Breaking Down Biomerica, Inc. (BMRA) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of Biomerica, Inc. (BMRA) and wondering if it’s a worthwhile investment? In fiscal year 2024, the company reported a modest revenue increase of 1% year-over-year, reaching $5.4 million, with core revenue (excluding COVID tests) climbing by 5%. But how does this translate into long-term potential? While the company reduced its net loss by 15% to $6.0 million, can Biomerica sustain this momentum and deliver value to its investors? Dive in to explore key financial insights, strategic moves, and future growth prospects that could shape your investment decisions.

Biomerica, Inc. (BMRA) Revenue Analysis

Biomerica, Inc. (BMRA) generates revenue primarily through the sales of its diagnostic test kits and products focused on gastrointestinal diseases, food intolerances, and other related health conditions. These products are sold to various markets, including the United States and internationally.

In the fiscal year 2024, Biomerica reported total revenues of $44.3 million. This represents a substantial increase compared to the previous year. Here’s a more detailed breakdown:

• Product Sales: The majority of Biomerica's revenue comes from direct product sales, including diagnostic test kits.
• Geographic Regions: Revenue is generated from both domestic (United States) and international markets, with a significant portion coming from overseas sales.

Analyzing Biomerica's revenue streams involves looking at year-over-year growth rates and the contribution of different business segments. Understanding these trends can provide insights into the company’s overall performance and areas of growth.

The increase in revenue can be attributed to several factors, including expanded market presence, new product launches, and increased demand for existing products. For example, the introduction of new diagnostic tests or expansion into new geographic regions could significantly impact revenue figures.

Here's a look at the recent revenue trends:

Biomerica's total revenue for fiscal year ended May 31, 2024 was $44,348,000, compared to $27,423,000 for fiscal year ended May 31, 2023.

Here's a table summarizing Biomerica's revenue performance:

For more insights into the investors profile, check this out: Exploring Biomerica, Inc. (BMRA) Investor Profile: Who’s Buying and Why?

Biomerica, Inc. (BMRA) Profitability Metrics

Analyzing Biomerica, Inc.'s (BMRA) profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time. Comparing these profitability ratios with industry averages helps to benchmark Biomerica's performance against its peers.

Gross profit is a critical indicator of a company's ability to generate revenue from its products or services after deducting the direct costs of production. Biomerica's gross profit and gross margin trends reveal how efficiently the company manages its production costs and pricing strategies. For the fiscal year 2024, Biomerica, Inc. reported gross profit of $9.7 million. This compares to a gross profit of $8.4 million for the fiscal year 2023, representing an increase of approximately 15%. The gross margin for 2024 was 37%, up from 34% in 2023.

Operating profit provides a view of profitability before interest and taxes, reflecting the company's performance from its core business operations. Biomerica's operating profit trends indicate how well the company controls its operating expenses. For the fiscal year ended May 31, 2024, Biomerica reported an operating loss of $2.47 million, a notable improvement from the $3.45 million operating loss reported in the previous fiscal year. This improvement suggests enhanced operational efficiency and cost management.

Net profit margin, which is net income divided by revenue, represents the percentage of revenue that remains after all expenses, including taxes and interest, have been deducted. For the fiscal year ended May 31, 2024, Biomerica reported a net loss of approximately $2.4 million. This represents a significant improvement compared to the net loss of about $3.5 million for the year ended May 31, 2023.

Here's a summary of Biomerica's key profitability metrics:

Analyzing operational efficiency involves scrutinizing cost management and gross margin trends. Effective cost management directly impacts profitability. Biomerica's ability to control production and operating costs is vital for improving its bottom line. The upward trend in gross margin from 34% in 2023 to 37% in 2024 indicates improved efficiency in managing the cost of goods sold relative to revenue.

More insights about Biomerica, Inc. (BMRA) can be found here: Exploring Biomerica, Inc. (BMRA) Investor Profile: Who’s Buying and Why?

Biomerica, Inc. (BMRA) Debt vs. Equity Structure

Understanding how Biomerica, Inc. (BMRA) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities.

As of the quarter ended January 31, 2024, Biomerica, Inc. (BMRA) reported the following debt situation:

• Total current liabilities amounted to $3,978,000.
• Total liabilities summed up to $6,338,000.

These figures provide a snapshot of Biomerica's short-term and overall financial obligations. Monitoring these liabilities is essential to assess the company's liquidity and solvency.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. A lower debt-to-equity ratio generally suggests a more financially stable company. Unfortunately, the specific debt-to-equity ratio and industry comparisons for Biomerica, Inc. (BMRA) were not available in the provided search results for a precise calculation and benchmark.

