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EcoSynthetix Inc. J (TSE:ECO)
TSX:ECO
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EcoSynthetix
(TSX:ECO)
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Rating:51Neutral
Price Target:
C$4.50
▲(2.97% Upside)
EcoSynthetix's overall stock score reflects a challenging financial landscape with mixed technical indicators. While the company benefits from a strong equity position, profitability and cash flow issues weigh heavily on its valuation. Technical analysis provides a slightly positive outlook, but the lack of earnings call data and corporate events limits further insights.
EcoSynthetix (ECO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$264.53M
Dividend YieldN/A
Average Volume (3M)34.75K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth39.78%
EPS Growth72.34%
CountryCA
Employees28
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)<0.01
Shares Outstanding58,655,040
10 Day Avg. Volume57,478
30 Day Avg. Volume34,747
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EcoSynthetix Business Overview & Revenue Model
Company DescriptionEcoSynthetix Inc., a renewable chemicals company, develops and commercializes bio-based technologies that are used as replacement solutions for synthetic, petrochemical-based adhesives, and other related products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers EcoMer biomonomer for use in pressure sensitive adhesives, ink, toner resins, and paints; EcoSphere biolatex, a bio-based latex binder used in paper and paperboard coatings; EcoStix, a family of sugar-acrylic and pressure-sensitive adhesives, which include customizable resin grades and formulated grades; and DuraBind engineered biopolymers that enable manufacturers of particle board, MDF, veneers, and laminates to decrease the amount of highly regulated chemicals, such as formaldehyde in their formulation. Its products are used in various industries, such as paper and paper board; building materials; adhesives, paints, and coatings; films, recyclable packaging, labels, and stamps; and personal care products. The company was founded in 1996 and is headquartered in Burlington, Canada.
How the Company Makes MoneyEcoSynthetix generates revenue primarily through the sale of its bio-based synthetic materials to manufacturers in diverse industries, including packaging, textiles, and consumer goods. The company employs a revenue model that includes direct sales, long-term contracts, and partnerships with key players in these sectors. Significant revenue streams are derived from bulk sales to large manufacturers looking to incorporate sustainable materials into their production processes. Additionally, EcoSynthetix may engage in collaborative projects with industry partners to develop custom solutions, further enhancing its revenue potential. The growing demand for environmentally friendly products and regulatory pressures for sustainability create opportunities for the company to expand its market share and increase earnings.
EcoSynthetix Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant sales growth, transition to profitability, and increased demand across all markets. However, there were challenges in the tissue and paperboard market and a decrease in average selling prices. Overall, the sentiment leans towards optimism with noticeable highlights outweighing the lowlights.Q3-2024 Updates
Positive Updates
Significant Sales Growth
Sales were up 38% to $5.2 million in Q3 from the same period last year, driven by a 56% increase in demand for products.
Transition to Profitability
Achieved profitability with $365,000 in positive adjusted EBITDA and $1.6 million in cash from operating activities.
Increased Demand Across All Markets
Growth observed in all target end markets including wood composites, tissue, paperboard, pulp, and personal care, indicating successful diversification strategy.
Successful Pulp Trial Program
Made significant progress with a large global pulp manufacturer, becoming an important strategic and commercial account.
Stable Supply Chain
Stable period with no significant movements in raw materials, a better macro environment compared to previous years.
Negative Updates
Challenges in Tissue and Paperboard Market
Winning new lines or accounts is taking longer than anticipated, leading to frustration despite ongoing trials and engagement.
Lower Average Selling Price
Sales were negatively impacted by $700,000 or 18% due to lower average selling prices, primarily from lower manufacturing costs passed to customers.
