Bri-Chem (BRY) AI Stock Analysis

• Market Cap: C$7.14M
• Dividend Yield: N/A
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.38
• 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: 49 Neutral
• Price Target: C$0.25 ▲(13.18% Upside)

The score is held back primarily by weak profitability and declining revenue despite positive cash flow and improved leverage. Technicals also remain bearish with the price below key moving averages and negative momentum indicators. Corporate events are mixed (governance improvements vs. Q3 sales decline), while valuation is difficult to support given the negative P/E and no dividend yield provided.

Positive Factors

Improved leverage

A materially lower debt-to-equity ratio reduces financial risk and interest burden, improving resilience through oilfield demand cycles. This stronger capital structure increases flexibility to service debt, preserve liquidity, and pursue necessary operational fixes over the next several quarters.

Positive cash generation

Consistent positive operating and free cash flow through a loss-making period shows the business can generate real liquidity. That supports ongoing operations, working-capital needs and debt servicing, providing a durable buffer while revenue and profitability recover.

Stable gross margins

Relatively steady gross margins indicate retained pricing power or consistent markup on chemical products despite volume swings. Stable product economics make it more likely that revenue recovery will flow to the gross-profit line, enabling margin recovery when volume and cost absorption improve.

Negative Factors

Revenue decline and customer loss

Falling top-line and the reported lost customer point to structural demand and customer-concentration risks. Reduced scale compresses operating leverage and makes fixed-cost absorption harder, increasing the time and investment required to return to prior profitability levels.

Weak profitability and low margins

Sustained net losses and only low-single-digit EBITDA margins limit retained earnings and shrink the equity base, undermining capacity to reinvest in growth or withstand protracted industry downturns. Low profitability increases reliance on cash and credit.

Debt sizable vs equity limiting flexibility

Although leverage improved, absolute debt levels relative to a weakened equity base constrain strategic options. Heavy obligations can force conservative capital allocation, restrict investment in logistics or product expansion, and elevate refinancing risk if market access tightens.

Bri-Chem Business Overview & Revenue Model

Company Description

Bri-Chem Corp., together with its subsidiaries, engages in the wholesale distribution of oilfield chemicals for the oil and gas industry in North America. The company supplies, blends, and packages drilling fluid products in various weights and clays, lost circulation materials, chemicals, and oil mud products. It also offers completion, cementing, acidizing, stimulation, and production chemicals; and sells calcium nitrate, barite, silica fume, hydrated lime, potash, sodium carbonate, surfactants, and soda ash. In addition, the company provides testing of drilling fluids for customers for various analyses, including viscosity, fluid loss, lubricity, and others. Further, it provides various services to the oil and gas, industrial, agriculture, and forestry industries; and blends cementing chemicals, as well as supply chain solutions for the oilfield, mining, and construction industries. Bri-Chem Corp. was founded in 1985 and is headquartered in Edmonton, Canada.

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

Overall fundamentals are mixed: revenue is down TTM (-4.6%) and profitability is weak with net losses and very low EBITDA margin (~1.5%). Offsetting this, leverage has improved (debt-to-equity ~1.0 vs ~1.8–2.0 in 2021–2022) and operating/free cash flow remain positive, although free cash flow fell sharply TTM (~31%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-4.6%) and profitability remains weak, with a net loss and only low-single-digit EBITDA margin (~1.5%). The company has deteriorated from solid profitability in 2021–2022 (positive net margins and stronger operating margins) to losses in 2024 and TTM, indicating pressured demand and/or cost absorption issues. A positive is that gross margin has been relatively stable in the ~17–20% range versus prior years, suggesting the core offering still retains pricing/markup resilience, but it has not translated into consistent bottom-line earnings.

