Biorem Inc (BRM) AI Stock Analysis

• Market Cap: C$32.76M
• Dividend Yield: N/A
• Average Volume (3M): 32.44K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.37
• Revenue Growth: -13.85%
• EPS Growth: -60.15%
• Country: CA
• Employees: 57
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.06
• Shares Outstanding: 16,137,438
• 10 Day Avg. Volume: 30,537
• 30 Day Avg. Volume: 32,440
• PEG Ratio: 0.44
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 14.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$3.00 ▲(15.38% Upside)

Biorem Inc's strong financial performance is the primary driver of its overall stock score, reflecting robust growth and profitability. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and market position.

Cash Flow Health

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against economic fluctuations.

Balance Sheet Strength

A low debt-to-equity ratio suggests prudent financial management and reduces risk, providing stability and capacity for future investments.

Negative Factors

EPS Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially impacting investor confidence and future earnings potential.

Profit Margin Pressure

While improved, the net profit margin remains modest, suggesting potential pressure on profitability from cost increases or competitive pricing.

Employee Base

A relatively small employee base may limit the company's ability to scale operations rapidly, potentially affecting growth and market responsiveness.

Biorem Inc Business Overview & Revenue Model

Company Description

BioRem Inc., a clean technology engineering company, designs, manufactures, distributes, and sells air pollution control systems that are used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). It offers biofilters for the removal of odors, H2S, VOCs, and HAPs; and biotrickling filters for applications of high levels of H2S or other water-soluble VOCs. The company also provides multi-stage systems to remove odors from various municipal/urban wastewater treatment processes; biogas desulfurization systems; dry scrubber adsorption systems; and cannabis odor control systems. In addition, it offers biological processes and testing services; media sampling and analysis; system review and inspections; and media replacements and spare parts. The company operates in Canada, the United States, China, and internationally. BioRem Inc. was founded in 1990 and is headquartered in Puslinch, Canada.

How the Company Makes Money

Biorem Inc generates revenue primarily through the sale of its proprietary bioremediation technologies and systems, which include biofilters and bioreactors. The company also earns money through consulting services that help clients design and implement effective environmental management strategies. Key revenue streams include direct product sales, long-term service contracts, and performance-based agreements where Biorem is compensated based on the effectiveness of its solutions. Significant partnerships with governmental agencies and private sector companies also contribute to its earnings, as these collaborations often lead to larger projects and increased market visibility.

Biorem Inc Financial Statement Overview

Summary

Biorem Inc has shown remarkable financial improvement across all verticals. The income statement reveals strong growth and profitability, while the balance sheet indicates a solid financial position with low leverage. Cash flow metrics demonstrate effective cash management and strong conversion of income to cash. Overall, the company is on a positive growth trajectory with a stable financial foundation.

Income Statement

Biorem Inc has demonstrated strong revenue growth with a significant increase of 48.67% in 2024 compared to the previous year. The gross profit margin stands at 26.87%, reflecting efficient cost management. The net profit margin also improved to 8.13%, indicating enhanced profitability. Both EBIT and EBITDA margins show positive trends, at 11.61% and 12.87% respectively, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.33, indicating a healthy leverage position. Return on equity has improved to 28.65%, showcasing effective utilization of shareholder funds. The equity ratio is 37.26%, which suggests a stable capital structure with a good portion of assets financed by shareholders' equity.

Cash Flow

Biorem Inc's free cash flow growth rate is robust, reflecting a turnaround from negative to positive free cash flow. The operating cash flow to net income ratio of 1.21 indicates strong cash generation relative to net income, while the free cash flow to net income ratio of 1.09 further confirms solid cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.36M	37.42M	25.17M	28.86M	24.48M	24.38M
Gross Profit	10.28M	10.06M	7.02M	8.76M	6.24M	7.02M
EBITDA	5.03M	4.82M	3.45M	2.99M	2.68M	3.07M
Net Income	3.14M	3.04M	2.18M	1.61M	1.30M	2.09M
Balance Sheet
Total Assets	27.10M	28.51M	24.08M	20.73M	19.17M	21.95M
Cash, Cash Equivalents and Short-Term Investments	7.66M	5.21M	2.29M	3.78M	4.47M	8.87M
Total Debt	3.14M	3.56M	4.19M	4.75M	5.67M	828.17K
Total Liabilities	16.16M	17.89M	17.36M	16.21M	17.20M	8.43M
Stockholders Equity	10.94M	10.63M	6.72M	4.52M	1.96M	13.52M
Cash Flow
Free Cash Flow	4.42M	3.31M	-62.84K	1.24M	3.71M	2.99M
Operating Cash Flow	4.76M	3.69M	490.03K	1.44M	3.78M	3.34M
Investing Cash Flow	-345.11K	-372.00K	-552.87K	-203.29K	-75.98K	-342.40K
Financing Cash Flow	-567.52K	-572.04K	-1.33M	-951.80K	-7.56M	-199.74K

Biorem Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRM, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.34, above the 50-day MA of 2.12, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 80.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BRM.

Biorem Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRM	74 Outperform	C$32.76M	10.25	19.05%	―	-13.85%	-60.15%
GRN	64 Neutral	C$39.24M	277.78	10.00%	―	-30.45%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WATR	47 Neutral	C$4.93M	―	-1238.40%	―	-72.45%	-987.50%
SHRC	44 Neutral	C$10.59M	―	―	―	14.18%	-29.19%
TMG	43 Neutral	C$20.57M	―	-1.51%	―	-3.45%	-104.92%
QST	42 Neutral	C$12.45M	-13.55	-7.42%	―	87.15%	47.74%

Biorem Inc Corporate Events

Biorem Inc. Reports Strong Q2 2025 Results with Increased Revenue and Order Backlog

Biorem Inc. reported a significant increase in revenue for the second quarter of 2025, reaching $9.4 million, which marks a 29% increase compared to the same period in 2024. This growth is attributed to an increase in orders and a substantial order backlog, which is expected to support strong revenues and earnings in the latter half of the year. Despite logistical challenges earlier in the year, the company successfully accelerated shipments to international customers, maintaining its delivery forecasts. The company’s focus on offering integrated service solutions is anticipated to drive growth in both domestic and international markets over the next several quarters.

The most recent analyst rating on (TSE:BRM) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Biorem Inc stock, see the TSE:BRM Stock Forecast page.