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THERATECHNOLOGIES INC (TH.CA) Stock Fundamental Analysis

TSX:TH - Toronto Stock Exchange - CA88338H7040 - Common Stock - Currency: CAD

4.32  +0.02 (+0.47%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TH. TH was compared to 24 industry peers in the Biotechnology industry. Both the profitability and financial health of TH have multiple concerns. TH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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 negative operating cash flow in 4 of the past 5 years.
TH.CA Yearly Net Income VS EBIT VS OCF VS FCFTH.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10M -20M -30M -40M

1.2 Ratios

TH has a better Return On Assets (-6.57%) than 79.17% of its industry peers.
With an excellent Return On Invested Capital value of 41.62%, TH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
ROA -6.57%
ROE N/A
ROIC 41.62%
ROA(3y)-32.34%
ROA(5y)-29.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TH.CA Yearly ROA, ROE, ROICTH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400 -600

1.3 Margins

The Operating Margin of TH (13.89%) is better than 100.00% of its industry peers.
TH has a better Gross Margin (78.97%) than 95.83% of its industry peers.
In the last couple of years the Gross Margin of TH has grown nicely.
Industry RankSector Rank
OM 13.89%
PM (TTM) N/A
GM 78.97%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.54%
GM growth 5Y5.34%
TH.CA Yearly Profit, Operating, Gross MarginsTH.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TH is creating value.
TH has about the same amout of shares outstanding than it did 1 year ago.
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.
TH.CA Yearly Shares OutstandingTH.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
TH.CA Yearly Total Debt VS Total AssetsTH.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

TH has an Altman-Z score of -6.92. This is a bad value and indicates that TH is not financially healthy and even has some risk of bankruptcy.
TH has a better Altman-Z score (-6.92) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -6.92
ROIC/WACC4.02
WACC10.36%
TH.CA Yearly LT Debt VS Equity VS FCFTH.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M

2.3 Liquidity

A Current Ratio of 1.08 indicates that TH should not have too much problems paying its short term obligations.
TH has a Current ratio of 1.08. This is comparable to the rest of the industry: TH outperforms 54.17% of its industry peers.
TH has a Quick Ratio of 1.08. This is a bad value and indicates that TH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, TH perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.88
TH.CA Yearly Current Assets VS Current LiabilitesTH.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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4

3. Growth

3.1 Past

TH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.89%, which is quite impressive.
TH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.52%.
Measured over the past years, TH shows a small growth in Revenue. The Revenue has been growing by 6.31% on average per year.
EPS 1Y (TTM)86.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y7.14%
Revenue growth 5Y6.31%
Sales Q2Q%17.23%

3.2 Future

TH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.71% yearly.
TH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
EPS Next Y147.68%
EPS Next 2Y84.18%
EPS Next 3Y56.99%
EPS Next 5Y29.71%
Revenue Next Year-1.97%
Revenue Next 2Y6.24%
Revenue Next 3Y6.74%
Revenue Next 5Y7.37%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TH.CA Yearly Revenue VS EstimatesTH.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50M 100M
TH.CA Yearly EPS VS EstimatesTH.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 1 -1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

TH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
TH is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TH indicates a rather cheap valuation: TH is cheaper than 91.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TH to the average of the S&P500 Index (36.52), we can say TH is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 12.52
TH.CA Price Earnings VS Forward Price EarningsTH.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TH is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.65
TH.CA Per share dataTH.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

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.
TH's earnings are expected to grow with 56.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.18%
EPS Next 3Y56.99%

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0

5. Dividend

5.1 Amount

No dividends for TH!.
Industry RankSector Rank
Dividend Yield N/A

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THERATECHNOLOGIES INC

TSX:TH (7/17/2025, 7:00:00 PM)

4.32

+0.02 (+0.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)07-08 2025-07-08/bmo
Earnings (Next)10-08 2025-10-08/bmo
Inst Owners24.06%
Inst Owner ChangeN/A
Ins Owners0.91%
Ins Owner ChangeN/A
Market Cap198.63M
Analysts84
Price Target5.64 (30.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-255.34%
Min EPS beat(2)-410.68%
Max EPS beat(2)-100%
EPS beat(4)2
Avg EPS beat(4)-50.01%
Min EPS beat(4)-410.68%
Max EPS beat(4)216.48%
EPS beat(8)5
Avg EPS beat(8)-9.56%
EPS beat(12)6
Avg EPS beat(12)-18.07%
EPS beat(16)7
Avg EPS beat(16)-18.27%
Revenue beat(2)1
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-9.5%
Max Revenue beat(2)6.97%
Revenue beat(4)1
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-9.5%
Max Revenue beat(4)6.97%
Revenue beat(8)1
Avg Revenue beat(8)-7.88%
Revenue beat(12)1
Avg Revenue beat(12)-6.64%
Revenue beat(16)1
Avg Revenue beat(16)-8.6%
PT rev (1m)0%
PT rev (3m)-6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-300%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.66%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.52
P/S 1.63
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 12.65
EPS(TTM)-0.11
EYN/A
EPS(NY)0.34
Fwd EY7.99%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)-0.17
OCFYN/A
SpS2.65
BVpS-0.73
TBVpS-1.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.57%
ROE N/A
ROCE 57.81%
ROIC 41.62%
ROICexc 52.27%
ROICexgc N/A
OM 13.89%
PM (TTM) N/A
GM 78.97%
FCFM N/A
ROA(3y)-32.34%
ROA(5y)-29.26%
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 3Y4.54%
GM growth 5Y5.34%
F-Score3
Asset Turnover1.57
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 3.04
Cap/Depr 424.28%
Cap/Sales 13.09%
Interest Coverage 1.49
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.08
Quick Ratio 0.88
Altman-Z -6.92
F-Score3
WACC10.36%
ROIC/WACC4.02
Cap/Depr(3y)39.02%
Cap/Depr(5y)23.86%
Cap/Sales(3y)1.73%
Cap/Sales(5y)1.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)86.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y147.68%
EPS Next 2Y84.18%
EPS Next 3Y56.99%
EPS Next 5Y29.71%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y7.14%
Revenue growth 5Y6.31%
Sales Q2Q%17.23%
Revenue Next Year-1.97%
Revenue Next 2Y6.24%
Revenue Next 3Y6.74%
Revenue Next 5Y7.37%
EBIT growth 1Y264.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4.1%
EBIT Next 3Y43.2%
EBIT Next 5Y34.04%
FCF growth 1Y-14.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.38%
OCF growth 3YN/A
OCF growth 5YN/A