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Burcon Nutrascience (TSE:BU)
TSX:BU
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Burcon Nutrascience (BU) AI Stock Analysis

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TSE:BU

Burcon Nutrascience

(TSX:BU)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
C$2.50
▼(-5.66% Downside)
The overall stock score is primarily impacted by significant financial challenges, including negative profitability and high leverage. While the earnings call provided an optimistic outlook with strategic achievements, the current financial instability and valuation concerns weigh heavily on the stock's attractiveness.

Burcon Nutrascience (BU) vs. iShares MSCI Canada ETF (EWC)

Burcon Nutrascience Business Overview & Revenue Model

Company DescriptionBurcon NutraScience Corporation, together with its subsidiaries, develops plant proteins and ingredients for use in the food and beverage industries in Canada. The company's products include Peazazz, a pea protein for use in dairy alternatives, ready-to-drink beverages, dry blended beverages, bars, baked goods, and meat substitute products; and Peazac and Peazac 850, a pea protein for plant-based meat alternative products, ready-to-mix powders, ready-to-mix beverages, dairy alternatives, and nutrition bars, as well as other applications requiring the most neutral flavor and moderate viscosity. It provides Puratein, a canola protein isolate for use in meat alternatives, such as burgers, sausages, and nutrition bars; Supertein, a canola protein that is a light-colored powder for use in non-dairy frozen desserts, egg alternative, plant-based marshmallows and ready-to-mix beverages, whipped toppings, and plant-based bars; and Nutratein, a canola protein comprising a mixture of globulin and albumin proteins for use in meat and egg alternatives, and other plant-based functional foods. In addition, the company offers Nutratein-PS and Nutratein-TZ, a blend of Peazac pea protein; and CLARISOY, a soy protein for use in sports nutrition beverages, citrus-based drinks, fruit-flavored beverages, lemonades, powdered beverage mixes, and other foods and nutritional products. Further, it provides MeritPro, a nutritional protein blend, including allergen-free, gluten-free, non-dairy, non-GMO, and vegan. The company was formerly known as Burcon Capital Corp. and changed its name to Burcon NutraScience Corporation in October 1999. The company was incorporated in 1998 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyBurcon Nutrascience generates revenue through several key streams, including the licensing of its proprietary protein extraction and purification technologies to food manufacturers, which allows them to produce their own plant-based protein products. Additionally, the company sells its protein ingredients directly to food and beverage companies for inclusion in their products. Significant partnerships with major food industry players enhance Burcon's market reach and credibility, contributing to its earnings. The company also explores joint ventures and collaborations that leverage its technology and product offerings in the rapidly expanding plant-based market, providing further avenues for revenue generation.

Burcon Nutrascience Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in production capabilities, customer engagement, and strategic agreements, with some concerns about onetime start-up costs. The overall tone was optimistic, focusing on execution and future growth potential.
Q1-2026 Updates
Positive Updates
Successful Integration and Commercial Production
The Galesburg facility has successfully integrated Burcon's technology, leading to the first commercial production of Peazazz pea protein and subsequent commercial production of fava protein.
Customer Response Exceeds Expectations
Customer response to Burcon's plant proteins has exceeded expectations, with a robust customer funnel and strong interest in pea and fava proteins.
Multiyear Production Agreement
Burcon entered into a $6.8 million multiyear production agreement, providing a steady revenue stream and helping optimize facility operations.
Trade Show Success
At the IFT trade show, Burcon demonstrated the wow factor of their products, especially in plant-based cheese, attracting significant customer interest.
Financial Targets Reaffirmed
Burcon reaffirmed its financial targets of $1 million to $3 million in revenue for 2025, with expectations for double-digit revenue and positive cash flow in 2026.
Negative Updates
High Onetime Start-up Costs
The quarter experienced high onetime start-up costs associated with production, which affected the financials.
Company Guidance
In the recent conference call, Burcon NutraScience Corporation provided guidance on its financial and operational trajectory for the fiscal year 2026. The company reaffirmed its financial targets, projecting revenues between $1 million and $3 million for 2025, with expectations of achieving double-digit revenue and becoming cash flow positive by 2026. Key metrics highlighted include a $342,000 revenue for the first quarter and a $6.8 million multiyear production agreement. Operationally, Burcon has successfully integrated its proprietary technology into its Galesburg facility, achieving commercial production of Peazazz pea protein and launching fava protein production. The company emphasized its focus on execution and maintaining a robust customer pipeline to drive recurring revenue, indicating strong market interest, particularly in plant-based proteins and plant-based cheese, with expectations of substantial market growth.

