Sonoma Pharmaceuticals (SNOA) AI Stock Analysis

• Market Cap: $3.72M
• Dividend Yield: N/A
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: 13.51%
• EPS Growth: 78.93%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 66
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -3.93
• Shares Outstanding: 1,615,765
• 10 Day Avg. Volume: 162,391
• 30 Day Avg. Volume: 3,173,621
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.40
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 2.50
• 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

Sonoma Pharmaceuticals faces significant financial challenges, with declining revenues and persistent losses being the primary concerns. The company's reliance on external financing and lack of operational efficiency further exacerbate its financial situation. From a technical perspective, the stock shows weak momentum and a bearish trend. Valuation metrics, including a negative P/E ratio, highlight the company's poor financial performance. Without significant improvements, the stock remains a high-risk investment.

Sonoma Pharmaceuticals Business Overview & Revenue Model

Company Description

Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, and internationally. The company offers Epicyn, an antimicrobial facial cleanser; Levicyn, an HOCl based prescription product to manage and relieve burning, itching, and pain experienced with various types of dermatoses; Celacyn gel, a HOCl-based topical prescription product indicated to promote efficient healing through the management of new and old scars; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis. It also provides Acuicyn, a HOCl-based product indicated to relieve itch and inflammation while helping to keep areas around the eye clean; and Microcyn, a HOCl-based topical line of products designed to stimulate expedited healing by targeting a wide range of pathogens, as well as antibiotic-resistant strains that slow the natural healing of wounds. In addition, the company offers MicrocynAH, an HOCl-based solution designed to relieve common symptoms of hot spots, scratches, skin rashes post-surgical sites, and irritated animal skin for healing; Microdacyn60 oral care solution for the treatment of mouth and throat infections; MucoClyns for the use in emergencies and safe to use on mucous membranes, cuts, abrasions, burns, and body surfaces; Endocyn root canal irrigation solutions; Pediacyn atopic dermatitis hydrogel; Ocucyn eyelid and eyelash cleanser; Gramaderm for the treatment of topical mild to moderate acne; Nanocyn, a hospital-grade disinfectant; and Sinudox for nasal irrigation. The company was formerly known as Oculus Innovative Sciences, Inc. and changed its name to Sonoma Pharmaceuticals, Inc. in December 2016. Sonoma Pharmaceuticals, Inc. was incorporated in 1999 and is based in Woodstock, Georgia.

How the Company Makes Money

Sonoma Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include the direct sales of its dermatological and advanced tissue care products to healthcare providers, pharmacies, and consumers. Additionally, Sonoma engages in partnerships and distribution agreements with other companies to expand its market reach and product availability. These partnerships may involve licensing deals or co-marketing arrangements that contribute to its earnings by leveraging the partner's distribution network and market presence. The company also invests in research and development to innovate new products and improve existing ones, which can lead to increased sales and revenue growth over time.

Sonoma Pharmaceuticals Financial Statement Overview

Summary

Sonoma Pharmaceuticals is facing financial challenges with declining revenues and persistent losses. While leverage is kept low, the company’s reliance on external financing and shrinking equity base are concerning. Improvement in operational efficiency and revenue growth is essential for future stability.

Income Statement

Sonoma Pharmaceuticals shows a consistent decline in revenue over the past years, which is concerning. The gross profit margin decreased significantly, indicating potential issues in cost management or pricing strategies. The company is also experiencing persistent net losses, as reflected in the negative EBIT and EBITDA margins.

Balance Sheet

The debt-to-equity ratio is low, which suggests conservative leverage. However, the continuous decrease in stockholders' equity and total assets raises concerns about the company’s financial stability and ability to sustain operations without further dilution of equity or taking on debt.

Cash Flow

Cash flow from operations has improved slightly in the TTM period, but free cash flow remains low. The company is heavily reliant on financing activities to maintain liquidity, which could pose risks if external financing becomes less accessible.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
10.58M	12.73M	13.27M	12.63M	18.63M	18.94M
	Gross Profit
3.72M	4.75M	4.48M	3.99M	6.56M	8.33M
	EBIT
-3.29M	-4.70M	-4.57M	-5.89M	-3.45M	-6.67M
	EBITDA
-3.21M	-4.53M	-4.45M	-5.70M	-3.22M	-3.22M
	Net Income Common Stockholders
-2.60M	-4.83M	-5.15M	-5.09M	-4.62M	-2.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.26M	3.13M	3.82M	7.40M	4.22M	3.69M
	Total Assets
10.22M	14.74M	16.23M	18.84M	14.99M	14.56M
	Total Debt
314.00K	608.00K	849.00K	1.37M	2.67M	1.48M
	Net Debt
-5.94M	-2.52M	-2.97M	-6.03M	-1.54M	-2.21M
	Total Liabilities
3.17M	8.60M	8.25M	10.15M	9.62M	5.86M
	Stockholders Equity
7.04M	6.14M	7.98M	8.70M	5.36M	8.71M
Cash Flow		Free Cash Flow
1.05M	-2.42M	-6.42M	-4.38M	-3.56M	-4.80M
	Operating Cash Flow
1.07M	-2.40M	-6.15M	-4.25M	-3.38M	-4.59M
	Investing Cash Flow
-10.00K	-2.00K	-258.00K	-99.00K	388.00K	3.64M
	Financing Cash Flow
2.77M	1.68M	2.49M	7.40M	3.31M	1.03M

Sonoma Pharmaceuticals Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNOA, the sentiment is Negative. The current price of 2.3 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.59, and below the 200-day MA of 3.46, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 70.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNOA.

Sonoma Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.12	-41.08%	2.95%	17.98%	2.02%
CNSP	42 Neutral	$3.95M	―	-1703.39%	―	―	90.33%
SNOA	41 Neutral	$3.72M	―	-64.83%	―	13.51%	78.93%
SONN	38 Underperform	$3.86M	―	-285.35%	―	674.14%	89.05%
FOXO	36 Underperform	$3.01M	―	-467.31%	―	-52.07%	91.91%
NBY	32 Underperform	$3.49M	―	-452.75%	―	-33.58%	93.83%

Sonoma Pharmaceuticals Corporate Events

Sonoma Pharmaceuticals Ends EMC Pharma Agreement

Sonoma has terminated its exclusive agreement with EMC Pharma due to EMC’s failure to meet minimum purchase requirements, allowing Sonoma to resume direct sales of its dermatological and eye care products in the U.S. This decision is part of the company’s strategy to enhance its market presence, despite potential risks and uncertainties that could affect its future financial performance.