Cymat Technologies (CYM) AI Stock Analysis

• Market Cap: C$8.53M
• Dividend Yield: N/A
• Average Volume (3M): 118.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -25.74%
• EPS Growth: 2.28%
• Country: CA
• Employees: 11
• Sector: General
• Sector Strength: N/A
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.01
• Shares Outstanding: 100,337,330
• 10 Day Avg. Volume: 20,030
• 30 Day Avg. Volume: 118,582
• PEG Ratio: 0.12
• Price to Book (P/B): -2.03
• Price to Sales (P/S): 2.58
• P/FCF Ratio: -5.85
• 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: 40 Underperform
• Price Target: C$0.08 ▼(-32.50% Downside)
• Action: Downgraded Date: 01/04/26
• Date: Action: Downgraded 01/04/26

The score is primarily constrained by very weak financial performance (deep losses, cash burn, and a stressed balance sheet with negative equity). Technicals are only neutral and do not offset the fundamental risk, while valuation remains pressured due to negative earnings and no indicated dividend yield support.

Positive Factors

Proprietary aluminum foam products

Cymat’s core offering is a proprietary aluminum foam material used for energy absorption and vibration damping; proprietary product technology and specialized materials create durable product differentiation and niche customer relationships in industrial and transportation applications, supporting long-term demand.

Commercial supply/longer-term arrangements

The company’s revenue model relies on commercial supply arrangements and longer-term supply agreements, which can provide structural revenue visibility and repeatable demand. Durable contract-based supply relationships support planning, capacity utilization and potential customer lock-in over multiple reporting periods.

Historical margin upside potential

The business has demonstrated the ability to achieve positive gross margins historically (~13.3% in the prior annual period), indicating the underlying product economics can be profitable. That prior margin outcome suggests scope for structural margin recovery if volumes, mix or cost control improve.

Negative Factors

Negative shareholders' equity

Negative shareholders’ equity and meaningful debt on a small asset base materially weaken financial flexibility. This structural balance-sheet weakness increases refinancing and covenant risk, limits the ability to fund capex or absorb shocks, and raises long-term solvency concerns absent sustained profitability or capital support.

Material cash burn

Sustained negative operating and free cash flow imply the business is burning cash to fund operations. Persistent cash outflows erode runway, create recurring financing needs, and elevate dilution or credit risk over the medium term unless cash generation turns positive or external capital is secured on sustainable terms.

Declining revenue and deep losses

A falling top line combined with negative gross and extreme net margins indicates structural profitability issues: either demand, pricing or cost structure problems. Such persistent unprofitability undermines the firm’s ability to service debt, invest in growth, and achieve durable recovery without clear operational or market changes.

Cymat Technologies Business Overview & Revenue Model

Company Description

Cymat Technologies Ltd., a materials technology company, manufactures and sells stabilized aluminum foam products worldwide. The company provides architectural materials under the Alusion brand name; and automotive and blast mitigation products under the SmartMetal brand name. It serves defense and military, automotive and transportation, architectural, and other application. The company was incorporated in 2006 and is based in Mississauga, Canada.

How the Company Makes Money

Cymat Technologies generates revenue primarily through the sale of its Alusion® stabilized aluminum foam products to various industries, including construction, automotive, aerospace, and defense. The company capitalizes on its proprietary technology by licensing its manufacturing processes to partners, which provides a secondary revenue stream. Additionally, Cymat engages in strategic partnerships with companies within these sectors to enhance its market reach and product development, enabling it to secure contracts and expand its customer base. The company's earnings are also bolstered by ongoing research and development initiatives that aim to innovate and improve its product offerings, allowing it to meet the evolving needs of its clients.

Cymat Technologies Financial Statement Overview

Summary

Financials indicate severe strain: TTM revenue declined (-4.2%), gross margin turned negative (~-2.4%), losses are extremely large versus sales (net margin ~-222%), and both operating cash flow and free cash flow are materially negative (~-$2.75M and ~-$2.77M). The balance sheet is also stressed with negative equity (~-$3.8M) and meaningful debt (~$5.8M) on a small asset base, limiting flexibility and increasing refinancing/liquidity risk.

Income Statement

TTM (Trailing-Twelve-Months) results show deep and worsening profitability pressure: revenue declined (-4.2% growth) and gross profit turned slightly negative (gross margin ~-2.4%). Losses remain very large versus sales (net margin ~-222%), with negative EBIT and EBITDA margins as well. While the prior annual period (2025) had positive gross margin (~13.3%), the business is still structurally unprofitable with persistent net losses across the history provided.

Balance Sheet

The balance sheet is highly stressed with negative shareholders’ equity in TTM (about -$3.8M) and elevated debt (~$5.8M) relative to a small asset base (~$3.7M). Negative equity makes leverage risk materially higher and limits financial flexibility. Debt has also increased versus the most recent annual period (2025), reinforcing refinancing and liquidity sensitivity if operating performance does not improve.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both meaningfully negative (about -$2.75M and -$2.77M, respectively), implying continued cash burn. A positive free cash flow growth figure is a modest improvement signal, but it is from a negative base and does not change that the company is funding ongoing losses and operations with external capital or balance-sheet resources.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2021	Jul 2020
Income Statement
Total Revenue	1.83M	3.71M	1.62M	3.05M	4.15M	1.69M
Gross Profit	-43.88K	494.39K	-412.85K	-270.42K	2.12M	373.27K
EBITDA	-2.48M	-1.91M	-3.34M	-5.45M	252.17K	-1.51M
Net Income	-4.06M	-3.37M	-4.27M	-6.05M	-543.00K	-1.81M
Balance Sheet
Total Assets	3.68M	2.76M	3.96M	4.16M	6.58M	1.86M
Cash, Cash Equivalents and Short-Term Investments	926.84K	354.03K	56.27K	324.05K	5.02M	251.58K
Total Debt	5.81M	5.58M	2.94M	2.28M	1.38M	1.06M
Total Liabilities	7.50M	7.49M	6.78M	4.77M	3.71M	2.75M
Stockholders Equity	-3.83M	-4.73M	-2.81M	-612.07K	2.88M	-889.52K
Cash Flow
Free Cash Flow	-2.77M	-1.64M	-2.26M	-3.49M	401.48K	-1.38M
Operating Cash Flow	-2.75M	-1.60M	-2.23M	-2.46M	432.92K	-1.33M
Investing Cash Flow	-20.13K	-37.52K	-31.32K	-1.03M	-31.44K	-47.92K
Financing Cash Flow	3.46M	1.93M	1.99M	1.18M	4.36M	1.45M

Cymat Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CYM, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CYM.

Cymat Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRX	74 Outperform	C$268.97M	5.00	16.89%	0.46%	-26.61%	-45.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
USCU	50 Neutral	C$44.35M	-9.85	-162.83%	―	―	1.23%
IB	45 Neutral	C$23.05M	-7.71	-112.26%	―	―	―
MTS	45 Neutral	C$13.72M	-7.52	-92.01%	―	―	―
CYM	40 Underperform	C$8.53M	-2.37	―	―	-25.74%	2.28%