EcoSynthetix (ECO) AI Stock Analysis

• Market Cap: C$257.41M
• Dividend Yield: N/A
• Average Volume (3M): 26.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 29.27%
• EPS Growth: 42.35%
• Country: CA
• Employees: 28
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): -0.01
• Shares Outstanding: 58,769,740
• 10 Day Avg. Volume: 36,583
• 30 Day Avg. Volume: 26,272
• PEG Ratio: 2.31
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.63
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 34.73
• Enterprise Value/Ebitda: -17.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: C$4.00 ▼(-2.44%Downside)

The overall stock score reflects EcoSynthetix's significant financial challenges, particularly in achieving profitability and stable revenue growth. Although the balance sheet is strong, cash flow inconsistencies and negative earnings weigh heavily. Technical indicators show a neutral stance, and the valuation is poor due to a negative P/E ratio.

EcoSynthetix Business Overview & Revenue Model

Company Description

EcoSynthetix Inc. is a renewable chemicals company operating within the specialty chemicals sector. The company is focused on the development and commercialization of bio-based technologies as alternatives to traditional petroleum-based products. Its core products include bio-based polymers and additives that serve industries such as paper, packaging, and personal care, offering sustainable and environmentally friendly solutions.

How the Company Makes Money

EcoSynthetix makes money primarily through the sale of its bio-based products, which are used as sustainable alternatives to conventional petroleum-based materials. The company's revenue streams include direct sales to manufacturers in industries like paper and packaging, where their products are used as adhesives, binders, and coating agents. Additionally, EcoSynthetix benefits from strategic partnerships with leading global manufacturers and suppliers, which help expand its market reach and drive sales growth. The company also invests in research and development to innovate and expand its product offerings, thus enhancing its competitive edge and revenue potential.

EcoSynthetix Financial Statement Overview

Summary

EcoSynthetix faces significant financial challenges, with a history of negative EBIT and net income, indicating operational issues. The balance sheet provides some stability with a high equity ratio and low leverage, but declining stockholders' equity and inconsistent cash flows are concerns.

Income Statement

EcoSynthetix shows a consistent pattern of negative EBIT and net income, indicating ongoing operational challenges. Although there is a slight improvement in gross profit margin, the company has not yet achieved profitability. Revenue fluctuations suggest instability, with recent periods showing revenue decline.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio, indicating financial stability. Despite low leverage, the company has seen declining stockholders' equity over recent periods. The debt-to-equity ratio is favorable, suggesting limited financial risk from debt.

Cash Flow

Operating and free cash flows have been inconsistent, with recent periods showing negative free cash flow. The operating cash flow to net income ratio suggests operational inefficiencies, although the company has managed to maintain positive operating cash flow in the TTM period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.89M	18.54M	12.66M	19.03M	18.16M	13.66M
Gross Profit	5.04M	5.31M	2.78M	4.15M	3.97M	2.74M
EBITDA	-1.99M	-2.02M	-3.24M	-1.77M	-1.86M	-1.57M
Net Income	-1.35M	-1.37M	-2.82M	-1.32M	-3.12M	-1.80M
Balance Sheet
Total Assets	41.01M	41.28M	42.84M	48.19M	50.98M	51.72M
Cash, Cash Equivalents and Short-Term Investments	31.43M	32.20M	33.28M	25.86M	42.23M	41.98M
Total Debt	160.53K	237.79K	584.36K	819.47K	1.08M	1.31M
Total Liabilities	2.36M	1.94M	1.87M	3.14M	3.18M	2.25M
Stockholders Equity	38.65M	39.35M	40.97M	45.06M	47.80M	49.47M
Cash Flow
Free Cash Flow	-578.23K	236.11K	-1.31M	-5.17M	94.09K	-21.37K
Operating Cash Flow	161.00K	1.10M	316.99K	-4.90M	474.07K	226.78K
Investing Cash Flow	3.07M	3.47M	2.00M	-31.15M	24.69M	9.75M
Financing Cash Flow	-1.51M	-1.73M	-2.27M	-1.51M	474.28K	-1.43M

EcoSynthetix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECO, the sentiment is Negative. The current price of 4.1 is above the 20-day moving average (MA) of 4.07, above the 50-day MA of 4.07, and below the 200-day MA of 4.25, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECO.

EcoSynthetix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	70 Outperform	C$567.14M	―	-3.70%	2.87%	-12.01%	-698.83%
BOS	58 Neutral	C$127.60M	―	-11.69%	2.98%	-2.69%	66.63%
GMG	54 Neutral	C$64.49M	―	-72.52%	―	-9.37%	22.80%
HG	49 Neutral	C$56.04M	―	-96.25%	―	203.80%	16.89%
ECO	46 Neutral	C$257.41M	―	-3.46%	―	29.27%	42.35%
NANO	45 Neutral	C$79.16M	―	-51.47%	―	―	13.34%
Sector *	44 Neutral	C$958.76M	-6.68	-13.31%	2.79%	17.55%	-32.28%

EcoSynthetix Corporate Events

EcoSynthetix Elects New Board Members and Appoints New Chair

EcoSynthetix announced the election results for its Board of Directors at the recent Annual Meeting of Shareholders. Five nominees were elected, with Gregory Yull joining as a new member, replacing Paul Lucas who retired after a decade of service. Jeffrey Nodland was appointed as the new chair. The company anticipates leveraging Yull’s extensive experience in industrial manufacturing and sales to enhance its operations. All other resolutions at the meeting were also approved.

EcoSynthetix Reports Q1 2025 Results Amid Market Challenges

EcoSynthetix reported a 14% decrease in net sales for Q1 2025, attributed to an inventory buildup by a distributor and uncertain macroeconomic conditions. Despite this, the company maintained a strong balance sheet with $31.4 million in cash and term deposits. EcoSynthetix secured new commercial lines for its SurfLock™ strength aids with international pulp manufacturers, highlighting the product’s value across tissue, paperboard, and pulp markets. The company continues to focus on growing with strategic accounts and partners, leveraging its bio-polymers’ sustainability benefits to drive industrial change. With disciplined capital allocation, EcoSynthetix is well-positioned to capitalize on growth opportunities in its target markets.

EcoSynthetix Reports Q1 2025 Results Amid Market Challenges

EcoSynthetix reported a 14% decline in net sales for Q1 2025, primarily due to an inventory buildup by a distributor and an uncertain macro environment. Despite the decrease in sales, the company maintained a strong balance sheet with $31.4 million in cash and term deposits. The company secured new commercial lines for its SurfLock™ strength aids, indicating continued demand and strategic partnerships in its key markets. EcoSynthetix remains committed to growing with strategic accounts and partners, focusing on the long-term potential of its bio-polymers in various industries.