📊 GRCE Key Takeaways
Is Grace Therapeutics, Inc. (GRCE) a Good Investment?
Grace Therapeutics is unprofitable with -$7.8M net loss and negative operating cash flow of -$8.9M, indicating the company cannot convert $100M in revenue into positive operating results despite 18.6% YoY net income improvement. With only $17M cash and an ~$9M annual burn rate, the company has approximately 2 years of runway before requiring profitability or additional capital. While the strong balance sheet and improving loss trajectory are positives, the fundamental inability to generate operating cash flow presents an unacceptable risk profile.
Grace Therapeutics remains unprofitable and cash-flow negative, but net loss and diluted EPS improved year over year while its debt-free, highly liquid balance sheet provides meaningful financial resilience. The reported $100 million revenue is not supported by gross-profit data, making revenue quality and operating performance difficult to assess; continued cash burn and uncertain commercialization economics warrant caution.
Grace Therapeutics, Inc. Key Strengths (GRCE)
- Strong balance sheet with $63.9M stockholders' equity, only $2.8M liabilities, and zero long-term debt providing substantial financial cushion
- Excellent liquidity position with 8.1x current ratio and $17M in cash equivalents
- Rapidly improving loss profile with net income up 18.6% YoY and diluted EPS up 40.5% YoY demonstrating directional momentum toward profitability
- Strong liquidity with current and quick ratios above 8.0x
- Debt-free capital structure with liabilities of only $2.76 million against $63.90 million of equity
- Improving net loss and diluted EPS trends year over year
GRCE Stock Risks: Grace Therapeutics, Inc. Investment Risks
- Significant operating cash burn of -$8.9M annually despite positive revenue, indicating fundamental operational inefficiency and questionable revenue quality
- Limited cash runway of approximately 2 years at current burn rate creates near-term capital adequacy risk requiring either profitability achievement or dilutive financing
- Missing gross profit data and undefined revenue growth trajectory (N/A YoY) prevent full assessment of business model viability and operational leverage potential
- Persistent operating losses and negative free cash flow
- Cash of $16.98 million represents less than two years of runway at the latest free-cash-flow burn rate
- Missing gross-profit data and anomalous reported revenue reduce confidence in earnings and growth quality
Key Metrics to Watch
- Operating cash flow conversion - must achieve positive OCF to validate path to sustainability
- Gross margin and operating expense ratio trends - determines whether improving losses translate to long-term profitability
- Cash burn rate deceleration - critical indicator of timeline to profitability versus need for capital raise
- Quarterly operating cash burn and remaining cash runway
- Revenue validation, gross profit, and progression toward positive operating margin
Grace Therapeutics, Inc. (GRCE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 8.10x current ratio provides a solid financial cushion.
GRCE Profit Margin, ROE & Profitability Analysis
GRCE vs Healthcare Sector: How Grace Therapeutics, Inc. Compares
How Grace Therapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Grace Therapeutics, Inc. Stock Overvalued? GRCE Valuation Analysis 2026
Based on fundamental analysis, Grace Therapeutics, Inc. has mixed fundamental signals 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.
Grace Therapeutics, Inc. Balance Sheet: GRCE Debt, Cash & Liquidity
GRCE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Grace Therapeutics, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.79 indicates the company is currently unprofitable.
GRCE Revenue Growth, EPS Growth & YoY Performance
GRCE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2021 | N/A | $981.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Grace Therapeutics, Inc. Dividends, Buybacks & Capital Allocation
GRCE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Grace Therapeutics, Inc. (CIK: 0001444192)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GRCE
What is the AI rating for GRCE?
Grace Therapeutics, Inc. (GRCE) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRCE's key strengths?
Claude: Strong balance sheet with $63.9M stockholders' equity, only $2.8M liabilities, and zero long-term debt providing substantial financial cushion. Excellent liquidity position with 8.1x current ratio and $17M in cash equivalents. ChatGPT: Strong liquidity with current and quick ratios above 8.0x. Debt-free capital structure with liabilities of only $2.76 million against $63.90 million of equity.
What are the risks of investing in GRCE?
Claude: Significant operating cash burn of -$8.9M annually despite positive revenue, indicating fundamental operational inefficiency and questionable revenue quality. Limited cash runway of approximately 2 years at current burn rate creates near-term capital adequacy risk requiring either profitability achievement or dilutive financing. ChatGPT: Persistent operating losses and negative free cash flow. Cash of $16.98 million represents less than two years of runway at the latest free-cash-flow burn rate.
What is GRCE's revenue and growth?
Grace Therapeutics, Inc. reported revenue of $100.0M.
Does GRCE pay dividends?
Grace Therapeutics, Inc. does not currently pay dividends.
Where can I find GRCE SEC filings?
Official SEC filings for Grace Therapeutics, Inc. (CIK: 0001444192) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GRCE's EPS?
Grace Therapeutics, Inc. has a diluted EPS of $-0.47.
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 GRCE's fundamental grade?
Based on our AI fundamental analysis in August 2026, Grace Therapeutics, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is GRCE stock overvalued or undervalued?
Valuation metrics for GRCE: ROE of -12.2% (sector avg: 15%), net margin of -7.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is GRCE's AI grade for 2026?
Our dual AI analysis gives Grace Therapeutics, 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 GRCE's free cash flow?
Grace Therapeutics, Inc.'s operating cash flow is $-8.9M, with capital expenditures of $36.0K. FCF margin is -8.9%.
How does GRCE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -7.8% (avg: 12%), ROE -12.2% (avg: 15%), current ratio 8.10 (avg: 2).