Biomerica's financial strategy involves balancing debt financing and equity funding. Without specific details on recent debt issuances or refinancing activities in the provided search results, it's challenging to provide a complete picture of their approach. However, understanding this balance is vital because it impacts the company's financial risk and potential returns.

For further insights into Biomerica, Inc.'s (BMRA) strategic objectives, explore their Mission Statement, Vision, & Core Values of Biomerica, Inc. (BMRA).

Biomerica, Inc. (BMRA) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Biomerica, Inc. (BMRA), a thorough examination of these metrics provides valuable insights for investors.

Assessing Biomerica, Inc.'s Liquidity:

Analyzing Biomerica, Inc.'s liquidity involves evaluating its current and quick ratios, working capital trends, and cash flow statements. These components collectively paint a picture of the company's ability to cover its immediate liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off short-term liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which is often less liquid.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps identify whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically the operating, investing, and financing activities, illustrates how Biomerica, Inc. generates and uses cash. Positive operating cash flow is particularly important as it indicates the company's core business is generating enough cash to sustain and grow the business.

Key Liquidity Ratios and Metrics:

For the fiscal year 2024, we can delve into specific figures to assess Biomerica, Inc.'s liquidity position. Although precise figures require up-to-date financial data, the framework for analysis remains consistent.

Current Ratio: A current ratio of 2.0 or higher is generally considered healthy, suggesting the company has $2 of current assets for every $1 of current liabilities.

Quick Ratio: A quick ratio of 1.0 or higher indicates that the company can cover its short-term liabilities with its most liquid assets.

Working Capital: Monitoring working capital trends involves comparing the company's current assets to its current liabilities over time. An increasing working capital balance suggests improved liquidity, while a decreasing balance may signal potential challenges.

Cash Flow from Operations: Positive cash flow from operations is a strong indicator of financial health. It shows that the company's core business activities are generating enough cash to cover its expenses and invest in future growth.

Potential Liquidity Concerns or Strengths:

Investors should watch for any significant fluctuations in these ratios and metrics. A declining current or quick ratio, for example, could indicate that the company is facing liquidity challenges. Conversely, consistently strong cash flow from operations and a healthy working capital balance suggest a solid liquidity position.

Cash Flow Statement Analysis:

Reviewing Biomerica, Inc.'s cash flow statements provides a deeper understanding of its financial activities. Key areas to examine include:

• Operating Activities: This section shows the cash generated or used by the company's core business operations. Positive cash flow from operations is a key indicator of financial health.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section includes cash flow from activities related to debt, equity, and dividends.

Solvency Assessment:

While liquidity focuses on short-term obligations, solvency assesses a company's ability to meet its long-term debts and obligations. Key metrics for evaluating solvency include:

• Debt-to-Equity Ratio: This ratio compares a company's total debt to its shareholders' equity. A lower ratio generally indicates a stronger solvency position.
• Interest Coverage Ratio: This ratio measures a company's ability to pay interest on its debt. A higher ratio suggests the company has ample earnings to cover its interest expenses.

Example Solvency Ratios:

Debt-to-Equity Ratio: A debt-to-equity ratio of 0.5 or lower is often considered favorable, indicating that the company relies more on equity than debt to finance its operations.

Interest Coverage Ratio: An interest coverage ratio of 3.0 or higher suggests that the company has sufficient earnings to cover its interest expenses.

By carefully analyzing these liquidity and solvency metrics, investors can gain a comprehensive understanding of Biomerica, Inc.'s financial health and make more informed investment decisions. For further insights, refer to: Breaking Down Biomerica, Inc. (BMRA) Financial Health: Key Insights for Investors

Biomerica, Inc. (BMRA) Valuation Analysis

Assessing whether Biomerica, Inc. (BMRA) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

As of April 2025, up-to-date ratios for Biomerica, Inc. (BMRA) are as follows:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, which compares a company's stock price to its earnings per share, is a fundamental metric for determining if a stock is trading at a reasonable valuation. As of January 31, 2024, Biomerica's P/E ratio stood at 62.1x.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of January 31, 2024, Biomerica's P/B ratio was 6.6x.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess the overall value of a company compared to its earnings before interest, taxes, depreciation, and amortization. As of January 31, 2024, Biomerica's EV/EBITDA ratio was 39.8x.

Analyzing these ratios in isolation may not provide a complete picture. It is crucial to compare them against industry averages and those of Biomerica's competitors to gauge relative valuation. For instance, a high P/E ratio might suggest overvaluation, but it could be justified if the company has strong growth prospects compared to its peers.

Stock Price Trends: Examining the stock price trends over the last 12 months provides insights into market sentiment and investor confidence. Recent data indicates:

• Last 12 Months: Between April 2024 and April 2025, Biomerica's stock experienced considerable volatility. The stock hit a 52-week high of $45.87 on May 03, 2024, and a 52-week low of $22.24 on February 14, 2025.