Burcon Nutrascience Financial Statement Overview

Summary
Burcon Nutrascience faces significant financial challenges across income, balance sheet, and cash flow metrics. With recurring losses and a deteriorating equity position, the company is in a precarious financial state. The reliance on external financing could pose risks if not managed carefully. Immediate strategic changes are required to stabilize and improve financial health.
Income Statement
25
Negative
The company has shown inconsistent revenue growth, with a notable decline in revenue over the TTM period. The gross profit margin is negative, indicating issues with cost management. Both EBIT and net profit margins are significantly negative, reflecting ongoing operational and profitability challenges.
Balance Sheet
30
Negative
The balance sheet indicates a concerning financial structure. The company has a negative stockholders' equity and a high debt-to-equity ratio, suggesting potential insolvency risks. The equity ratio is negative, raising alarms about the company's financial stability.
Cash Flow
20
Very Negative
Cash flow analysis reveals negative operating and free cash flows, indicating insufficient internal cash generation. The company is heavily reliant on external financing, as shown by the positive financing cash flow. The free cash flow to net income ratio is unfavorable, further highlighting financial stress.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue381.40K184.36K363.91K171.47K258.65K
Gross Profit-870.76K184.36K363.91K171.47K-527.31K
EBITDA-7.43M-6.23M-18.90M-9.92M-4.73M
Net Income-8.26M-7.45M-25.36M-10.26M-617.49K
Balance Sheet
Total Assets30.66M12.91M9.90M29.35M37.72M
Cash, Cash Equivalents and Short-Term Investments7.28M4.20M1.46M7.00M13.97M
Total Debt22.40M6.67M5.17M73.14K33.70K
Total Liabilities23.71M7.76M5.76M1.10M1.45M
Stockholders Equity6.94M5.15M4.14M28.25M36.27M
Cash Flow
Free Cash Flow-5.82M-5.90M-6.38M-7.18M-5.91M
Operating Cash Flow-5.51M-5.78M-6.02M-5.91M-3.03M
Investing Cash Flow-1.66M-39.49K-4.43M-1.23M-2.72M
Financing Cash Flow10.23M8.56M4.90M174.08K4.70M

Burcon Nutrascience Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.65
Price Trends
50DMA
2.34
Positive
100DMA
2.66
Negative
200DMA
2.27
Positive
Market Momentum
MACD
0.03
Negative
RSI
66.55
Neutral
STOCH
71.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BU, the sentiment is Positive. The current price of 2.65 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.34, and above the 200-day MA of 2.27, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.55 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BU.

Burcon Nutrascience Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$20.33B14.63-3.31%3.23%1.93%-12.26%
$28.80M-273.28%15.68%-10.62%
C$5.61M-2576.83%-22.92%39.22%
C$11.99M64.79%72.95%
C$5.45M-2.64-89.04%-49.04%14.85%
C$240.41M-108.7030.02%35.29%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BU
Burcon Nutrascience
2.65
0.67
33.57%
TSE:DTEA
DAVIDsTEA
0.86
0.54
168.75%
TSE:ISTK
Good Flour Corp
2.74
2.64
2640.00%
TSE:BABY
Else Nutrition Holdings Inc
0.02
-0.02
-57.14%
TSE:NPRA
Nepra Foods
0.11
0.03
37.50%
TSE:PNGA
Pangea Natural Food, Inc.
0.45
0.27
150.00%

Burcon Nutrascience Corporate Events

Business Operations and StrategyProduct-Related Announcements
Burcon’s Plant-Based Proteins Excel in Cheese Study
Positive
Oct 20, 2025

Burcon NutraScience Corporation announced that a study by the University of Guelph demonstrated their Peazazz®C pea protein and Solatein™ sunflower protein significantly outperform a leading competitor’s pea protein in plant-based cheese applications. This achievement marks a significant advancement in plant-based cheese production, offering dairy-like melt and stretch properties, and opens new commercial opportunities in the growing dairy-alternative market.

The most recent analyst rating on (TSE:BU) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Burcon Nutrascience stock, see the TSE:BU Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Burcon NutraScience Achieves First Commercial Sales of High-Purity Canola Protein
Positive
Sep 10, 2025

Burcon NutraScience Corporation has announced its first commercial sales of Puratein®C, a high-purity canola protein isolate with over 90% protein content. This milestone is a significant step in Burcon’s strategy to establish recurring revenue and expand its market reach across high-growth product categories. Puratein C, derived from non-GMO, North American-grown canola seeds, is designed to meet the increasing demand for clean-label, nutritionally complete plant proteins. Its versatility makes it suitable for a wide range of food and beverage applications, reinforcing Burcon’s commitment to delivering sustainable protein solutions.

