Bri-Chem (BRY) AI Stock Analysis

• Market Cap: C$6.21M
• Dividend Yield: N/A
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: -11.17%
• EPS Growth: 6.19%
• Country: CA
• Employees: 58
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): <0.01
• Shares Outstanding: 26,432,981
• 10 Day Avg. Volume: 6,694
• 30 Day Avg. Volume: 4,292
• PEG Ratio: <0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 0.95
• 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: 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.

Positive Factors

Cash Generation Ability

Positive operational cash flow suggests Bri-Chem can sustain its operations and meet short-term obligations, providing a buffer against financial instability.

Distribution Network

Bri-Chem's extensive distribution network enhances its ability to efficiently supply products, supporting customer relationships and market reach.

Industry Position

As a leader in its niche, Bri-Chem benefits from established industry relationships and expertise, which can drive long-term business stability.

Negative Factors

Declining Revenue

A substantial revenue decline indicates potential loss of market share or reduced demand, challenging Bri-Chem's growth prospects and financial health.

High Leverage

High leverage can strain Bri-Chem's financial flexibility, increasing vulnerability to economic downturns and interest rate hikes.

Profitability Challenges

Decreasing profit margins suggest operational inefficiencies or competitive pressures, potentially impacting long-term profitability and strategic investments.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.04M	83.07M	106.04M	104.51M	60.40M	45.16M
Gross Profit	13.87M	14.40M	18.73M	21.09M	12.24M	7.33M
EBITDA	923.42K	-323.37K	6.58M	8.27M	3.93M	-1.89M
Net Income	-2.11M	-3.85M	909.41K	8.64M	1.32M	-5.15M
Balance Sheet
Total Assets	53.40M	58.17M	68.37M	78.50M	43.80M	26.29M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-1.94M	-7.48M	-1.78M
Total Debt	19.46M	17.70M	31.00M	39.59M	23.89M	12.63M
Total Liabilities	34.00M	38.56M	45.83M	56.09M	32.08M	15.73M
Stockholders Equity	19.41M	19.61M	22.54M	22.41M	11.72M	10.56M
Cash Flow
Free Cash Flow	6.68M	9.97M	12.00M	-10.67M	-9.26M	10.22M
Operating Cash Flow	6.96M	10.39M	12.69M	-8.57M	-9.22M	10.22M
Investing Cash Flow	-277.82K	-414.09K	-676.64K	-2.10M	40.11K	1.43K
Financing Cash Flow	-6.68M	-9.97M	-12.01M	10.67M	9.18M	-10.22M

Bri-Chem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.23 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.25, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, 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
SHLE	74 Outperform	C$162.67M	4.13	11.94%	―	-0.39%	-86.01%
TOT	69 Neutral	C$537.71M	8.97	10.51%	2.65%	15.58%	47.55%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	61 Neutral	C$269.69M	27.35	3.20%	―	-8.13%	-28.00%
HWO	60 Neutral	$10.54M	0.40	-0.80%	―	-75.46%	-100.66%
STEP	58 Neutral	C$399.37M	-19.59	-1.94%	―	-9.19%	-119.27%
BRY	46 Neutral	C$6.21M	―	-8.25%	―	-11.17%	6.19%

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.