📊 FENC Key Takeaways
Is Fennec Pharmaceuticals Inc.. (FENC) a Good Investment?
Fennec Pharmaceuticals exhibits fundamental deterioration with declining revenue (-6.1% YoY) and negative operating income, indicating core business stress despite barely positive net income driven by non-operating items. While the balance sheet is exceptionally strong with $40.2M cash and 6.98x current ratio, the company's negative interest coverage (-17.0x) and minimal free cash flow (6.2% margin) suggest unsustainable reliance on balance sheet reserves to fund operations.
Fennec Pharmaceuticals shows a commercially viable product profile with solid gross margins and meaningful revenue, but the business is still not self-funding at the operating or free cash flow level. The combination of negative net income, negative free cash flow, weak interest coverage, and negative stockholders' equity materially weakens the balance sheet and raises the importance of execution improvement.
Fennec Pharmaceuticals Inc.. Key Strengths (FENC)
- Exceptional liquidity with $40.2M cash representing 56% of total assets and 6.98x current ratio providing substantial financial flexibility
- Conservative leverage at 0.51x debt-to-equity ratio with manageable long-term debt of $19.4M
- Positive free cash flow of $939K demonstrates ability to generate cash despite operational challenges
- Healthy gross margin of 64.8% indicates favorable product economics
- Strong current and quick ratios suggest near-term liquidity is adequate
- Revenue base of $30.86M shows the company has moved beyond a purely pre-revenue stage
FENC Stock Risks: Fennec Pharmaceuticals Inc.. Investment Risks
- Declining revenue (-6.1% YoY) combined with negative operating margin (-0.8%) indicates deteriorating core business fundamentals and lack of operational profitability
- Negative interest coverage ratio (-17.0x) reveals company cannot service debt from operations and depends on cash reserves, creating sustainability concerns
- Extremely weak returns on capital (ROE 0.5%, ROA 0.3%) demonstrate severe capital inefficiency and minimal value creation despite significant asset base
- Negative stockholders' equity means liabilities exceed assets and limits balance sheet flexibility
- Operating cash flow of -$6.51M and free cash flow of -$7.95M indicate the business is still consuming cash
- Negative operating margin and interest coverage of -2.1x suggest debt servicing and profitability remain pressured
Key Metrics to Watch
- Revenue trajectory and stabilization - must reverse declining trend to validate business model viability
- Path to operating profitability - operating margin recovery is critical as net income appears dependent on non-operating items
- Cash runway and burn rate - monitor quarters of cash remaining relative to operating burn to assess sustainability without strategic changes
- Operating cash flow and free cash flow trend toward breakeven
- Operating margin improvement and balance sheet recovery from negative equity
Fennec Pharmaceuticals Inc.. (FENC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.98x current ratio provides a solid financial cushion.
FENC Profit Margin, ROE & Profitability Analysis
FENC vs Healthcare Sector: How Fennec Pharmaceuticals Inc.. Compares
How Fennec Pharmaceuticals Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fennec Pharmaceuticals Inc.. Stock Overvalued? FENC Valuation Analysis 2026
Based on fundamental analysis, Fennec Pharmaceuticals Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fennec Pharmaceuticals Inc.. Balance Sheet: FENC Debt, Cash & Liquidity
FENC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fennec Pharmaceuticals Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.02 indicates the company is currently unprofitable.
FENC Revenue Growth, EPS Growth & YoY Performance
FENC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.8M | $201.0K | $0.01 |
| Q3 2025 | $7.0M | -$638.0K | $-0.02 |
| Q2 2025 | $7.3M | -$1.2M | $-0.11 |
| Q1 2025 | $8.8M | -$1.2M | $-0.04 |
| Q3 2024 | $6.5M | $1.5M | $0.06 |
| Q2 2024 | $3.3M | -$5.4M | $-0.20 |
| Q1 2024 | $1.7M | -$6.1M | $-0.23 |
| Q3 2023 | $6.5M | -$1.9M | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fennec Pharmaceuticals Inc.. Dividends, Buybacks & Capital Allocation
FENC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fennec Pharmaceuticals Inc.. (CIK: 0001211583)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 2, 2026 | 4 | xslF345X06/form4-06022026_040601.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/form4-06012026_040609.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/form4-06012026_040607.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/form4-06012026_040605.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/form4-06012026_040603.xml | View → |
❓ Frequently Asked Questions about FENC
What is the AI rating for FENC?
Fennec Pharmaceuticals Inc.. (FENC) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FENC's key strengths?
Claude: Exceptional liquidity with $40.2M cash representing 56% of total assets and 6.98x current ratio providing substantial financial flexibility. Conservative leverage at 0.51x debt-to-equity ratio with manageable long-term debt of $19.4M. ChatGPT: Healthy gross margin of 64.8% indicates favorable product economics. Strong current and quick ratios suggest near-term liquidity is adequate.
What are the risks of investing in FENC?
Claude: Declining revenue (-6.1% YoY) combined with negative operating margin (-0.8%) indicates deteriorating core business fundamentals and lack of operational profitability. Negative interest coverage ratio (-17.0x) reveals company cannot service debt from operations and depends on cash reserves, creating sustainability concerns. ChatGPT: Negative stockholders' equity means liabilities exceed assets and limits balance sheet flexibility. Operating cash flow of -$6.51M and free cash flow of -$7.95M indicate the business is still consuming cash.
What is FENC's revenue and growth?
Fennec Pharmaceuticals Inc.. reported revenue of $15.1M.
Does FENC pay dividends?
Fennec Pharmaceuticals Inc.. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
Where can I find FENC SEC filings?
Official SEC filings for Fennec Pharmaceuticals Inc.. (CIK: 0001211583) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FENC's EPS?
Fennec Pharmaceuticals Inc.. has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FENC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Fennec Pharmaceuticals Inc.. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FENC stock overvalued or undervalued?
Valuation metrics for FENC: ROE of 0.5% (sector avg: 15%), net margin of 1.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FENC's AI grade for 2026?
Our dual AI analysis gives Fennec Pharmaceuticals Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FENC's free cash flow?
Fennec Pharmaceuticals Inc..'s operating cash flow is $2.4M, with capital expenditures of $1.4M. FCF margin is 6.2%.
How does FENC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 1.3% (avg: 12%), ROE 0.5% (avg: 15%), current ratio 6.98 (avg: 2).