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EcoSynthetix Inc. (TSE:ECO)
:ECO
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EcoSynthetix
(TSX:ECO)
65Neutral
EcoSynthetix (ECO) vs. S&P 500 (SPY)
Market Cap
C$262.80M
Dividend YieldN/A
Average Volume (3M)30.79K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth48.80%
EPS Growth50.70%
CountryCA
Employees25
SectorBasic Materials
Sector Strength63
IndustryChemicals
Share Statistics
EPS (TTM)-0.03
Shares Outstanding58,529,217
10 Day Avg. Volume17,031
30 Day Avg. Volume30,788
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.43
Price to Cash Flow (P/CF)-49.70
P/FCF Ratio0.00
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
EcoSynthetix Business Overview & Revenue Model
Company DescriptionEcoSynthetix (ECO) is a renewable chemicals company that operates in the biobased materials sector. The company specializes in the development and commercialization of bio-based polymers and additives, primarily for the adhesives, paper, and personal care industries. EcoSynthetix's core products include EcoSphere and DuraBind biolatex, which are used as sustainable alternatives to petroleum-based chemicals, offering environmental benefits such as reduced carbon footprint and better biodegradability.
How the Company Makes MoneyEcoSynthetix makes money through the sale of its bio-based polymer products to manufacturers in various industries such as paper and packaging, wood composites, and personal care. The company's revenue model is based on direct sales and long-term supply agreements with manufacturers who seek sustainable and eco-friendly alternatives to traditional petrochemical products. Key revenue streams include the licensing of their proprietary technologies and the sale of EcoSphere and DuraBind products. Significant partnerships with industry leaders and continuous innovation in product development also contribute to EcoSynthetix's earnings, as they leverage these collaborations to expand their market reach and enhance product adoption across different sectors.
EcoSynthetix Financial Statement Overview
Summary
EcoSynthetix shows potential with revenue growth and a solid balance sheet. However, consistent net losses and operational inefficiencies weigh on performance. The company's low leverage and improving cash flow position provide a stable foundation for potential turnaround.Income Statement
EcoSynthetix has shown fluctuating revenue with a positive growth trend in the latest year, increasing from $12.66M to $18.54M. The gross profit margin improved to 28.6%, but the company continues to face challenges with consistent net losses, resulting in a negative net profit margin of -7.4%. The EBIT and EBITDA margins remain in negative territory, indicating ongoing operational challenges.55
Neutral
Balance Sheet
The company maintains a strong equity base with a high equity ratio of 95.3%. The debt-to-equity ratio is very low at 0.6%, reflecting minimal leverage and financial stability. Return on equity remains negative due to net losses, but the strong balance sheet provides a buffer against financial distress.70
Positive
Cash Flow
Operating cash flow has turned positive, signaling some improvement in cash generation. The free cash flow improved significantly from -$1.31M to $0.24M. However, both operating cash flow to net income and free cash flow to net income ratios are low, indicating challenges in translating revenue to cash.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.54M | 12.66M | 19.03M | 18.16M | 13.66M | Gross Profit |
| 5.31M | 2.78M | 4.15M | 3.97M | 2.74M | EBIT |
| -3.18M | -4.51M | -2.90M | -3.24M | -3.01M | EBITDA |
| -2.02M | -3.24M | -1.77M | -1.86M | -1.57M | Net Income Common Stockholders |
| -1.37M | -2.82M | -1.32M | -3.12M | -1.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 32.20M | 33.28M | 25.86M | 42.23M | 41.98M | Total Assets |
| 41.28M | 42.84M | 48.19M | 50.98M | 51.72M | Total Debt |
| 237.79K | 584.36K | 819.47K | 1.08M | 1.31M | Net Debt |
| -7.48M | -4.33M | -3.99M | -41.15M | -15.33M | Total Liabilities |
| 1.94M | 1.87M | 3.14M | 3.18M | 2.25M | Stockholders Equity |
| 39.35M | 40.97M | 45.06M | 47.80M | 49.47M |
| Cash Flow | Free Cash Flow | |||
| 236.11K | -1.31M | -5.17M | 94.09K | -21.37K | Operating Cash Flow |
| 1.10M | 316.99K | -4.90M | 474.07K | 226.78K | Investing Cash Flow |
| 3.47M | 2.00M | -31.15M | 24.69M | 9.75M | Financing Cash Flow |
| -1.73M | -2.27M | -1.51M | 474.28K | -1.43M |
EcoSynthetix Technical Analysis
Negative
4.53
Price Trends
4.48
Negative
4.29
Negative
4.32
Negative
Market Momentum
<0.01
Positive
34.80
Neutral
8.92
Positive
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 4.53 is below the 20-day moving average (MA) of 4.88, above the 50-day MA of 4.48, and above the 200-day MA of 4.32, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 34.80 is Neutral, neither overbought nor oversold. The STOCH value of 8.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECO.
