EcoSynthetix Inc. J (TSE:ECO)
TSX:ECO
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EcoSynthetix
(TSX:ECO)
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Rating:49Neutral
Price Target:
C$3.00
▼(-28.57% Downside)
Action:Reiterated
Date:05/09/26
The score is held up by a strong, low-leverage balance sheet, but is weighed down by continued unprofitability, inconsistent cash generation (TTM free cash flow negative), and weak technicals (below key moving averages with negative MACD). Valuation is also a risk factor because earnings are negative and there is no dividend yield data to provide support.
Positive Factors
Low leverage / strong balance sheet
Low leverage and a capital structure dominated by equity give the company durable financial flexibility. That allows EcoSynthetix to absorb operating swings, fund product development or scale manufacturing without immediate refinancing pressure, supporting multi‑quarter resilience.
Negative Factors
Ongoing unprofitability (negative EBIT)
Persistent negative EBIT and net losses limit the company's ability to generate retained earnings and long‑term shareholder value. Continued unprofitability increases dependence on external capital and raises execution risk for transitioning to sustainably positive operating results.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Low leverage and a capital structure dominated by equity give the company durable financial flexibility. That allows EcoSynthetix to absorb operating swings, fund product development or scale manufacturing without immediate refinancing pressure, supporting multi‑quarter resilience.
Read all positive factors
EcoSynthetix (ECO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$195.96M
Dividend YieldN/A
Average Volume (3M)34.75K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth14.06%
EPS Growth70.37%
CountryCA
Employees28
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding58,846,420
10 Day Avg. Volume57,478
30 Day Avg. Volume34,747
Financial Highlights & Ratios
PEG Ratio5.70
Price to Book (P/B)4.43
Price to Sales (P/S)8.06
P/FCF Ratio-192.79
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 ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
EcoSynthetix Business Overview & Revenue Model
Company Description
EcoSynthetix 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 Middl...
How the Company Makes Money
EcoSynthetix makes money primarily by selling its bio-based binder/latex products and related materials to industrial customers (e.g., paper, packaging, and other materials manufacturers) for use in their production processes. Revenue is generated...
EcoSynthetix Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a positive outlook with strong sales growth and market diversification, particularly in pulp and tissue markets, as well as progress in wood composites and personal care. However, there were concerns about declining gross profit percentage and increased SG&A expenses. Despite these challenges, the company's strategic market positioning and operational efficiencies indicate a strong potential for future growth.Positive Updates
Sales Growth and Market Diversification
Sales were up 11% year-over-year, driven by strong demand in key end markets such as pulp, tissue, wood composites, and personal care.
Negative Updates
Decline in Gross Profit Percentage
Gross profit as a percentage of sales declined to 34.2%, down from 36.8% in the previous year, primarily due to higher manufacturing costs.
Read all updates
Q3-2025 Updates
Positive
Negative
Sales Growth and Market Diversification
Sales were up 11% year-over-year, driven by strong demand in key end markets such as pulp, tissue, wood composites, and personal care.
Read all positive updates
Company Guidance
During the EcoSynthetix 2025 Third Quarter Results Conference Call, the company provided several key metrics indicating growth and progress across its core markets. Sales increased by 11% year-over-year, driven by strong demand in pulp, tissue, and wood composites, with volumes in these segments exceeding the overall sales growth rate. The company's gross profit margin was reported at 34.2%, down from 36.8% in the same period in 2024, attributed to higher manufacturing costs due to product mix. Notably, the demand for EcoSynthetix’s SurfLock strength aids from a major global pulp manufacturer increased significantly, with their annual run rate on the first line growing from $1 million to over $3 million. EcoSynthetix also achieved two new tissue account wins during the quarter, partly through their collaboration with the European distributor, R&M Group. In personal care, the company observed an uptick in demand from its partner Dow, signaling potential growth in this market segment. Financially, net sales for the quarter were $5.8 million, with SG&A expenses rising to $1.8 million and R&D expenses declining to $390,000. Adjusted EBITDA was reported at $200,000 for the quarter, and the company maintained a cash reserve of $30.4 million as of September 30, 2025.EcoSynthetix Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.56M | 21.16M | 18.54M | 12.66M | 19.03M | 18.16M |
| Gross Profit | 6.04M | 6.14M | 5.31M | 2.78M | 4.15M | 3.97M |
| EBITDA | 83.66K | -636.30K | -2.02M | -3.24M | -1.77M | -1.86M |
| Net Income | -407.31K | -441.39K | -1.37M | -2.82M | -1.32M | -3.12M |
Balance Sheet | ||||||
| Total Assets | 41.72M | 42.65M | 41.28M | 42.84M | 48.19M | 50.98M |
| Cash, Cash Equivalents and Short-Term Investments | 29.80M | 29.53M | 32.20M | 33.28M | 25.86M | 42.23M |
| Total Debt | 2.06M | 2.19M | 237.79K | 584.36K | 819.47K | 1.08M |
| Total Liabilities | 3.40M | 4.13M | 1.94M | 1.87M | 3.14M | 3.18M |
| Stockholders Equity | 38.32M | 38.52M | 39.35M | 40.97M | 45.06M | 47.80M |
Cash Flow | ||||||
| Free Cash Flow | -312.24K | -885.09K | 236.11K | -1.31M | -5.17M | 94.09K |
| Operating Cash Flow | 757.81K | -23.96K | 1.10M | 316.99K | -4.90M | 474.07K |
| Investing Cash Flow | 2.15M | 2.21M | 3.47M | 2.00M | -31.15M | 24.69M |
| Financing Cash Flow | -1.36M | -1.72M | -1.73M | -2.27M | -1.51M | 474.28K |
EcoSynthetix Technical Analysis
Neutral
4.20
Price Trends
3.27
Positive
3.61
Negative
3.92
Negative
Market Momentum
-0.02
Negative
57.65
Neutral
81.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECO, the sentiment is Neutral. The current price of 4.2 is above the 20-day moving average (MA) of 3.21, above the 50-day MA of 3.27, and above the 200-day MA of 3.92, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | C$191.67M | 19.12 | -5.18% | 3.12% | 4.94% | 60.87% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | C$304.36M | -3.44 | -414.40% | ― | 20.86% | -224.67% | |
49 Neutral | C$195.96M | -58.45 | -1.06% | ― | 14.06% | 70.37% | |
46 Neutral | C$106.51M | -29.13 | -69.66% | ― | ― | 12.74% | |
45 Neutral | C$6.78M | -6.54 | ― | ― | ― | 10.57% | |
42 Neutral | C$10.77M | -2.61 | -86.94% | ― | -48.43% | -757.33% |
* Basic Materials Sector Average
TSE:ECO
EcoSynthetix
3.33
-0.67
-16.75%
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EcoSynthetix Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
EcoSynthetix Delivers Double-Digit 2025 Growth and Achieves Climate Positive Operations
Positive
Feb 20, 2026
EcoSynthetix reported higher net sales of $5.9 million in the fourth quarter of 2025 and $20.8 million for the full year, representing growth of 9% and 12% respectively, driven by improved product mix and increased volumes in wood composites, pulp...
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.