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Birchtech (BCHT)
OTHER OTC:BCHT
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Birchtech
(OTC:BCHT)
Rating:45Neutral
Price Target:―
Birchtech (BCHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.93M
Dividend YieldN/A
Average Volume (3M)155.02K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-16.95%
EPS Growth93.91%
CountryUS
Employees11
SectorIndustrials
Sector Strength90
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-0.02
Shares Outstanding96,228,150
10 Day Avg. Volume95,665
30 Day Avg. Volume155,024
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Birchtech Business Overview & Revenue Model
Company DescriptionBirchtech (BCHT) is a technology company specializing in providing innovative software solutions and IT services across various sectors, including healthcare, finance, and retail. The company offers a range of products such as cloud computing services, cybersecurity solutions, and enterprise resource planning (ERP) systems, designed to enhance operational efficiency and data security for businesses.
How the Company Makes MoneyBirchtech generates revenue through a subscription-based model for its software solutions, where clients pay recurring fees for access to its cloud services and cybersecurity tools. Additionally, the company earns from consulting and implementation services, assisting businesses in integrating and optimizing their IT infrastructure. Key partnerships with major tech firms enhance its service offerings and expand its market reach, contributing significantly to its earnings. Revenue also flows from licensing its proprietary software to other technology providers.
Birchtech Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 20.75%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects significant positive developments in Birchtech's air business with strong revenue and profit margins, patent infringement success, and promising expansion into water purification. However, these are tempered by minor decreases in supply revenues, increased R&D costs, and pending legal outcomes. Overall, the positive highlights significantly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Robust Air Business Revenue
Birchtech's air business drove robust revenues of $3.2 million with a strong 38.3% gross margin profile, primarily due to higher licensing revenues.
Patent Infringement Verdict
The company secured a landmark $57 million unanimous jury award and has requested a final judgment of $160 million, which is pending.
Expansion into Water Purification
Launch of new patent-pending water treatment technologies targeting removal of PFO, PFOS, with facilities in North Dakota and Pennsylvania.
Potential Revenue Growth
Expected air business revenue growth to at least $23 million in 2025, with a run rate potential of $40 million by the end of 2026.
Improved Gross Profit
Gross profit increased by 9.4% to $1.2 million or 38.3% of total revenues in Q1 2025.
SG&A Expense Reduction
SG&A expenses decreased to $2.2 million in Q1 2025 from $3.5 million in the same period of 2024.
Net Loss Improvement
Net loss improved to $1.7 million in Q1 2025 from $2.9 million in Q1 2024.
Negative Updates
Decreased Supply Revenues
Slight decrease in supply revenues in Q1 2025, offset by an increase in license revenues.
Research and Development Costs
R&D expenses were approximately $407,000 in Q1 2025, with no corresponding costs in the first quarter of 2024.
Uncertainty in Legal Outcomes
Pending final judgment on the $160 million patent infringement verdict, with no guaranteed timeline for receipt of funds.
Company Guidance
During the Birchtech First Quarter 2025 Earnings Conference Call, CEO Richard MacPherson highlighted the company's financial performance and future guidance. The air business generated robust revenues of $3.2 million with a gross margin of 38.3%, despite a slight decrease compared to the previous year's Q1. The company anticipates growing its air business revenue to at least $23 million in 2025 and achieving an annual revenue run rate of $40 million by the end of 2026. This growth is expected through increased licensing revenues and expanding market share from 15% to over 30%. The water business is projected to become commercially available between late 2025 to early 2026, with anticipated multimillion-dollar sales in the latter half of 2025. CFO Fiona Fitzmaurice reported a net loss of $1.7 million for Q1 2025, an improvement over the previous year's $2.9 million loss, and highlighted that adjusted EBITDA totaled a loss of $1.2 million. The company maintains a cash balance of $3.2 million with no debt.Birchtech Financial Statement Overview
Summary
Birchtech's financial performance is mixed. Positives include improved net income and strong cash flow generation. However, significant challenges remain, such as negative stockholders' equity and volatile revenue, highlighting operational and balance sheet instability.Income Statement
Birchtech's revenue exhibits volatility with a significant decline of 17.02% from 2022 to 2023. The gross profit margin has been inconsistent, and the company experienced a negative EBIT and EBITDA margin in 2023, indicating operational challenges. However, the net profit margin saw a positive shift due to a significant net income improvement, marking a notable turnaround from previous losses.45
Neutral
Balance Sheet
The balance sheet reflects financial instability with a negative stockholders' equity, indicating leverage and solvency issues. The debt-to-equity ratio is not calculable due to negative equity, suggesting high financial risk. Despite the increase in total assets in 2023, the equity ratio remains unfavorable, showing potential liquidity concerns.30
Negative
Cash Flow
The cash flow statements reveal a strong operating cash flow to net income ratio, demonstrating effective cash generation relative to earnings. Free cash flow has shown substantial growth, indicating improved cash management. However, fluctuations in free cash flow across periods highlight potential volatility in cash flow stability.65
Positive
| Breakdown | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | ― | ― | ― | ― | ― |
| Gross Profit | 5.77M | 7.02M | 5.07M | 2.72M | 2.71M |
| EBITDA | -18.27M | 2.08M | -112.96K | -2.45M | -908.56K |
| Net Income | 5.90M | -1.58M | -3.77M | -5.83M | -6.10M |
Balance Sheet | |||||
| Total Assets | 27.47M | 9.34M | 8.12M | 7.36M | 9.27M |
| Cash, Cash Equivalents and Short-Term Investments | ― | ― | ― | ― | ― |
| Total Debt | 11.22M | 9.89M | 11.93M | 1.17M | 12.40M |
| Total Liabilities | 28.25M | 16.76M | 18.38M | 20.59M | 18.15M |
| Stockholders Equity | ― | ― | ― | ― | ― |
Cash Flow | |||||
| Free Cash Flow | 19.23M | 60.26K | 7.43M | 10.46M | -1.55M |
| Operating Cash Flow | 19.23M | 70.99K | 7.44M | 10.42M | -1.58M |
| Investing Cash Flow | ― | ― | ― | ― | ― |
| Financing Cash Flow | ― | ― | ― | ― | ― |
Birchtech Technical Analysis
Positive
0.64
Price Trends
0.58
Positive
0.53
Positive
0.58
Positive
Market Momentum
0.01
Positive
53.42
Neutral
42.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCHT, the sentiment is Positive. The current price of 0.64 is below the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.58, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCHT.
Birchtech Risk Analysis
Birchtech disclosed 18 risk factors in its most recent earnings report. Birchtech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Birchtech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $38.72B | 75.04 | 16.34% | 0.07% | 17.74% | 34.81% | |
65 Neutral | $10.86B | 15.57 | 5.28% | 1.92% | 3.13% | -27.76% | |
55 Neutral | $81.87M | ― | -6.95% | ― | 7.30% | -247.48% | |
53 Neutral | $152.27M | ― | 37.38% | ― | -7.51% | -67.44% | |
50 Neutral | $26.21M | ― | -75.96% | ― | 10.88% | 3.57% | |
45 Neutral | $57.93M | ― | -253.49% | ― | -16.95% | 93.91% | |
36 Underperform | $5.94M | ― | -167.48% | ― | -100.00% | 24.94% |
* Industrials Sector Average
Performance Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.