EcoSynthetix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $36.10B | 39.07 | 2.72% | 4.30% | -13.24% | -65.53% | |
65 Neutral | C$262.80M | ― | -3.37% | ― | 48.80% | 50.70% | |
55 Neutral | C$12.55M | ― | -65.49% | ― | 5.42% | -55.46% | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% | |
32 Underperform | C$290.12M | ― | -84.50% | ― | -16.27% | 76.17% |
* Basic Materials Sector Average
Performance Comparison
TSE:ECO
EcoSynthetix
4.25
-0.40
-8.60%
TSE:NTR
Nutrien
73.79
5.41
7.91%
TSE:WEED
Canopy Growth
1.59
-2.33
-59.44%
TSE:GRN
Greenlane Renewables Inc
0.08
-0.04
-33.33%
EcoSynthetix Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -10.47% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant sales growth, transition to profitability, and increased demand across all markets. However, there were challenges in the tissue and paperboard market and a decrease in average selling prices. Overall, the sentiment leans towards optimism with noticeable highlights outweighing the lowlights.Highlights
Significant Sales Growth
Sales were up 38% to $5.2 million in Q3 from the same period last year, driven by a 56% increase in demand for products.
Transition to Profitability
Achieved profitability with $365,000 in positive adjusted EBITDA and $1.6 million in cash from operating activities.
Increased Demand Across All Markets
Growth observed in all target end markets including wood composites, tissue, paperboard, pulp, and personal care, indicating successful diversification strategy.
Successful Pulp Trial Program
Made significant progress with a large global pulp manufacturer, becoming an important strategic and commercial account.
Stable Supply Chain
Stable period with no significant movements in raw materials, a better macro environment compared to previous years.
Lowlights
Challenges in Tissue and Paperboard Market
Winning new lines or accounts is taking longer than anticipated, leading to frustration despite ongoing trials and engagement.
Lower Average Selling Price
Sales were negatively impacted by $700,000 or 18% due to lower average selling prices, primarily from lower manufacturing costs passed to customers.
Company Guidance
During the EcoSynthetix Q3 2024 earnings call, the company reported a robust quarter with sales increasing by 38% to $5.2 million compared to the same period last year. The surge in demand, up 56% for the quarter and 47% year-to-date, was a major driver behind this growth. The company achieved a positive adjusted EBITDA of $365,000 and generated $1.6 million in cash from operating activities. Gross profit rose by 51% to $1.7 million, with a margin of 36.8%, despite a lower average selling price impacting sales by $700,000. SG&A expenses increased to $1.5 million, primarily due to higher variable-based compensation, while R&D expenses remained relatively stable at $540,000. The cash position stood at $33.5 million as of September 30, 2024, with significant investments made in share buybacks. The company emphasized the success of its diversification strategy and highlighted progress in trials and partnerships across various end markets, including wood composites, pulp, and personal care.EcoSynthetix Corporate Events
Business Operations and StrategyFinancial Disclosures
EcoSynthetix Achieves Robust Growth and Climate Positive Status in 2024
Positive
Feb 19, 2025
EcoSynthetix reported significant financial growth for Q4 and FY 2024, with a 91% increase in net sales for the quarter and a 46% rise for the year, driven by higher demand across all end markets. The company achieved a climate-positive status in 2024 due to increased usage of its low-carbon products, and it secured a new commercial line with a leading international pulp manufacturer, signaling strong growth potential and a solid market position as it enters 2025.
Product-Related AnnouncementsBusiness Operations and Strategy
EcoSynthetix Secures Major Pulp Manufacturer Account for SurfLock™
Positive
Feb 12, 2025
EcoSynthetix Inc. has secured a significant commercial account with a leading global pulp manufacturer for its SurfLock™ strength aids, marking a key milestone for the company. This agreement, valued at $1.1 million for 2025, highlights the potential for broader market penetration in the billion-dollar pulp market, with ongoing trials at additional production lines.
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.