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Burcon Nutrascience Corporation (TSE:BU)
:BU

Burcon Nutrascience (BU) AI Stock Analysis

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Burcon Nutrascience

(OTC:BU)

50Neutral
Burcon Nutrascience's score is impacted by significant financial challenges and negative profitability, balanced by positive earnings call developments and moderate market momentum. Strategic initiatives and partnerships offer potential, but financial instability and valuation concerns weigh heavily.

Burcon Nutrascience (BU) vs. S&P 500 (SPY)

Burcon Nutrascience Business Overview & Revenue Model

Company DescriptionBurcon Nutrascience Corporation is a global technology company in the plant-based protein industry. It is primarily focused on the development of functionally and nutritionally valuable plant-based proteins derived from crops such as peas, canola, and soy. The company aims to provide sustainable, low-cost, and high-quality protein ingredients to meet the growing demand for plant-based food and beverages.
How the Company Makes MoneyBurcon Nutrascience makes money by developing and licensing its patented protein extraction and purification technologies to food and beverage manufacturers. The company's revenue model is predominantly based on licensing its technology to partners, who then produce and sell the protein ingredients. Burcon receives royalty payments based on the sales of these protein ingredients. Key revenue streams include royalties from its partnerships, such as the joint venture with Merit Functional Foods Corporation, which utilizes Burcon's technology to produce and sell plant-based proteins. Additionally, Burcon may earn revenue from research and development services and technology development fees.

Burcon Nutrascience Financial Statement Overview

Summary
Burcon Nutrascience faces significant financial challenges, with consistent losses, high leverage, and reliance on financing to sustain operations. The company's financial statements reflect instability and potential risks, requiring strategic changes to improve financial health.
Income Statement
25
Negative
Burcon Nutrascience has experienced volatile revenue growth with a significant decline in profitability. The revenue growth rate from 2023 to 2024 is negative, and the company consistently incurs losses, as indicated by negative EBIT and net income margins. This reflects financial instability in the income statement metrics.
Balance Sheet
40
Negative
The company's balance sheet shows a high debt-to-equity ratio and negative equity in previous years, suggesting financial leverage risks. However, there has been some improvement in stockholders' equity in recent years. The company's equity ratio has been unstable, indicating potential financial risk.
Cash Flow
30
Negative
Burcon Nutrascience's cash flow statement highlights negative operating and free cash flow, indicating challenges in generating cash from operations. The company relies heavily on financing activities to fund its operations, raising concerns about sustainability and liquidity.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
420.98K184.36K363.91K171.47K258.65K31.13K
Gross Profit
-167.09K184.36K363.91K171.47K-527.31K-815.00K
EBIT
-7.46M-7.02M-7.53M-7.40M-4.60M-3.72M
EBITDA
-6.66M-6.74M-18.90M-9.92M2.87M-3.69M
Net Income Common Stockholders
-7.40M-7.45M-25.36M-10.26M-617.49K-4.63M
Balance SheetCash, Cash Equivalents and Short-Term Investments
675.38K4.20M1.46M7.00M13.97M15.03M
Total Assets
8.74M12.91M9.90M29.35M37.72M31.27M
Total Debt
5.32M6.67M5.17M73.14K33.70K6.73M
Net Debt
4.65M2.47M3.71M-6.93M-13.94M-8.30M
Total Liabilities
5.95M7.76M5.76M1.10M1.45M8.32M
Stockholders Equity
2.79M5.15M4.14M28.25M36.27M22.95M
Cash FlowFree Cash Flow
-6.61M-5.90M-6.38M-7.18M-5.91M-4.31M
Operating Cash Flow
-6.33M-5.78M-6.02M-5.91M-3.03M-2.74M
Investing Cash Flow
-249.40K-39.49K-4.43M-1.23M-2.72M-14.57M
Financing Cash Flow
5.13M8.56M4.90M174.08K4.70M31.85M

Burcon Nutrascience Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.09
Negative
100DMA
0.09
Negative
200DMA
0.12
Negative
Market Momentum
MACD
<0.01
Negative
RSI
55.35
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BU, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BU.

