NasdaqCM:BMRA

Stock Analysis Report

Executive Summary

Biomerica, Inc., together with its subsidiaries, develops, manufactures, and markets medical diagnostic products for the early detection and monitoring of chronic diseases and medical conditions.

Rewards

Trading at 84.7% below its fair value

Earnings are forecast to grow 108.15% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($30M)



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Biomerica's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

BMRA

1.7%

US Medical Equipment

1.7%

US Market


1 Year Return

23.8%

BMRA

27.4%

US Medical Equipment

23.6%

US Market

Return vs Industry: BMRA underperformed the US Medical Equipment industry which returned 28.6% over the past year.

Return vs Market: BMRA matched the US Market which returned 23.2% over the past year.


Shareholder returns

BMRAIndustryMarket
7 Day-0.7%1.7%1.7%
30 Day-1.0%3.6%3.5%
90 Day-6.9%11.4%11.7%
1 Year23.8%23.8%28.4%27.4%26.2%23.6%
3 Year15.6%15.6%94.9%89.3%53.2%43.3%
5 Year222.8%222.8%127.2%102.9%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Biomerica undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BMRA ($2.99) is trading below our estimate of fair value ($19.59)

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


Price To Earnings Ratio

PE vs Industry: BMRA is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: BMRA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BMRA is overvalued based on its PB Ratio (8.1x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

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

120.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMRA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BMRA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BMRA's is expected to become profitable in the next 3 years.

Revenue vs Market: BMRA's revenue (64.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: BMRA's revenue (64.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BMRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Biomerica performed over the past 5 years?

-36.4%

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 -38.2% 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 (31%).


Return on Equity

High ROE: BMRA has a negative Return on Equity (-67.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Biomerica's financial position?


Financial Position Analysis

Short Term Liabilities: BMRA's short term assets ($4.1M) exceed its short term liabilities ($1.4M).

Long Term Liabilities: BMRA's short term assets ($4.1M) exceed its long term liabilities ($1.7M).


Debt to Equity History and Analysis

Debt Level: BMRA is debt free.

Reducing Debt: BMRA has not had any debt for past 5 years.


Balance Sheet

Inventory Level: BMRA has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BMRA's debt is covered by short term assets.


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: BMRA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BMRA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -55.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BMRA'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 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.


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 BMRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Biomerica's salary, the management and board of directors tenure and is there insider trading?

16.5yrs

Average board tenure


CEO

Zackary Irani (53yo)

22.8yrs

Tenure

US$328,906

Compensation

Mr. Zackary S. Irani 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 and Chairman of ReadySc ...


CEO Compensation Analysis

Compensation vs Market: Zackary's total compensation ($USD328.91K) is below average for companies of similar size in the US market ($USD519.76K).

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


Board Age and Tenure

16.5yrs

Average Tenure

65yo

Average Age

Experienced Board: BMRA's board of directors are seasoned and experienced ( 16.5 years average tenure).


Insider Trading

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 8.5%.


Management Team

  • Janet Moore (68yo)

    CFO, Treasurer

    • Tenure: 22.8yrs
    • Compensation: US$146.68k
  • Zackary Irani (53yo)

    Chairman & CEO

    • Tenure: 22.8yrs
    • Compensation: US$328.91k

Board Members

  • Ned Barnholt (75yo)

    Chairman of Strategic Advisory Board

    • Janet Moore (68yo)

      CFO, Treasurer

      • Tenure: 22.8yrs
      • Compensation: US$146.68k
    • Zackary Irani (53yo)

      Chairman & CEO

      • Tenure: 22.8yrs
      • Compensation: US$328.91k
    • Francis Cano (72yo)

      Independent Director

      • Tenure: 20.6yrs
      • Compensation: US$42.77k
    • Mark Sirgo (65yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$42.77k
    • Allen Barbieri (61yo)

      Independent Director

      • Tenure: 20.3yrs
      • Compensation: US$61.10k
    • Harry Leider

      Member of Strategic Advisory Board

      • Tenure: 1.8yrs
    • Jane Emerson (65yo)

      Independent Director

      • Tenure: 12.8yrs
      • Compensation: US$52.77k
    • Tony Lembo

      Member of Scientific Advisory Board

      • Tenure: 3.5yrs

    Company Information

    Biomerica, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Biomerica, Inc.
    • Ticker: BMRA
    • Exchange: NasdaqCM
    • Founded: 1971
    • Industry: Health Care Equipment
    • Sector: Healthcare
    • Market Cap: US$29.373m
    • Shares outstanding: 9.89m
    • Website: https://www.biomerica.com

    Number of Employees


    Location

    • Biomerica, Inc.
    • 17571 Von Karman Avenue
    • Irvine
    • California
    • 92614
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BMRANasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1975

    Biography

    Biomerica, Inc., together with its subsidiaries, develops, manufactures, and markets medical diagnostic products for the early detection and monitoring of chronic diseases and medical conditions. The company’s diagnostic test kits are used to analyze blood, urine, or fecal samples 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 human body in extremely small concentrations. It primarily offers its products for gastrointestinal diseases, food intolerances, diabetes, and various esoteric tests at the point of care and clinical laboratories worldwide. The company is also developing InFoods, an irritable bowel syndrome (IBS) therapy technology and diagnostic-guided therapy, which is in clinical studies to identify specific foods that when removed from the patient’s diet can alleviate the patient’s IBS symptoms. Biomerica, Inc. was founded in 1971 and is headquartered in Irvine, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 23:31
    End of Day Share Price2020/01/17 00:00
    Earnings2019/11/30
    Annual Earnings2019/05/31


    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.