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HLS Therapeutics has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
HLS Therapeutics Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
HLS Therapeutics did not have earnings to cover the interest expense.
HLS Therapeutics's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.71.
As of today, HLS Therapeutics's Altman Z-Score is -1.21.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
HLS Therapeutics has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
HLS Therapeutics Financial Strength Related Terms
TSX:HLS vs ZTS: Financial Strength Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, HLS Therapeutics's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HLS Therapeutics Financial Strength vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, HLS Therapeutics's Financial Strength distribution charts can be found below:
* The bar in red indicates where HLS Therapeutics's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
HLS Therapeutics has a Z-score of -1.21, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.21 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HLS Therapeutics (TSX:HLS) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on HLS Therapeutics and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, HLS Therapeutics' Financial Strength has ranged from 2.00 to 9.00.
Is HLS Therapeutics' Financial Strength too high?
HLS Therapeutics' current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 9.00. Overall, HLS Therapeutics has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HLS Therapeutics' Financial Strength compare to ZTS?
HLS Therapeutics' Financial Strength of 3 can be compared against companies in the Drug Manufacturers industry. Historically, HLS Therapeutics' own Financial Strength has ranged from 2.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Drug Manufacturers company?
A good Financial Strength depends on the Drug Manufacturers industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on HLS Therapeutics and its competitors. HLS Therapeutics's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HLS Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, HLS Therapeutics (TSX:HLS) is currently considered Modestly Undervalued. The stock's GF Value™ is C$4.37, compared to a current price of C$3.90 — trading 10.8% below its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. HLS Therapeutics' overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For HLS Therapeutics (TSX:HLS), the current Financial Strength is 3 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HLS Therapeutics (TSX:HLS) Overvalued in 2026?
Based on GuruFocus' analysis, HLS Therapeutics stock appears to be undervalued.
The current stock price of C$3.90 is trading 10.8% below its estimated GF Value™ of C$4.37.
GuruFocus considers HLS Therapeutics to be Modestly Undervalued.
Key valuation signals for TSX:HLS:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: C$4.37 vs. price of C$3.90 (10.8% below fair value)
No single metric tells the full story. See the TSX:HLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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's products include Clozaril, Vascepa, CSAN Pronto, and others. The company earns revenue in the form of product sales and royalties, out of which product sales contribute to the majority of the revenue. The company operates in Canada, the United States, and the Rest of world, with the majority of its revenue generated from Canada.
68GF Score
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