California Nanotechnologies (CNO) AI Stock Analysis

• Market Cap: C$12.69M
• Dividend Yield: N/A
• Average Volume (3M): 35.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.62
• Revenue Growth: -15.84%
• EPS Growth: -375.96%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 47,875,770
• 10 Day Avg. Volume: 35,432
• 30 Day Avg. Volume: 35,752
• PEG Ratio: 0.13
• Price to Book (P/B): 69.32
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 112.45
• 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): 0.01
• Revenue Forecast (FY): C$3.14M

• Rating: 42 Neutral
• Price Target: C$0.25 ▼(-25.29% Downside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is held down primarily by weak recent financial performance (declining revenue, losses, higher leverage, and negative free cash flow). Technicals are also bearish with the stock below major moving averages, partially offset by oversold momentum readings. Valuation offers limited support because the negative P/E reflects ongoing losses and there is no dividend yield.

Positive Factors

Specialized technical capability

CNO's core business of nanostructured and specialty metal powders plus process-development services represents a durable niche. Technical know-how and scale-up support create high switching costs and long sales cycles with engineering customers, supporting stable revenue opportunities and differentiation over months.

Historically high gross margins

A historical gross margin near 74% indicates product-level economics can be highly attractive when volumes and mix are favorable. That suggests structural pricing power and low variable costs for proprietary powders and processes, enabling margin recovery and durable profitability if demand and utilization improve.

Improving reported equity position

Positive equity in recent periods provides a solvency buffer versus prior negative-equity years. This improvement enhances resilience to short-term shocks, supports potential access to financing on better terms, and reduces the immediate risk of balance-sheet insolvency while management executes recovery plans.

Negative Factors

Falling revenue trend

A sharp ~31.8% TTM revenue decline materially erodes scale and weakens fixed-cost absorption in a manufacturing business. Reduced volumes constrain operating leverage and make previously achievable margins harder to sustain, increasing execution risk for the next several quarters unless demand or order intake stabilizes.

Elevated leverage

Debt exceeding a full turn of equity raises structural financing risk for a small, loss-making manufacturer. Elevated leverage increases interest burden, limits flexibility to invest in capacity or R&D, and heightens the risk of covenant pressure or dilutive financing if cash generation does not recover.

Negative and volatile cash flow

Recent negative free cash flow and volatile operating cash undermine the company's ability to fund working capital and capex organically. Persistent cash outflows force reliance on external financing, increasing dilution or refinancing risk and constraining long-term investment and scale-up initiatives.

California Nanotechnologies Business Overview & Revenue Model

Company Description

California Nanotechnologies Corp. engages in the research, development, and production of nanocrystalline materials through grain size reduction. The company provides spark plasma/ field assisted sintering (SPS/FAST); hot pressing; sintering; diffusion bonding; hot isostatic pressing; vacuum pressureless sintering; cryogenic milling, inert gas milling, planetary ball milling, and pulverizing; and material development and testing services, including mechanical alloying, composites/non-composites, mechanical testing, sample fabrication, prototyping, scanning electron microscopy analysis, and particle size analysis. It also offers SPS starter accessory kits, SPS graphite tooling, SPS systems, tungsten carbide tooling, SPS graphite crucibles, carbon graphite foil/paper, carbon felt and yarn, and quartz glass windows; and Engemini, an SPS/FAST modeling software. It serves aerospace, defense, automotive, medical, and sports and recreation industries. The company is headquartered in Cerritos, California.

How the Company Makes Money

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California Nanotechnologies Financial Statement Overview

Summary

Financial results are under pressure in the TTM period: revenue declined sharply (~31.8%), profitability turned deeply negative, leverage is elevated (debt-to-equity ~1.15), and free cash flow is negative. While prior annual results showed stronger margins and positive cash flow, the latest trajectory indicates higher execution and liquidity risk.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration: revenue fell to ~3.0M (down ~31.8%) and profitability swung deeply negative (gross margin ~40% with large operating and net losses). While the most recent annual period showed stronger gross margin (~74%) and positive operating profit, it still ended with a small net loss, highlighting inconsistent earnings quality and limited resilience if volumes soften.

Balance Sheet

Leverage has moved higher in the latest period, with debt exceeding equity (debt-to-equity ~1.15 in TTM (Trailing-Twelve-Months)). Equity is positive in the latest two periods, which is an improvement versus earlier years when equity was negative, but current returns remain negative and the balance sheet looks more vulnerable if losses persist.

Cash Flow

Cash generation weakened materially in TTM (Trailing-Twelve-Months): operating cash flow was roughly break-even but slightly negative, and free cash flow was negative (~-0.13M). This contrasts with the latest annual period where operating cash flow and free cash flow were solidly positive, suggesting cash flow volatility and raising financing risk if the recent downturn continues.

