Environmental Tectonics (ETCC) AI Stock Analysis

Environmental Tectonics

(Other OTC:ETCC)

Select Model

Rating:49Neutral

Price Target:$1.50▼(-12.79% Downside)

Action:reiterated

Date:10/23/26

The overall score reflects a company in transition. The primary strength is the significantly improved balance sheet, which reduces financial risk. However, this is offset by weak cash flow generation and declining core profitability, which are major concerns. The high P/E multiple adds valuation risk, while technicals are neutral and do not provide a strong directional signal.

Positive Factors

Multi-year revenue scaleThe substantial multi-year revenue ramp shows ETCC has expanded its business base well beyond 2022 levels. Maintaining roughly $63 million of revenue in 2026 indicates that the enlarged platform has persisted, supporting greater operating scale and a broader foundation for future contracts and services.

Negative Factors

TTM margin compressionThe sharp reduction in net margin leaves limited room for execution issues, cost increases, or unfavorable contract outcomes to be absorbed. Even with positive operating profitability, weaker earnings conversion reduces the company’s ability to compound internally generated profits over the next several quarters.

Environmental Tectonics (ETCC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $16.48M
Dividend Yield: ―
Average Volume (3M): 10.91K
Price to Earnings (P/E): 31.9
Beta (1Y): 0.60
Revenue Growth: -10.41%
EPS Growth: -93.14%
Country: US
Employees: 204
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

Environmental Tectonics Business Overview & Revenue Model

Company Description

Environmental Tectonics Corporation, together with its subsidiaries, provides engineered solutions in the United States and internationally. It operates in two segments, Aerospace Solutions and Commercial/Industrial Systems. The company is involved i...

How the Company Makes Money

ETCC makes money mainly by selling and delivering specialized equipment and integrated systems, plus ongoing services and support. Key revenue streams typically include: (1) System and equipment sales: Revenue from the design and manufacture of high-...

Environmental Tectonics Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet has improved dramatically with leverage falling to 0.82x, but income statement trends are weak with decelerating revenue and compressed margins. Cash flow generation is a significant concern, with negative operating cash flow in recent years and only a marginal TTM recovery.

Income Statement

45Neutral

Balance Sheet

65Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	Aug 2021
Income Statement
Total Revenue	61.30M	62.72M	62.94M	43.31M	26.34M	19.13M
Gross Profit	16.79M	17.56M	18.52M	12.46M	6.57M	4.32M
EBITDA	5.66M	6.96M	9.44M	4.43M	151.00K	3.44M
Net Income	1.98M	3.05M	13.06M	1.82M	-1.56M	1.81M
Balance Sheet
Total Assets	65.78M	67.68M	61.43M	43.94M	32.69M	34.55M
Cash, Cash Equivalents and Short-Term Investments	7.05M	7.47M	9.43M	37.00K	559.00K	427.00K
Total Debt	16.60M	18.92M	20.26M	15.61M	12.90M	14.07M
Total Liabilities	49.39M	51.48M	48.21M	43.01M	33.24M	32.96M
Stockholders Equity	16.38M	16.21M	13.22M	936.00K	-585.00K	1.51M
Cash Flow
Free Cash Flow	3.23M	-739.00K	-4.32M	-4.02M	1.19M	2.15M
Operating Cash Flow	3.44M	-443.00K	-3.87M	-3.71M	1.43M	2.35M
Investing Cash Flow	-205.00K	-295.00K	3.55M	-311.00K	4.45M	-196.00K
Financing Cash Flow	-3.65M	-1.19M	1.69M	2.65M	-3.22M	-3.63M

Environmental Tectonics Technical Analysis

Technical Analysis SentimentNegative

Last Price1.72

Price Trends

50DMA1.73Negative

100DMA1.69Positive

200DMA1.38Positive

Market Momentum

MACD-0.01Positive

RSI44.57Neutral

STOCH65.74Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETCC, the sentiment is Negative. The current price of 1.72 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.73, and above the 200-day MA of 1.38, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETCC.

Environmental Tectonics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

ETCC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVU	52Neutral	$63.73M	16.57	14.04%	―	2.59%	―
ETCC	49Neutral	$16.48M	31.85	8.10%	―	-10.41%	-93.14%
SIF	48Neutral	$125.71M	31.21	10.02%	―	18.78%	―
ASTC	41Neutral	$10.21M	-0.57	-91.69%	―	-12.87%	-2.21%
KITT	41Neutral	$2.23M	-0.00	-1505.94%	―	32.36%	98.37%
MNTS	38Underperform	$42.61M	-0.10	-90.19%	―	323.98%	89.46%

* Industrials Sector Average

Performance Comparison

ETCC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ETCC	Environmental Tectonics Corporation	1.72	0.55	47.01%
ASTC	Astrotech	4.84	1.10	29.41%
CVU	Cpi Aerostructures	4.81	2.51	109.13%
SIF	Sifco Industries, Inc.	20.10	13.00	183.10%
MNTS	Momentus Inc.	1.94	-17.34	-89.94%
KITT	Nauticus Robotics Inc.	1.43	-69.61	-97.99%

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.

Date of analysis: Oct 23, 2026

Environmental Tectonics AI Stock Analysis