Burcon Nutrascience Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSPBH
68
Neutral
C$3.44B27.996.86%4.44%3.35%28.80%
63
Neutral
$20.41B13.98-16.01%3.26%1.30%5.01%
TSBU
50
Neutral
C$21.57M-574.03%83.65%3.91%
TSNFI
50
Neutral
C$1.35B-0.38%18.07%98.61%
TSAGT
45
Neutral
-10.69%
43
Neutral
C$16.29M11.42%-9.16%53.81%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BU
Burcon Nutrascience
0.09
-0.12
-57.92%
TSE:PBH
Premium Brands
73.32
-8.48
-10.37%
TSE:NFI
NFI Group Inc
11.23
-0.07
-0.62%
TSE:FOOD
Goodfood Market Corp
0.21
-0.10
-32.26%
TSE:AGT
Applied Graphite Technologies Corporation
0.06
-0.09
-60.00%

Burcon Nutrascience Earnings Call Summary

Earnings Call Date: Feb 14, 2025 | % Change Since: -20.00% | Next Earnings Date: Jul 1, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a generally positive outlook for Burcon NutraScience, with successful funding, product launches, strategic partnerships, and a strong customer pipeline indicating significant growth potential. However, some challenges remain, particularly with the Merit Functional Foods facility and potential tariff impacts, which the company is actively addressing.
Highlights
Successful Rights Offering
Burcon NutraScience completed a successful rights offering, raising $9.4 million to support strategic initiatives and build a strong financial position for future growth.
Launch of Innovative Products
Burcon launched two new products: a sunflower isolated protein, which is expected to disrupt the plant protein market, and the next-generation Peazazz Pea protein, which has generated significant market interest.
Strategic Partnership with ProMan
Burcon signed a binding turnkey agreement with ProMan to purchase a new production facility in the U.S., ensuring full control over production and enabling the launch of their entire product portfolio by mid-2025.
Strong Customer Pipeline
Burcon has over 100 product samples under evaluation and 17 expressions of interest from customers, indicating strong demand and potential for recurring revenue.
Collaboration with Puratos
Burcon is collaborating with Puratos to bring canola protein products to the baking industry, highlighting the potential for innovation and market expansion.
Path to Profitability
Burcon outlined a clear path to being cash flow positive by 2026, with expectations for ongoing margin expansion and growth through sales execution and technology licensing.
Lowlights
Challenges with Merit Functional Foods Facility
The Merit Functional Foods facility remains in receivership, creating uncertainty. However, Burcon sees potential opportunities in the situation and is not in control of its timeline.
Potential Tariff Impacts
Concerns about potential tariffs affecting the supply chain were addressed, with Burcon stating they have redundant raw material supplies in Canada and the U.S. to mitigate risks.
Company Guidance
During the Burcon NutraScience Corporation 2025 Investor Day Conference Call, CEO Kip Underwood provided guidance highlighting several key metrics. The company successfully completed a rights offering, raising $9.4 million, and signed a binding turnkey agreement to purchase a production facility in Illinois. Burcon launched two new products, a sunflower isolated protein and the next-generation Peazazz Pea protein, and is collaborating with Puratos to market canola protein within the baking industry. The company boasts a robust customer pipeline with over 100 product samples under evaluation and 17 expressions of interest from potential buyers. Burcon aims to achieve cash flow positivity by 2026 with ongoing quarter-on-quarter margin expansion. For 2025, significant milestones include facility acquisition, proprietary equipment installation, and initiating commercial production, setting the stage for recurring revenue streams.

Burcon Nutrascience Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Burcon Advances Plant-Based Protein Production at Galesburg Facility
Positive
Apr 1, 2025

Burcon NutraScience Corporation has successfully installed and commissioned its proprietary protein processing equipment at its Galesburg, Illinois facility, marking a significant step in its operational expansion. This development positions Burcon to scale up production, optimize operations, and enhance commercial partnerships, reinforcing its role as a key player in the expanding plant-based protein market.

