Biorem Inc (BRM) AI Stock Analysis

• Market Cap: C$43.35M
• Dividend Yield: N/A
• Average Volume (3M): 32.44K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.42
• Revenue Growth: -13.85%
• EPS Growth: -60.15%
• Country: CA
• Employees: 57
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.06
• Shares Outstanding: 16,117,027
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): C$45.20M

• Rating: 68 Neutral
• Price Target: C$3.00 ▲(13.21% Upside)
• Action: Downgraded Date: 02/03/26
• Date: Action: Downgraded 02/03/26

The score is driven mainly by solid financial health (low leverage and strong ROE) but is held back by weakening near-term fundamentals (TTM revenue decline, margin compression, and a sharp drop in free cash flow). Technically, the trend is positive versus key moving averages, though momentum indicators are mixed and RSI is elevated. Valuation is reasonable but not compelling relative to the recent operational slowdown.

Positive Factors

Low leverage / stronger balance sheet

Sustained low leverage and rising equity provide resilience for a project-driven industrial business. This reduces refinancing risk, supports bidding on larger engineered projects, and offers capacity to absorb revenue volatility or fund targeted investments over the next several quarters.

High return on equity

A near-20% ROE indicates efficient use of capital in its core engineering and services business. Persistently strong ROE supports reinvestment, funds aftermarket expansion, and signals competitive margins versus many industrial peers over a multi-quarter horizon.

Aftermarket & services revenue stream

Recurring aftermarket and service income tied to installed systems creates a steadier, higher-margin revenue layer beyond one-off project sales. Over months this stabilizes cash flows, improves lifetime customer value, and supports cross-selling that strengthens long-term customer relationships.

Negative Factors

TTM revenue decline and margin erosion

Falling revenue and compressed margins point to either weaker project demand or rising input/project costs. If persistent, this reduces free cash generation and return metrics, pressuring capital allocation and limiting the company's ability to scale or invest in new product/service initiatives over coming quarters.

Free cash flow decline & volatility

Significant FCF decline and historical volatility undermine the company's ability to self-fund project working capital spikes and aftermarket investments. Persistent variability raises the probability of external financing needs or delayed capex, which can impair execution on multi-quarter timelines.

Project-based model drives revenue volatility

An engineered-to-order project mix naturally creates lumpy revenue and backlog sensitivity. Coupled with recent negative revenue growth, this structural cadence risk can lead to inconsistent quarterly results, making multi-quarter planning and steady margin expansion more challenging without larger recurring revenue gains.

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

Overall fundamentals are solid: low and improving leverage (TTM debt-to-equity ~0.25) and strong ROE (~19%). However, TTM revenue declined (-9.5%), margins compressed versus 2024, and free cash flow dropped sharply year-over-year (~-49.6%) with a history of volatility, limiting the score.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-9.5%), and profitability softened versus 2024 (net margin ~6.1% vs ~8.1%; EBITDA margin ~10.3% vs ~12.9%), pointing to some near-term demand and/or cost pressure. That said, the business remains solidly profitable with positive EBIT/EBITDA and still healthy operating margins for the industry. Longer-term results show revenue growth improved meaningfully in 2024 versus 2023, but recent margin compression and the TTM revenue pullback keep the score from being higher.

Balance Sheet

Leverage looks well-controlled in the most recent periods, with TTM (Trailing-Twelve-Months) debt-to-equity around 0.25 (improved from 0.33 in 2024 and materially better than 2021–2022 levels). Equity has grown versus prior years, supporting balance sheet resilience. Returns on equity remain strong (TTM ~19%), though down from very elevated levels in 2021–2023, indicating profitability is still good but less exceptional than before.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months), with operating cash flow (~2.6M) and free cash flow (~2.2M) both positive, and free cash flow running at ~87% of net income—generally good earnings quality. However, free cash flow fell sharply year-over-year (TTM growth about -49.6%), and cash conversion is volatile across years (including negative free cash flow in 2023). The combination of recent decline and historical variability weighs on the score despite current positivity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Dec 2021	Mar 2021
Income Statement
Total Revenue	34.73M	37.42M	25.17M	28.86M	24.48M	24.38M
Gross Profit	8.42M	10.06M	7.02M	8.76M	6.24M	7.02M
EBITDA	3.56M	4.82M	3.45M	2.99M	2.68M	3.07M
Net Income	2.11M	3.04M	2.18M	1.61M	1.30M	2.09M
Balance Sheet
Total Assets	27.78M	28.51M	24.08M	20.73M	19.17M	21.95M
Cash, Cash Equivalents and Short-Term Investments	8.35M	5.21M	2.29M	3.78M	4.47M	8.87M
Total Debt	3.08M	3.56M	4.19M	4.75M	5.67M	828.17K
Total Liabilities	15.58M	17.89M	17.36M	16.21M	17.20M	8.43M
Stockholders Equity	12.20M	10.63M	6.72M	4.52M	1.96M	13.52M
Cash Flow
Free Cash Flow	2.23M	3.31M	-62.84K	1.24M	3.71M	2.99M
Operating Cash Flow	2.57M	3.69M	490.03K	1.44M	3.78M	3.34M
Investing Cash Flow	-344.80K	-372.00K	-552.87K	-203.29K	-75.98K	-342.40K
Financing Cash Flow	-610.04K	-572.04K	-1.33M	-951.80K	-7.56M	-199.74K

Biorem Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.65
• 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 TSE:BRM, the sentiment is Positive. The current price of 2.65 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.57, and above the 200-day MA of 2.26, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 36.84 is Neutral, 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	68 Neutral	C$43.35M	6.78	19.05%	―	-13.85%	-60.15%
GRN	63 Neutral	C$37.92M	749.48	10.00%	―	-30.45%	―
TMG	59 Neutral	C$26.46M	9.22	-1.51%	―	-3.45%	-104.92%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DST	49 Neutral	C$7.70M	-14.31	―	―	-27.49%	-32.97%
QST	44 Neutral	C$8.47M	-3.39	-7.42%	―	87.15%	47.74%
SHRC	42 Neutral	C$17.24M	-4.72	―	―	14.18%	-29.19%

Biorem Inc Corporate Events

BIOREM Inc. Achieves Record Order Backlog Amid Strategic Growth

BIOREM Inc. reported a record order backlog of $71 million as of September 30, 2025, driven by strong new order bookings of $17 million during the third quarter. Despite a 24% decline in quarterly revenue compared to the same period in 2024, the company saw a 19% increase over the previous quarter, with revenues totaling $11.3 million. The company’s strategic adjustments have led to increased adoption rates of their new products and services, positioning them for continued growth. The decrease in operating expenses and a solid cash position of $8.4 million reflect efficient cost management, while the company anticipates further revenue and earnings growth over the next 12 months.

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.