Breaking Down SciSparc Ltd. (SPRC) Financial Health: Key Insights for Investors

Are you keeping a close watch on SciSparc Ltd. (SPRC) and wondering about its financial standing? As of December 2024, SPRC's last reported earnings per share (EPS) stood at 0.52, alongside a gross margin of 1.77% and a net profit margin of 0.83%. But how do these figures translate into the company's overall financial health and future prospects, especially with a recent closing stock price at $0.2826, which is 43.45% above its 52-week low? Dive in to uncover key insights that can guide your investment decisions.

SciSparc Ltd. (SPRC) Revenue Analysis

Understanding SciSparc Ltd.'s revenue streams is crucial for investors seeking to evaluate the company's financial health and growth potential. A comprehensive analysis involves examining the primary sources of revenue, historical growth rates, and the contribution of different business segments.

SciSparc Ltd. (SPRC) is a clinical-stage pharmaceutical company that develops drugs based on cannabinoid therapies. Its product pipeline includes:

• SCI-110 for Tourette syndrome and Alzheimer's disease
• SCI-160 for pain treatment
• SCI-210 for autism spectrum disorder and status epilepticus
• CannAmide as an anti-inflammatory and chronic pain solution

For the fiscal year ending December 31, 2023, SciSparc Ltd. reported annual revenue of $2.88 million, which represents a 113.73% growth compared to the previous year. However, recent data indicates a fluctuating revenue trend. For instance, the company's revenue for the twelve months ending June 30, 2024, was $1.75 million, a -47.36% year-over-year decrease. The half year ending June 30, 2024, showed a revenue of $840.00K.

Here's a summary of SciSparc's revenue performance over the recent years:

The revenue per employee stands at $582,333, with the company employing only 3 individuals.

To gain more insights into SciSparc Ltd. and its investors, consider reading: Exploring SciSparc Ltd. (SPRC) Investor Profile: Who’s Buying and Why?

SciSparc Ltd. (SPRC) Profitability Metrics

Analyzing SciSparc Ltd.'s financial health requires a close examination of its profitability metrics, including gross profit, operating profit, and net profit margins. These figures provide insights into the company's efficiency in generating earnings compared to its revenue, operational costs, and overall expenses.

Here's what we can explore regarding SciSparc Ltd.'s profitability:

• Gross Profit, Operating Profit, and Net Profit Margins: These margins show how much profit SciSparc Ltd. makes after deducting the cost of goods sold, operating expenses, and all expenses, including taxes and interest.
• Trends in Profitability Over Time: Examining these trends helps to understand whether SciSparc Ltd.'s profitability is improving, declining, or remaining stable.
• Comparison of Profitability Ratios with Industry Averages: Comparing SciSparc Ltd.'s profitability ratios with industry averages can indicate whether the company is performing better or worse than its competitors.
• Analysis of Operational Efficiency: This involves assessing how well SciSparc Ltd. manages its costs and how this impacts its gross margin trends.

To provide a comprehensive analysis, we need specific data for the fiscal year 2024. Here is a hypothetical example of how this data might be presented and analyzed, assuming we had access to the relevant financial figures:

In this hypothetical scenario, SciSparc Ltd. demonstrates strong profitability metrics compared to industry averages. The increasing gross profit margin suggests effective cost management, while the rising operating and net profit margins indicate efficient operational performance and overall profitability.

For more insights into SciSparc Ltd., check out: Exploring SciSparc Ltd. (SPRC) Investor Profile: Who’s Buying and Why?

SciSparc Ltd. (SPRC) Debt vs. Equity Structure

Analyzing SciSparc Ltd. (SPRC)'s financial health involves understanding how the company uses debt and equity to finance its operations and growth. A balanced approach is crucial for long-term stability and investor confidence. Here’s a detailed look at SciSparc Ltd. (SPRC)'s debt levels, debt-to-equity ratio, and financing strategies.

SciSparc Ltd. (SPRC) relies on a combination of debt and equity to fund its activities. As of the fiscal year 2024, a detailed breakdown reveals the following:

• Total Current Liabilities: $1,595,000
• Total Liabilities: $2,484,000
• Total Stockholder Equity: $12,444,000

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. SciSparc Ltd. (SPRC)'s debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Stockholder Equity

Using the 2024 data:

Debt-to-Equity Ratio = $2,484,000 / $12,444,000 ≈ 0.20

A debt-to-equity ratio of approximately 0.20 suggests that SciSparc Ltd. (SPRC) relies more on equity than debt to finance its operations. This can be viewed positively, indicating lower financial risk compared to companies with higher debt-to-equity ratios.

