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): 2.13
• 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: 0.90
• Enterprise Value/Gross Profit: 16.09
• Enterprise Value/Ebitda: -1.09
• 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

A very low debt load and modest leverage provide durable financial flexibility for a small diagnostics firm. With limited interest obligations the company can prioritize R&D, working capital, or strategic investments without the near-term pressure of debt servicing, helping it weather revenue volatility.

Clinical validation of inFoods IBS

Consistent real-world responder rates that closely match a prior randomized controlled trial materially strengthen the product's clinical credibility. That alignment supports clinician adoption, reimbursement discussions, and durable market differentiation for the inFoods IBS test versus competing diagnostics.

Improving cash-burn trend

Progressive narrowing of operating cash losses signals improving operational discipline or revenue mix. If sustained, this trend reduces reliance on external financing, lengthens runway for commercialization efforts, and increases the chance the business reaches positive cash generation within a medium-term horizon.

Negative Factors

Declining revenue and low margins

Shrinking top-line with very low gross margins indicates the core product mix and pricing struggle to cover fixed costs. Over the medium term this constrains scalable profitability, limits reinvestment capacity, and makes margin expansion essential for sustainable earnings improvement.

Ongoing negative cash flow

Persistent negative free cash flow requires continued external funding to support operations and commercialization. Over months this creates execution risk, potential dilution from financings, and can impede long-term strategic initiatives if cash generation doesn't turn positive.

Erosion of equity and negative ROE

Steady depletion of shareholder equity and highly negative returns on equity reflect recurring losses that erode investor capital. Structurally, this undermines balance-sheet resilience and may constrain strategic options if equity continues to decline without a clear path to sustained profitability.

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 2.23, above the 50-day MA of 2.43, and above the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	$15.09M	-0.59	20.03%	―	-99.28%	-46.17%
BMRA	47 Neutral	$6.28M	-1.35	-84.30%	―	-20.05%	41.89%
SSKN	46 Neutral	$1.47M	-0.10	-207.19%	―	-5.19%	-0.81%
HSCS	46 Neutral	$8.85M	-0.41	-220.42%	―	-41.03%	35.71%
AMIX	40 Underperform	$5.01M	-0.11	-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.