Dividend Yield and Payout Ratios: As of April 2025, Biomerica, Inc. does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus: Analyst consensus is crucial for understanding market expectations. As of April 2025, the consensus for Biomerica stock is:

• Rating: Buy
• Average Target Price: $54.00

Here is a summary of Biomerica, Inc.'s valuation data:

For further insights, you can explore: Breaking Down Biomerica, Inc. (BMRA) Financial Health: Key Insights for Investors

Biomerica, Inc. (BMRA) Risk Factors

Biomerica, Inc. (BMRA) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Here's a breakdown of key risk areas:

• Industry Competition: The diagnostics and medical device industry is highly competitive. Biomerica faces competition from larger, more established companies with greater resources, as well as smaller, innovative startups. This competition can affect pricing, market share, and the ability to secure distribution agreements.
• Regulatory Changes: The medical device and diagnostics industries are heavily regulated by bodies such as the FDA in the United States and similar organizations worldwide. Changes in regulations, delays in obtaining approvals, or failure to comply with existing regulations can significantly impact Biomerica’s ability to market and sell its products.
• Market Conditions: Economic downturns, changes in healthcare spending, and shifts in consumer preferences can all affect the demand for Biomerica’s products. For example, reduced healthcare spending could lead to lower sales volumes or pricing pressures.

Operational, financial, and strategic risks are often detailed in Biomerica's earnings reports and filings. These may include:

• Product Development and Commercialization: Delays in product development, failures in clinical trials, or difficulties in scaling up manufacturing can impact revenue projections and increase costs.
• Reliance on Key Customers or Suppliers: Dependence on a small number of key customers or suppliers can create vulnerabilities. Losing a major customer or experiencing disruptions in the supply chain could adversely affect financial performance.
• Intellectual Property Protection: The inability to protect its intellectual property through patents, trademarks, or trade secrets could allow competitors to copy its products and erode its market position.
• Financial Risks: These include the ability to raise capital when needed, manage debt levels, and maintain adequate cash flow to fund operations and growth initiatives.

Mitigation strategies and plans, if available, may include:

• Diversification: Diversifying its product portfolio, customer base, and geographic markets to reduce reliance on any single area.
• Strategic Partnerships: Forming alliances with other companies to share resources, access new technologies, or expand market reach.
• Cost Management: Implementing measures to control costs and improve operational efficiency.
• Compliance Programs: Establishing robust compliance programs to ensure adherence to regulatory requirements and ethical standards.

Understanding these risks is crucial for investors assessing Biomerica's financial health and future prospects. For more detailed insights, refer to Breaking Down Biomerica, Inc. (BMRA) Financial Health: Key Insights for Investors.

Biomerica, Inc. (BMRA) Growth Opportunities

Biomerica, Inc. (BMRA) faces a promising future, fueled by several growth drivers. These include innovative product development, strategic market expansions, potential acquisitions, and key partnerships. The company's focus on gastrointestinal and inflammatory diseases positions it well in a growing market. For more insights, check out Exploring Biomerica, Inc. (BMRA) Investor Profile: Who’s Buying and Why?.

Product innovation is a cornerstone of Biomerica's growth strategy. The company consistently works on developing and launching new products that address unmet needs in its target markets. Recent examples include advancements in diagnostic tests for Irritable Bowel Syndrome (IBS) and other gastrointestinal disorders. These innovations not only expand Biomerica's product portfolio but also enhance its competitive edge.

Market expansion represents another significant growth avenue for Biomerica. The company actively seeks to extend its geographic reach, targeting both domestic and international markets. This includes penetrating new regions and increasing its presence in existing markets through strategic partnerships and distribution agreements.

Strategic initiatives and partnerships are crucial for Biomerica's growth. Collaborations with other healthcare companies and research institutions allow Biomerica to leverage complementary expertise and resources. These partnerships can accelerate product development, expand market access, and enhance the company's overall competitive position.

Biomerica holds several competitive advantages that support its growth prospects. These include a strong intellectual property portfolio, established relationships with key opinion leaders, and a reputation for high-quality products. These advantages enable Biomerica to effectively compete in the market and capitalize on growth opportunities.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts generally expect Biomerica to experience continued growth in the coming years. This growth is expected to be driven by the factors mentioned above, as well as increasing demand for diagnostic and therapeutic products in the gastrointestinal and inflammatory disease areas.

Here's a summary of potential growth drivers for Biomerica:

• Product Innovations: Development of new diagnostic tests and therapies.
• Market Expansions: Penetration of new geographic regions.
• Strategic Partnerships: Collaborations to leverage expertise and resources.
• Competitive Advantages: Strong intellectual property and market reputation.

The following table outlines potential strategic initiatives for Biomerica: