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Eastwood Bio-Medical Canada Inc (TSE:EBM)
:EBM
Canadian Market

Eastwood Bio-Medical Canada (EBM) AI Stock Analysis

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TSE:EBM

Eastwood Bio-Medical Canada

(EBM)

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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
C$0.53
▼(-34.00% Downside)
Action:ReiteratedDate: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
Improving cash generation
Operating and free cash flow turning positive in 2025 signals a structural improvement in working-capital management and cost control. Sustained positive cash generation over months supports liquidity, reduces near-term financing reliance, and provides a platform for reinvestment if maintained.
Revenue rebound in 2025
A clear revenue rebound in 2025 indicates recovering demand or improved execution in the company's Food Distribution business. Durable top-line growth helps absorb fixed costs, improves operating leverage potential, and gives management scope to drive margin improvement toward sustainable profitability.
Stable, relatively high gross margins
Relatively high and stable gross margins in 2024–2025 point to structural pricing power or favorable product mix in distribution. Stable gross margins create a durable buffer that can support recovery to profit as revenues scale, making long-term margin sustainability more achievable.
Negative Factors
Persistent operating and net losses
Recurring operating and net losses across all reported years are a structural drain on capital and limit the firm's ability to self-fund growth. Continued negative profitability raises the probability of incremental financing needs and constrains strategic flexibility over the medium term.
Negative stockholders' equity
A large accumulated deficit and negative equity from 2021–2025 materially weaken the balance sheet, increasing refinancing and going-concern risk. This structural impairment limits access to capital, raises borrowing costs, and constrains investment or M&A options absent recapitalization.
Fragile recovery / weak free cash flow scale
Although cash flow turned positive, free cash flow declined versus 2024 and remains small relative to ongoing losses. This suggests the recovery could be fragile and sensitive to working-capital swings; a reversal would quickly pressure liquidity and force external funding.

Eastwood Bio-Medical Canada (EBM) vs. iShares MSCI Canada ETF (EWC)

Eastwood Bio-Medical Canada Business Overview & Revenue Model

Company DescriptionEastwood 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 Moneynull

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
24
Negative
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
18
Very Negative
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
36
Negative
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.
BreakdownOct 2025Jan 2025Oct 2023Oct 2022Jan 2022
Income Statement
Total Revenue782.08K702.08K867.94K1.30M981.05K
Gross Profit506.03K454.39K440.51K902.74K458.37K
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 Assets218.77K274.29K489.14K584.53K691.12K
Cash, Cash Equivalents and Short-Term Investments17.70K0.0018.45K39.84K20.87K
Total Debt78.01K79.61K23.08K62.25K31.35K
Total Liabilities1.85M1.57M1.33M878.73K835.44K
Stockholders Equity-1.63M-1.30M-840.80K-294.20K-144.32K
Cash Flow
Free Cash Flow19.30K-15.22K-16.89K-7.30K-121.79K
Operating Cash Flow19.30K-15.22K-16.89K-4.29K-116.21K
Investing Cash Flow0.000.000.00-3.00K-5.57K
Financing Cash Flow-211.00-4.62K-4.50K26.27K20.00K

Eastwood Bio-Medical Canada Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.80
Price Trends
50DMA
0.71
Negative
100DMA
0.78
Negative
200DMA
0.60
Negative
Market Momentum
MACD
-0.06
Positive
RSI
40.47
Neutral
STOCH
37.30
Neutral
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 0.65, above the 50-day MA of 0.71, and above the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.47 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
50
Neutral
C$52.83M-2.62-19.76%26.91%81.01%
45
Neutral
C$31.91M-9.483086.87%-48.53%-9.66%
42
Neutral
C$37.89M-144.91-9.02%14.29%
42
Neutral
C$37.17M-21.43-434.25%10.97%
41
Neutral
C$38.15M-12.9372.34%10.49%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EBM
Eastwood Bio-Medical Canada
0.55
0.15
37.50%
TSE:ARCH
Arch Biopartners
0.57
-1.29
-69.35%
TSE:ADK
Diagnos
0.27
-0.03
-11.67%
TSE:ATLE
Willow Biosciences Inc
0.15
<0.01
0.67%
TSE:ZYUS
ZYUS Life Sciences
0.57
-0.22
-27.85%
TSE:SONA
Sona Nanotech Inc
0.33
0.04
12.07%
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: Mar 07, 2026