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BluMetric Environmental (TSE:BLM)
:BLM
Canadian Market

BluMetric Environmental (BLM) AI Stock Analysis

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BluMetric Environmental

(BLM)

Rating:64Neutral
Price Target:
C$1.50
▲(11.11%Upside)
BluMetric Environmental's overall stock score is driven by robust corporate events and strategic growth through significant contracts, which positively impact its market position. However, the stock's valuation is a concern due to an extremely high P/E ratio. Technical indicators show neutral momentum, and financial performance indicates steady cash flow but highlights areas for profitability improvement.

BluMetric Environmental (BLM) vs. iShares MSCI Canada ETF (EWC)

BluMetric Environmental Business Overview & Revenue Model

Company DescriptionBluMetric Environmental Inc. is a Canadian-based cleantech company that specializes in providing sustainable solutions for environmental issues. The company operates in sectors such as water and wastewater management, industrial hygiene, geosciences, and environmental engineering. Its core products and services include water purification systems, environmental assessments, and consulting services tailored to meet the specific needs of its diverse client base.
How the Company Makes MoneyBluMetric Environmental makes money through a multi-faceted revenue model that includes the sale of its water and wastewater treatment systems, consulting services, and environmental engineering solutions. The company generates revenue by delivering projects for both private and public sector clients, often involving long-term contracts. Additionally, BluMetric benefits from key partnerships with other technology firms and governmental bodies, which help expand its market reach and drive profitability. Revenue is also supplemented by providing specialized services in areas such as industrial hygiene and environmental assessments, catering to industries that require compliance with environmental regulations.

BluMetric Environmental Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q4-2024)
|
% Change Since: -20.59%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with improvements in gross margins, a record backlog, and stable revenue indicating strong operational resilience. Despite some challenges in the military market and increased operating expenses, the company is well-positioned with a strong financial base and growth in other sectors like mining.
Q4-2024 Updates
Positive Updates
Record Backlog and Revenue Stability
BluMetric achieved a record backlog, setting up for modest revenue growth in 2024. Revenues were stable at $35.1 million for the fiscal year, with the fourth-quarter revenue at $10.3 million compared to $9.9 million in the same period of 2022.
Improved Gross Margins
Gross margins improved to 26% in the fourth quarter of fiscal year 2023, up from 18% in the same quarter of the prior year.
Significant Mining Market Growth
The mining market saw a 36% year-over-year revenue growth, driven by an expanding customer base and resumption of work on a large water treatment facility contract.
Strong Financial Position
BluMetric ended the fiscal year with a strong working capital position of $11.1 million, up from $10.9 million, and maintains minimal debt.
Successful Turnaround in Fourth Quarter
The company experienced a turnaround in the fourth quarter with improvements in revenue generation, gross margins, and profitability. EBITDA for the fourth quarter increased to $1.1 million from $0.3 million in the prior year's same quarter.
Negative Updates
Decline in Military Market Revenue
Military market revenues declined 13% year-over-year, primarily due to reduced activity on shipboard reverse osmosis systems, with the contract awaiting a replacement.
Increased Operating Expenses
Operating expenses increased to $6.6 million for fiscal year 2023, up from $5.8 million in the prior year, due to increased noncash share compensation costs and other operational expenses.
Decrease in Net Cash Balance
Net cash balance decreased to $2.2 million on September 30, 2023, from $3.6 million on September 30, 2022, due to increased operating expenses and timing of payments.
Company Guidance
During the BluMetric Environmental Inc. Q4 2023 earnings call, the executives shared various key metrics and insights. The company reported stable revenues for the fiscal year at $35.1 million, with the fourth quarter's revenues at $10.3 million, up from $9.9 million in the same period the previous year. A notable improvement was seen in the gross margin, which increased to 26% in Q4 from 18% in Q4 2022, attributed to project mix and delayed revenue recognition. EBITDA for the fiscal year was $1.7 million, with a significant Q4 increase to $1.1 million, compared to $0.3 million the previous year. The net income for the fiscal year was $0.5 million, with an increase in Q4 to $0.7 million. The company maintained a net cash balance of $2.2 million as of September 30, 2023, and a strong working capital position of $11.1 million. BluMetric also highlighted a record backlog, which positions them for modest revenue growth in 2024, and emphasized their continued focus on expanding their agile water systems both domestically and internationally.