Breakdown	TTM	May 2024	May 2022	May 2021	May 2020	Feb 2019
Income Statement
Total Revenue	3.04M	6.22M	1.82M	1.06M	1.10M	981.04K
Gross Profit	1.22M	4.59M	669.57K	439.97K	523.36K	482.77K
EBITDA	-312.20K	780.97K	337.91K	10.77K	141.12K	181.11K
Net Income	-2.15M	-158.33K	79.76K	-161.40K	-74.36K	-77.42K
Balance Sheet
Total Assets	4.11M	5.50M	1.41M	587.40K	864.54K	1.02M
Cash, Cash Equivalents and Short-Term Investments	340.66K	533.85K	294.13K	25.29K	56.31K	24.45K
Total Debt	2.46M	1.62M	1.94M	1.94M	2.31M	2.31M
Total Liabilities	1.98M	3.19M	2.70M	2.24M	2.47M	2.56M
Stockholders Equity	2.13M	2.32M	-1.29M	-1.66M	-1.61M	-1.54M
Cash Flow
Free Cash Flow	-129.01K	797.00K	604.26K	33.20K	180.62K	95.44K
Operating Cash Flow	-9.28K	2.92M	717.01K	33.20K	180.62K	122.23K
Investing Cash Flow	-111.05K	-2.11M	-112.75K	0.00	0.00	-26.78K
Financing Cash Flow	85.84K	-1.12M	-387.83K	-62.52K	-149.61K	-118.51K

California Nanotechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 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:CNO, the sentiment is Negative. The current price of 0.34 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.32, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNO.

California Nanotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BOS	53 Neutral	C$175.11M	-10.46	-6.96%	3.12%	5.06%	93.02%
GMG	44 Neutral	C$234.37M	-3.44	-414.40%	―	6.29%	-3.71%
CNO	42 Neutral	C$12.69M	-2.61	-86.94%	―	-15.84%	-375.96%
NANO	42 Neutral	C$107.61M	-4.53	-64.75%	―	―	56.03%
SURE	41 Neutral	C$7.80M	-6.54	―	―	―	91.27%

California Nanotechnologies Corporate Events

California Nanotechnologies Launches Private Placement to Bolster Working Capital

California Nanotechnologies plans to raise up to CA$750,000 through a non-brokered private placement of 2,500,000 units priced at CA$0.30, each comprising one common share and one warrant exercisable at US$0.30 for 18 months. The company has also arranged an over-allotment option for up to 1,000,000 additional units that could bring in a further CA$300,000, with proceeds earmarked for general working capital and corporate purposes.

The financing remains subject to TSX Venture Exchange approval and other regulatory clearances, and finders’ fees may be paid in connection with the transaction. Up to 20% of the offering may be taken up by company insiders under related-party transaction rules, signaling internal support for the capital raise while remaining below thresholds that would require a formal valuation or minority shareholder approval under MI 61-101.

The most recent analyst rating on (TSE:CNO) stock is a Hold with a C$0.29 price target. To see the full list of analyst forecasts on California Nanotechnologies stock, see the TSE:CNO Stock Forecast page.

California Nanotechnologies Hit by Revenue Slump but Sees Q4 Rebound and Defense, Nuclear Growth

California Nanotechnologies reported a sharp downturn in its third quarter of fiscal 2026, with revenues falling 78% year over year to US$392,481 and swinging to a net loss of US$1.09 million, largely due to delayed manufacturing service revenues, the absence of orders from a key green steel customer, and the resulting pressure on margins over a fixed cost base. Despite the weak quarter, management expects a significant rebound in Q4/FY2026, with revenues projected to exceed US$800,000 as deferred orders are executed and new programs ramp up, supported by improving visibility on commercial contracts for 2026. The company highlighted progress on strategic growth fronts, including a Letter of Intent for SPS-based military brake disc production backed by recently approved U.S. Department of Defense funding and an initial purchase order for nuclear control rods from a U.S. small modular reactor developer, positioning Cal Nano to benefit from expanding defense and nuclear energy supply chains while deepening its presence in the U.S. SPS market through collaboration with Germany’s Dr. Fritsch.

The most recent analyst rating on (TSE:CNO) stock is a Hold with a C$0.38 price target. To see the full list of analyst forecasts on California Nanotechnologies stock, see the TSE:CNO Stock Forecast page.

California Nanotechnologies Expands SPS Footprint with Dr. Fritsch Distribution and R&D Partnership

California Nanotechnologies has entered into a strategic agreement with Germany’s Dr. Fritsch Sondermaschinen GmbH to act as the North American distributor and R&D services partner for Dr. Fritsch’s larger-scale Spark Plasma Sintering equipment, including aftermarket support. Under the deal, Cal Nano will provide developmental trials, pilot-scale validation and material evaluation services for Dr. Fritsch customers, an arrangement aimed at expanding both firms’ reach among North American industrial and research clients, particularly in defense and energy sectors that face export restrictions. The partnership complements Cal Nano’s existing relationship with Japan’s SUGA Co., Ltd., broadening its SPS equipment portfolio without product overlap, and is expected to strengthen the company’s role in advancing Spark Plasma Sintering technologies. In parallel, Cal Nano will host its inaugural SPS/FAST Experts Workshop in March 2026 alongside TMS 2026 in San Diego, showcasing advanced sintering technologies and its large-scale SPS systems, further reinforcing its visibility and positioning in the advanced materials community.

The most recent analyst rating on (TSE:CNO) stock is a Hold with a C$0.36 price target. To see the full list of analyst forecasts on California Nanotechnologies stock, see the TSE:CNO Stock Forecast page.