Edesa Biotech Inc. Common Shares (EDSA)

FairStock Score: 10/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-style investor, I start with what is known. Edesa Biotech is a clinical-stage biopharmaceutical company with 17 employees, developing EB05 for acute respiratory distress syndrome and EB01 for chronic allergic contact dermatitis. The filed figures show no revenue in the periods provided. In fiscal Q3 2026, the quarter ended June 30, 2026, net income was -$5.4 million and diluted EPS was -$0.60. In fiscal Q2 2026, the quarter ended March 31, 2026, net income was -$4.2 million and EPS -$0.49; in fiscal Q1 2026, the quarter ended December 31, 2025, net income was -$2.2 million and EPS -$0.28. Full-year losses were -$7.2 million in fiscal year 2025, -$6.2 million in fiscal year 2024, and -$8.4 million in fiscal year 2023. The fiscal Q3 2026 loss is much larger than the -$1.7 million in fiscal Q3 2025. FairStock's calculations show a P/E of -1.66, P/B of 71.25, ROE of -122.93%, ROCE of -66.43%, TTM free cash flow of -$8.9 million, and FCF yield of -15.1% at the 2026-10-13 close of $2.85. The Piotroski score is 0/9, Altman Z is 1.16, and FairStock Score is 10/100. There is no Lynch category because the company lost money in each of the last four years. The business has no durable earnings moat today; its value rests on binary clinical and regulatory outcomes. The shares trade at a very high multiple of book value despite continuing cash burn. This is speculation, not a Graham-style bargain.

In plain English: Edesa Biotech is a small drug development company working on treatments for inflammatory and immune-related diseases. As of its latest filings, it reports no revenue and keeps losing money, and recent losses are larger than a year earlier. At $2.85 a share, the price looks expensive compared with its weak financial numbers, and the stock has swung between $0.72 and $20.32 over the past year.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer