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Bri-Chem Corp. (TSE:BRY)
TSX:BRY
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Bri-Chem (BRY) AI Stock Analysis

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TSE:BRY

Bri-Chem

(TSX:BRY)

Rating:46Neutral
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 (BRY) vs. iShares MSCI Canada ETF (EWC)

Bri-Chem Business Overview & Revenue Model

Company DescriptionBri-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 MoneyBri-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
45
Neutral
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
50
Neutral
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue83.07M106.04M104.51M60.40M45.16M
Gross Profit14.40M18.73M21.09M12.24M7.33M
EBITDA-323.37K6.58M8.27M3.93M-1.89M
Net Income-3.85M909.41K8.64M1.32M-5.15M
Balance Sheet
Total Assets58.17M68.37M78.50M43.80M26.29M
Cash, Cash Equivalents and Short-Term Investments0.000.00-1.94M-7.48M-1.78M
Total Debt17.70M31.00M39.59M23.89M12.63M
Total Liabilities38.56M45.83M56.09M32.08M15.73M
Stockholders Equity19.61M22.54M22.41M11.72M10.56M
Cash Flow
Free Cash Flow9.97M12.00M-10.67M-9.26M10.22M
Operating Cash Flow10.39M12.69M-8.57M-9.22M10.22M
Investing Cash Flow-414.09K-676.64K-2.10M40.11K1.43K
Financing Cash Flow-9.97M-12.01M10.67M9.18M-10.22M

Bri-Chem Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.28
Positive
100DMA
0.27
Positive
200DMA
0.29
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.94
Neutral
STOCH
-2.56
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 0.28 is below the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.28, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of -2.56 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$491.60M7.7711.66%2.87%14.74%62.76%
74
Outperform
C$196.27M4.8920.27%18.15%-75.41%
65
Neutral
$15.25B7.273.02%5.36%4.27%-62.52%
54
Neutral
C$310.44M151.92-5.02%-6.25%-129.86%
52
Neutral
C$287.73M29.181.53%-4.63%-92.13%
46
Neutral
C$7.40M-10.30%-11.74%-10.97%
$7.33M0.41-2.30%660.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BRY
Bri-Chem
0.28
0.01
3.70%
TSE:CFW
Calfrac Well Services
3.35
-0.64
-16.04%
TSE:TOT
Total Energy Services
13.22
3.97
42.92%
HGHAF
High Arctic Energy Services
0.63
-0.42
-40.00%
TSE:SHLE
Source Energy Services Ltd
14.17
0.87
6.54%
TSE:STEP
STEP Energy Services
4.26
0.02
0.47%

Bri-Chem Corporate Events

Financial Disclosures
Bri-Chem Reports Decline in Q4 2024 Financial Results Amid Reduced Drilling Activity
Negative
Mar 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2025