Here's a summary of SciSparc Ltd. (SPRC)'s debt and equity components:

Understanding SciSparc Ltd. (SPRC)’s mission, vision, and core values provides additional context for evaluating its strategic decisions and long-term potential: Mission Statement, Vision, & Core Values of SciSparc Ltd. (SPRC).

SciSparc Ltd. (SPRC) Liquidity and Solvency

When evaluating SciSparc Ltd. (SPRC)'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing SciSparc Ltd.'s Liquidity:

Potential Liquidity Concerns or Strengths:

Without specific 2024 fiscal year data, it's challenging to pinpoint precise liquidity concerns or strengths. However, based on general principles:

• A declining current ratio or quick ratio could signal potential liquidity issues.
• Negative operating cash flow might indicate difficulties in generating cash from core operations.
• A significant increase in short-term debt could also raise concerns about the company's ability to meet its obligations.

Conversely, a rising current ratio, positive operating cash flow, and a healthy working capital balance would suggest a strong liquidity position for SciSparc Ltd.

Investors can gain additional insights into SciSparc Ltd.'s strategic direction by reviewing their Mission Statement, Vision, & Core Values of SciSparc Ltd. (SPRC).

SciSparc Ltd. (SPRC) Valuation Analysis

Determining whether SciSparc Ltd. (SPRC) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This analysis helps investors gauge the company's current market valuation relative to its intrinsic worth. Here's a breakdown of essential valuation metrics and factors:

Price-to-Earnings (P/E) Ratio: The P/E ratio, a fundamental valuation metric, compares a company's stock price to its earnings per share (EPS). As of now, reliable real-time P/E data for SciSparc Ltd. (SPRC) is limited. Generally, a lower P/E ratio might suggest undervaluation relative to peers, while a higher P/E ratio could indicate overvaluation or high growth expectations. Investors should compare SciSparc Ltd. (SPRC)'s P/E ratio with industry averages and competitors to gain meaningful insights. Keep in mind that a negative P/E ratio indicates that the company is currently not profitable. Keep in mind that as of fiscal year 2024, this number may not be available.

Price-to-Book (P/B) Ratio: The P/B ratio measures a company's market capitalization relative to its book value of equity. As of now, specific P/B ratio data for SciSparc Ltd. (SPRC) is not readily available. A P/B ratio below 1.0 might suggest that the stock is undervalued, while a ratio above 1.0 could indicate overvaluation. This ratio is particularly useful for evaluating companies with substantial tangible assets. As of fiscal year 2024, this number may not be available.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio compares a company's enterprise value (total market value plus net debt) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of now, specific EV/EBITDA data for SciSparc Ltd. (SPRC) is not readily available. A lower EV/EBITDA ratio often suggests undervaluation, as it indicates that the company's total value is low relative to its operating earnings. Conversely, a higher ratio might suggest overvaluation. This ratio is useful because it accounts for debt and capital expenditures. As of fiscal year 2024, this number may not be available.

Stock Price Trends: Analyzing the stock price trends over the last 12 months (or longer) provides insights into market sentiment and investor confidence. As of today, April 21, 2025, SciSparc Ltd. (SPRC)'s stock performance can be evaluated by examining historical price charts and identifying key trends, such as upward or downward movements, volatility, and trading volumes. Significant price fluctuations may warrant further investigation into company-specific news, industry developments, and overall market conditions.

Dividend Yield and Payout Ratios: Dividend yield and payout ratios are relevant for companies that distribute dividends to shareholders. As of now, it is important to verify if SciSparc Ltd. (SPRC) provides dividends. The dividend yield indicates the annual dividend income relative to the stock price, while the payout ratio measures the percentage of earnings paid out as dividends. A higher dividend yield can attract income-seeking investors, but it's essential to assess the sustainability of dividend payments by examining the payout ratio and the company's financial health.

Analyst Consensus: Monitoring analyst consensus on SciSparc Ltd. (SPRC)'s stock valuation provides valuable insights from financial professionals. Analyst ratings typically range from 'buy' to 'sell,' with corresponding price targets. A consensus of 'buy' ratings suggests that analysts believe the stock is undervalued and has upside potential, while 'hold' or 'sell' ratings may indicate concerns about valuation or future performance. Investors should consider analyst opinions in conjunction with their own research and due diligence.

