TOMI Environmental Solutions (TOMZ) AI Stock Analysis

• Market Cap: $19.71M
• Dividend Yield: N/A
• Average Volume (3M): 55.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 20,552
• 30 Day Avg. Volume: 55,741
• 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: 1.23
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: -6.31
• 1Y Price Target: $3.50
• Price Target Upside: 293.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $1.00 ▲(12.36% Upside)

TOMI Environmental Solutions faces significant financial challenges, with ongoing losses and declining revenues being the most impactful factors. While there are some positive developments in service revenue growth and gross margin improvement, these are overshadowed by the substantial revenue decline and operating losses. Technical indicators suggest a neutral to slightly bearish outlook, and valuation metrics are unattractive due to negative earnings. The earnings call highlighted some future opportunities, but the current financial strain remains a critical concern.

Positive Factors

Service Revenue Growth

The growth in service revenue indicates a strengthening of TOMI's recurring revenue streams, which can enhance financial stability and predictability over time.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing power, which can lead to enhanced profitability and competitive positioning.

Commercial Strategy Expansion

The adoption of SteraMist technology by T.A.C.T. franchises demonstrates successful market penetration and potential for further commercial growth.

Negative Factors

Significant Revenue Decline

A sharp decline in revenue indicates challenges in maintaining sales momentum, which could hinder long-term growth and market competitiveness.

Operating and Net Loss

Ongoing operating and net losses reflect underlying financial struggles, potentially impacting the company's ability to invest in growth and innovation.

Cash and Financial Position

Limited cash reserves and financial strain could restrict TOMI's operational flexibility and ability to respond to market opportunities or challenges.

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: 0.89
• 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 0.89 is below the 20-day moving average (MA) of 0.95, below the 50-day MA of 0.92, and below the 200-day MA of 0.92, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 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
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	―	$9.14M	12.62	―	―	-14.25%	-59.84%
CLIR	―	$47.18M	-8.01	-46.19%	―	19.03%	11.70%
FTEK	―	$79.55M	-24.36	-7.69%	―	-4.78%	-1359.72%
TOMZ	―	$19.71M	―	-94.24%	―	-12.72%	-36.80%
LIQT	―	$21.92M	-1.70	-78.97%	―	-12.76%	15.23%
SCWO	―	$63.08M	―	-160.82%	―	―	―

TOMI Environmental Solutions Corporate Events

Tomi Environmental Solutions: Mixed Earnings Call Reveals Challenges and Opportunities

In the recent earnings call, Tomi Environmental Solutions, Inc. painted a mixed picture of its financial health. The company reported significant growth in service revenue and improved gross margins, but these positive developments were overshadowed by notable declines in overall revenue and operating losses. While there are promising opportunities on the horizon, the current financial challenges remain substantial.

Tomi Environmental Solutions Reports Q2 2025 Results

Tomi Environmental Solutions, Inc. is a global decontamination and infection prevention company, specializing in disinfection solutions through its Binary Ionization Technology® platform, primarily serving sectors like healthcare, life sciences, and food safety. In its Q2 2025 earnings report, Tomi Environmental Solutions highlighted significant growth in service and training revenue, strong gross margins, and ongoing international expansion, despite a decline in overall sales due to deferred capital expenditures by customers. Key financial metrics revealed a 33% year-over-year increase in service-based revenue for the quarter, a gross margin improvement to 66%, and a net loss of $1.24 million compared to a small profit in the previous year. The company also emphasized its strategic initiatives, including product innovation and expanding its international footprint, while managing operational efficiencies. Looking ahead, Tomi Environmental Solutions remains focused on expanding its service contracts, increasing SteraMist sales, and pursuing new market opportunities, with a commitment to strengthening its financial position and corporate team.