Biomerica (BMRA) AI Stock Analysis

• Market Cap: $6.28M
• Dividend Yield: N/A
• Average Volume (3M): 190.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: -20.05%
• EPS Growth: 41.89%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.45
• Shares Outstanding: 3,020,067
• 10 Day Avg. Volume: 453,881
• 30 Day Avg. Volume: 190,481
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -1.81
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 16.33
• Enterprise Value/Ebitda: -1.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-30.56% Downside)
• Action: Upgraded Date: 01/15/26
• Date: Action: Upgraded 01/15/26

The score is primarily constrained by weak financial performance—shrinking revenue, very low margins, sizable losses, and ongoing free-cash-flow burn—despite improving loss/cash-burn trends and low leverage. Technical indicators are mildly supportive in the near term, but valuation remains challenged due to negative earnings and no dividend data.

Positive Factors

Regulatory approval & first commercial order

MHRA registration and an initial commercial order from one of Europe’s largest clinical laboratory chains represent a structural commercialization milestone. Regulatory clearance plus a high-profile European customer validate market access and distribution capability, increasing the likelihood of repeat orders and broader EU rollouts that can support durable revenue growth for the Hp Detect product line.

Low leverage and modest debt

Very low debt relative to equity gives the company financial flexibility to fund near-term commercialization and R&D without heavy interest burdens. Modest leverage reduces bankruptcy risk and preserves capacity to raise capital on manageable terms, which is important while revenues remain small and the business scales new diagnostic offerings.

Improving cash-burn and loss trends

Steady narrowing of operating cash outflows over multiple years indicates management is progressively reducing burn or improving operational efficiency. If sustained, this trend lowers dependence on external financing, increases runway for commercialization activities, and signals the company may be moving toward a structurally healthier cash profile over the medium term.

Negative Factors

Declining revenue and weak margins

A shrinking revenue base combined with very low gross margins means the core business lacks scale to cover fixed costs. Persistently weak margins limit operating leverage and make profitable growth harder to achieve, requiring material increases in volume or margin expansion from new products to change the company’s structural profitability profile.

Persistent negative free cash flow

Continued negative free cash flow implies the company cannot self-fund operations and commercialization without external capital. Over the medium term this creates dilution or debt risk, constrains investment flexibility, and raises execution risk for scaling new diagnostics unless the company converts regulatory wins into sustained, profitable revenue quickly.

Eroding shareholder equity and negative ROE

Material erosion of book equity and deeply negative ROE reflect cumulative losses that destroy shareholder value and weaken the balance sheet. This structural deterioration reduces the company’s buffer against setbacks, limits non-dilutive financing options, and heightens the consequences of any commercialization delays or lower-than-expected adoption of new assays.

Biomerica Business Overview & Revenue Model

Company Description

Biomerica, Inc., a biomedical technology company, develops, patents, manufactures, and markets diagnostic and therapeutic products for the detection and/or treatment of medical conditions and diseases worldwide. The company's diagnostic test kits are used to analyze blood, urine, or fecal specimens from patients in the diagnosis of various diseases and other medical complications; or to measure the level of specific bacteria, hormones, antibodies, antigens, or other substances, which exist in the patient's body and stools or blood in extremely small concentrations. It primarily sells its products for gastrointestinal diseases, food intolerances, diabetes, and various esoteric tests at the physicians' offices and over-the-counter drugstores, and hospital/clinical laboratories. The company is also developing InFoods, an irritable bowel syndrome therapy technology and diagnostic-guided therapy; Helicobacter pylori products, as well as develops, tests, validates, and sells diagnostic products for COVID-19 infection. Biomerica, Inc. was incorporated in 1971 and is headquartered in Irvine, California.

