BioStem Technologies (BSEM) AI Stock Analysis

• Market Cap: $102.61M
• Dividend Yield: N/A
• Average Volume (3M): 151.80K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.80
• Revenue Growth: 11.78%
• EPS Growth: 37.44%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.03
• Shares Outstanding: 16,338,436
• 10 Day Avg. Volume: 73,384
• 30 Day Avg. Volume: 151,800
• PEG Ratio: -0.02
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 9.42
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.34
• Enterprise Value/Ebitda: 4.99
• 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: 68 Neutral
• Price Target: $6.00 ▲(24.22% Upside)
• Action: Downgraded Date: 02/04/26
• Date: Action: Downgraded 02/04/26

The score is primarily supported by strong profitability/cash generation and an inexpensive P/E valuation. Offsetting this are weakening revenue and cash-flow growth trends plus longer-term technical weakness versus the 200-day average, while the latest earnings call was constructive on execution but flagged ongoing pricing-driven revenue pressure and a lower cash balance.

Positive Factors

High profitability and cash generation

Sustained high gross margins and positive operating and free cash flow (FCF/net income ~0.98) indicate the business converts sales to cash efficiently. This durable cash generation supports ongoing R&D, working capital, and strategic investments without relying heavily on external financing.

Conservative capital structure

Very low leverage provides financial flexibility to fund expansion, absorb reimbursement or pricing shocks, and pursue strategic projects (e.g., facility investments, market entry) while keeping interest burden limited. It reduces refinancing risk over the medium term.

Operational resilience and regulated readiness

Consistent positive adjusted EBITDA across seven quarters, combined with a clean FDA inspection and active expansion into Medicaid and VA channels, demonstrates durable operational control and regulated-market readiness, supporting sustainable commercialization and longer-term revenue opportunities.

Negative Factors

Sustained revenue decline

Material year-over-year and sequential revenue declines point to structural top-line pressure driven by pricing/reimbursement shifts and competitive dynamics. Persistent revenue erosion can undermine scale economics, limit reinvestment capacity, and pressure long-term growth prospects.

Margin compression and falling ROE

A decline in gross margin alongside a notable drop in ROE suggests emerging margin pressure and reduced capital efficiency. If pricing and reimbursement headwinds persist, profit margins and returns on equity could continue to compress, weakening long-term profitability sustainability.

Slowing free cash flow growth and cash depletion

Declining FCF growth and a falling cash balance—partly due to strategic land acquisition and collection timing—reduce near-term liquidity cushions. Continued FCF deceleration would limit ability to fund expansion or absorb shocks without tapping reserves or raising capital.

BioStem Technologies Business Overview & Revenue Model

Company Description

BioStem Technologies, Inc., a life sciences corporation, focuses on discovering, developing, and producing pharmaceutical and regenerative medicine products and services. It develops various biologic stem cell based alternative products, as a treatment for ailments, such as joint pain, tendon and ligament injuries, neurodegenerative, and autoimmune diseases. The company is also engages in the repackaging and distribution of active pharmaceutical ingredients and other pharmaceutical compounding supplies; and develops and markets nutraceutical products under the Dr. Dave's Best and Nesvik Organics brands, as well as other non-proprietary products in the United States and internationally. The company sells products through e-commerce platforms. BioStem Technologies, Inc. was incorporated in 2006 and is based in Pompano Beach, Florida.

How the Company Makes Money

BioStem Technologies generates revenue through multiple key streams. Primarily, the company earns income from the processing and storage fees associated with stem cell collection services, where parents pay to store umbilical cord blood and tissue for potential future medical use. Additionally, BSEM monetizes its proprietary stem cell therapies and related products sold to healthcare providers and research institutions. Strategic partnerships with hospitals, clinics, and research organizations further enhance revenue opportunities through collaborative research and development projects. The company may also engage in licensing agreements for its technologies, providing another avenue for income generation.

BioStem Technologies Financial Statement Overview

Summary

Strong profitability and cash generation support the score (gross margins consistently above 90%, net margin 10.98%, positive operating and free cash flow with a high FCF-to-net income ratio of 0.98). Offsetting this, TTM revenue growth declined 7.58%, free cash flow growth declined 3.84%, and EBIT/EBITDA margin pressure plus lower ROE (down to 65.93%) signal weakening momentum in fundamentals.

Income Statement

BioStem Technologies shows strong gross profit margins consistently above 90%, indicating efficient cost management. However, recent revenue growth has declined by 7.58% in the TTM, which is a concern. The net profit margin remains healthy at 10.98%, reflecting profitability, but the decline in EBIT and EBITDA margins suggests potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low at 0.11, indicating prudent leverage management. However, the return on equity has decreased from 78% to 65.93% in the TTM, suggesting reduced efficiency in generating returns from equity. The equity ratio is not provided, but the overall stability appears moderate.

Cash Flow

Operating cash flow and free cash flow are positive, with a high free cash flow to net income ratio of 0.98, indicating strong cash generation relative to profits. However, the free cash flow growth rate has declined by 3.84% in the TTM, which could impact future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	235.17M	301.83M	16.69M	6.88M	4.34M	2.52M
Gross Profit	228.78M	287.86M	15.42M	5.99M	2.87M	1.25M
EBITDA	15.57M	31.49M	-7.55M	-6.52M	-602.00K	-2.25M
Net Income	20.20M	31.88M	-8.48M	-7.07M	-1.45M	-2.39M
Balance Sheet
Total Assets	62.39M	140.55M	14.56M	3.47M	2.67M	2.67M
Cash, Cash Equivalents and Short-Term Investments	27.16M	22.83M	239.41K	772.14K	340.33K	100.70K
Total Debt	3.39M	4.50M	4.77M	5.21M	4.83M	5.63M
Total Liabilities	12.38M	99.67M	15.90M	7.42M	8.47M	8.30M
Stockholders Equity	50.02M	40.88M	-1.34M	-4.08M	-5.96M	-5.80M
Cash Flow
Free Cash Flow	12.23M	24.05M	-3.60M	-2.11M	-152.29K	-585.25K
Operating Cash Flow	15.27M	24.48M	-3.50M	-1.64M	-109.44K	-581.57K
Investing Cash Flow	-1.80M	-1.68M	-210.33K	-469.48K	-7.85K	-3.69K
Financing Cash Flow	-931.94K	-206.78K	3.18M	597.71K	357.42K	541.52K

BioStem Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSEM, the sentiment is Positive. The current price of 4.83 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 5.13, and below the 200-day MA of 7.57, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSEM.

BioStem Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSEM	68 Neutral	$102.61M	7.31	55.46%	―	11.78%	37.44%
BDTX	59 Neutral	$128.76M	6.34	19.23%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DMAC	49 Neutral	$448.91M	-11.85	-64.12%	―	―	-29.73%
IPHA	49 Neutral	$160.01M	-2.83	-271.32%	―	-75.77%	-31.24%
CBIO	46 Neutral	$267.85M	-0.53	-51.70%	―	-100.00%	-0.58%
VYGR	46 Neutral	$185.70M	-1.58	-46.09%	―	-80.88%	-388.61%