I also just noticed that TD bank has different stock values that I have and they also show a split on March 14, 2018 of .1658 to 1 that I do not have. Actually, there was no stock split in 2018, but HLS Therapeutics did a reverse takeover of Automodular Corp. HLS Therapeutics Inc. Stock Chart on Google gives AM’s stock prices. TD is different. I do not have time to resolve this issue at this time.
Is it a good company at a reasonable price? This stock has not done well since hitting a high in 2020. They have had a rising Revenue but the company has not made a profit. On the other hand, one of their most expensive items taken from Revenue, is Amortization and Depreciation charges. I have a lousy return because I paid way above the current price for stock in this company. However, I intend to keep the shares I got. I realize this is a high risk stock. The shares might have hit their bottom. The shares have been rising since the stock hit a bottom in 2024. The stock price could be cheap.
I own this stock of HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). I got this stock because it did a reverse takeover of Automodular Corp (TSX-AM, OTC-AMZKF) on March 12, 2018. There was a plan of arrangement whereby Automodular shareholders got 0.165834 HLS common shares and one HLS preferred share. The HLS preferred shares were a form of contingent value right allowing AMD shareholders to have an equity stake linked to the outcome of litigation that had been ongoing for several years between AMD and General Motors. I bought some stock in 2018, 2020 and 2023 because this is a Health Care sector stock and there are few of them in the Canadian market.
When I was updating my spreadsheet, I noticed that the book value is going down. This is typical of companies that raise money and are not making any money. I have not made any money on this stock. I have a loss of 21.95% per year with 22.87% from capital loss and 0.92 from Dividends.
If you had invested in this company in December 2015, for $1,008.99 you would have bought 88 shares at $11.47 per share. In December 2024, after 9 years you would have received $83.60 in dividends. The stock would be worth $340.62. Your total return would have been $424.22. This would be a total loss of 9.62% per year with 11.22% from capital loss and 1.59% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $11.47 | $1,008.99 | 88 | 9 | $83.60 | $340.62 | $424.22 |
The dividend was cancelled in 2023, so currently this is no yield and no Dividend Payout Ratios (DPR).
Debt Ratios are fine, but they do have a fair bit of debt. The Long Term Debt/Market Cap Ratio for 2024 is fine but a bit high at 0.71 and currently better at 0.56. The Liquidity Ratio for 2024 is good at 1.57 and a little low at 1.43 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.93 and currently at 1.88. The Debt Ratio for 2024 is good at 1.81 and 1.71 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.24 and 1.24 and currently at 2.30 and 1.30.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 0.71 | 0.56 |
| Intang/GW | 1.43 | 1.15 |
| Liquidity | 1.57 | 1.43 |
| Liq. + CF | 1.93 | 1.88 |
| Debt Ratio | 1.81 | 1.77 |
| Leverage | 2.24 | 2.30 |
| D/E Ratio | 1.24 | 1.30 |
The Total Return per year is shown below for years of 5 to 9 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | -30.24% | -31.20% | 0.96% |
| 2015 | 9 | -9.62% | -11.22% | 1.59% |
The Total Return per year is shown below for years of 5 to 9 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | -31.33% | -32.35% | 1.01% |
| 2015 | 9 | -10.28% | -12.21% | 1.93% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and therefore unusable, as are all the P/E Ratios. The company has made no profit.
I cannot calculate a Graham Price of when there is no ESP.
I get a 10-year median Price/Book Value per Share Ratio of 1.67. The current ratio is 1.72 based on a Book Value of $92M, Book Value per Share of $2.90 and a stock price of $5.00. The current ratio is 3% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 11.29. The current P/CF Ratio is 10.70 based on Cash Flow for last 12 months of $14.8M (10.8M US$), Cash Flow per Share of $0.47 and a stock price of $5.00. The current ratio is 5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I cannot do dividend yield tests as the dividends have been cancelled or at least suspended.
The 10-year median Price/Sales (Revenue) Ratio is 4.42. The current P/S Ratio is 2.01 based on Revenue estimate for 2025 of $78.97M ($57.3M US$), Revenue per Share of $2.49 and a stock price of $5.00. The current ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap but could be just relatively reasonable. The P/S Ratio test says this. Looking at a chart, the stock price is low. The few other tests I can do the stock was reasonable and below the median and above the median. Note that there is a problem with using US$ in these tests is that the stock is very seldom traded in US$ and there is a current big difference between US$ price and CDN$ price.
When I look at analysts’ recommendations, I find Strong Buy (2) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $6.30 ($4.57 US$) with a high of $9.39 ($6.82) and low of $3.86 ($2.80). The 12 month stock price consensus of $6.30 implies a total return of 25.90%, all from capital gains. I am surprised at how many analysts have recommendations since it is hard to find any analysts comments.
There are no entries on Stock Chase for this company. There is currently not much analyst interest in this company. Adam Othman on Motley Fool wrote about this company in 2023 says it gives you exposure to the Pharmaceutical industry. Christopher Liew on Motley Fool wrote about this company in 2022 says biotech stocks are high risk, but can have high rewards. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.
Simply Wall Street via Yahoo Finance but out a recent note on this company saying Revenue is expected to grow by 7% over next 3 years, compared to growth forecast of 9.2% for the Pharmaceuticals Industry in Canada. Simply Wall Street via Yahoo Finance talks about who owns shares in this company. institutional investors have a fair amount of stake in HLS Therapeutics. Simply Wall Street has one warning of currently unprofitable and not forecast to become profitable over the next 3 years.
HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company operates in Canada, and the United States, and the Rest of the world. Its web site is here HLS Therapeutics Inc.
The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. The next stock I will write about will be Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF) ... learn more on Friday, May 30, 2025 around 5 pm. Tomorrow on my other blog I will write about Reasons to Sell.... learn more on Thursday, May 29, 2025 around 5 pm.
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