OTCPK:BRMT

Stock Analysis Report

Executive Summary

Bare Metal Standard, Inc. provides franchise opportunities in the services of commercial kitchen grease exhaust systems in the United States.

Rewards

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Does not have meaningful revenue ($1M)

Does not have a meaningful market cap ($16M)



Snowflake Analysis

Mediocre balance sheet with questionable track record.

Share Price & News

How has Bare Metal Standard's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRMT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

BRMT

0.9%

US Commercial Services

0.06%

US Market


1 Year Return

n/a

BRMT

22.8%

US Commercial Services

19.4%

US Market

Return vs Industry: Insufficient data to determine how BRMT performed against the US Commercial Services industry.

Return vs Market: Insufficient data to determine how BRMT performed against the US Market.


Shareholder returns

BRMTIndustryMarket
7 Day0%0.9%0.06%
30 Day0%3.7%1.1%
90 Dayn/a9.5%8.9%
1 Yearn/a27.1%22.8%21.9%19.4%
3 Yearn/a65.4%54.5%48.9%39.3%
5 Yearn/a104.7%82.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is Bare Metal Standard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bare Metal Standard undervalued compared to its fair value and its price relative to the market?

194.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRMT ($0.51) is trading above our estimate of fair value ($0.01)

Significantly Below Fair Value: BRMT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRMT is poor value based on its PE Ratio (194.4x) compared to the Commercial Services industry average (26.4x).

PE vs Market: BRMT is poor value based on its PE Ratio (194.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRMT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BRMT is overvalued based on its PB Ratio (341.4x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Bare Metal Standard forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bare Metal Standard has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of BRMT’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Bare Metal Standard's filings and announcements here.
  • Explore growth companies in the Commercial Services industry.

Past Performance

How has Bare Metal Standard performed over the past 5 years?

34.7%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: BRMT has a high level of non-cash earnings.

Growing Profit Margin: BRMT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BRMT has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: BRMT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BRMT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (0.2%).


Return on Equity

High ROE: Whilst BRMT's Return on Equity (175.59%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bare Metal Standard's financial position?


Financial Position Analysis

Short Term Liabilities: BRMT's short term assets ($178.4K) exceed its short term liabilities ($80.7K).

Long Term Liabilities: BRMT's short term assets ($178.4K) exceed its long term liabilities ($50.0K).


Debt to Equity History and Analysis

Debt Level: BRMT's debt to equity ratio (205.1%) is considered high.

Reducing Debt: Insufficient data to determine if BRMT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: BRMT has a low level of unsold assets or inventory.

Debt Coverage by Assets: BRMT's debt is covered by short term assets (assets are 1.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BRMT is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: BRMT is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Bare Metal Standard's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BRMT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BRMT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRMT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRMT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRMT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

US$95k

CEO Compensation


CEO

James Bedal (55yo)

4.3yrs

Tenure

US$95,333

Compensation

Mr. James T. Bedal has been Chief Executive Officer of Bare Metal Standard, Inc. from November 2015. Mr. Bedal serves as President of Bare Metal Standard, Inc. since October 5, 2017 and served as its Chief ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD95.33K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bare Metal Standard, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bare Metal Standard, Inc.
  • Ticker: BRMT
  • Exchange: OTCPK
  • Founded: 2015
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$15.909m
  • Shares outstanding: 31.20m
  • Website: https://www.baremetalstandard.com

Number of Employees


Location

  • Bare Metal Standard, Inc.
  • 3604 South Banner Street
  • Boise
  • Idaho
  • 83709
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRMTOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2017

Biography

Bare Metal Standard, Inc. provides franchise opportunities in the services of commercial kitchen grease exhaust systems in the United States. The company provides management services for franchisees who perform fire prevention and mitigation services to commercial kitchens by cleaning their exhaust systems. It operates under the Bare Metal Standard brand. Bare Metal Standard, Inc. was founded in 2015 and is headquartered in Boise, Idaho. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:14
End of Day Share Price2020/01/13 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.