EcoSynthetix (ECO) AI Stock Analysis

• Market Cap: C$252.00M
• Dividend Yield: N/A
• Average Volume (3M): 34.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 30.76%
• EPS Growth: 52.23%
• Country: CA
• Employees: 28
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): >-0.01
• Shares Outstanding: 58,605,003
• 10 Day Avg. Volume: 57,478
• 30 Day Avg. Volume: 34,747
• PEG Ratio: 2.52
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 9.53
• P/FCF Ratio: 748.43
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$4.00 ▼(-8.26% Downside)

EcoSynthetix's overall stock score reflects a challenging financial landscape with positive revenue growth but significant profitability and cash flow issues. The earnings call provided a positive outlook with strong sales growth, but concerns about profitability remain. Technical indicators suggest a neutral market sentiment, while valuation metrics highlight the company's lack of profitability.

Positive Factors

Market Diversification

EcoSynthetix's diversification across multiple markets reduces dependency on any single sector, enhancing resilience and growth potential.

Strategic Partnerships

Strategic partnerships, like with R&M Group, expand market reach and customer base, supporting long-term revenue growth and competitive positioning.

Cash Management

Strong cash reserves provide financial stability and flexibility for strategic investments, supporting sustainable business operations.

Negative Factors

Profitability Challenges

Declining gross profit margins indicate rising costs and pressure on profitability, which could affect long-term financial health if not addressed.

Increased Operating Expenses

Rising SG&A expenses can erode margins and profitability, necessitating cost control measures to maintain financial performance.

Cash Flow Concerns

Negative free cash flow indicates potential cash management issues, limiting the ability to invest in growth opportunities or weather downturns.

EcoSynthetix Business Overview & Revenue Model

Company Description

EcoSynthetix (ECO) is a leading provider of sustainable materials, specializing in the production of bio-based and renewable synthetic materials. The company operates within the green chemistry sector and focuses on creating eco-friendly alternatives to traditional petroleum-based products. EcoSynthetix's core offerings include biopolymers and other sustainable materials that are used in various applications, such as packaging, textiles, and construction, promoting environmental sustainability and reducing carbon footprints.

How the Company Makes Money

EcoSynthetix 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 Financial Statement Overview

Summary

EcoSynthetix shows a mixed financial performance. Revenue growth is positive at 10.18%, but profitability remains a challenge with negative net profit and EBIT margins. The balance sheet is strong with low leverage, but cash flow management is concerning due to negative free cash flow growth.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 4.36 is below the 20-day moving average (MA) of 4.38, above the 50-day MA of 4.32, and above the 200-day MA of 4.27, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 68.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HG	54 Neutral	C$1.19B	-126.76	-87.47%	―	331.08%	15.77%
GMG	53 Neutral	C$136.50M	-16.67	-92.59%	―	6.29%	-3.71%
ECO	51 Neutral	C$252.00M	-311.59	-2.11%	―	30.76%	52.23%
BOS	50 Neutral	C$115.66M	-20.70	-2.95%	3.41%	5.06%	93.02%
NEO	50 Neutral	C$702.19M	-48.34	-1.61%	2.35%	8.04%	-195.66%
NANO	45 Neutral	C$183.97M	-16.79	-64.59%	―	―	56.03%

EcoSynthetix Corporate Events

EcoSynthetix Earnings Call Highlights Growth and Challenges

EcoSynthetix Inc. recently held its earnings call, presenting a generally positive outlook with notable sales growth and market diversification. The company has made significant strides in the pulp and tissue markets, as well as progress in wood composites and personal care sectors. Despite some concerns about declining gross profit percentages and increased SG&A expenses, EcoSynthetix’s strategic market positioning and operational efficiencies suggest strong potential for future growth.

EcoSynthetix Sees Growth in Q3 2025 with New European Accounts

EcoSynthetix reported a 11% increase in net sales for Q3 2025, driven by higher volumes and new commercial accounts in Europe for its SurfLock™ strength aids. The company maintained a strong balance sheet with $30.4 million in cash and term deposits, and is positioned for long-term growth with strategic partnerships in key markets.

The most recent analyst rating on (TSE:ECO) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on EcoSynthetix stock, see the TSE:ECO Stock Forecast page.

EcoSynthetix Expands European Market with New Tissue Line Contracts

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.