Environmental Tectonics (ETCC) AI Stock Analysis

• Market Cap: $11.02M
• Dividend Yield: N/A
• Average Volume (3M): 4.49K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.69
• Revenue Growth: 36.47%
• EPS Growth: 232.01%
• Country: US
• Employees: 231
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.07
• Shares Outstanding: 9,578,567
• 10 Day Avg. Volume: 3,665
• 30 Day Avg. Volume: 4,494
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.17
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: -8.48
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $1.00
• Price Target Upside: -13.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $1.00 ▼(-13.04% Downside)

Environmental Tectonics' overall stock score is driven by its strong valuation, indicating potential undervaluation, and moderate technical indicators suggesting neutral momentum. However, financial performance is a concern due to negative cash flows and high leverage, which could impact long-term stability.

Environmental Tectonics Business Overview & Revenue Model

Company Description

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The company's Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. Its CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.

How the Company Makes Money

ETCC generates revenue through multiple streams, primarily by selling its simulation systems and services to military and defense organizations, which account for a significant portion of its income. The company also earns money by providing pressure chambers and related technology for medical and research applications, which serve hospitals, universities, and research institutions. Additionally, ETCC engages in government contracts, allowing it to secure funding for specific projects or research initiatives. Key partnerships with defense contractors and government agencies further bolster its financial outlook, as they create opportunities for collaborative projects and long-term contracts that contribute to sustained revenue growth.

Environmental Tectonics Financial Statement Overview

Summary

Environmental Tectonics shows strong revenue growth and profitability with a net profit margin of 25.17%. However, negative gross profit margins and high leverage pose significant risks. The cash flow situation is weak, with negative operating and free cash flows, indicating potential liquidity challenges.

Income Statement

Environmental Tectonics has shown a positive revenue growth rate of 11.62% in the TTM, indicating strong top-line growth. The net profit margin of 25.17% is impressive, reflecting efficient cost management. However, the gross profit margin is negative, which is concerning as it suggests issues with production costs or pricing strategy. The EBIT and EBITDA margins are healthy, indicating operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.44, indicating significant leverage, which could pose financial risks. The return on equity is strong at 107.84%, suggesting effective use of equity to generate profits. However, the equity ratio is low, indicating potential vulnerability to financial instability.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow and free cash flow in the TTM. The free cash flow to net income ratio is positive, indicating some ability to convert net income into cash. However, the negative operating cash flow to net income ratio suggests challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.48M	62.94M	43.31M	26.34M	19.13M	16.25M
Gross Profit	-5.42M	18.52M	12.46M	6.57M	4.32M	1.26M
EBITDA	6.61M	9.44M	4.13M	151.00K	3.44M	-6.01M
Net Income	9.94M	13.06M	1.82M	-1.56M	1.81M	-7.49M
Balance Sheet
Total Assets	61.27M	61.43M	45.61M	32.69M	34.55M	39.51M
Cash, Cash Equivalents and Short-Term Investments	106.00K	9.43M	37.00K	559.00K	427.00K	8.26M
Total Debt	20.79M	20.26M	14.80M	12.90M	14.07M	20.23M
Total Liabilities	46.79M	48.21M	43.01M	33.24M	32.96M	39.59M
Stockholders Equity	14.48M	13.22M	936.00K	-585.00K	1.51M	-162.00K
Cash Flow
Free Cash Flow	-9.90M	-4.32M	-4.02M	1.19M	2.15M	―
Operating Cash Flow	-9.44M	-3.87M	-3.71M	1.43M	2.35M	―
Investing Cash Flow	3.54M	3.55M	-311.00K	4.45M	-196.00K	-94.00K
Financing Cash Flow	5.69M	1.69M	2.65M	-3.22M	-3.63M	-647.00K

Environmental Tectonics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETCC, the sentiment is Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.08, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.82 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETCC.

Environmental Tectonics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATRO	62 Neutral	$1.67B	―	-1.41%	―	10.99%	69.85%
ETCC	61 Neutral	$11.02M	1.54	157.92%	―	36.47%	232.01%
VTSI	60 Neutral	$62.20M	155.06	0.83%	―	-17.36%	-94.28%
SIF	57 Neutral	$44.19M	―	-7.07%	―	-17.56%	91.53%
CVU	49 Neutral	$33.10M	18.87	-3.87%	―	-14.35%	-105.66%
KITT	41 Neutral	$17.45M	―	153.01%	―	-14.94%	49.72%