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TOMI Environmental Solutions (TOMZ)
NASDAQ:TOMZ
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TOMI Environmental Solutions
(NASDAQ:TOMZ)
45Neutral
Positive Factors
Distribution Expansion
The company is continuing to build out its distribution channels in the U.S. and abroad, which should be supportive of sales growth.
Positive Net Income
The company has now delivered its second consecutive quarter with positive net income.
Revenue Growth Opportunities
Management highlighted numerous sales opportunities in the company's pipeline, including 46 special/custom projects, which could result in solid year-over-year revenue growth.
Negative Factors
Gross Margin Decline
Gross margin for the quarter was negative 49.5% compared to an average of 61.0% during the previous three quarters, impacted by three orders that were returned.
Revenue Decline
The company posted net revenue of roughly $1.1M in 4Q24, compared to $1.5M in 4Q23, indicating a 30% year-over-year decline.
Risk Factors
Risks include dilution risk, global supply-chain delays, product-adoption risk, regulatory risks, competition risk, and uncertainty due to global macroeconomic and geopolitical environment.
TOMI Environmental Solutions (TOMZ) vs. S&P 500 (SPY)
Market Cap
$16.21M
Dividend YieldN/A
Average Volume (3M)23.47K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth5.23%
EPS Growth-30.55%
CountryUS
Employees20
SectorIndustrials
Sector Strength80
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.01
Shares Outstanding20,015,205
10 Day Avg. Volume10,691
30 Day Avg. Volume23,469
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.44
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.57
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside316.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
TOMI Environmental Solutions Business Overview & Revenue Model
Company DescriptionTOMI Environmental Solutions (TOMZ) is a technology company specializing in disinfection and decontamination solutions. Operating primarily in the environmental services sector, TOMI provides innovative products and services that focus on reducing pathogens and improving indoor air quality. The company's core offerings include the SteraMist line, which employs Binary Ionization Technology (BIT) to effectively eliminate bacteria, viruses, and mold in various settings, including healthcare facilities, schools, offices, and transportation systems.
How the Company Makes MoneyTOMI Environmental Solutions generates revenue through the sale and leasing of its SteraMist products and related equipment, as well as providing disinfection and decontamination services. Key revenue streams include direct sales to healthcare institutions, educational facilities, and other commercial enterprises that require advanced disinfection solutions. The company also engages in partnerships with distributors and service providers to extend its market reach. Additionally, TOMI offers maintenance and support services, which contribute to its recurring revenue. By focusing on sectors with stringent hygiene standards and leveraging its proprietary technology, TOMI captures a significant share of the growing demand for effective and efficient disinfection solutions.
TOMI Environmental Solutions Financial Statement Overview
Summary
TOMI Environmental Solutions is experiencing significant financial challenges, indicated by negative revenue growth, ongoing losses, and increased leverage. The company's profitability and cash flows are under pressure, necessitating operational improvements for financial stability.Income Statement
The company has faced significant challenges in maintaining revenue and profitability over the years. Revenue growth has been negative, with a sharp decline in 2024 compared to 2023. The gross profit margin remains positive, but net profit margin is deeply negative, indicating substantial losses. Despite a positive gross profit, operational costs are too high, leading to negative EBIT and EBITDA margins.―
Balance Sheet
The balance sheet shows a decrease in total assets and equity over time. The debt-to-equity ratio has increased, indicating rising leverage and potential financial risk. The equity ratio remains positive, but the declining trend suggests waning financial stability. Return on equity has been negative, reflecting ongoing net losses.40
Cash Flow
Cash flow analysis shows negative free cash flow growth, with consistent operating cash flow losses. The free cash flow to net income ratio remains negative, demonstrating cash burn issues. Operating cash flow has not been sufficient to cover net losses, suggesting financial strain.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.56M | 7.35M | 8.34M | 7.75M | 25.03M | Gross Profit |
| 3.56M | 4.29M | 5.06M | 4.59M | 15.04M | EBIT |
| -4.10M | -3.35M | -2.88M | -4.92M | 4.51M | EBITDA |
| -3.81M | -2.96M | -2.53M | -4.01M | 5.43M | Net Income Common Stockholders |
| -4.48M | -3.40M | -2.88M | -4.44M | 4.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 664.88K | 2.34M | 3.87M | 5.32M | 5.20M | Total Assets |
| 9.69M | 13.36M | 15.50M | 16.27M | 16.77M | Total Debt |
| 2.49M | 3.06M | 861.41K | 953.19K | 1.45M | Net Debt |
| 1.82M | 717.14K | -3.01M | -4.36M | -3.75M | Total Liabilities |
| 2.87M | 5.00M | 4.05M | 2.68M | 3.57M | Stockholders Equity |
| 4.10M | 8.36M | 11.45M | 13.60M | 13.20M |
| Cash Flow | Free Cash Flow | |||
| -1.55M | -3.82M | -1.48M | -4.46M | 4.18M | Operating Cash Flow |
| -1.44M | -3.60M | -1.23M | -3.82M | 4.58M | Investing Cash Flow |
| -261.53K | -216.69K | -241.45K | -639.37K | -400.65K | Financing Cash Flow |
| 0.00 | 2.29M | 25.00K | 4.58M | 124.20K |
TOMI Environmental Solutions Technical Analysis
Positive
0.84
Price Trends
0.81
Positive
0.88
Negative
0.84
Positive
Market Momentum
<0.01
Negative
57.42
Neutral
68.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOMZ, the sentiment is Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.81, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 68.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOMZ.