For additional insights into SciSparc Ltd. (SPRC) and its investors, consider exploring: Exploring SciSparc Ltd. (SPRC) Investor Profile: Who’s Buying and Why?

SciSparc Ltd. (SPRC) Risk Factors

SciSparc Ltd. (SPRC) faces a variety of risks that could impact its financial health. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors.

External risks include:

• Industry Competition: The pharmaceutical industry is highly competitive. SciSparc faces competition from established pharmaceutical companies with greater resources.
• Regulatory Changes: Changes in regulations governing pharmaceutical development and approval processes can significantly impact SciSparc's ability to bring products to market.
• Market Conditions: Unfavorable market conditions, including economic downturns, can reduce investment in the pharmaceutical sector and affect SciSparc's access to capital.

Operational, financial, and strategic risks are often detailed in the company's filings. While specific recent earnings reports would provide the most up-to-date details, these risks generally include:

• Clinical Trial Risks: The success of SciSparc hinges on the outcomes of its clinical trials. Failure to achieve desired results or delays in the trial process can severely impact the company's valuation and prospects.
• Financing Risks: As a development-stage pharmaceutical company, SciSparc requires significant capital to fund its research and development activities. Inability to secure adequate funding could jeopardize its operations.
• Intellectual Property Risks: Protecting its intellectual property is vital for SciSparc. Challenges to its patents or failure to secure adequate protection could undermine its competitive advantage.

Mitigation strategies for these risks may include:

• Diversifying Pipeline: Developing a diverse pipeline of drug candidates can reduce reliance on any single product and mitigate the impact of clinical trial failures.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide access to funding, expertise, and distribution networks.
• Robust IP Strategy: Implementing a comprehensive intellectual property strategy, including patent filings and trade secret protection, can safeguard the company's innovations.

For more detailed insights into SciSparc Ltd. (SPRC)'s financial health, you can read this analysis: Breaking Down SciSparc Ltd. (SPRC) Financial Health: Key Insights for Investors

SciSparc Ltd. (SPRC) Growth Opportunities

SciSparc Ltd. (SPRC) is focusing on the development of cannabinoid-based pharmaceuticals. Future growth is tied to successful clinical trials, regulatory approvals, and commercialization of its drug candidates. Understanding these factors is crucial for investors. Here's a closer look at the company's growth prospects:

Key Growth Drivers:

• Product Innovations: SciSparc's pipeline includes drugs targeting significant unmet needs. For instance, SCI-110 is being developed for Tourette Syndrome, while SCI-220 is aimed at treating Autism Spectrum Disorder.
• Market Expansions: The company aims to expand its reach through strategic partnerships and collaborations. These efforts can open doors to new markets and accelerate the adoption of their treatments.
• Acquisitions: While not explicitly stated, the company may pursue acquisitions to broaden its portfolio or gain access to new technologies.

Future Revenue Growth Projections and Earnings Estimates:

As a clinical-stage biopharmaceutical company, SciSparc currently does not generate substantial revenue from product sales. Revenue is primarily derived from collaborations, licensing agreements, and milestone payments. Future revenue growth is heavily dependent on the successful development and commercialization of its drug candidates. Keep in mind that projections can be speculative and subject to change based on clinical trial outcomes and regulatory decisions.

Strategic Initiatives and Partnerships:

SciSparc engages in various strategic initiatives and partnerships to drive future growth. For example, the collaboration with Clearmind Medicine Inc. to explore the combination of CannAmide™ with psychedelic substances could lead to novel treatments for various conditions. These collaborations can provide financial support, accelerate development timelines, and expand the company's expertise.

Competitive Advantages:

SciSparc's competitive advantages lie in its intellectual property, innovative drug delivery systems, and focus on underserved medical needs. The company's proprietary technologies and formulations may provide a unique selling proposition in the market. Here are some key advantages:

• Proprietary Technologies: SciSparc utilizes innovative drug delivery systems to enhance the bioavailability and efficacy of its cannabinoid-based therapies.
• Focus on Unmet Needs: By targeting conditions like Tourette Syndrome and Autism Spectrum Disorder, SciSparc addresses areas with limited treatment options.
• Strategic Partnerships: Collaborations with other companies and research institutions can provide access to new technologies and expertise.

Financial Performance Overview:

To provide a clearer picture, here's a snapshot of SciSparc's financial performance based on available data. Note that as a development-stage company, significant R&D expenses are typical.

For a deeper dive into SciSparc Ltd. (SPRC) financial health, read: Breaking Down SciSparc Ltd. (SPRC) Financial Health: Key Insights for Investors