TOMI Environmental Solutions (TOMZ) AI Stock Analysis

• Market Cap: $20.68M
• Dividend Yield: N/A
• Average Volume (3M): 30.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -12.72%
• EPS Growth: -36.80%
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.06
• Shares Outstanding: 20,075,205
• 10 Day Avg. Volume: 24,080
• 30 Day Avg. Volume: 30,380
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: -6.31
• 1Y Price Target: $3.50
• Price Target Upside: 239.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-2.91% Downside)

The overall stock score reflects significant financial challenges, including ongoing losses and declining revenues, which are the most impactful factors. While there are some positive developments in service revenue growth and collaborations, the financial strain and negative valuation metrics weigh heavily on the score.

Positive Factors

Service Revenue Growth

The growth in service revenue indicates a strengthening demand for TOMI's service offerings, which can lead to more stable and recurring income streams, enhancing long-term financial sustainability.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing strategies, which can enhance profitability and provide a buffer against revenue volatility.

NASA Collaboration

Collaboration with NASA enhances TOMI's credibility and opens avenues for future projects, potentially leading to new revenue streams and technological advancements.

Negative Factors

Significant Revenue Decline

A sharp decline in revenue indicates potential challenges in maintaining market share and customer retention, which could impact long-term growth prospects.

Operating and Net Loss

Continued operating and net losses highlight financial instability, necessitating strategic changes to achieve profitability and ensure long-term viability.

Rising Leverage

Increased leverage can strain financial resources, limiting flexibility and increasing risk, which may hinder the company's ability to invest in growth opportunities.

TOMI Environmental Solutions Business Overview & Revenue Model

Company Description

TOMI Environmental Solutions (TOMZ) is a leading provider of environmental solutions specializing in advanced disinfection and decontamination technologies. The company operates primarily in the healthcare, commercial, and industrial sectors, offering innovative products and services, including its signature TOMI SteraMist system, which utilizes cold plasma technology for effective pathogen elimination. TOMZ aims to enhance public health and safety by delivering reliable, environmentally friendly solutions that meet rigorous standards for cleanliness and infection control.

How the Company Makes Money

TOMI Environmental Solutions generates revenue through the sale of its proprietary disinfection equipment, such as the TOMI SteraMist system, as well as through recurring service contracts for disinfection applications in various settings, including hospitals, schools, and commercial facilities. The company also earns income from consumables and chemical solutions used in conjunction with its equipment. Key revenue streams include direct sales to end-users, partnerships with healthcare providers, and collaborations with distributors and service providers in the environmental and cleaning sectors. Additionally, TOMZ's focus on innovation and expanding its product offerings contributes to its financial growth.

TOMI Environmental Solutions Financial Statement Overview

Summary

TOMI Environmental Solutions is facing significant financial challenges, including ongoing losses, declining revenues, and increasing leverage. The company's profitability ratios are under pressure, and cash flows are negative, indicating a need for cost management and revenue enhancement strategies.

Income Statement

The company has faced significant challenges in maintaining revenue and profitability over the years. Revenue growth has been negative, with a sharp decline in 2024 compared to 2023. The gross profit margin remains positive, but net profit margin is deeply negative, indicating substantial losses. Despite a positive gross profit, operational costs are too high, leading to negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a decrease in total assets and equity over time. The debt-to-equity ratio has increased, indicating rising leverage and potential financial risk. The equity ratio remains positive, but the declining trend suggests waning financial stability. Return on equity has been negative, reflecting ongoing net losses.

Cash Flow

Cash flow analysis shows negative free cash flow growth, with consistent operating cash flow losses. The free cash flow to net income ratio remains negative, demonstrating cash burn issues. Operating cash flow has not been sufficient to cover net losses, suggesting financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.22M	7.74M	7.35M	8.34M	7.75M	25.03M
Gross Profit	2.66M	3.56M	4.29M	5.06M	4.59M	15.04M
EBITDA	-3.83M	-3.63M	-2.96M	-2.53M	-4.01M	5.43M
Net Income	-4.69M	-4.48M	-3.40M	-2.88M	-4.44M	4.39M
Balance Sheet
Total Assets	8.48M	9.69M	13.36M	15.50M	16.27M	16.77M
Cash, Cash Equivalents and Short-Term Investments	569.45K	664.88K	2.34M	3.87M	5.32M	5.20M
Total Debt	3.36M	3.00M	3.06M	861.41K	953.19K	1.45M
Total Liabilities	5.82M	5.59M	5.00M	4.05M	2.68M	3.57M
Stockholders Equity	2.66M	4.10M	8.36M	11.45M	13.60M	13.20M
Cash Flow
Free Cash Flow	-510.20K	-1.55M	-3.82M	-1.48M	-4.46M	4.18M
Operating Cash Flow	-345.28K	-1.44M	-3.60M	-1.23M	-3.82M	4.58M
Investing Cash Flow	-229.38K	-261.53K	-216.69K	-241.45K	-639.37K	-400.65K
Financing Cash Flow	407.50K	27.50K	2.29M	25.00K	4.58M	124.20K

TOMI Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOMZ, the sentiment is Positive. The current price of 1.03 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.92, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOMZ.

TOMI Environmental Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLIR	58 Neutral	26.62M	-4.45	-38.50%	―	19.03%	11.70%
FTEK	53 Neutral	94.78M	-31.59	-4.63%	―	-4.78%	-1359.72%
LIQT	50 Neutral	25.00M	-1.97	-74.27%	―	-12.76%	15.23%
TOMZ	42 Neutral	$20.68M	―	-94.24%	―	-12.72%	-36.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TOMI Environmental Solutions Corporate Events

TOMI Environmental Names Interim CFO Nick Jennings

TOMI Environmental Solutions, Inc. announced the resignation of Joe Rzepka as Chief Financial Officer due to personal reasons. The company’s Board of Directors has appointed Nick Jennings as Interim CFO, who previously served in the same role from October 2014 to May 2024. The company plans to search for a permanent CFO and has agreed to a five-month term with Jennings, offering him $15,000 per month.