How the Company Makes Money

Biomerica makes money primarily by selling diagnostic products (e.g., in vitro diagnostic test kits and related supplies) through a combination of direct sales and distributor-based channels to clinical laboratories, hospitals, and other healthcare/diagnostic customers. Revenue is generally recognized from product sales when delivered/accepted under customer terms, with unit volumes and pricing driven by customer purchasing cycles, distributor relationships, and demand for specific assays. Additional monetization can include revenue from strategic arrangements such as licensing or commercialization agreements, or other collaborations tied to specific diagnostic technologies; null.

Biomerica Financial Statement Overview

Summary

Revenue is declining (TTM down 8.7% to $4.46M) with very weak profitability (gross margin ~13%, net margin ~-75%). Losses and cash burn are improving, and leverage is low (debt-to-equity ~0.07), but equity has fallen materially (to ~$4.44M TTM) and cash flow remains deeply negative (TTM FCF -$2.93M).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined to $4.46M (down 8.7%), and profitability remains weak with a low gross margin (~13%) and a large net loss (net margin ~-75%). While losses have narrowed versus prior annual periods (net loss improved from -$5.98M in 2024 to -$4.97M in 2025 and -$4.03M TTM), the business is still operating with deeply negative operating profitability, indicating the cost structure remains heavy relative to current revenue scale.

Balance Sheet

Leverage is modest, with total debt of ~$0.28M in TTM and a low debt-to-equity ratio (~0.07), which provides financial flexibility relative to many early-stage medical device peers. However, equity has trended down from $11.72M (2023) to $4.44M (TTM), reflecting ongoing losses, and returns on equity are meaningfully negative (TTM ROE ~-73%), highlighting continued value erosion for shareholders despite the low debt load.

Cash Flow

Cash generation remains a key pressure point: TTM operating cash flow was -$2.97M and free cash flow was -$2.93M, indicating continued cash burn to fund operations. Cash burn has improved versus the 2023–2025 annual range (operating cash flow losses narrowed from about -$5.47M in 2023 to -$3.84M in 2025 and -$2.97M TTM), but the company is still not self-funding and remains reliant on external capital over time if this persists.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	4.46M	5.31M	5.42M	5.34M	18.87M	7.20M
Gross Profit	250.00K	498.00K	611.00K	446.00K	2.98M	366.29K
EBITDA	-3.68M	-4.74M	-5.99M	-6.87M	-3.94M	-7.06M
Net Income	-4.03M	-4.97M	-5.98M	-7.14M	-4.53M	-7.45M
Balance Sheet
Total Assets	6.03M	5.95M	9.25M	14.45M	11.37M	11.82M
Cash, Cash Equivalents and Short-Term Investments	2.54M	2.40M	4.17M	9.72M	5.92M	4.20M
Total Debt	284.00K	458.00K	785.00K	1.08M	1.38M	1.62M
Total Liabilities	1.60M	1.84M	2.66M	2.73M	3.05M	2.59M
Stockholders Equity	4.43M	4.11M	6.59M	11.72M	8.32M	9.23M
Cash Flow
Free Cash Flow	-2.93M	-3.88M	-5.48M	-5.55M	-650.87K	-5.55M
Operating Cash Flow	-2.96M	-3.84M	-5.36M	-5.47M	-480.53K	-5.25M
Investing Cash Flow	0.00	-37.00K	-115.00K	-78.00K	-170.34K	-295.58K
Financing Cash Flow	3.13M	2.11M	-81.00K	9.39M	2.39M	1.11M

Biomerica Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMRA, the sentiment is Neutral. The current price of 2.88 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.29, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 64.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BMRA.

Biomerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PAVM	49 Neutral	$14.50M	-0.43	20.03%	―	-99.28%	-46.17%
BMRA	47 Neutral	$6.28M	-1.24	-84.30%	―	-20.05%	41.89%
SSKN	46 Neutral	$1.50M	-14.23	-476.74%	―	-5.19%	-0.81%
HSCS	40 Underperform	$8.18M	>-0.01	-220.42%	―	-41.03%	35.71%
AMIX	40 Underperform	$4.75M	-0.38	-228.82%	―	―	63.87%