BluMetric Environmental Financial Statement Overview

Summary
BluMetric Environmental exhibits solid financial performance with strengths in cash flow generation and gross profit margins. However, profitability and leverage could be improved, with a low net profit margin and moderate debt-to-equity ratio.
Income Statement
72
Positive
BluMetric Environmental demonstrates a strong gross profit margin of 36.8% TTM, indicating effective cost management. However, the net profit margin is relatively low at 0.5% TTM, highlighting potential challenges in translating revenue into profit. The revenue growth rate is modest at 15.6% TTM, which is positive but could be improved. EBIT and EBITDA margins are at 2.3% and 5.2% respectively, suggesting room for operational efficiency enhancements.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is moderate, reflecting manageable leverage. With a return on equity of 1.1% TTM, profitability on shareholder's equity is limited. The equity ratio of 45.8% TTM indicates reasonable financial stability, but there is potential to strengthen the equity position further.
Cash Flow
75
Positive
BluMetric shows a robust operating cash flow to net income ratio of 10.8 TTM, indicating strong cash generation relative to net income. The free cash flow growth rate is positive, moving from negative in the previous period to a healthy position in the TTM. The free cash flow to net income ratio is 6.9 TTM, highlighting efficient cash utilization.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue40.28M34.84M35.08M34.32M35.48M28.62M
Gross Profit14.38M13.98M7.59M7.56M9.42M6.12M
EBITDA2.09M1.46M1.78M2.26M5.23M2.18M
Net Income200.82K64.00K506.72K1.32M3.73M471.46K
Balance Sheet
Total Assets21.22M37.99M20.05M19.67M17.42M15.52M
Cash, Cash Equivalents and Short-Term Investments1.45M3.65M3.04M4.91M4.73M2.47M
Total Debt3.61M7.60M2.80M2.15M2.60M3.85M
Total Liabilities8.74M24.27M7.86M8.30M7.56M9.44M
Stockholders Equity12.48M13.72M12.19M11.37M9.86M6.08M
Cash Flow
Free Cash Flow1.38M-579.00K-799.89K1.11M3.46M2.55M
Operating Cash Flow2.16M57.00K-462.95K1.20M3.65M2.67M
Investing Cash Flow-1.65M-1.50M-336.94K-83.38K-191.52K961.09K
Financing Cash Flow4.63M2.07M-1.07M-929.66K-1.21M-1.40M

BluMetric Environmental Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.35
Price Trends
50DMA
1.42
Negative
100DMA
1.24
Positive
200DMA
1.03
Positive
Market Momentum
MACD
-0.02
Positive
RSI
42.15
Neutral
STOCH
39.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLM, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.42, and above the 200-day MA of 1.03, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLM.

BluMetric Environmental Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSBLM
64
Neutral
C$50.13M1,928.570.16%49.38%-93.75%
61
Neutral
C$4.83B-11.88-12.21%4.52%11.13%-68.91%
56
Neutral
C$48.54M-2757.94%191.62%-57.36%
TSYES
50
Neutral
C$32.88M-321.92%25.24%34.24%
TSECM
47
Neutral
C$39.82M-2752.20%153.17%43.51%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BLM
BluMetric Environmental
1.35
0.91
206.82%
TSE:ECM
Ecolomondo Corporation
0.18
-0.02
-10.00%
TSE:YES
CHAR Technologies
0.26
-0.08
-23.53%
TSE:ROOF
Northstar Clean Technologies
0.36
0.13
56.52%

BluMetric Environmental Corporate Events

Business Operations and StrategyFinancial Disclosures
BluMetric Environmental Reports Record Q2 2025 Revenue Amid Strategic Growth
Positive
May 28, 2025

BluMetric Environmental Inc. reported a record revenue for the second fiscal quarter of 2025, driven by the successful integration and growth of Gemini Water. The company’s revenue mix has shifted significantly towards WaterTech, with strategic investments in new facilities and personnel to support this growth. Despite a decrease in gross margin due to changes in sales mix, BluMetric is positioning itself for future growth by expanding its operations and pursuing new market opportunities, including a partnership with Rheinmetall Canada and a new service contract with the Department of National Defence.

Business Operations and Strategy
BluMetric Secures $5.8M Contract with Canadian Defence for Water Purification
Positive
May 27, 2025

BluMetric Environmental Inc. has secured a new Master Service Agreement with the Canadian Department of National Defence for the maintenance and support of Reverse Osmosis Water Purification Units. This three-year contract, with potential extensions, begins with an initial $5.8 million service order, highlighting the department’s trust in BluMetric’s capabilities to deliver reliable water purification solutions under demanding conditions.

Product-Related AnnouncementsBusiness Operations and Strategy
BluMetric Advances with $12.2M Military Water Systems Contract
Positive
May 5, 2025

BluMetric Environmental Inc. has received a notice to proceed with the production of its Mission Ready Water systems under a $12.2 million contract with Rheinmetall Canada for the Canadian Armed Forces. The contract involves producing 26 self-contained water treatment units and associated equipment, with delivery expected within 18 months. This development follows successful testing of the initial unit and highlights BluMetric’s capability to meet military standards, potentially strengthening its military partnerships globally. Additionally, the company has granted stock options to its directors and employees, reflecting its commitment to rewarding its team.

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.Date of analysis: Jun 27, 2025