CEA Industries (BNC) AI Stock Analysis

• Market Cap: $257.21M
• Dividend Yield: N/A
• Average Volume (3M): 705.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.01
• Revenue Growth: 309.13%
• EPS Growth: -92.20%
• Country: US
• Employees: 29
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -6.78
• Shares Outstanding: 43,083,080
• 10 Day Avg. Volume: 658,556
• 30 Day Avg. Volume: 705,375
• PEG Ratio: 0.76
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -1.98
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 13.26
• Enterprise Value/Ebitda: -3.33
• 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: 37 Underperform
• Price Target: ―

CEA Industries is in a precarious financial position with significant challenges in revenue and profitability. Technical indicators suggest bearish momentum, compounded by poor valuation metrics. Strategic restructuring may be necessary to stabilize the company's financial health.

Positive Factors

Strategic Treasury Growth

The expansion of BNB holdings strengthens CEA Industries' financial position, providing a buffer against cash flow issues and enhancing long-term strategic flexibility.

Partnerships and Comprehensive Solutions

Strategic partnerships enhance CEA Industries' market position by offering tailored solutions, potentially driving sustained revenue growth and competitive advantage in the indoor farming sector.

Revenue Growth

Strong revenue growth indicates increasing demand for CEA Industries' solutions, reflecting successful market penetration and potential for future expansion in the controlled environment agriculture sector.

Negative Factors

Negative Profitability

Persistent negative profitability suggests operational inefficiencies and challenges in cost management, which could hinder long-term financial stability and growth prospects.

Cash Flow Challenges

Negative cash flows highlight inefficiencies in revenue conversion and raise concerns about CEA Industries' ability to sustain operations without external financing, impacting long-term viability.

Declining Revenue

A declining revenue trend poses a significant risk to CEA Industries' growth trajectory, potentially undermining its market position and ability to invest in future innovations.

CEA Industries Business Overview & Revenue Model

Company Description

CEA Industries Inc. (CEAD) operates in the controlled environment agriculture sector, providing technology and engineering solutions for the indoor farming industry. The company offers a range of products and services designed to optimize agricultural production environments, including design-build services, consulting, and systems integration for climate control, lighting, and environmental monitoring.

How the Company Makes Money

CEA Industries makes money through the sale of its technology solutions and consulting services aimed at enhancing the efficiency and productivity of indoor agriculture facilities. Key revenue streams include design and installation contracts for climate control and environmental systems, as well as ongoing consulting and maintenance services for clients. The company's earnings are bolstered by partnerships with equipment manufacturers and agricultural operators, allowing it to provide comprehensive solutions tailored to the specific needs of the indoor farming sector.

CEA Industries Financial Statement Overview

Summary

CEA Industries is facing significant financial challenges with declining revenue, negative profitability, and cash flow issues. The balance sheet shows some strength in asset backing, but ongoing losses threaten financial stability.

Income Statement

CEA Industries has exhibited a concerning decline in revenue and profitability over recent periods. The gross profit margin has turned negative, highlighting operational inefficiencies. Net profit margins remain deeply negative, indicating consistent losses. Additionally, EBIT and EBITDA margins are significantly negative, reflecting ongoing challenges in operational management. The revenue growth rate is concerning, as revenue continues to decrease year-over-year.

Balance Sheet

The company's balance sheet shows a mixed picture. While the debt-to-equity ratio remains low due to high equity, the equity ratio is relatively strong, suggesting good asset backing. However, these strengths are overshadowed by a persistent decline in stockholders' equity and total assets. Return on equity is negative, reflecting ongoing losses impacting shareholder value.

Cash Flow

The cash flow statement reveals severe challenges with negative operating and free cash flows, indicating unsustainable cash outflows. The free cash flow growth rate is negative, exacerbating financial strain. Additionally, operating cash flow to net income and free cash flow to net income ratios indicate inefficiencies in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.03M	2.80M	6.91M	11.28M	13.64M	8.51M
Gross Profit	2.09M	-219.62K	542.08K	1.14M	2.93M	1.55M
EBITDA	-8.34M	-3.15M	-2.82M	-4.96M	-1.71M	-1.43M
Net Income	-8.66M	-3.15M	-2.91M	-5.50M	-1.34M	-1.76M
Balance Sheet
Total Assets	19.13M	10.36M	13.77M	21.03M	5.28M	4.81M
Cash, Cash Equivalents and Short-Term Investments	3.02M	9.45M	12.51M	18.64M	2.16M	2.28M
Total Debt	1.96M	269.80K	386.35K	495.09K	586.37K	435.22K
Total Liabilities	12.23M	1.16M	1.51M	6.13M	4.89M	6.15M
Stockholders Equity	6.90M	9.20M	12.26M	14.90M	389.47K	-1.33M
Cash Flow
Free Cash Flow	-2.62M	-3.06M	-6.13M	-3.22M	-3.28M	808.70K
Operating Cash Flow	-2.62M	-3.06M	-6.13M	-3.19M	-3.21M	818.04K
Investing Cash Flow	-10.64M	0.00	200.00	-28.10K	-57.16K	-9.33K
Financing Cash Flow	3.91M	0.00	0.00	19.70M	3.14M	554.00K

CEA Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNC, the sentiment is Neutral. The current price of 6.47 is above the 20-day moving average (MA) of 5.70, below the 50-day MA of 7.24, and below the 200-day MA of 10.79, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 85.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BNC.

CEA Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORN	64 Neutral	$398.21M	41.36	6.31%	―	7.02%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	60 Neutral	$142.20M	49.85	5.24%	1.05%	9.52%	-88.22%
BBCP	56 Neutral	$319.66M	38.24	3.32%	―	-8.98%	-38.23%
MTRX	47 Neutral	$428.61M	-14.39	-16.33%	―	17.16%	24.10%
SLND	43 Neutral	$173.70M	―	-84.16%	―	-9.10%	21.10%
BNC	37 Underperform	$257.21M	―	-87.97%	―	309.13%	-92.20%