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EcoSynthetix (ECO) AI Stock Analysis
EcoSynthetix
(TSX:ECO)
The score is primarily supported by a strong, low-leverage balance sheet and improving cash generation. However, persistent losses, recent revenue softness, negative valuation signals, and broadly bearish technical trends materially constrain the outlook.
EcoSynthetix (ECO) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 83.47M
- Dividend Yield
- ―
- Average Volume (3M)
- 38.93K
- Price to Earnings (P/E)
- -62.9
- Beta (1Y)
- 0.66
- Revenue Growth
- 1.02%
- EPS Growth
- -62.32%
- Country
- Canada
- Employees
- 28
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
EcoSynthetix Business Overview & Revenue Model
Company Description
EcoSynthetix Inc., established in Burlington, Canada, in 1996, operates as a renewable chemistry company. It focuses on developing and commercializing bio-based technologies that serve as sustainable alternatives to conventional synthetic, petrochemi...
How the Company Makes Money
EcoSynthetix makes money primarily by selling its bio-based specialty products to industrial customers. Revenue is generated through (1) product sales of its plant-based polymer solutions supplied for use in customer manufacturing processes (includin...
EcoSynthetix Earnings Call Summary
The call presented a positive outlook with strong sales growth and market diversification, particularly in pulp and tissue markets, as well as progress in wood composites and personal care. However, there were concerns about declining gross profit percentage and increased SG&A expenses. Despite these challenges, the company's strategic market positioning and operational efficiencies indicate a strong potential for future growth.
Q3-2025 Updates
Positive Updates
Negative Updates
Company Guidance
During the EcoSynthetix 2025 Third Quarter Results Conference Call, the company provided several key metrics indicating growth and progress across its core markets. Sales increased by 11% year-over-year, driven by strong demand in pulp, tissue, and wood composites, with volumes in these segments exceeding the overall sales growth rate. The company's gross profit margin was reported at 34.2%, down from 36.8% in the same period in 2024, attributed to higher manufacturing costs due to product mix. Notably, the demand for EcoSynthetix’s SurfLock strength aids from a major global pulp manufacturer increased significantly, with their annual run rate on the first line growing from $1 million to over $3 million. EcoSynthetix also achieved two new tissue account wins during the quarter, partly through their collaboration with the European distributor, R&M Group. In personal care, the company observed an uptick in demand from its partner Dow, signaling potential growth in this market segment. Financially, net sales for the quarter were $5.8 million, with SG&A expenses rising to $1.8 million and R&D expenses declining to $390,000. Adjusted EBITDA was reported at $200,000 for the quarter, and the company maintained a cash reserve of $30.4 million as of September 30, 2025.
EcoSynthetix Financial Statement Overview
Summary
The low-debt balance sheet is a clear strength, while improving but still loss-making operations and volatile cash flow limit the score.
Income Statement
42NeutralBalance Sheet
78PositiveCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.09M | 21.16M | 18.54M | 12.66M | 19.03M | 18.16M |
| Gross Profit | 5.92M | 6.14M | 5.31M | 2.78M | 4.15M | 3.97M |
| EBITDA | -868.88K | -636.30K | -2.02M | -3.24M | -1.77M | -1.86M |
| Net Income | -948.68K | -441.39K | -1.37M | -2.82M | -1.32M | -3.12M |
Balance Sheet | ||||||
| Total Assets | 40.99M | 42.65M | 41.28M | 42.84M | 48.19M | 50.98M |
| Cash, Cash Equivalents and Short-Term Investments | 29.10M | 29.53M | 32.20M | 33.28M | 25.86M | 42.23M |
| Total Debt | 1.92M | 2.19M | 237.79K | 584.36K | 819.47K | 1.08M |
| Total Liabilities | 3.04M | 4.13M | 1.94M | 1.87M | 3.14M | 3.18M |
| Stockholders Equity | 37.95M | 38.52M | 39.35M | 40.97M | 45.06M | 47.80M |
Cash Flow | ||||||
| Free Cash Flow | -223.10K | -885.09K | 236.11K | -1.31M | -5.17M | 94.09K |
| Operating Cash Flow | 1.15M | -23.96K | 1.10M | 316.99K | -4.90M | 474.07K |
| Investing Cash Flow | 1.86M | 2.21M | 3.47M | 2.00M | -31.15M | 24.69M |
| Financing Cash Flow | -1.17M | -1.72M | -1.73M | -2.27M | -1.51M | 474.28K |
EcoSynthetix Technical Analysis
Price Trends
Market Momentum
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 1.43 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.94, and below the 200-day MA of 2.94, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.95 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 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
TSE:BOS57Neutral- TSE:ECO52Neutral
TSE:NANO47Neutral
TSE:CNO43Neutral
TSE:GMG42Neutral
TSE:SURE36Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| TSE:BOS | 57Neutral | CAD 172.54M | -20.84 | -5.06% | 2.20% | 6.10% | -46.82% |
| TSE:ECO | 52Neutral | CAD 83.47M | -62.88 | -2.47% | ― | 1.02% | -62.32% |
| TSE:NANO | 47Neutral | CAD 94.63M | -5.62 | -81.75% | ― | ― | -42.93% |
| TSE:CNO | 43Neutral | CAD 18.71M | -7.14 | -89.62% | ― | -29.28% | -95.12% |
| TSE:GMG | 42Neutral | CAD 260.86M | -8.23 | -969.63% | ― | 224.03% | -204.33% |
| TSE:SURE | 36Underperform | CAD 5.25M | -5.25 | -24.00% | ― | ― | -904.55% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:ECO | EcoSynthetix Inc. | 1.42 | -2.88 | -66.98% | |
| TSE:BOS | Airboss of America | 6.35 | 2.18 | 52.42% | |
| TSE:CNO | California Nanotechnologies | 0.40 | -0.01 | -1.23% | |
| TSE:NANO | Nano One Materials | 0.79 | -0.86 | -52.12% | |
| TSE:GMG | Graphene Manufacturing Group Ltd | 1.95 | 0.68 | 53.54% | |
| TSE:SURE | SureNano Science Ltd | 0.13 | -0.02 | -16.67% |
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 16, 2026