TOMI Environmental Solutions Risk Analysis
TOMI Environmental Solutions disclosed 37 risk factors in its most recent earnings report. TOMI Environmental Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TOMI Environmental Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.24B | 11.64 | 5.23% | 249.83% | 4.07% | -10.54% | |
50 Neutral | $29.05M | ― | -4.54% | ― | -7.19% | -24.85% | |
45 Neutral | $16.21M | ― | -71.87% | ― | 5.23% | -30.55% | |
45 Neutral | $30.02M | ― | -55.91% | ― | 49.65% | 16.68% | |
37 Underperform | $13.26M | ― | -60.98% | ― | -18.87% | -9.47% |
* Industrials Sector Average
Performance Comparison
TOMZ
TOMI Environmental Solutions
0.84
0.19
29.23%
FTEK
Fuel Tech
0.95
-0.36
-27.48%
CLIR
ClearSign Combustion
0.53
-0.27
-33.75%
LIQT
LiqTech International
1.40
-1.42
-50.35%
TOMI Environmental Solutions Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 0.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including strong growth in product lines and successful partnerships, which indicate a promising trajectory. However, challenges such as non-cash expenses impacting financial results and the need for additional capital were noted. Despite these challenges, the overall sentiment leans positive due to substantial growth and strategic advancements.Q4-2024 Updates
Positive Updates
Record Year for Custom Engineered Systems
TOMI successfully maintained an expanding pipeline for custom engineered systems, with eight deals valued at approximately $3.7 million. There are discussions regarding 46 different projects, with 12 being very active and anticipated to close five deals in 2025, yielding around $1.4 million.
Launch of SteraMist Integrated System
The SteraMist Integrated System was launched in October 2024. The pipeline of opportunities for this product has grown to over $1 million, with contracts for three additional SIS offerings totaling approximately $575,000 in sales.
Expansion and Partnerships
TOMI signed six additional partners across various regions, including Malaysia, India, Italy, Canada, South Korea, and the UK. Notably, their Malaysian partner standardized treatments using iHP technology in biosafety Level 3 rooms.
Positive Trends in BIT Solution Sales
BIT Solution sales demonstrated a 200% increase year-to-date compared to the same period last year, indicating strong organic growth.
Growth in iHP Corporate Service
iHP Corporate Service saw a 42% increase in Q1 2025 compared to the same period last year, indicating strong performance and retention of long-term clients.
Financial Performance
GAAP revenue rose to $7.739 million in 2024, up from $7.355 million in 2023. Non-GAAP revenue was approximately $8 million, reflecting a nearly 6% increase over 2023.
Negative Updates
Impact of Non-Cash Expenses
One-time non-cash expenses impacted GAAP results. GAAP operating loss was $4.105 million compared to $3.349 million in the prior year.
Returned Orders
Three orders were returned in Q4 2024, contributing to lower reported revenue. The returns were due to changes in the scope of use and a federal grant being pulled.
Cash Flow Concerns
Cash flow for 2024 was lower than desired, but improvements are anticipated in 2025 due to better execution and timing of progress payments.
Need for Additional Capital
The company plans to raise $3-3.5 million through convertible notes due to cash constraints and to support future growth.
Company Guidance
During the fourth quarter of 2024, TOMI Environmental Solutions highlighted significant progress and provided forward-looking guidance. The company reported a GAAP revenue increase to $7.739 million, a 5% year-over-year rise, with non-GAAP revenue reaching approximately $8 million, reflecting nearly a 6% increase. The company is working on eight CES (Custom Engineered Systems) deals valued at approximately $3.7 million, while anticipating five additional CES and hybrid system deals in 2025, expected to yield around $1.4 million. Additionally, TOMI's BIT Solutions sales saw a 9% growth, reaching around $900,000, and mobile equipment sales grew by 23% to approximately $3.8 million. The company's non-GAAP gross margins improved to 60% from 59% in the previous year. TOMI also signed six new global partnerships, notably in Malaysia, India, and Italy, to enhance its SteraMist Integrated System (SIS) offerings. The company reported a non-GAAP operating loss of $1.678 million, improved from $2.785 million in the prior year, while GAAP net loss was $4.477 million. The company plans to raise approximately $3.5 million through convertible notes to bolster its cash position and support growth initiatives.TOMI Environmental Solutions Corporate Events
Executive/Board Changes
TOMI Environmental Names Interim CFO Nick Jennings
Neutral
Dec 17, 2024
TOMI Environmental Solutions, Inc. announced the resignation of Joe Rzepka as Chief Financial Officer due to personal reasons. The company’s Board of Directors has appointed Nick Jennings as Interim CFO, who previously served in the same role from October 2014 to May 2024. The company plans to search for a permanent CFO and has agreed to a five-month term with Jennings, offering him $15,000 per month.
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.