Biomerica (BMRA) AI Stock Analysis

• Market Cap: $8.99M
• Dividend Yield: N/A
• Average Volume (3M): 65.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 5.05%
• EPS Growth: 26.13%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.48
• Shares Outstanding: 2,545,762
• 10 Day Avg. Volume: 105,288
• 30 Day Avg. Volume: 65,158
• PEG Ratio: -0.88
• Price to Book (P/B): 9.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.81
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: -0.24
• 1Y Price Target: $3.50
• Price Target Upside: -0.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $3.00 ▼(-15.01%Downside)

Biomerica's overall stock score is primarily impacted by its financial challenges, including declining revenues and persistent losses. Technical analysis indicates a bearish trend, while valuation metrics are weak due to negative earnings. The recent corporate event involving a key board appointment is a positive factor, potentially improving governance and strategic direction.

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 generates revenue primarily through the sale of its diagnostic and therapeutic products. The company offers a range of products targeting various medical conditions, which are sold to laboratories, hospitals, and healthcare providers. Key revenue streams include the sales of diagnostic test kits for food intolerance and gastrointestinal disorders, which are distributed both domestically and internationally. Biomerica also engages in partnerships and collaborations with other healthcare organizations and research institutions to enhance product development and expand market reach. The company aims to leverage its innovative product pipeline and global distribution network to drive sales and increase market share.

Biomerica Financial Statement Overview

Summary

Biomerica faces significant financial challenges with declining revenues and persistent losses impacting profitability and cash flow. The balance sheet is relatively stable, but reliance on external financing and negative cash flows pose risks. Strategic improvements in operational efficiency and revenue growth are needed.

Income Statement

Biomerica has experienced a decline in revenue over the past years, with a significant drop from 2022 to 2023. The gross profit margin is low, indicating high production costs relative to revenue. The company has been operating at a loss, with negative EBIT and EBITDA margins, suggesting operational inefficiencies. However, there is a slight improvement in net income from 2023 to 2024, indicating potential for recovery.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage levels. The equity ratio is relatively healthy, indicating a solid capital structure. However, the declining stockholders' equity over the years is a concern. The return on equity is negative due to consistent net losses, highlighting profitability challenges.

Cash Flow

Biomerica's cash flow statement reveals negative operating cash flow, indicating cash outflows from core operations. The free cash flow is also negative, reflecting challenges in generating cash after capital expenditures. The company has relied on financing activities to support cash needs, which may not be sustainable long-term.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.42M	5.34M	18.87M	7.20M	6.69M
Gross Profit	611.00K	446.00K	2.98M	496.98K	1.78M
EBITDA	-5.99M	-6.74M	-3.94M	-7.06M	-2.27M
Net Income	-5.98M	-7.14M	-4.53M	-6.47M	-2.34M
Balance Sheet
Total Assets	9.25M	14.45M	11.37M	11.82M	17.26M
Cash, Cash Equivalents and Short-Term Investments	4.17M	9.72M	5.92M	4.20M	8.64M
Total Debt	785.00K	1.08M	1.38M	1.62M	1.78M
Total Liabilities	2.66M	2.73M	3.05M	2.59M	3.05M
Stockholders Equity	6.59M	11.72M	8.32M	9.23M	14.21M
Cash Flow
Free Cash Flow	-5.48M	-5.55M	-650.87K	-5.55M	-4.42M
Operating Cash Flow	-5.36M	-5.47M	-480.53K	-5.25M	-4.30M
Investing Cash Flow	-115.00K	-78.00K	-170.34K	-295.58K	-118.93K
Financing Cash Flow	-81.00K	9.39M	2.39M	1.11M	12.37M

Biomerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.53
• 50DMA: Positive
• 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 Positive. The current price of 3.53 is above the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.31, and below the 200-day MA of 3.67, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.55 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BMRA.

Biomerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VVOS	59 Neutral	$32.39M	―	-450.47%	―	9.47%	81.37%
PAVM	54 Neutral	$10.26M	0.84	-499.57%	―	-33.92%	―
BMRA	49 Neutral	$8.99M	―	-72.70%	―	5.05%	26.13%
SSKN	48 Neutral	$8.57M	―	-151.23%	―	3.30%	31.84%
Sector *	46 Neutral	C$200.02M	-3.36	-23.14%	1.86%	20.75%	-0.36%
NURO	45 Neutral	$9.43M	―	-45.38%	―	-48.61%	32.18%
CODX	41 Neutral	$9.92M	―	-56.80%	―	-91.22%	11.84%

Biomerica Corporate Events

Biomerica Appoints Eric B. Chin to Board

On June 4, 2025, Cathy Coste resigned from Biomerica‘s Board of Directors, and Eric B. Chin was appointed as an independent member, serving as Chairperson of the Audit Committee. Mr. Chin, an experienced financial executive, is expected to strengthen Biomerica’s corporate governance and financial oversight as the company scales its commercialization efforts. His extensive background in healthcare finance, including his role as CFO of Akido Labs, positions him to contribute significantly to Biomerica’s strategic objectives.

Biomerica Announces Reverse Stock Split Effective April 21

On April 16, 2025, Biomerica announced a 1-for-8 reverse stock split effective April 21, 2025, to increase the bid price of its common stock and maintain its Nasdaq listing. This move will reduce the number of outstanding shares from approximately 20.4 million to 2.5 million, while the number of authorized shares remains unchanged. The reverse stock split aims to enhance Biomerica’s market position by ensuring compliance with Nasdaq’s minimum bid price requirements.