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Tomi Environmental Solutions, Inc. (TOMZ)
:TOMZ
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TOMI Environmental Solutions
(NASDAQ:TOMZ)
Rating:41Neutral
Price Target:
$1.00
▲(4.17%Upside)
Positive Factors
Product Demand
The company announced several developments across its product portfolio, demonstrating evidence of demand for the company’s products and services.
Revenue Growth
The company posted net revenue of roughly $1.6M in 1Q25, compared to $1.1M in 1Q24, showing a 42% year-over-year improvement.
Negative Factors
International Sales Challenges
Given the volatility around tariffs being considered by the Trump administration, investors should temper expectations around international sales execution in 2025.
Profitability Issues
Gross margin for the quarter was negative 49.5% compared to an average of 61.0% during the previous three quarters, impacted by three orders that were returned.
Revenue Decline
The company posted net revenue of roughly $1.1M in 4Q24, compared to $1.5M in 4Q23, indicating a 30% year-over-year decline.
TOMI Environmental Solutions (TOMZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.22M
Dividend YieldN/A
Average Volume (3M)22.47K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth19.09%
EPS Growth3.50%
CountryUS
Employees20
SectorIndustrials
Sector Strength90
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.01
Shares Outstanding20,015,205
10 Day Avg. Volume32,605
30 Day Avg. Volume22,472
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)5.10
Price to Sales (P/S)0.00
P/FCF Ratio-27.86
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda-1.97
Forecast
1Y Price Target
$3.50Price Target Upside264.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
TOMI Environmental Solutions Business Overview & Revenue Model
Company DescriptionTOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, provides environmental solutions for indoor surface decontamination in the United States and internationally. Its products and services include SteraMist Surface Unit, a portable, handheld, point and spray disinfection/decontamination system intended to provide quick turnover of any affected space; SteraMist Environment System, a transportable, remotely controlled system that offers complete room disinfection/decontamination of a sealed space of approximately 103.8 m3; and The SteraMist Hospital Disinfection Cart, a solution to aid its hospital-healthcare customers in providing the quality of care and safety to their patients by disinfecting patient and operating rooms, pharmacies, ambulances, and emergency environments in a hospital or healthcare facility. The company also offers SteraMist Select Surface Unit; Stainless Steel 90-Degree Applicator; iHP Plasma Decontamination Chamber; SteraMist Custom Engineered System; and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company's products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.
How the Company Makes MoneyTOMI Environmental Solutions generates revenue primarily through the sale and leasing of its SteraMist equipment and solutions, which are used for surface disinfection and air decontamination. The company also offers related services, including training and consulting on the implementation of its technology. Key revenue streams include direct sales to healthcare facilities, partnerships with distributors, and service contracts with various sectors requiring sanitation solutions. Additionally, TOMI may engage in strategic partnerships to enhance its market reach and technological capabilities, thereby contributing to its earnings.
TOMI Environmental Solutions Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 14.29%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including strong growth in product lines and successful partnerships, which indicate a promising trajectory. However, challenges such as non-cash expenses impacting financial results and the need for additional capital were noted. Despite these challenges, the overall sentiment leans positive due to substantial growth and strategic advancements.Q4-2024 Updates
Positive Updates
Record Year for Custom Engineered Systems
TOMI successfully maintained an expanding pipeline for custom engineered systems, with eight deals valued at approximately $3.7 million. There are discussions regarding 46 different projects, with 12 being very active and anticipated to close five deals in 2025, yielding around $1.4 million.
Launch of SteraMist Integrated System
The SteraMist Integrated System was launched in October 2024. The pipeline of opportunities for this product has grown to over $1 million, with contracts for three additional SIS offerings totaling approximately $575,000 in sales.
Expansion and Partnerships
TOMI signed six additional partners across various regions, including Malaysia, India, Italy, Canada, South Korea, and the UK. Notably, their Malaysian partner standardized treatments using iHP technology in biosafety Level 3 rooms.
Positive Trends in BIT Solution Sales
BIT Solution sales demonstrated a 200% increase year-to-date compared to the same period last year, indicating strong organic growth.
Growth in iHP Corporate Service
iHP Corporate Service saw a 42% increase in Q1 2025 compared to the same period last year, indicating strong performance and retention of long-term clients.
Financial Performance
GAAP revenue rose to $7.739 million in 2024, up from $7.355 million in 2023. Non-GAAP revenue was approximately $8 million, reflecting a nearly 6% increase over 2023.
Negative Updates
Impact of Non-Cash Expenses
One-time non-cash expenses impacted GAAP results. GAAP operating loss was $4.105 million compared to $3.349 million in the prior year.