Balance Sheet

Leverage has improved versus earlier years: debt-to-equity is ~1.0 in TTM and 2024, down meaningfully from ~1.8–2.0 in 2021–2022, which reduces financial risk. However, equity returns are negative in TTM and 2024 due to losses, and debt remains sizable relative to the equity base, limiting flexibility if the earnings recovery is slow. Overall, the balance sheet looks more stable than it did a few years ago, but profitability is not currently supporting returns.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both positive, following similarly strong positive cash flow in 2023–2024. That said, free cash flow fell sharply in TTM (down ~31%), and cash conversion versus reported earnings is mixed given net losses in TTM/2024. Still, the company’s ability to produce positive free cash flow through a loss-making period is supportive for liquidity and debt servicing, even if the trajectory has softened recently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.26M	83.07M	106.04M	104.51M	60.40M	45.16M
Gross Profit	13.69M	14.40M	18.73M	21.09M	12.24M	7.33M
EBITDA	1.17M	-323.37K	6.58M	8.27M	3.93M	-1.89M
Net Income	-1.68M	-3.85M	909.41K	8.64M	1.32M	-5.15M
Balance Sheet
Total Assets	48.86M	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	18.84M	17.70M	31.00M	39.59M	23.89M	12.63M
Total Liabilities	29.31M	38.56M	45.83M	56.09M	32.08M	15.73M
Stockholders Equity	19.55M	19.61M	22.54M	22.41M	11.72M	10.56M
Cash Flow
Free Cash Flow	4.59M	9.97M	12.00M	-10.67M	-9.26M	10.22M
Operating Cash Flow	5.04M	10.39M	12.69M	-8.57M	-9.22M	10.22M
Investing Cash Flow	-453.25K	-414.09K	-676.64K	-2.10M	40.11K	1.43K
Financing Cash Flow	-4.59M	-9.97M	-12.01M	10.67M	9.18M	-10.22M

Bri-Chem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRY, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.23, and below the 200-day MA of 0.25, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 71.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BRY.

Bri-Chem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	78 Outperform	$1.55B	12.80	18.06%	3.57%	9.24%	6.35%
SHLE	70 Outperform	C$218.31M	8.91	11.94%	―	-0.39%	-86.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$500.44M	22.25	3.20%	―	-8.13%	-28.00%
BRY	49 Neutral	C$7.14M	-4.24	-8.25%	―	-11.17%	6.19%
HWO	49 Neutral	C$10.79M	-48.52	-0.80%	―	-75.46%	-100.66%

Bri-Chem Corporate Events

Bri-Chem Unveils Major Strategic Overhaul to Boost Margins and Streamline Operations

Bri-Chem has launched a comprehensive strategic realignment under a newly reconstituted board, emphasizing internal manufacturing, product portfolio optimization, and tighter commercial discipline to strengthen its competitive position and financial resilience. The company is shifting select third-party products to in-house production, rationalizing underperforming SKUs, exiting the oil-based mud supply business, tightening customer return policies, closing underperforming facilities in Canada and the U.S. while retaining a presence in Houston, and consolidating real estate and workforce to cut SG&A by more than $1.6 million annually, all aimed at expanding margins, improving working capital, and positioning the business for more stable, diversified growth amid a steady to modestly improving industry backdrop in 2026.

The most recent analyst rating on (TSE:BRY) stock is a Hold with a C$0.20 price target. To see the full list of analyst forecasts on Bri-Chem stock, see the TSE:BRY Stock Forecast page.

Bri-Chem Appoints New CEO and Implements Governance Changes

Bri-Chem has announced the appointment of Mr. Barry Hugghins as the new CEO and President, who will also continue as Executive Chairman of the Board. In a move to align leadership with shareholder interests, Mr. Hugghins will receive a nominal salary of one dollar per year, while the Board of Directors will shift to equity-based compensation, reflecting a commitment to long-term shareholder value and enhanced governance.

Bri-Chem Reports Q3 2025 Financial Results Amid Sales Decline

Bri-Chem Corp. reported a 17% decrease in consolidated sales for Q3 2025, primarily due to reduced sales in its fluids distribution division and lower rig counts in North America. Despite the sales decline, the company saw improvements in adjusted EBITDA and operating earnings, attributed to a decrease in bad debt expenses. The company’s working capital decreased by 21%, reflecting a significant reduction in accounts receivables and inventory, although this was partially offset by decreased bank indebtedness. The decline in sales was influenced by the loss of a customer to a competitor, leading to service discontinuation, and a general downturn in rig activity in both Canada and the U.S.

Bri-Chem Corp. Initiates Leadership Transition with CEO Departure

Bri-Chem Corp. has announced the immediate departure of its CEO, Don Caron, as the company begins a leadership transition. The Board of Directors will manage interim responsibilities and search for a new CEO, ensuring no disruption to operations and maintaining focus on strategic priorities. The company remains committed to operational discipline and long-term growth, aiming to align performance across the organization and earn stakeholder confidence.