Omega Diagnostics (CNSL) AI Stock Analysis

• Market Cap: £4.52M
• Dividend Yield: N/A
• Average Volume (3M): 353.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -10.20%
• EPS Growth: 714.29%
• Country: UK
• Employees: 94
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.00
• Shares Outstanding: 237,950,650
• 10 Day Avg. Volume: 111,535
• 30 Day Avg. Volume: 353,573
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -51.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): £7.50M

• Rating: 50 Neutral
• Price Target: 2.00 p ▼(-13.04% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

The overall stock score is primarily influenced by the mixed financial performance and bearish technical indicators. While the valuation suggests the stock may be undervalued, significant financial and technical challenges weigh heavily on the score. The positive sentiment from leadership's share acquisitions provides a minor offset but is not enough to significantly alter the overall outlook.

Positive Factors

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.03 signals minimal financial leverage, giving the company durable financial flexibility to finance operations, absorb shocks, and invest in product development or capacity without immediate refinancing pressure, supporting long-term resilience.

High gross and net margins

A 60% gross margin shows strong product economics and pricing power in core diagnostics; an 18.8% net margin indicates that the company can retain meaningful profits after costs. These margins underpin long-term profitability if revenue stabilises or grows.

Established IVD product and channel mix

Owning manufacturing and supplying both own-brand and B2B IVD products creates durable competitive advantages: control of quality, diversified customer channels, and alignment with steady structural demand for diagnostics in healthcare and clinical markets.

Negative Factors

Declining revenue trends

Two successive indicators of negative revenue growth imply shrinking top-line scale, which can erode operating leverage, limit reinvestment capacity, and pressure long-term margins unless the company arrests share loss or repositions products into growing niches.

Severe cash flow deterioration

Deeply negative FCF growth and very weak cash conversion show earnings are not translating to cash. This creates persistent liquidity and funding risk, constrains investment and working-capital flexibility, and may force external financing despite low leverage.

Core operational weakness (negative EBIT margin)

A negative EBIT margin signals underlying operational losses before non-operational items. This undermines earnings quality and suggests reliance on non-recurring gains or accounting effects, posing a lasting risk to sustainable operating profitability.

Omega Diagnostics Business Overview & Revenue Model

Company Description

Cambridge Nutritional Sciences plc, through its subsidiaries, develops, manufactures, and distributes medical diagnostics products for the food sensitivity testing market. The company is involved in the research, development, and production of kits for detection of immune reactions to food under the Foodprint name. It provides clinical analysis to the general public, clinics, and health professionals, as well as supplies Food Detective, a consumer food test. The company serves government, private hospitals, reference laboratories, nutritionists, naturopaths, and other healthcare professionals. Cambridge Nutritional Sciences plc operates in the United Kingdom, rest of Europe, North America, South/Central America, India, other Asian countries and the Far East, Africa, and the Middle East. The company was formerly known as Omega Diagnostics Group PLC and changed its name to Cambridge Nutritional Sciences plc in September 2023. Cambridge Nutritional Sciences plc was founded in 1987 and is based in London, the United Kingdom.

How the Company Makes Money

Omega Diagnostics generates revenue through the sale of its diagnostic products, which are marketed to hospitals, laboratories, and healthcare providers. The company has established key revenue streams from the distribution of its allergy testing kits and infectious disease diagnostics, which are often sold directly to healthcare facilities or through third-party distributors. Additionally, Omega may benefit from partnerships with other companies in the healthcare and diagnostics sectors, which can provide access to new markets and enhance its product offerings. The ongoing demand for accurate diagnostic testing in the healthcare industry, particularly in light of emerging health challenges, plays a significant role in sustaining and growing its earnings.

Omega Diagnostics Financial Statement Overview

Summary

Omega Diagnostics presents a mixed financial picture. The income statement shows profitability but declining revenue and operational inefficiencies. The balance sheet is strong with low leverage and reasonable returns on equity, indicating financial stability. However, the cash flow statement highlights significant cash management challenges and potential liquidity risks.

Income Statement

Omega Diagnostics shows a mixed performance in its income statement. The company has a positive net profit margin of 18.80% in the latest year, indicating profitability. However, the revenue growth rate is negative at -7.18%, suggesting a decline in sales. The gross profit margin is healthy at 60.08%, but the EBIT margin is negative, reflecting operational challenges. Overall, the income statement reflects profitability but with declining revenue and operational inefficiencies.

Balance Sheet

The balance sheet of Omega Diagnostics is relatively strong with a low debt-to-equity ratio of 0.03, indicating low leverage and financial stability. The return on equity is 13.73%, showing a decent return for shareholders. The equity ratio is not explicitly calculated, but the low debt levels suggest a strong equity position. Overall, the balance sheet reflects financial stability with low leverage and reasonable returns on equity.

Cash Flow

Cash flow analysis reveals significant challenges for Omega Diagnostics. The free cash flow growth rate is negative at -125.27%, indicating deteriorating cash generation. The operating cash flow to net income ratio is low at 0.04, suggesting weak cash conversion. The free cash flow to net income ratio is negative, highlighting cash flow issues. Overall, the cash flow statement indicates significant cash management challenges and potential liquidity risks.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	8.06M	8.33M	9.77M	7.55M	8.54M	6.82M
Gross Profit	4.91M	5.00M	6.05M	3.17M	4.75M	4.00M
EBITDA	2.01M	2.20M	-73.00K	-2.65M	-382.00K	418.00K
Net Income	1.36M	1.57M	-328.00K	-3.86M	-11.33M	-2.10M
Balance Sheet
Total Assets	12.69M	13.80M	13.89M	14.40M	17.84M	29.55M
Cash, Cash Equivalents and Short-Term Investments	3.59M	4.87M	5.44M	5.12M	1.60M	5.83M
Total Debt	237.00K	349.00K	148.00K	74.00K	370.00K	2.84M
Total Liabilities	1.64M	2.39M	4.21M	4.45M	6.02M	6.16M
Stockholders Equity	11.05M	11.41M	9.68M	9.95M	11.82M	23.38M
Cash Flow
Free Cash Flow	-437.00K	-142.00K	548.00K	-3.31M	-4.71M	-5.24M
Operating Cash Flow	-166.00K	83.00K	607.00K	-3.15M	-3.23M	-2.42M
Investing Cash Flow	-482.00K	2.12M	-2.51M	5.18M	-493.00K	-2.83M
Financing Cash Flow	-233.00K	-251.00K	-265.00K	1.49M	-502.00K	11.07M

Omega Diagnostics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CNSL, the sentiment is Negative. The current price of 2.3 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 2.03, and below the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 22.95 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CNSL.

Omega Diagnostics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSTL	74 Outperform	£185.50M	12.60	20.31%	3.48%	10.80%	1.75%
AMS	69 Neutral	£419.36M	19.10	3.66%	1.25%	68.03%	-18.27%
EKF	67 Neutral	£112.00M	15.58	8.71%	―	-1.43%	28.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IXI	51 Neutral	£7.23M	-7.18	-15.57%	―	13.32%	55.07%
CNSL	50 Neutral	£4.52M	-4.58	12.15%	―	-10.20%	714.29%
ABDX	45 Neutral	£20.71M	-7.52	-58.27%	―	37.39%	-126.19%