CEA Industries (BNC) AI Stock Analysis

• Market Cap: $136.41M
• Dividend Yield: N/A
• Average Volume (3M): 705.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.71
• Revenue Growth: 389.24%
• EPS Growth: 22.61%
• Country: US
• Employees: 29
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 42,895,840
• 10 Day Avg. Volume: 658,556
• 30 Day Avg. Volume: 705,375
• PEG Ratio: 0.07
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 1.03
• Enterprise Value/Market Cap: -0.05
• Enterprise Value/Revenue: -0.05
• Enterprise Value/Gross Profit: -0.06
• Enterprise Value/Ebitda: 0.08
• 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: 64 Neutral
• Price Target: $3.50 ▼(-46.32% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily supported by strong TTM cash generation and a very low-debt balance sheet, but it is held back by weak core operating profitability and multi-year inconsistency. Technical indicators are notably bearish (below major moving averages with negative MACD), while valuation looks optically cheap but is tempered by earnings-quality concerns. Corporate events add uncertainty due to an emerging governance/control dispute.

Positive Factors

Very low leverage

CEA's near-zero leverage provides durable financial flexibility. Low debt supports funding the BNB treasury strategy, cushions digital-asset volatility, enables opportunistic investments or AMA negotiations, and materially reduces default and refinancing risk versus leveraged peers.

Strong cash generation

Robust TTM operating and free cash flows create lasting internal funding capacity. Consistent high cash conversion strengthens the company's ability to execute its treasury strategy, invest in operations or governance improvements, and negotiate with service providers without relying on external capital.

Revenue and gross margin step-up

A sharp revenue increase combined with very high gross margins indicates scalable sales with favorable unit economics. If sustainable, this structural improvement supports reinvestment, brand development and long-term margin capture despite noise from non-operating items.

Negative Factors

Weak operating profitability

Deeply negative EBITDA and EBIT indicate core operations currently lose money, implying reported net income is driven by non-operating items. Structural operating losses undermine margin sustainability and raise questions about the repeatability of recent cash flow strength once non-recurring gains normalize.

Governance and control dispute

An active consent solicitation, public activist filings, litigation claims and defensive rights measures create prolonged governance uncertainty. Such disputes can distract management, hinder AMA renegotiation, increase legal and compliance costs, and impede long-term strategic execution.

Historical instability & earnings-quality risk

The company exhibits multi-year volatility, including prior negative equity and high leverage. The recent balance-sheet and cash-flow improvement may reflect discrete transactions, raising the risk that current profitability and cash generation are less repeatable and complicate forecasting durable fundamentals.

CEA Industries Business Overview & Revenue Model

Company Description

CEA Industries Inc. is a U.S.-based company providing engineering, design, and technology solutions for the controlled environment agriculture (CEA) industry. Through its subsidiary Surna Cultivation Technologies LLC, it supplies proprietary environmental controls, HVAC, mechanical, electrical, and lighting systems primarily for indoor cannabis and specialty crop cultivation operations in North America. The company recently shifted its strategic focus to operate under the name "BNB Network Company," adopting BNB as its primary treasury reserve asset.

How the Company Makes Money

CEA Industries’ revenue model depends on the operating performance of its subsidiaries and any consolidated businesses it owns or controls. In general terms, it can generate revenue through (i) sales of cannabis/hemp-related products via operating entities (e.g., branded consumer products or other cannabis-adjacent offerings, where applicable), (ii) service revenue from any cannabis-industry services provided by its subsidiaries, and (iii) gains or income related to acquisitions, dispositions, or strategic investments when such transactions occur. Specific, current, and quantifiable revenue streams (e.g., exact product lines, customer segments, major contracts/partnerships, or the contribution of each segment) are not available from the information provided here; null.

CEA Industries Financial Statement Overview

Summary

Strong TTM balance sheet (very low leverage) and exceptional TTM operating/free cash flow, but operating profitability is weak (negative EBITDA/EBIT) and the multi-year history shows losses and negative cash flow—raising sustainability/earnings-quality risk.

Income Statement

TTM (Trailing-Twelve-Months) results show a dramatic step-up in revenue ($132.1M) and exceptionally high gross margin (~87.5%), with net income also very strong ($170.2M; ~129% net margin). However, operating profitability is a clear weak spot: EBITDA is deeply negative (~-61% margin) and EBIT is also negative in absolute dollars, indicating earnings quality is likely impacted by non-operating items rather than core operations. The annual history (2020–2024) shows persistent losses, negative net margins, and generally declining/recovering revenue, highlighting volatility and limited consistency in underlying profitability.

