Biomerica (BMRA) AI Stock Analysis

• Market Cap: $6.13M
• Dividend Yield: N/A
• Average Volume (3M): 190.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• 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: 0.64
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 15.61
• Enterprise Value/Ebitda: -1.06
• 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

Low leverage

The company’s very low debt load provides durable financial flexibility, lowering interest burden and reducing refinancing risk. For a small diagnostics firm, modest leverage supports continued R&D and commercialization efforts without large fixed financing costs over the next several months.

Improving cash-burn trend

Progressively smaller operating cash outflows indicate management is trimming costs or stabilizing revenue, reducing near-term external funding needs. This trend suggests structural improvements to cost structure and cash discipline that can persist and materially improve runway over 2–6 months if sustained.

Established diagnostics sales model

A business model combining direct and distributor channels provides diversified go-to-market routes and enduring revenue sources from test kit sales; coupled with R&D on new assays, this supports long-term product pipeline development and repeatable revenue streams in the medical diagnostics market.

Negative Factors

Declining revenue & weak margins

Falling revenues and very low gross margins limit the company’s ability to leverage fixed costs and achieve operating leverage. Persistently negative margins constrict cash generation and make it harder to scale R&D or sales investments, threatening long-term viability unless revenue or margins materially improve.

Negative free cash flow

Sustained negative FCF means the business cannot self-fund operations or growth, forcing reliance on external financing. Over a multi-month horizon this creates dilution or debt risk, constraining strategic options and potentially delaying commercialization or product rollouts if cash access tightens.

Equity erosion and negative ROE

Rapid equity erosion and a deeply negative ROE indicate sustained value destruction and weak returns on invested capital. This structural weakness can impair investor confidence, increase cost of capital, and limit ability to raise non-dilutive funding, hindering long-term strategic initiatives.

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 products to healthcare providers, laboratories, and directly to consumers. The company operates on a business model that includes the distribution of its proprietary tests, which are sold under various brands. Key revenue streams include direct product sales, partnerships with healthcare organizations and distributors, and licensing agreements for its testing technologies. Additionally, Biomerica may benefit from collaborations with research institutions and participation in clinical studies that further validate its products, enhancing market reach and credibility.

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: Negative
• Last Price: 2.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMRA, the sentiment is Negative. The current price of 2.88 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.42, and above the 200-day MA of 2.85, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$15.06M	-0.59	20.03%	―	-99.28%	-46.17%
BMRA	47 Neutral	$6.13M	-1.31	-84.30%	―	-20.05%	41.89%
SSKN	46 Neutral	$1.32M	-0.09	-207.19%	―	-5.19%	-0.81%
HSCS	46 Neutral	$8.45M	-0.39	-220.42%	―	-41.03%	35.71%
AMIX	40 Underperform	$4.63M	-0.10	-352.39%	―	―	63.87%

Biomerica Corporate Events

Biomerica Stockholders Approve Key Proposals at Annual Meeting

Biomerica, Inc. held its 2025 Annual Meeting of Stockholders on December 12, 2025, where several key proposals were voted on. The stockholders elected five nominees to the Board of Directors, approved executive compensation, ratified the selection of Haskell & White LLP as the independent accounting firm, and approved amendments to increase authorized shares and the stock incentive plan.

The most recent analyst rating on (BMRA) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Biomerica stock, see the BMRA Stock Forecast page.