Returned Orders
Three orders were returned in Q4 2024, contributing to lower reported revenue. The returns were due to changes in the scope of use and a federal grant being pulled.
Cash Flow Concerns
Cash flow for 2024 was lower than desired, but improvements are anticipated in 2025 due to better execution and timing of progress payments.
Need for Additional Capital
The company plans to raise $3-3.5 million through convertible notes due to cash constraints and to support future growth.
Company Guidance
During the fourth quarter of 2024, TOMI Environmental Solutions highlighted significant progress and provided forward-looking guidance. The company reported a GAAP revenue increase to $7.739 million, a 5% year-over-year rise, with non-GAAP revenue reaching approximately $8 million, reflecting nearly a 6% increase. The company is working on eight CES (Custom Engineered Systems) deals valued at approximately $3.7 million, while anticipating five additional CES and hybrid system deals in 2025, expected to yield around $1.4 million. Additionally, TOMI's BIT Solutions sales saw a 9% growth, reaching around $900,000, and mobile equipment sales grew by 23% to approximately $3.8 million. The company's non-GAAP gross margins improved to 60% from 59% in the previous year. TOMI also signed six new global partnerships, notably in Malaysia, India, and Italy, to enhance its SteraMist Integrated System (SIS) offerings. The company reported a non-GAAP operating loss of $1.678 million, improved from $2.785 million in the prior year, while GAAP net loss was $4.477 million. The company plans to raise approximately $3.5 million through convertible notes to bolster its cash position and support growth initiatives.TOMI Environmental Solutions Financial Statement Overview
Summary
TOMI Environmental Solutions is facing considerable financial challenges with ongoing losses, declining revenues, and increasing leverage. The profitability ratios are under pressure, and cash flows are negative, indicating a need for significant operational improvements to achieve financial stability.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.30
Negative
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.40
Negative
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.25
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.74M | 7.35M | 8.34M | 7.75M | 25.03M |
| Gross Profit | 3.56M | 4.29M | 5.06M | 4.59M | 15.04M |
| EBITDA | -3.63M | -2.96M | -2.53M | -4.01M | 5.43M |
| Net Income | -4.48M | -3.40M | -2.88M | -4.44M | 4.39M |
Balance Sheet | |||||
| Total Assets | 9.69M | 13.36M | 15.50M | 16.27M | 16.77M |
| Cash, Cash Equivalents and Short-Term Investments | 664.88K | 2.34M | 3.87M | 5.32M | 5.20M |
| Total Debt | 3.00M | 3.06M | 861.41K | 953.19K | 1.45M |
| Total Liabilities | 5.59M | 5.00M | 4.05M | 2.68M | 3.57M |
| Stockholders Equity | 4.10M | 8.36M | 11.45M | 13.60M | 13.20M |
Cash Flow | |||||
| Free Cash Flow | -1.55M | -3.82M | -1.48M | -4.46M | 4.18M |
| Operating Cash Flow | -1.44M | -3.60M | -1.23M | -3.82M | 4.58M |
| Investing Cash Flow | -261.53K | -216.69K | -241.45K | -639.37K | -400.65K |
| Financing Cash Flow | 27.50K | 2.29M | 25.00K | 4.58M | 124.20K |
TOMI Environmental Solutions Technical Analysis
Neutral
0.96
Price Trends
0.98
Negative
0.89
Positive
0.88
Positive
Market Momentum
>-0.01
Positive
42.26
Neutral
13.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOMZ, the sentiment is Neutral. The current price of 0.96 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 0.98, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TOMZ.
TOMI Environmental Solutions Risk Analysis
TOMI Environmental Solutions disclosed 37 risk factors in its most recent earnings report. TOMI Environmental Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TOMI Environmental Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | €8.10B | 20.81 | 6.46% | 2.90% | 1.89% | -38.99% | |
55 Neutral | $81.87M | ― | -6.95% | ― | 7.30% | -247.48% | |
52 Neutral | $18.17M | ― | -69.66% | ― | -17.77% | 0.86% | |
50 Neutral | $26.21M | ― | -75.96% | ― | 10.88% | 3.57% | |
41 Neutral | $19.22M | ― | -62.68% | ― | 19.09% | 3.50% |
* Industrials Sector Average
Performance Comparison
TOMZ
TOMI Environmental Solutions
0.95
0.21
28.38%
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2.66
1.60
150.94%
CLIR
ClearSign Combustion
0.58
-0.30
-34.09%
LIQT
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1.85
-0.11
-5.61%
TOMI Environmental Solutions Corporate Events
Executive/Board Changes
TOMI Environmental Names Interim CFO Nick Jennings
Neutral
Dec 17, 2024
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.