Bri-Chem (BRY) AI Stock Analysis

• Market Cap: C$6.48M
• Dividend Yield: N/A
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• 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$0.24 ▲(10.91% 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 / balance sheet stability

A materially lower debt-to-equity ratio reduces financial risk and interest burden, improving resilience through industry cycles. This stronger capital structure gives the firm more flexibility to fund working capital, manage inventories, and withstand prolonged low activity periods without immediate refinancing pressure.

Consistent positive operating and free cash flow

Generating positive operating and free cash flow despite net losses demonstrates solid cash conversion from operations and supports liquidity and debt servicing. Durable cash generation enables reinvestment in blending/logistics, cushions earnings volatility, and lowers insolvency risk during weak demand.

Stable gross margins and specialized service offering

Stable mid-teens gross margins indicate persistent pricing power or cost pass-through in chemical distribution and custom blending. Combined with logistics and field-support services, this specialization creates defensible customer relationships and recurring demand, supporting long-term margin resilience.

Negative Factors

Declining revenue trend

A multi-period revenue decline signal structural demand weakness or lost market share, which reduces operating leverage and the company’s ability to spread fixed costs. Continued top-line contraction would pressure margins, limit reinvestment capacity, and delay recovery even if cash flows remain positive.

Weak profitability and thin EBITDA margins

Sustained net losses and single-digit EBITDA margins constrain the firm's capacity to generate returns and fund growth internally. Even with positive cash flow, persistent low profitability limits strategic investments, increases sensitivity to cost shocks, and undermines long-term shareholder value creation.

Cyclical demand exposure and customer concentration risk

Revenue volatility tied to rig activity and the impact of a lost customer highlight dependency on cyclical oilfield activity and potential customer concentration. This structural exposure increases downside risk during industry downturns and makes growth reliant on commodity-driven capex recovery.

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

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	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: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.23, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 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	$1.34B	11.09	18.06%	3.57%	9.24%	6.35%
SHLE	70 Outperform	C$221.98M	9.69	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$499.45M	21.42	3.20%	―	-8.13%	-28.00%
BRY	49 Neutral	C$6.48M	-3.85	-8.25%	―	-11.17%	6.19%
HWO	49 Neutral	C$11.17M	-51.48	-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.