Company Overview
N2OFF, Inc. operates within the basic materials sector, specifically focusing on the agricultural inputs industry, where it develops and sells eco-friendly green solutions designed to enhance food safety and extend the shelf life of fresh produce. The company's product portfolio relies on a proprietary blend of food acids combined with various oxidizing agents to address preservation challenges in the food industry. As a micro-cap entity, N2OFF, Inc. maintains a market capitalization of $2.52 million and employs a workforce of three individuals to execute its business strategy. The annual revenue reported over the trailing twelve months is $209,000, a figure that indicates the company operates on a very small scale with limited operational footprint. The combination of a sub-three-million-dollar market cap and revenue under three hundred thousand dollars suggests the company is in an early-stage development phase with minimal market penetration.
Financial Health
The financial performance of N2OFF, Inc. over the trailing twelve months shows revenue of $209,000, a net income of $-6,942,000, and an EBITDA of $-6,024,000, revealing a significant disconnect between top-line sales and bottom-line profitability. The substantial gap between the modest revenue and the massive net loss indicates a highly fragile cost structure where operating expenses far exceed the revenue generated from current sales activities. The company reported free cash flow of $-3,829,648, which signifies a heavy burn rate and a lack of financial flexibility to fund operations without external capital injections. Gross margin stands at 64.6%, suggesting that the cost of goods sold is relatively low compared to sales, though this high margin does not offset the overwhelming operating costs. Operating margin is reported at -66300.0%, a figure that highlights extreme operational inefficiency or one-time costs that are not covered by current sales volume. Profit margin is listed at 0.0%, reflecting the inability to convert sales into net profit due to the depth of the losses. On the balance sheet, the company holds cash of $6.28M against total debt of $1.14M, providing a net cash position that buffers against immediate solvency risks. The debt-to-equity ratio is 13.08, which, despite the high leverage, is mitigated by the significant cash reserves available. The current ratio is 4.21, indicating a strong ability to meet short-term obligations with current assets relative to current liabilities. Return on Equity is -101.6% and return on assets is -44.8%, metrics that reveal that management has not yet achieved positive returns on the capital invested in the business.
Valuation Assessment
The trailing P/E ratio is N/A due to the company's net loss, and the forward P/E is also N/A, implying that earnings-based valuation models cannot currently be applied to assess expected earnings trajectory. The price-to-book ratio is 0.14, which indicates that the market values the company at a significant discount to its book value, suggesting a deep undervaluation relative to net assets. The price-to-sales ratio is 12.07, an elevated metric for a company with such low revenue, while the EV/EBITDA ratio is 0.48, providing an alternative perspective on valuation that accounts for enterprise value despite negative earnings. The stock has a 52-week high of $29.40 and a 52-week low of $0.77, representing a massive price range where the current trading price is significantly closer to the bottom of the range. The beta value is 1.64, indicating that the stock price is expected to be more volatile than the broader market, with a sensitivity that exceeds the standard market benchmark by a substantial margin.
Growth & Income
Revenue growth year-over-year is -77.8%, while earnings growth is N/A due to the absence of prior-year positive earnings for comparison. The contraction in revenue suggests a decline in sales volume or market share, whereas the lack of earnings growth data is expected given the company's history of losses rather than profitable scaling. As a non-dividend payer, the company does not distribute a dividend yield or a payout ratio, meaning it retains all earnings or capital for reinvestment rather than distributing cash to shareholders. The overall growth and income profile is characterized by negative revenue expansion and a complete absence of dividend income, reflecting a high-risk, early-stage investment thesis focused on future product development rather than current profitability or income generation.