EcoSynthetix (ECO) AI Stock Analysis

• Market Cap: C$243.70M
• Dividend Yield: N/A
• Average Volume (3M): 33.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 39.78%
• EPS Growth: 72.34%
• Country: CA
• Employees: 28
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals - Specialty
• EPS (TTM): <0.01
• Shares Outstanding: 58,723,040
• 10 Day Avg. Volume: 39,849
• 30 Day Avg. Volume: 33,471
• 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: C$4.00
• Price Target Upside: -7.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: C$4.50 ▲(4.41% Upside)

EcoSynthetix's overall score is driven by strong corporate events and positive technical trends. However, financial performance and valuation concerns, particularly around profitability and cash flow, weigh down the score.

EcoSynthetix Business Overview & Revenue Model

Company Description

EcoSynthetix Inc. is a technology company specializing in the development and commercialization of bio-based materials. Operating primarily in the chemical sector, EcoSynthetix produces sustainable, bio-based polymers that serve as environmentally friendly alternatives to traditional petroleum-based products. Its core products include EcoSphere and DuraBind, which are used as binding agents in paper and wood products, as well as in personal care and other industrial applications.

How the Company Makes Money

EcoSynthetix makes money primarily through the sale of its bio-based polymer products to various industries. The company generates revenue by providing sustainable alternatives for manufacturers who are looking to reduce their environmental footprint. Key revenue streams include sales of EcoSphere and DuraBind to the paper and packaging sectors, where these products are used as binders and coatings. Additionally, EcoSynthetix partners with companies in the personal care and construction industries to integrate its bio-based solutions into their products. Significant partnerships with manufacturers seeking sustainable material solutions contribute to the company's earnings by expanding its market reach and application base.

EcoSynthetix Financial Statement Overview

Summary

EcoSynthetix faces significant financial challenges, particularly in achieving profitability and stable revenue growth. The company's balance sheet provides stability with low debt and high equity, but inconsistencies in cash flow raise concerns about operational efficiency.

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	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: Negative
• Last Price: 4.31
• 50DMA: Positive
• 100DMA: Positive
• 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 4.31 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 4.10, and above the 200-day MA of 4.22, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.36 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	71 Outperform	C$693.03M	―	-3.70%	2.54%	-12.01%	-698.83%
GMG	64 Neutral	C$102.11M	―	-72.52%	―	-9.37%	22.80%
BOS	62 Neutral	C$136.70M	―	-11.69%	2.90%	-2.69%	66.63%
HG	62 Neutral	C$397.61M	―	-96.25%	―	203.80%	16.89%
ECO	58 Neutral	C$243.70M	―	-1.52%	―	39.78%	72.34%
NANO	45 Neutral	C$107.04M	―	-51.47%	―	―	13.34%
Sector *	44 Neutral	C$861.97M	-6.77	-14.90%	2.79%	16.54%	-27.01%

EcoSynthetix Corporate Events

EcoSynthetix Achieves Robust Q2 Growth and Expands Market Presence

EcoSynthetix reported a strong financial performance for the second quarter of 2025, with net sales increasing by 57% to $5.0 million, driven by higher volumes and improved pricing. The company secured a significant purchase order for its SurfLock™ product from a global pulp manufacturer and expanded its commercial accounts in the tissue market, highlighting its growing influence in strategic markets. Additionally, EcoSynthetix was recognized as one of the 2025 Best 50 Corporate Citizens in Canada, reflecting its commitment to sustainability and corporate responsibility.

EcoSynthetix Secures Major Order for SurfLock™ from Global Pulp Leader

EcoSynthetix has received a second purchase order for its bio-based strength aid, SurfLock™, from a leading global pulp manufacturer, valued at approximately $800,000. This order, which is ahead of the manufacturer’s original plan, highlights the growing demand for EcoSynthetix’s products in the pulp end market, which is a billion-dollar opportunity. The order signifies the manufacturer’s success in using SurfLock™ to enhance its pulp offering, allowing it to replace conventional softwood fibers with more cost-effective alternatives. EcoSynthetix is well-positioned to meet this increased demand due to its scalable, capital-light manufacturing capabilities.

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.