Biorem Inc (BRM) AI Stock Analysis

• Market Cap: C$39.00M
• Dividend Yield: N/A
• Average Volume (3M): 32.44K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.38
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$2.50 ▼(-5.66% Downside)

The score is driven primarily by solid underlying financial health (low leverage, strong ROE) tempered by weakening near-term fundamentals (TTM revenue decline, margin compression, and a sharp drop in free cash flow). Technicals are supportive with price above key moving averages and positive MACD, while valuation is neutral with a ~20 P/E and no dividend yield.

Positive Factors

Low leverage / strong balance sheet

Controlled leverage gives Biorem durable financial flexibility: lower interest burden and greater capacity to fund multi-year remediation projects or absorb delayed receivables. Improved equity and leverage trends support capital allocation for growth and reduce refinancing risk over the next 2–6 months.

Sustained profitability and high ROE

A ~19% ROE indicates efficient use of capital and enduring profitability versus peers. Sustained returns enable reinvestment into R&D and service capabilities, bolster shareholder value prospects, and support continued contract wins and partner confidence over a multi-month horizon.

Diversified revenue model and partnerships

Mix of product sales, recurring service contracts and performance-based fees plus governmental and private partnerships reduces single-project cyclicality. This structural diversification smooths revenue and builds a steady project pipeline across municipal, industrial, and agricultural end-markets.

Negative Factors

Trailing revenue decline

A near-10% TTM revenue drop signals weakening demand or execution slippage. Over the coming months, persistent top-line contraction can erode pricing leverage, impair scale economies on projects, and reduce the ability to absorb fixed costs, pressuring margins and investment plans.

Margin compression

Material margin erosion vs prior year reflects cost or pricing pressure. If structural (higher input costs, competitive pricing, or contract mix shifts), compressed margins will persist, limiting free cash generation and reducing funds available for R&D, service expansion, or balance sheet strengthening.

Weakened and volatile free cash flow

A nearly 50% YoY drop in FCF and historical volatility undermine financial resilience. Reduced and unpredictable cash conversion constrains reinvestment, heightens reliance on external financing for larger contracts, and raises execution risk for multi-quarter projects in capital-intensive remediation work.

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

Financials are fundamentally sound with controlled leverage (TTM debt-to-equity ~0.25) and strong ROE (~19%), but near-term performance is pressured: TTM revenue declined (-9.5%), margins compressed versus 2024, and free cash flow fell sharply year-over-year (~-49.6%) despite remaining positive.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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 2.43, above the 50-day MA of 2.53, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 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	71 Outperform	C$39.00M	21.18	19.05%	―	-13.85%	-60.15%
GRN	63 Neutral	C$33.97M	14.67	10.00%	―	-30.45%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TMG	54 Neutral	C$32.44M	65.00	-1.51%	―	-3.45%	-104.92%
DST	49 Neutral	C$12.84M	-2.02	―	―	-27.49%	-32.97%
QST	44 Neutral	C$10.69M	-6.41	-7.42%	―	87.15%	47.74%
SHRC	42 Neutral	C$10.67M	-2.72	―	―	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.