Eastwood Bio-Medical Canada (EBM) AI Stock Analysis

• Market Cap: C$41.33M
• Dividend Yield: N/A
• Average Volume (3M): 3.49K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: -9.02%
• EPS Growth: 14.29%
• Country: CA
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): N/A
• Shares Outstanding: 68,885,970
• 10 Day Avg. Volume: 3,055
• 30 Day Avg. Volume: 3,488
• PEG Ratio: 5.31
• Price to Book (P/B): -29.59
• Price to Sales (P/S): 61.66
• P/FCF Ratio: 2.50K
• 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: 42 Neutral
• Price Target: C$0.61 ▼(-23.25% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by persistent losses and deeply negative equity, which outweigh the improving 2025 revenue and cash-flow stabilization. Technically, the stock shows weak trend/momentum (below key moving averages with negative MACD), and valuation support is limited given the negative P/E and no provided dividend yield.

Positive Factors

Operating & Free Cash Flow Turnaround

A shift to positive operating and free cash flow in 2025 signals improved working-capital management and cost control. Durable cash generation reduces near-term reliance on external financing, gives management flexibility to prioritize deleveraging or reinvestment, and supports operational continuity over the coming months.

Revenue Rebound with Stable Gross Margin

A meaningful revenue rebound combined with stable, higher gross margins indicates the core distribution business is regaining demand and preserving product economics. This supports scale effects and the potential for margin recovery if fixed costs are contained, making topline improvements more likely to translate into sustained operational progress.

Modest Reported Debt Burden

Relatively low absolute debt reduces immediate liquidity stress and interest burden, helping the company weather continued losses while it normalizes operations. Lower debt improves refinancing optionality and limits short-term solvency pressure, an enduring advantage while profitability remains a work in progress.

Negative Factors

Persistent Operating & Net Losses

Recurring operating and net losses erode capital and reflect structural profitability challenges. Over 2–6 months this inhibits the company's ability to self-fund growth or absorb shocks, forces continued external financing or dilution, and increases the risk that operational improvements won’t translate into sustainable earnings without fundamental cost or revenue shifts.

Negative Stockholders' Equity / Accumulated Deficit

A multi-year negative equity position materially weakens financial flexibility and raises going-concern and refinancing risks. Negative equity can constrain access to traditional credit, complicate covenants, and force costly capital solutions, posing a lasting structural handicap to executing strategic initiatives or funding recovery.

Fragile Cash-Flow Recovery

Although FCF turned positive, its decline versus 2024 and small magnitude relative to ongoing losses imply the recovery is fragile. Insufficient cash buffers limit the company’s ability to invest, cover unexpected costs, or service liabilities, meaning operational improvements could reverse if margins or revenue growth slow.

Eastwood Bio-Medical Canada Business Overview & Revenue Model

Company Description

Eastwood Bio-Medical Canada Inc. markets and distributes natural health products under the Eleotin brand in Canada, the United States, and Asia. It distributes Eleotin that provide natural remedies for metabolic disorders, such as blood glucose disorders, hypertension, and obesity. The company's licensed products include Eleotin A 700 for the treatment for spleen deficiency, lack of appetite, and fatigue; Eleotin AL88 for laxative; Eleotin Cal20 for bone and teeth maintenance; Eleotin V3D for development and maintenance of bones, teeth, and good health; Eleotin G2000 for cardiovascular health; Eleotin H55 for sedative and tension relief; and Eleotin Zn330 for tissue formation and metabolism. Its products also include Eleotin Bentley to promote healthy glucose levels; and Eleotin LBM for hypertension relief. The company was incorporated in 2010 and is based in Richmond, Canada.

How the Company Makes Money

EBM makes money primarily through the sale of its health products, including dietary supplements and herbal remedies. These products are distributed through various channels, including direct sales, partnerships with health retailers, and online marketplaces. The company may also engage in collaborations and partnerships with other health and wellness entities to expand its market reach. Additionally, EBM's revenue streams could include private labeling or contract manufacturing services, where they produce products for other brands using their expertise in natural health products. Key factors contributing to EBM's earnings include consumer demand for natural and alternative health solutions, regulatory compliance, and effective marketing strategies aimed at promoting the benefits of their products.

Eastwood Bio-Medical Canada Financial Statement Overview

Summary

Despite a strong 2025 revenue rebound and improved cash generation (operating and free cash flow positive in 2025), the company remains structurally weak: persistent operating and net losses across all years shown and negative stockholders’ equity from 2021–2025 materially elevate financial risk.

Income Statement

Revenue has been volatile but improved in the latest year (2025 revenue up strongly versus 2024), and gross margin is relatively stable and high in 2024–2025. However, profitability remains a major issue: the company has posted net losses every year shown, with operating losses also persistent. While margins improved materially from the extremely weak 2020 level, 2025 still shows a large negative net margin, indicating the business has not yet converted its revenue recovery into sustainable earnings.

Balance Sheet

The balance sheet is pressured by a large accumulated deficit, with stockholders’ equity negative from 2021 through 2025, which materially weakens financial flexibility and increases refinancing/going-concern risk. Reported debt levels are not large in absolute terms, but leverage measures are distorted by negative equity and do not indicate true balance-sheet strength. Total assets have also trended down versus earlier years, reinforcing the constrained capital position despite some improvement from the 2020 profitability trough.

Cash Flow

Cash generation has improved meaningfully versus earlier years: operating cash flow and free cash flow turned positive in 2025 after multiple years of negative readings, suggesting better working-capital and/or cost control. That said, cash flow remains small relative to the scale of losses (profitability is still negative), and free cash flow declined versus 2024, highlighting that the recovery is early and may be fragile.

Breakdown	Oct 2025	Jan 2025	Oct 2023	Oct 2022	Jan 2022
Income Statement
Total Revenue	782.08K	702.08K	867.94K	1.30M	981.05K
Gross Profit	506.03K	454.39K	440.51K	902.74K	458.37K
EBITDA	-309.73K	-342.05K	-410.58K	-32.33K	-495.50K
Net Income	-332.77K	-455.87K	-546.60K	-160.58K	-611.34K
Balance Sheet
Total Assets	218.77K	274.29K	489.14K	584.53K	691.12K
Cash, Cash Equivalents and Short-Term Investments	17.70K	0.00	18.45K	39.84K	20.87K
Total Debt	78.01K	79.61K	23.08K	62.25K	31.35K
Total Liabilities	1.85M	1.57M	1.33M	878.73K	835.44K
Stockholders Equity	-1.63M	-1.30M	-840.80K	-294.20K	-144.32K
Cash Flow
Free Cash Flow	19.30K	-15.22K	-16.89K	-7.30K	-121.79K
Operating Cash Flow	19.30K	-15.22K	-16.89K	-4.29K	-116.21K
Investing Cash Flow	0.00	0.00	0.00	-3.00K	-5.57K
Financing Cash Flow	-211.00	-4.62K	-4.50K	26.27K	20.00K

Eastwood Bio-Medical Canada Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EBM, the sentiment is Negative. The current price of 0.8 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.76, and above the 200-day MA of 0.59, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EBM.

Eastwood Bio-Medical Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ATLE	50 Neutral	C$54.59M	-2.71	-19.76%	―	26.91%	81.01%
ADK	45 Neutral	C$36.12M	-9.48	―	―	-48.53%	-9.66%
EBM	42 Neutral	C$41.33M	-144.91	―	―	-9.02%	14.29%
ARCH	41 Neutral	C$50.87M	-12.93	―	―	―	10.49%
SONA	41 Neutral	C$42.32M	-21.43	-434.25%	―	―	10.97%