Bri-Chem (BRY) AI Stock Analysis

• Market Cap: C$6.87M
• Dividend Yield: N/A
• Average Volume (3M): 3.95K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: -21.66%
• EPS Growth: -523.55%
• Country: CA
• Employees: 58
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): N/A
• Shares Outstanding: 26,432,981
• 10 Day Avg. Volume: 400
• 30 Day Avg. Volume: 3,946
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.85
• 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

• Rating: 46 Neutral
• Price Target: ―

Bri-Chem's overall stock score reflects its weak financial performance marked by declining revenues, high leverage, and unprofitability. Technical indicators suggest a bearish trend with potential for minor upward corrections. Valuation metrics are unattractive with a negative P/E ratio and no dividend yield. Strategic improvements are essential for better financial health and investor appeal.

Bri-Chem Business Overview & Revenue Model

Company Description

Bri-Chem Corp. is a North American leader in the wholesale distribution and blending of oil field drilling, completion, stimulation, and production chemical fluids. With operations spanning across Canada and the United States, the company serves the oil and gas industry by providing essential chemicals and services that support drilling and production activities. Bri-Chem's core products include a wide range of drilling fluid chemicals, completion fluids, and cementing products, which are crucial for efficient and effective drilling operations.

How the Company Makes Money

Bri-Chem Corp. generates revenue primarily through the sale and distribution of drilling fluid chemicals and related products to the oil and gas industry. The company operates a network of strategically located warehouses and blending facilities that enable it to supply a broad range of chemical products to its clients in a timely manner. Key revenue streams include the wholesale distribution of drilling muds, cementing materials, and completion fluids. Bri-Chem's earnings are influenced by the level of drilling activity in the oil and gas sector, as well as its ability to maintain strong relationships with major oilfield service companies and operators. Additionally, the company leverages its extensive distribution network and technical expertise to offer value-added services, such as custom blending and logistics solutions, which contribute to its revenue.

Bri-Chem Financial Statement Overview

Summary

Bri-Chem is experiencing financial challenges with declining revenues and profitability, high leverage, and reduced equity. Operational cash flows provide some stability, but the company faces risks from high debt levels and weak income statement performance.

Income Statement

Bri-Chem's financial performance shows declining revenue and profitability. The latest year saw a significant revenue drop of 21% compared to the previous year, alongside a shift from a net profit to a net loss, indicating deteriorating financial health. The gross profit margin decreased, reflecting increased cost pressures or reduced pricing power. The EBIT and EBITDA margins are also weak, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio that implies financial risk. Stockholders' equity has decreased, and the equity ratio is relatively low, suggesting a high reliance on debt financing. The return on equity is negative, reflecting unprofitable operations. However, there is a slight improvement in reducing total debt compared to prior years.

Cash Flow

Cash flow from operations remains positive, indicating some resilience in cash generation despite negative net income. However, free cash flow has contracted, and the free cash flow growth rate is negative, suggesting limited financial flexibility. The operating cash flow to net income ratio is strong, implying that the company is efficiently converting its earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
83.07M	106.04M	104.51M	60.40M	45.16M
	Gross Profit
14.40M	18.73M	21.09M	12.24M	7.33M
	EBIT
1.09M	4.41M	8.37M	3.51M	-1.99M
	EBITDA
-323.37K	6.58M	8.27M	3.93M	-1.89M
	Net Income Common Stockholders
-3.85M	909.41K	8.64M	1.32M	-5.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	0.00	-1.94M	-7.48M	-1.78M
	Total Assets
58.17M	68.37M	78.50M	43.80M	26.29M
	Total Debt
17.70M	31.00M	39.59M	23.89M	12.63M
	Net Debt
17.70M	31.00M	41.53M	31.36M	14.42M
	Total Liabilities
38.56M	45.83M	56.09M	32.08M	15.73M
	Stockholders Equity
19.61M	22.54M	22.41M	11.72M	10.56M
Cash Flow		Free Cash Flow
9.97M	12.00M	-10.67M	-9.26M	10.22M
	Operating Cash Flow
10.39M	12.69M	-8.57M	-9.22M	10.22M
	Investing Cash Flow
-414.09K	-676.64K	-2.10M	40.11K	1.43K
	Financing Cash Flow
-9.97M	-12.01M	10.67M	9.18M	-10.22M

Bri-Chem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRY, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.28, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BRY.

Bri-Chem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	75 Outperform	C$390.40M	6.16	11.38%	3.74%	11.02%	102.23%
SHLE	74 Outperform	C$147.23M	4.72	16.11%	―	18.29%	-94.32%
STEP	65 Neutral	C$279.30M	151.92	-3.90%	―	-5.98%	-121.37%
Sector *	57 Neutral	$7.06B	3.07	-3.45%	5.82%	0.59%	-50.58%
HWO	54 Neutral	C$9.78M	0.39	-3.83%	24.72%	-86.21%	―
CFW	54 Neutral	C$273.13M	15.02	3.00%	―	-5.50%	-88.55%
BRY	46 Neutral	C$6.87M	―	-13.50%	―	-21.66%	-523.55%

Bri-Chem Corporate Events

Bri-Chem Reports Decline in Q4 2024 Financial Results Amid Reduced Drilling Activity

Bri-Chem Corp. reported a significant decline in its financial performance for the fourth quarter of 2024, with consolidated sales dropping by 23% to $20.6 million due to decreased U.S. drilling activity. The company’s adjusted EBITDA and operating earnings also saw substantial decreases, alongside a notable reduction in working capital, which was impacted by a loan classification change. Despite these challenges, Bri-Chem received a waiver for a covenant breach from its lender, indicating ongoing financial adjustments and potential future stability.