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Highlights
- Neighbourly Pharmacy’s revenue in Q3 FY 2023 was at C$ 178.87 million.
- In Q3 2022, dentalcorp Holdings’ revenue was noted at C$ 61.9 million.
- Avricore Health’s gross profit was at C$ 215,961 in Q3 2022.
With COVID-19 easing away, there are gradual changes experienced by the healthcare sector. The sector forms a core part of the overall market due to its constant need.
Currently, the S&P/TSX Health Care Index accounts for 0.43 per cent of the total Composite Index and reported a quarter-to-date (QTD) return of 12.603 per cent and month-to-date (MTD) of 5.43 per cent.
The onset of the pandemic affected the sector and led to several fluctuations. Although the market is always surrounded by uncertainties, it is crucial to monitor every factor diligently.
Sometimes, the fluctuations may happen even due to a small change. These small changes may lead to a bigger change. To select your stocks from the sector, you need to have a vigilant eye and the right understanding of the market.
Along with the stock performances, many other factors play a vital role in the background. Some of them include varying economic conditions, company financials, and exceptions like pandemics. Conducting proper research and eliminating the speculations may lead to a stabilized portfolio in the long run.
For investing in the sector, thorough research is essential as any deviation may lead to financial losses in the future. Hence, be prepared in advance and back your stock selection with the right analysis.
Amid all these discussions, let’s look at five healthcare stocks along with their recent financial highlights:
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Neighbourly Pharmacy Inc. (TSX:NBLY)
Neighbourly Pharmacy Inc. operates as a network of community pharmacies that act as the care center within their communities. The company represents healthcare delivery as well as trusted advice for patients.
In Q3 FY 2023, Neighbourly Pharmacy posted its revenue at C$ 178.87 million from C$ 90.66 million in the year-ago quarter. The adjusted EBITDA rose to C$ 19.77 million from C$ 9.97 million for the same comparable period. The company’s store count increased to 276,000 from 95,000.
As on September 10, 2022, the gross profit rose to C$ 70.36 million from C$ 33.63 million on September 11, 2021. The net income was reported at C$ 0.13 million from a net loss of C$ 3.39 million for the reported quarter. With a dividend yield of 0.73 per cent, Neighbourly Pharmacy paid a quarterly dividend of C$ 0.045 per share.
On October 24, 2022, Neighbourly Pharmacy acquired six community pharmacies in New Brunswick and Nova Scotia.
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dentalcorp Holdings Ltd. (TSX:DNTL)
dentalcorp Holdings Ltd. is a health care provider and acquires dental practices in Canada. In Q3 2022, the revenue increased by C$ 61.9 million and was reported at C$ $312.1 million. The adjusted EBITDA grew to C$ 52.1 million from C$ 27.3 million in the year-ago quarter.
The company’s adjusted free cash flow was noted at C$ 28.8 million compared to a loss of C$ 0.5 million. Meanwhile, the net income in the reported quarter dropped to C$ 14.2 million from C$ 17.5 million in the year-ago quarter.
dentalcorp Holdings’ cost of revenue in two different quarters:
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Medexus Pharmaceuticals Inc. (TSX:MDP)
Medexus Pharmaceuticals Inc is a pharmaceutical company which was formerly known as Pediapharm Inc. The company has its presence in North America and specializes in pediatrics and therapeutic areas of auto-immune disease.
In Q2 2023, Medexus Pharmaceuticals reported a total revenue of US$ 27.7 million, a YoY (year-over-year) increase of 55 per cent. The adjusted EBITDA rose to US$ 4.19 million from a loss of US$ 2.01 million in Q2 2022. The company noted its operating profit at US$ 1.9 million, a YoY increase of US$ 6.9 million.
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Cipher Pharmaceuticals Inc. (TSX:CPH)
Cipher Pharmaceuticals Inc. is a pharmaceutical company that offers Out-Licensed Products, Hospital Acute Care Products, Dermatology Products, among others. The company has a presence in the US and Canada.
In Q3 2022, the income from continuing operations soared to US$ 2.65 million from US$ 0.79 million in the year-ago quarter. Cipher Pharmaceuticals’ EBITDA grew to US$ 2.47 million from US$ 1.47 million for the same comparative period.
The adjusted EBITDA per share increased to US$ 0.10 from US$ 0.08 for the reported quarter. The company noted its P/E (price-to-earnings) ratio of 7.3 per cent with an EPS of US$ 0.48.
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Avricore Health Inc. (TSX:AVCR)
Avricore Health Inc. capitalizes consumer health trends and technological advancements. The company offers health providers, life-science companies, and consumers the ability to control health outcomes and spending.
In Q3 2022, Avricore Health reported its revenue at C$ 572,228 compared to C$ 75,104 in Q3 2021. The gross profit increased to C$ 215,961 from C$ 20,555 for the same comparable period. The company’s total assets decreased to C$ 2.12 million from C$ 2.51 million.
Bottom Line
The healthcare sector forms a necessity in every economy and is governed by multiple external factors. The pandemic is nearing the end but is still not completely gone. Hence, work on ways to stabilize your portfolio and minimize the risk.
Move ahead with a diversified long-term approach to spread out the risk hovering over the market. Beat the volatility by aligning your stock selection to your portfolio needs.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