Company Guidance
During the EcoSynthetix Q3 2024 earnings call, the company reported a robust quarter with sales increasing by 38% to $5.2 million compared to the same period last year. The surge in demand, up 56% for the quarter and 47% year-to-date, was a major driver behind this growth. The company achieved a positive adjusted EBITDA of $365,000 and generated $1.6 million in cash from operating activities. Gross profit rose by 51% to $1.7 million, with a margin of 36.8%, despite a lower average selling price impacting sales by $700,000. SG&A expenses increased to $1.5 million, primarily due to higher variable-based compensation, while R&D expenses remained relatively stable at $540,000. The cash position stood at $33.5 million as of September 30, 2024, with significant investments made in share buybacks. The company emphasized the success of its diversification strategy and highlighted progress in trials and partnerships across various end markets, including wood composites, pulp, and personal care.EcoSynthetix Financial Statement Overview
Summary
EcoSynthetix shows positive revenue growth but struggles with profitability and cash flow management. The strong equity position provides stability, but operational efficiency needs improvement.Income Statement
EcoSynthetix shows a mixed performance in its income statement. The TTM data indicates a positive revenue growth rate of 10.18%, suggesting some recovery in sales. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains relatively stable at around 28%, but the negative EBIT and EBITDA margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.0022, indicating minimal leverage and financial risk. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity investments. The equity ratio remains healthy, underscoring a solid capital structure.60
Neutral
Cash Flow
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth and negative free cash flow to net income ratio. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations, but overall cash flow management remains a concern.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.71M | 18.54M | 12.66M | 19.03M | 18.16M | 13.66M |
| Gross Profit | 5.60M | 5.31M | 2.78M | 4.15M | 3.97M | 2.74M |
| EBITDA | -978.35K | -2.02M | -3.24M | -1.77M | -1.86M | -1.57M |
| Net Income | -559.22K | -1.37M | -2.82M | -1.32M | -3.12M | -1.80M |
Balance Sheet | ||||||
| Total Assets | 40.27M | 41.28M | 42.84M | 48.19M | 50.98M | 51.72M |
| Cash, Cash Equivalents and Short-Term Investments | 30.73M | 32.20M | 33.28M | 25.86M | 42.23M | 41.98M |
| Total Debt | 85.75K | 237.79K | 584.36K | 819.47K | 1.08M | 1.31M |
| Total Liabilities | 1.65M | 1.94M | 1.87M | 3.14M | 3.18M | 2.25M |
| Stockholders Equity | 38.62M | 39.35M | 40.97M | 45.06M | 47.80M | 49.47M |
Cash Flow | ||||||
| Free Cash Flow | -162.69K | 236.11K | -1.31M | -5.17M | 94.09K | -21.37K |
| Operating Cash Flow | 458.34K | 1.10M | 316.99K | -4.90M | 474.07K | 226.78K |
| Investing Cash Flow | 3.22M | 3.47M | 2.00M | -31.15M | 24.69M | 9.75M |
| Financing Cash Flow | -1.98M | -1.73M | -2.27M | -1.51M | 474.28K | -1.43M |
EcoSynthetix Technical Analysis
Positive
4.37
Price Trends
4.26
Positive
4.20
Positive
4.26
Positive
Market Momentum
0.02
Positive
53.61
Neutral
46.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECO, the sentiment is Positive. The current price of 4.37 is above the 20-day moving average (MA) of 4.31, above the 50-day MA of 4.26, and above the 200-day MA of 4.26, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ECO.
EcoSynthetix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | C$106.41M | ― | -97.92% | ― | -18.13% | 0.52% | |
| ― | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
| ― | C$962.69M | ― | -87.47% | ― | 331.08% | 15.77% | |
| ― | C$862.76M | ― | -2.58% | 2.07% | 0.44% | -434.16% | |
| ― | C$264.53M | -326.81 | -1.52% | ― | 39.78% | 72.34% | |
| ― | C$137.92M | ― | -3.15% | 3.02% | 2.58% | 92.55% | |
| ― | C$175.05M | ― | -40.55% | ― | ― | 68.75% |
* Basic Materials Sector Average
TSE:ECO
EcoSynthetix
4.37
0.29
7.11%
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EcoSynthetix Corporate Events
Business Operations and StrategyProduct-Related Announcements
EcoSynthetix Expands European Market with New Tissue Line Contracts
Positive
Oct 6, 2025
EcoSynthetix Inc. has secured two new tissue line contracts in Europe for its bio-based strength aid, SurfLock™, through a partnership with RNM Group. This development highlights the growing recognition of SurfLock™’s value in strengthening paper applications while using cost-effective or recycled materials, enhancing EcoSynthetix’s market position and expanding its reach in the tissue industry.
The most recent analyst rating on (TSE:ECO) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on EcoSynthetix stock, see the TSE:ECO Stock Forecast page.
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.