Balance Sheet

Leverage is very low in TTM (Trailing-Twelve-Months), with debt of ~$1.9M against equity of ~$364.9M (debt-to-equity ~0.01), providing substantial balance-sheet flexibility. Asset base is sizable ($436.8M) and reported return on equity is strong in TTM, consistent with the surge in net income. The main weakness is historical instability: earlier years included negative equity (2020) and very elevated leverage (2021 debt-to-equity ~1.51), suggesting the current strength may reflect major balance-sheet changes rather than a steady long-term profile.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is very strong, with operating cash flow of ~$267.7M and free cash flow of ~$257.0M, and free cash flow covering most of net income (~96%). Cash flow strength is a major improvement versus 2021–2024, when operating and free cash flow were consistently negative. While the current trajectory is excellent, the sharp reversal from multiple years of cash burn increases the risk that cash flows could be less repeatable if the recent drivers are non-recurring.

Breakdown	Jan 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	132.08M	2.80M	6.91M	11.28M	13.64M
Gross Profit	115.57M	-219.62K	542.08K	1.14M	2.93M
EBITDA	-80.94M	-3.15M	-2.82M	-5.06M	-1.91M
Net Income	170.17M	-3.15M	-2.91M	-5.50M	-1.34M
Balance Sheet
Total Assets	436.77M	10.36M	13.77M	21.03M	5.28M
Cash, Cash Equivalents and Short-Term Investments	11.32M	9.45M	12.51M	18.64M	2.16M
Total Debt	1.95M	269.80K	386.35K	495.09K	586.37K
Total Liabilities	71.89M	1.16M	1.51M	6.13M	4.89M
Stockholders Equity	364.88M	9.20M	12.26M	14.90M	389.47K
Cash Flow
Free Cash Flow	257.05M	-3.06M	-6.13M	-3.22M	-3.28M
Operating Cash Flow	267.69M	-3.06M	-6.13M	-3.19M	-3.21M
Investing Cash Flow	-30.45M	0.00	200.00	-28.10K	-57.16K
Financing Cash Flow	3.91M	0.00	0.00	19.70M	3.14M

CEA Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNC, the sentiment is Negative. The current price of 6.52 is above the 20-day moving average (MA) of 3.50, above the 50-day MA of 4.41, and below the 200-day MA of 9.58, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNC.

CEA Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNC	64 Neutral	$136.41M	-0.62	78.70%	―	389.24%	22.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	59 Neutral	$254.27M	12.61	3.91%	1.11%	16.80%	-98.32%
MTRX	58 Neutral	$307.16M	-92.28	-13.58%	―	17.16%	24.10%
BBCP	58 Neutral	$360.64M	-30.18	3.32%	―	-8.98%	-38.23%
ORN	55 Neutral	$438.51M	158.32	1.60%	―	7.02%	―
SLND	42 Neutral	$63.31M	-0.77	-84.16%	―	-9.10%	21.10%

CEA Industries Corporate Events

CEA Industries Faces Activist Challenge Over Board Control

On March 13, 2026, CEA Industries confirmed it had received a letter from YZILabs Management requesting that the board set a record date for a consent solicitation aimed at expanding the board from six to 13 directors and electing seven YZi Labs nominees, a move that would shift effective board control. The board, which has criticized the attempt as an uncompensated change-of-control effort tied to associates of major BNB holder Changpeng Zhao, is reviewing the request for compliance with company bylaws and has signaled it will file a consent revocation statement, underscoring a brewing governance battle over control of BNC’s large BNB treasury and the company’s strategic direction.

The board contends that transferring control to YZi Labs’ nominees could enable conflicted transactions involving BNB that might favor CZ-related interests over those of other shareholders. While urging investors to consider these risks, CEA Industries has told stockholders they need not take action yet, indicating that further instructions and the board’s formal recommendations will follow once the record date is set and regulatory filings are made.

The most recent analyst rating on (BNC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Appoints Brent Miller as Chief Financial Officer

On March 9, 2026, CEA Industries Inc. appointed Brent (also referred to as William B.) Miller as its Chief Financial Officer, adding a seasoned financial executive with more than two decades of experience in financial reporting, accounting policy, internal controls and capital markets. The appointment, detailed in an employment agreement that includes cash compensation, equity incentives and change-in-control protections, is intended to strengthen CEA’s governance and operational foundation as it pursues its strategy of managing the world’s largest corporate BNB treasury and seeks to leverage growth in the BNB ecosystem for shareholders.

Miller previously held senior finance roles at Figure Technology Solutions, reAlpha Tech Corp., Sunlight Financial Holdings, KKR Real Estate Finance Trust and Fortress Investment Group, where he guided companies through IPOs, reorganizations and complex capital markets activities. His track record in public company environments and digital-asset-related finance is expected to support CEA’s efforts to execute its BNB digital asset treasury strategy and manage the risks and opportunities associated with the evolving BNB ecosystem.

