Company Overview
TOMI Environmental Solutions, Inc. operates as a provider of disinfection and decontamination essentials serving both the United States and international markets, offering specific solutions such as SteraPak, SteraMist select surface units, and SteraMist environment systems. The company is positioned within the Industrials sector, specifically focusing on the Pollution & Treatment Controls industry, which implies a role in managing environmental hazards through specialized technical equipment. The enterprise maintains a market capitalization of $12.17M with an annual revenue of $5.69M and employs a workforce of 20 individuals. These valuation and revenue figures indicate that the company functions as a small-cap entity with limited scale, operating in a niche segment where the total market value is relatively modest compared to larger industrial peers.
Financial Health
The company reported revenue of $5.69M over the trailing twelve months, accompanied by a net income of $-5,734,101 and an EBITDA of $-5,079,247. The substantial gap between the positive revenue figure and the deeply negative net income reveals a cost structure where operating expenses significantly exceed gross profits, resulting in a loss on an earnings basis. Despite the negative earnings, the company generated positive free cash flow of $727,254, which suggests a degree of financial flexibility allowing for capital returns or operational adjustments despite accounting losses. The gross margin stands at 41.0%, indicating that the company retains a significant portion of revenue after the direct costs of goods sold, whereas the operating margin is -16.0%, signaling that overhead costs are consuming a notable share of the gross profit. Furthermore, the profit margin is -91.4%, which reflects the severity of the net losses relative to total sales volume. On the balance sheet, the company holds $490,022 in cash against $3.44M in debt, while the debt-to-equity ratio is 155.98, indicating a highly leveraged financial structure. The current ratio is 1.98, which indicates that the company possesses nearly double the current assets required to cover its current liabilities, suggesting adequate short-term liquidity despite the leverage. Return on Equity is recorded at -119.9% and Return on Assets at -32.7%, metrics that reveal that management is currently unable to generate positive returns on the capital invested by shareholders or utilized in assets due to the prevailing net losses.
Valuation Assessment
The trailing twelve-month P/E ratio is listed as N/A due to negative earnings, while the forward P/E is -7.50, a metric that implies the market is pricing in a continuation of negative earnings or a significant turnaround expectation to achieve positive valuation multiples. The price-to-book ratio is 0.90, which indicates that the market is valuing the company at slightly less than its book value, suggesting no current premium over the net asset value of the firm. Additionally, the price-to-sales ratio is 2.14 and the EV/EBITDA is -2.57, alternative valuation metrics that suggest the company is being valued based on revenue multiples rather than earnings multiples given the lack of profitability. The stock has traded between a 52-week high of $1.20 and a 52-week low of $0.54. Without a specific current share price provided in the facts to calculate the exact percentage distance, the trading range establishes a volatility band where the current price sits relative to this historical spread. The beta value is 1.60, which means the stock price is expected to be 60% more volatile than the broader market, indicating higher risk sensitivity to market fluctuations.
Growth & Income
The company experienced a revenue growth rate of -20.9% year-over-year, while earnings growth is N/A due to the lack of positive earnings in the prior period to compare against. Because earnings are negative, there is no growth trajectory to compare against revenue, but the decline in revenue itself implies a contraction in the business's top line over the last year. Regarding income distribution, the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which explains that the firm reinvests all available resources into operations rather than distributing cash to shareholders. Given the negative net income, a dividend payout is not sustainable as there are no earnings to fund distributions, reinforcing the strategy of retaining capital for survival and potential future growth. The overall growth and income profile for TOMI Environmental Solutions, Inc. is characterized by revenue contraction and a complete absence of dividend income, reflecting a company in a challenging financial phase focused on operational continuity rather than shareholder yield or expansion.