Edesa Biotech, Inc. (EDSA) AI Stock Analysis
EDSA AI stock analysis summary
AI ResearchEdesa Biotech, Inc. (EDSA) is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immune-related diseases. Over the trailing twelve months, the company generated revenue of $500 with a diluted EPS of -$1.72. The stock closed at $2.57 on October 16, 2026, supported by $10.3M in cash and short-term investments as of June 30, 2026.
- Market cap
- $34.7M
- Revenue (TTM)
- $500
- P/E
- — fwd 0.2x
- 1Y return
- 4.5% S&P 500 16.8%
- Avg. target
- $16.33 535.5% vs last close
Bull case
- Analysts maintain 2 Strong Buy ratings with an average price target of $16.33, implying 535.5% upside from the $2.57 close.
- The stock has generated an 81.0% return year-to-date as of October 16, 2026.
- Balance sheet liquidity remains backed by $10.3M in cash and short-term investments and a current ratio of 2.76 as of June 30, 2026.
Bear case
- Revenue fell to $500 over the trailing twelve months, following a 5-year revenue CAGR of -79.2% from FY2016 to FY2021.
- Shareholder dilution has been substantial, with share count rising 372.2% over a five-year period through FY2025.
- Long-term market returns have lagged, with EDSA down 95.3% over five years while the S&P 500 gained 83.0%.
What Edesa Biotech does
Edesa Biotech, Inc. is a clinical-stage biopharmaceutical company headquartered in Markham, Canada. Founded in 2015, the company researches, develops, manufactures, and commercializes products targeting inflammatory and immune-related diseases. Its lead product candidate, EB05, is a monoclonal antibody in Phase 3 clinical trials for acute respiratory distress syndrome in Covid-19 patients. Its EB01 candidate is a topical vanishing cream in Phase 2b clinical studies for chronic allergic contact dermatitis. Edesa is also developing EB02 for hemorrhoids disease and EB06 for vitiligo. The company maintains research collaborations with NovImmune SA and Yissum Research Development Company.
Growth and profitability
Between FY2016 and FY2021, Edesa Biotech recorded a 5-year revenue CAGR of -79.2%. Annual revenue dropped from $228,287 in FY2017 to $500 in FY2021, which represented a 99.8% decline year-over-year. Net losses widened from -$5.0M in FY2017 to -$13.3M in FY2021, largely driven by an increase in research and development expense to $17.9M. In FY2021, EPS was -$13.55. For the trailing twelve months ended June 30, 2026, revenue was $500, with quarterly revenue falling 99.9% year-over-year. Operating margin and profit margin were both 0.0%, while return on equity was -122.9% and return on assets was -66.4%.
Balance sheet and cash flow
As of June 30, 2026, Edesa Biotech held $10.3M in cash and short-term investments, with total assets of $12.7M and shareholders' equity of $8.8M. The company reported a current ratio of 2.76. Operating cash flow in FY2021 was -$13.7M, and free cash flow was -$13.7M. Over the 5-year period through FY2025, the company's share count increased by 372.2%.
Valuation and performance
Edesa Biotech carries a market capitalization of $34.7M and an enterprise value of $37.6M. Its forward P/E ratio is 0.2x, compared to a median of 17.3x for its US-listed Healthcare peers, while its price-to-book ratio stands at 96.9x. The stock closed at $2.57 on October 16, 2026, which is 54.1% below its 200-day average. Over the past year, EDSA rose 4.5%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, EDSA fell 95.3%, compared to an 83.0% gain for the S&P 500.
What analysts expect
Covering analysts give Edesa Biotech 2 Strong Buy ratings, with zero Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $16.33, which is 535.5% above the last close of $2.57. For the fiscal year ending September 30, 2026, analysts estimate revenue of $0 and EPS of -$1.99. For the next fiscal year, 3 analysts project revenue of $0 and EPS of -$2.07. The company beat EPS estimates in 2 of the last 4 quarters.
Key risks and what to watch
- Free cash flow was -$13.7M in FY2021 as clinical development expenses continued.
- Analysts forecast revenue of $0 for both the fiscal year ending September 30, 2026, and the following fiscal year.
- The stock trades at a price-to-book multiple of 96.9x and stands 54.1% below its 200-day average.
- Return on equity of -122.9% and return on assets of -66.4% reflect sustained negative earnings.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this EDSA AI stock analysis
This page is an AI-written research summary of Edesa Biotech, Inc. (EDSA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: EDSA income statement, EDSA balance sheet, EDSA key metrics, EDSA analyst forecast, EDSA chart. See the EDSA stock overview for the latest quote and news.
EDSA AI stock analysis FAQ
What does Edesa Biotech do?
Edesa Biotech, Inc. is a clinical-stage biopharmaceutical company researching and developing treatments for inflammatory and immune-related conditions, including EB05 in Phase 3 trials and EB01 in Phase 2b trials.
What is the consensus analyst target for EDSA?
Analysts maintain 2 Strong Buy ratings with a mean price target of $16.33, which represents 535.5% upside compared to its closing price of $2.57.
Does Edesa Biotech pay a dividend?
Edesa Biotech does not pay a dividend.
What is Edesa Biotech's cash position?
As of June 30, 2026, Edesa Biotech held $10.3M in cash and short-term investments and reported a current ratio of 2.76.