M&A TransactionsBusiness Operations and Strategy
Burcon’s Alliance Partner Acquires Key Protein Production Facility
Positive
Mar 10, 2025

Burcon NutraScience Corporation announced that its alliance partner, RE ProMan, LLC, has completed the acquisition of a protein production facility in Galesburg, Illinois. This acquisition allows Burcon to integrate its technologies into the facility, which is strategically located for efficient production and distribution. The facility’s acquisition marks a significant milestone for Burcon, providing the company with full operational control of a commercial facility for the first time. This development enables Burcon to deliver high-quality, sustainable plant-based protein solutions, meeting growing consumer demand and accelerating market adoption of its innovative protein ingredients.

Private Placements and FinancingBusiness Operations and Strategy
Burcon Raises $9.43 Million in Successful Rights Offering
Positive
Feb 18, 2025

Burcon NutraScience Corporation has successfully completed a rights offering, raising approximately $9.43 million through the issuance of over 110 million common shares. The proceeds are intended to support the commercialization and production scaling of Burcon’s protein products, alongside funding a manufacturing agreement with RE ProMan, LLC. The rights offering was well-supported by strategic investors and insiders, solidifying Burcon’s capital position to pursue growth opportunities.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Burcon NutraScience Advances with Facility Control and Product Launches in Q3 2025
Positive
Feb 14, 2025

Burcon NutraScience Corporation reported significant advancements in its operations during the fiscal third quarter of 2025, notably gaining full operational control of a protein production facility. This strategic move, in partnership with Re ProMan LLC, is pivotal in Burcon’s commercialization efforts and reflects confidence in their market potential. The company also launched several new protein products, entered collaborations to explore new applications, and secured funding through a rights offering, positioning itself for accelerated growth and innovation in plant-based proteins.

Private Placements and FinancingBusiness Operations and Strategy
Burcon Completes $9.43 Million Rights Offering, Strengthening Market Position
Positive
Feb 13, 2025

Burcon NutraScience Corporation has successfully completed its $9.43 million rights offering, surpassing the $7 million needed to execute its production strategy and aim for positive cash flow by 2026. This financial milestone is expected to strengthen Burcon’s market position as a leader in protein innovation, reflecting strong shareholder confidence in its strategic direction.

M&A TransactionsBusiness Operations and Strategy
Burcon NutraScience to Host Virtual Investor Presentation on Future Growth
Positive
Feb 11, 2025

Burcon NutraScience is set to host a virtual investor presentation on February 18, 2025, to discuss recent milestones and future plans. The company will outline its strategy to bring its entire protein portfolio to market, supported by an acquisition by Re ProMan LLC. This move is expected to enhance Burcon’s market operations and drive revenue growth, reinforcing its position in the plant-based industry.

Product-Related AnnouncementsBusiness Operations and Strategy
Burcon NutraScience Expands Production Capabilities with New Facility Agreement
Positive
Feb 3, 2025

Burcon NutraScience has entered into an agreement with RE ProMan, LLC to establish a protein production facility in North America. This strategic partnership aims to enhance Burcon’s market presence by granting them exclusive access to manufacturing capacity for their plant protein products, expecting significant revenue growth and profitability by 2026.

M&A TransactionsBusiness Operations and Strategy
Burcon NutraScience Advances Market Position with New Production Facility Acquisition
Positive
Jan 31, 2025

Burcon NutraScience’s alliance partner, RE ProMan, LLC, has signed an agreement to acquire a protein production facility in North America. This strategic move allows Burcon to gain control over commercial production, facilitating the market entry of their protein products by the first half of 2025. The acquisition reflects confidence in Burcon’s proprietary technologies and aligns with their capital-light strategy, potentially enhancing their market position and offering benefits to stakeholders through expanded production capabilities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.