The most recent analyst rating on (BNC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Seeks Cheaper, Flexible Asset Management Deal

On February 18, 2026, CEA Industries’ board proposed amendments to its Asset Management Agreement with 10X Capital Asset Management, seeking lower management fees, a shorter term and more favorable termination rights. The board believes a more cost-efficient structure would enhance operational flexibility and long-term value creation for shareholders, especially after YZi Labs’ termination of a secret side agreement that had limited 10X’s ability to negotiate changes.

The proposal follows a comprehensive board review of the existing agreement and related arrangements, reflecting an effort to reshape the company’s asset management framework around its large BNB treasury. With 10X indicating willingness to cooperate, the move could recalibrate costs and control for CEA Industries, potentially strengthening its financial profile and governance in the evolving digital-asset-focused treasury space.

The most recent analyst rating on (BNC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Adds Compliance Veteran to Board, Audit Chair

On February 8, 2026, CEA Industries Inc. appointed accounting and compliance veteran Glenn W. Tyranski to its board of directors, filling a previously disclosed vacancy and bringing the board to six members, half of whom have joined in the last five months. Tyranski, a CPA and former senior New York Stock Exchange compliance executive with extensive experience at firms such as FTI Consulting and Ernst & Young, will chair the audit committee and serve on key governance and strategic committees, bolstering the company’s financial oversight and regulatory expertise as it expands its role as a BNB-focused corporate treasury.

The appointment reflects the board’s ongoing effort to add highly qualified independent directors and strengthen governance amid CEA Industries’ growth as a public company and its strategy centered on managing a large BNB treasury. For shareholders and other stakeholders, Tyranski’s deep background in corporate governance, stock exchange listing compliance and public company reporting is expected to enhance boardroom oversight and support the company’s ambitions in crypto-treasury management.

The most recent analyst rating on (BNC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Director Read Resigns, Board Seeks Successor

On December 30, 2025, CEA Industries director Russell Read notified the board that he would resign effective January 1, 2026, after accepting a new role that prohibits service on external boards; the company stated his departure was not related to any disagreement over its operations, policies, or practices. Read and Chairman and President Tony McDonald highlighted his contributions in analytical rigor and capital markets expertise and reiterated confidence in the company’s digital treasury strategy focused on BNB, while the board signaled its intention to fill the vacancy through its ongoing search for an independent director, aiming to maintain strong governance and oversight for shareholders.

The most recent analyst rating on (BNC) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Adopts Rights Plan Amid YZi Stake

On December 26, 2025, CEA Industries Inc.’s board adopted a stockholder rights agreement and declared a dividend of one right for each outstanding common share and a corresponding number of rights tied to certain warrants, with each right enabling the purchase of a fraction of a newly designated Series C Junior Participating Preferred Share at a set exercise price. The move, announced in a December 28, 2025 press release, was implemented in response to the formation of the YZi Labs Group, which reported owning 7% of the common stock with warrants that could increase its stake to as much as 34.2% on a diluted basis, and is designed as a defensive measure to deter any investor from accumulating 15% or more of the company’s stock without board approval while not blocking consent solicitations or board-approved M&A. The rights plan includes typical “flip-in” and “flip-over” provisions that significantly dilute an acquiring person exceeding the threshold, while allowing the board to redeem or exchange the rights under certain conditions, and is set to expire no later than December 26, 2026. In connection with the rights plan, the board also approved a Certificate of Designation for 200,000 shares of Series C Junior Participating Preferred Stock, which was filed with the Nevada Secretary of State and became effective on December 29, 2025, establishing the terms of the preferred shares that underpin the new rights.

The most recent analyst rating on (BNC) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.

CEA Industries Adopts Rights Plan Amid Activist Challenge

On December 26, 2025, CEA Industries’ board adopted Amended and Restated Bylaws and a limited-duration stockholder rights plan in response to the emergence of the YZi Labs Group, a shareholder bloc that has filed a preliminary consent statement and nominated seven directors in an effort to gain control of the company. YZi Labs and its group currently hold 7% of CEA’s outstanding common stock but also possess significant in-the-money and out-of-the-money warrants that could raise their ownership to as much as 34.2% on a diluted basis, prompting the board to introduce defensive measures designed to ensure any change of control includes an appropriate premium for all investors and that consent solicitations are orderly and transparent. The rights plan, effective for one year from December 26, 2025, issues one right per existing share (and certain warrants) and is triggered if an unapproved holder crosses a 15% ownership threshold, enabling other shareholders to buy stock at a steep discount and diluting the acquirer, while grandfathering current large positions such as the YZi Labs Group unless they increase their stake. The amended bylaws also tighten procedures for stockholder written consents, special meetings, and director nominations—including detailed advance notice and disclosure requirements, mandatory board interview availability for director candidates, and Nevada exclusive-forum provisions—bringing CEA’s governance framework more in line with common public-company practice and potentially making activist campaigns more procedurally demanding while aiming to protect the interests of the broader shareholder base.

The most recent analyst rating on (BNC) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on CEA Industries stock, see the BNC Stock Forecast page.