Edesa Biotech, Inc.
EDSA Healthcare Biotechnology
In the quarter to June 2026, EPS fell 140.0% and free cash flow fell 81.2%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Edesa Biotech, Inc. (EDSA) Altman Z-score
Edesa Biotech, Inc.'s Altman Z-score for fiscal 2020 is 22.29, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2020 | 22.29 | (16.37) |
| FY2019 | 38.67 | 40.18 |
| FY2018 | −1.51 | (13.70) |
| FY2017 | 12.18 | (3.73) |
| FY2016 | 15.91 | 8.26 |
| FY2015 | 7.65 | — |
How fiscal 2020’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.61 | — | 0.73 | |
| Retained earnings / total assets | (1.22) | — | −1.71 | |
| EBIT / total assets | (0.59) | — | −1.96 | |
| Market value of equity / total liabilities | 42.00 | — | 25.20 | |
| Sales / total assets | 0.03 | — | 0.03 | |
| Altman Z-score | Safe zone | 22.29 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.81 | ||
Z and Z″ put Edesa Biotech, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| EDSA Edesa Biotech, Inc. | 22.3× |
| CRVO CervoMed Inc. compare | 0.3× |
| LITS Lite Strategy, Inc. compare | −8.1× |
| LBPS 4D pharma PLC Sponsored ADR compare | — |
| IRLA Quince Therapeutics, Inc. compare | — |
| NNVC NanoViricides, Inc. compare | — |
| EXOZ eXoZymes Inc. compare | — |
| LIANY LianBio Sponsored ADR compare | — |
| FLNA Cassava Sciences, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets