC.TO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Thinkific Labs Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
288.56%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
229.41%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
137.40%
Industry Style: Growth, Innovation, High Beta
High Growth