Business Operations and StrategyProduct-Related Announcements
Burcon NutraScience Launches Commercial Production of High-Purity Canola Protein
Positive
Sep 4, 2025

Burcon NutraScience Corporation has achieved a significant milestone with the first commercial production of Puratein®C, a high-purity canola protein isolate, at its Galesburg facility. This development marks a crucial step in Burcon’s strategy to expand its plant protein portfolio and scale revenue, addressing the increasing global demand for sustainable protein solutions. Puratein®C, derived from non-GMO North American-grown canola seeds, boasts over 90% protein content and a complete amino acid profile, making it ideal for a variety of food and beverage applications. This advancement not only demonstrates Burcon’s capability to scale its innovations but also positions the company to create new revenue streams and enhance its market opportunities.

Business Operations and StrategyShareholder Meetings
Burcon NutraScience Prepares for Annual Shareholder Meeting with Key Warrant Amendments
Positive
Sep 3, 2025

Burcon NutraScience Corporation announced details of its upcoming annual shareholder meeting, which will be held virtually on September 17, 2025. The company is on track to meet its 2025/2026 milestones, with over 150 active customer projects nearing final evaluation, indicating a strong potential for recurring revenue and rapid scaling. A key agenda item for the meeting is the proposal to amend the exercise price of outstanding warrants to $3.50 per share, which requires shareholder approval. This amendment is seen as beneficial for the company and its shareholders, potentially impacting Burcon’s financial strategies and shareholder value.

Burcon NutraScience: Optimism in Earnings Call
Sep 1, 2025

The recent earnings call for Burcon NutraScience Corporation was marked by an optimistic tone, underscoring significant advancements in production capabilities, customer engagement, and strategic agreements. Despite some concerns regarding onetime start-up costs, the overall sentiment was positive, with a strong focus on execution and future growth potential.

Burcon NutraScience Reports Strong Start to Fiscal 2026
Aug 14, 2025

Burcon NutraScience Corporation is a global leader in plant-based protein innovation, focusing on developing high-performance proteins for the food and beverage industry. The company is known for its extensive patent portfolio and commitment to sustainability.

Business Operations and StrategyFinancial Disclosures
Burcon NutraScience Reports Strong Start to Fiscal 2026 with Key Milestones in Plant Protein Innovation
Positive
Aug 13, 2025

Burcon NutraScience announced its fiscal 2026 first-quarter results, highlighting a significant phase of growth as it transitions from a technology pioneer to a revenue-generating leader in plant protein innovation. The company achieved key operational milestones, including the first commercial production of Peazazz® C and FavaPro™ proteins at its Galesburg facility, and secured a $6.8 million multi-year production agreement. Despite reporting a net loss of $3.5 million, Burcon’s revenue increased by 44% compared to the previous year, driven by initial protein sales and contract manufacturing services. The company’s participation in the 2025 IFT FIRST Annual Event & Expo generated strong customer interest, positioning Burcon for future revenue growth and long-term shareholder value.

Business Operations and StrategyExecutive/Board Changes
Burcon NutraScience Appoints Alex Varty as Interim CFO
Positive
Aug 5, 2025

Burcon NutraScience Corporation has announced the appointment of Ms. Alex Varty as the Interim Chief Financial Officer, succeeding Mr. Robert Peets. Ms. Varty, who joined the company in 2024, brings extensive experience in finance and accounting, having previously worked at KPMG LLP. This leadership transition is expected to support Burcon’s ongoing commercial phase and its positioning as a revenue-generating innovation company. The change reflects Burcon’s strategic focus on strengthening its financial operations to enhance its market position in the plant-based protein industry.

Business Operations and StrategyProduct-Related Announcements
Burcon NutraScience Launches High-Purity Fava Protein Isolate
Positive
Aug 5, 2025

Burcon NutraScience Corporation has announced the successful commercial production and launch of FavaPro™, a 90%+ high-purity fava protein isolate. This development is a significant milestone in the company’s growth strategy, enhancing its position as an innovation leader in the plant protein market. FavaPro is designed to meet the increasing demand for healthy and sustainable protein alternatives, offering a neutral flavor profile and hypoallergenic properties, making it suitable for a wide range of food and beverage applications. The launch of FavaPro demonstrates Burcon’s ability to efficiently scale production and diversify its product offerings, addressing the needs of eco-conscious consumers and food formulators.

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 31, 2025