TOMI Environmental Solutions (TOMZ) AI Stock Analysis

• Market Cap: $16.19M
• Dividend Yield: N/A
• Average Volume (3M): 17.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -30.61%
• EPS Growth: -111.40%
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 20,225,204
• 10 Day Avg. Volume: 13,384
• 30 Day Avg. Volume: 17,777
• PEG Ratio: -0.16
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 2.71
• P/FCF Ratio: -13.56
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: -5.35
• 1Y Price Target: $3.50
• Price Target Upside: 293.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.79 ▼(-11.46% Downside)

TOMI Environmental Solutions faces significant financial challenges, with ongoing losses and negative cash flows being the most impactful factors. The technical analysis indicates bearish momentum, and valuation metrics are poor. While the earnings call provided some positive strategic insights, compliance issues highlighted in corporate events add further risk.

Positive Factors

Strategic Market Expansion

The FDA approval allows TOMI to diversify into new markets, potentially increasing revenue streams and reducing reliance on existing sectors.

Revenue Growth and Recurring Streams

Strong sequential revenue growth and recurring streams indicate robust demand and customer retention, supporting long-term financial health.

Capital Flexibility

The agreement enhances TOMI's financial flexibility, allowing it to raise capital as needed to support growth and strategic initiatives.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources and limit the company's ability to invest in growth opportunities, impacting long-term stability.

Ongoing Losses

Continuous losses highlight operational inefficiencies and the need for cost management, potentially hindering future profitability.

Nasdaq Compliance Issues

Compliance issues with Nasdaq listing requirements pose a risk to the company's market presence and investor confidence.

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 primarily through the sale of its disinfection products, such as the SteraMist™ system and associated consumables. The company also earns income from service contracts, where it provides professional disinfection services to various sectors, including hospitals and schools. Key revenue streams include direct product sales, service agreements, and ongoing maintenance contracts. Additionally, TOMZ has formed strategic partnerships with distributors and service providers to expand its market reach and enhance its service offerings, further contributing to its earnings.

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. The financial statements reveal 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.

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	5.69M	7.74M	7.35M	8.34M	7.75M	25.03M
Gross Profit	2.26M	3.56M	4.29M	5.06M	4.59M	15.04M
EBITDA	-4.34M	-3.63M	-2.96M	-2.53M	-4.01M	5.43M
Net Income	-5.20M	-4.48M	-3.40M	-2.88M	-4.44M	4.39M
Balance Sheet
Total Assets	8.05M	9.69M	13.36M	15.50M	16.27M	16.77M
Cash, Cash Equivalents and Short-Term Investments	490.02K	664.88K	2.34M	3.87M	5.32M	5.20M
Total Debt	3.44M	3.00M	3.06M	861.41K	953.19K	1.45M
Total Liabilities	5.84M	5.59M	5.00M	4.05M	2.68M	3.57M
Stockholders Equity	2.21M	4.10M	8.36M	11.45M	13.60M	13.20M
Cash Flow
Free Cash Flow	-723.61K	-1.55M	-3.82M	-1.48M	-4.46M	4.18M
Operating Cash Flow	-564.07K	-1.44M	-3.60M	-1.23M	-3.82M	4.58M
Investing Cash Flow	-289.94K	-261.53K	-216.69K	-241.45K	-639.37K	-400.65K
Financing Cash Flow	535.00K	27.50K	2.29M	25.00K	4.58M	124.20K

TOMI Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOMZ, the sentiment is Negative. The current price of 0.89 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.87, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOMZ.

TOMI Environmental Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$9.37M	12.72	―	―	-14.25%	-59.84%
FTEK	51 Neutral	$53.45M	-17.14	-7.10%	―	-5.66%	-397.46%
CLIR	48 Neutral	$34.90M	-4.97	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$17.52M	-1.84	-73.79%	―	10.97%	44.99%
TOMZ	43 Neutral	$16.19M	-2.93	-108.76%	―	-30.61%	-111.40%
SCWO	39 Underperform	$47.12M	-1.65	-232.63%	―	―	―

TOMI Environmental Solutions Corporate Events

TOMI Environmental Receives Second Nasdaq Deficiency Notice

On November 17, 2025, TOMI Environmental Solutions, Inc. received a deficiency letter from Nasdaq indicating that its stock price had fallen below the minimum required $1.00 per share for 30 consecutive days. The company has until May 18, 2026, to regain compliance. Additionally, on November 21, 2025, TOMI received another deficiency letter for not maintaining the required $2,500,000 in stockholders’ equity. The company has 45 days to submit a compliance plan and may receive an extension if accepted. These notifications do not immediately affect the company’s Nasdaq listing, but TOMI is taking steps to address these issues to maintain its listing status.

TOMI Environmental Solutions Approves Key Proposals at Shareholder Meeting

At the 2025 Annual Meeting of Shareholders held on November 19, TOMI Environmental Solutions, Inc. shareholders approved two key proposals. The first proposal involved the election of Francesco Fragasso and Harold Paul as Class II Directors for a three-year term, while the second proposal ratified the appointment of Rosenberg Rich Baker Berman & Co. as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.

TOMI Environmental Solutions Enters Equity Purchase Agreement

On November 5, 2025, TOMI Environmental Solutions, Inc. entered into an Equity Purchase Agreement with Hudson Global Ventures, LLC, allowing the company to sell up to $20 million of its common stock over a 24-month period. This agreement, along with a Registration Rights Agreement, positions TOMI to potentially enhance its financial flexibility and market presence, although it is not obligated to sell any shares, and Hudson is not required to purchase shares exceeding a certain cap without stockholder approval.