Biomerica (NasdaqCM:BMRA) - Share price, News & Analysis

Q: What is the Fair Price of BMRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BMRA ($2.99) is trading below our estimate of [[fair value]] ($13.34)

BMRA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

BMRA Stock Overview

Rewards

Trading at 77.6% below our estimate of its fair value

Risk Analysis

Earnings have declined by 34.1% per year over past 5 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($39M)

Biomerica Competitors

electroCore

NasdaqCM:ECOR

US$36.3m

BioElectronics

OTCPK:BIEL

US$23.5m

Precision Optics Corporation

OTCPK:PEYE

US$30.1m

Aspira Women's Health

NasdaqCM:AWH

US$76.4m

Price History & Performance

Summary of all time highs, changes and price drops for Biomerica
Historical stock prices
Current Share Price	US$2.99
52 Week High	US$7.38
52 Week Low	US$2.65
Beta	-0.50
1 Month Change	-10.48%
3 Month Change	-33.70%
1 Year Change	-25.06%
3 Year Change	14.12%
5 Year Change	10.23%
Change since IPO	-14.57%

Recent News & Updates

Dec 03

Most Shareholders Will Probably Find That The CEO Compensation For Biomerica, Inc. (NASDAQ:BMRA) Is Reasonable

Despite strong share price growth of 66% for Biomerica, Inc. ( NASDAQ:BMRA ) over the last few years, earnings growth...

Shareholder Returns

	BMRA	US Medical Equipment	US Market
7D	-3.9%	3.5%	1.7%
1Y	-25.1%	-25.7%	-20.4%

Return vs Industry: BMRA underperformed the US Medical Equipment industry which returned -24% over the past year.

Return vs Market: BMRA underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is BMRA's price volatile compared to industry and market?
BMRA volatility
BMRA Average Weekly Movement	9.9%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: BMRA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: BMRA's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	66	Zack Irani	https://www.biomerica.com

Biomerica, Inc., a biomedical technology company, develops, patents, manufactures, and markets diagnostic and therapeutic products for the detection and/or treatment of medical conditions and diseases worldwide. The company’s diagnostic test kits are used to analyze blood, urine, or fecal specimens from patients in the diagnosis of various diseases and other medical complications; or to measure the level of specific bacteria, hormones, antibodies, antigens, or other substances, which exist in the patient’s body and stools or blood in extremely small concentrations. It primarily sells its products for gastrointestinal diseases, food intolerances, diabetes, and various esoteric tests at the physicians' offices and over-the-counter drugstores, and hospital/clinical laboratories.

Biomerica Fundamentals Summary

How do Biomerica's earnings and revenue compare to its market cap?
BMRA fundamental statistics
Market Cap	US$38.56m
Earnings (TTM)	-US$3.51m
Revenue (TTM)	US$14.62m

2.6x

P/S Ratio

-11.0x

P/E Ratio

Is BMRA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BMRA income statement (TTM)
Revenue	US$14.62m
Cost of Revenue	US$12.12m
Gross Profit	US$2.50m
Other Expenses	US$6.01m
Earnings	-US$3.51m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.27
Gross Margin	17.09%
Net Profit Margin	-23.98%
Debt/Equity Ratio	0%

How did BMRA perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BMRA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BMRA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BMRA. This is calculated by dividing BMRA's market cap by their current preferred multiple.
What is BMRA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$38.56m

BMRA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	-8.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BMRA's PS Ratio compare to its peers?

BMRA PS Ratio vs Peers

The above table shows the PS ratio for BMRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	8.6x
ECOR electroCore	5.9x	38.8%	US$36.3m
BIEL BioElectronics	15.8x	n/a	US$23.5m
PEYE Precision Optics Corporation	2.2x	n/a	US$30.1m
AWH Aspira Women's Health	10.6x	39.0%	US$76.4m
BMRA Biomerica	2.6x	n/a	US$38.6m

Forward PS

Price-To-Sales vs Peers: BMRA is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does BMRA's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Sales vs Industry: BMRA is good value based on its Price-To-Sales Ratio (2.6x) compared to the US Medical Equipment industry average (4x)

Price to Sales Ratio vs Fair Ratio

What is BMRA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BMRA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate BMRA's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BMRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BMRA ($2.99) is trading below our estimate of fair value ($13.34)

Significantly Below Fair Value: BMRA is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.1%

Forecasted Healthcare 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 Biomerica 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.

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Examine whether Biomerica is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Biomerica performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-34.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BMRA is currently unprofitable.

Growing Profit Margin: BMRA is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BMRA is unprofitable, and losses have increased over the past 5 years at a rate of 34.1% per year.

Accelerating Growth: Unable to compare BMRA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BMRA is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (12.9%).

Return on Equity

High ROE: BMRA has a negative Return on Equity (-35.93%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Biomerica's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BMRA's short term assets ($15.2M) exceed its short term liabilities ($6.7M).

Long Term Liabilities: BMRA's short term assets ($15.2M) exceed its long term liabilities ($1.1M).

Debt to Equity History and Analysis

Debt Level: BMRA is debt free.

Reducing Debt: BMRA had no debt 5 years ago.

Balance Sheet

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: Whilst unprofitable BMRA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BMRA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 28.3% per year.

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Dividend

What is Biomerica current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BMRA has not reported any payouts.

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Management

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

1.8yrs

Average management tenure

CEO

Zack Irani (55 yo)

25.17yrs

Tenure

US$488,334

Compensation

Mr. Zackary S. Irani, also known as Zack, has been Chairman of the Board and Chief Executive Officer of Biomerica Inc. since April 29, 1997 and served as its President. Mr. Irani serves as the President an...

CEO Compensation Analysis

Compensation vs Market: Zack's total compensation ($USD488.33K) is below average for companies of similar size in the US market ($USD752.76K).

Compensation vs Earnings: Zack's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: BMRA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: BMRA's board of directors are considered experienced (5.9 years average tenure).

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 been diluted in the past year, with total shares outstanding growing by 4.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/02/28
Annual Earnings	2021/05/31