TOMI Environmental Solutions (TOMZ) AI Stock Analysis

• Market Cap: $21.02M
• Dividend Yield: N/A
• Average Volume (3M): 27.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 19.09%
• EPS Growth: 3.50%
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.01
• Shares Outstanding: 20,015,205
• 10 Day Avg. Volume: 14,115
• 30 Day Avg. Volume: 27,969
• PEG Ratio: -0.27
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.13
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 6.07
• Enterprise Value/Ebitda: -2.20
• 1Y Price Target: $3.50
• Price Target Upside: 233.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-4.76%Downside)

The most significant factor impacting the score is the company's weak financial performance, marked by ongoing losses and negative cash flows. Technical analysis provides some positive signals with an upward trend in moving averages, but valuation concerns due to a negative P/E and lack of dividend yield limit the stock's attractiveness.

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, showing a 42% year-over-year improvement.

Sales Opportunities

Management highlighted numerous sales opportunities, including 46 special/custom projects, which could result in solid year-over-year revenue growth.

Negative Factors

Gross Margin

Gross margin for the quarter was negative 49.5%, impacted by three orders that were returned.

International Sales

Given the volatility around tariffs being considered by the Trump administration, investors should temper expectations around international sales execution.

Revenue Decline

The company posted net revenue of roughly $1.1M, indicating a 30% year-over-year decline.

TOMI Environmental Solutions Business Overview & Revenue Model

Company Description

TOMI 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 Money

TOMI Environmental Solutions generates revenue through the sale and leasing of its SteraMist products and related equipment, as well as providing disinfection and decontamination services. Key revenue streams include direct sales to healthcare institutions, educational facilities, and other commercial enterprises that require advanced disinfection solutions. The company also engages in partnerships with distributors and service providers to extend its market reach. Additionally, TOMI offers maintenance and support services, which contribute to its recurring revenue. By focusing on sectors with stringent hygiene standards and leveraging its proprietary technology, TOMI captures a significant share of the growing demand for effective and efficient disinfection solutions.

TOMI Environmental Solutions Financial Statement Overview

Summary

TOMI Environmental Solutions is facing considerable financial challenges, with 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	8.20M	7.74M	7.35M	8.34M	7.75M	25.03M
Gross Profit	3.84M	3.56M	4.29M	5.06M	4.59M	15.04M
EBITDA	-2.56M	-3.63M	-2.96M	-2.53M	-4.01M	5.43M
Net Income	-3.42M	-4.48M	-3.40M	-2.88M	-4.44M	4.39M
Balance Sheet
Total Assets	13.36M	9.69M	13.36M	15.50M	16.27M	16.77M
Cash, Cash Equivalents and Short-Term Investments	2.34M	664.88K	2.34M	3.87M	5.32M	5.20M
Total Debt	3.06M	3.00M	3.06M	861.41K	953.19K	1.45M
Total Liabilities	5.00M	5.59M	5.00M	4.05M	2.68M	3.57M
Stockholders Equity	8.36M	4.10M	8.36M	11.45M	13.60M	13.20M
Cash Flow
Free Cash Flow	-704.04K	-1.55M	-3.82M	-1.48M	-4.46M	4.18M
Operating Cash Flow	-537.35K	-1.44M	-3.60M	-1.23M	-3.82M	4.58M
Investing Cash Flow	-166.69K	-261.53K	-216.69K	-241.45K	-639.37K	-400.65K
Financing Cash Flow	-27.50K	27.50K	2.29M	25.00K	4.58M	124.20K

TOMI Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.05 is below the 20-day moving average (MA) of 1.07, above the 50-day MA of 0.92, and above the 200-day MA of 0.87, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 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
FTEK	63 Neutral	$84.95M	―	-6.95%	―	7.30%	-247.48%
Sector *	62 Neutral	C$6.43B	7.67	3.30%	3.15%	6.91%	-13.05%
CLIR	51 Neutral	$29.35M	―	-75.96%	―	10.88%	3.57%
TOMZ	51 Neutral	$21.02M	―	-62.68%	―	19.09%	3.50%
LIQT	47 Neutral	$16.44M	―	-69.66%	―	-17.77%	0.86%

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.