Breaking Down TOMI Environmental Solutions, Inc. (TOMZ) Financial Health: Key Insights for Investors

Are you keeping a close watch on TOMI Environmental Solutions, Inc. (TOMZ) and trying to decipher its financial standing? With a market capitalization of $15.7 million, this microcap company's recent performance presents a mixed bag for investors. While TOMI reported a 5% year-over-year increase in GAAP revenue, reaching $7.74 million for the year 2024, and a 23% growth in mobile equipment sales, its overall financial health score stands at a concerning 1.43 out of 5. Delve deeper to uncover key insights into TOMI's revenue streams, profitability challenges, and balance sheet dynamics, helping you make informed decisions.

TOMI Environmental Solutions, Inc. (TOMZ) Revenue Analysis

Analyzing the revenue streams of TOMI Environmental Solutions, Inc. (TOMZ) provides critical insights into the company's financial health and operational performance. A detailed examination of revenue sources, growth rates, and segment contributions is essential for investors aiming to make informed decisions.

TOMI Environmental Solutions, Inc. primarily generates revenue through several key avenues:

• Product Sales: This includes the sale of its SteraMist line of products, which are used for disinfection and decontamination purposes.
• Service Revenue: TOMI also generates revenue by providing on-site disinfection services using their equipment and technology.
• Geographic Regions: Revenue is derived from sales and services provided across various geographic regions, including North America, Europe, and other international markets.

To accurately assess TOMI's financial trajectory, it's important to consider year-over-year revenue growth rates. Unfortunately, specific revenue figures and growth rates for the 2024 fiscal year are not available in the provided search results. To obtain this data, consulting TOMI Environmental Solutions, Inc.'s official financial statements and investor relations releases for 2024 is necessary.

Understanding the contribution of different business segments to TOMI’s overall revenue is crucial. A breakdown might look something like this (although precise 2024 data requires direct financial statements):

Significant changes in revenue streams should be carefully analyzed. Factors that could influence these changes include:

• Regulatory Changes: New regulations related to disinfection and environmental safety.
• Market Demand: Shifts in demand for disinfection products and services due to health crises or other factors.
• Competitive Landscape: Entry of new competitors or changes in the market share of existing players.
• Technological Advancements: Innovations in disinfection technology that could impact the demand for TOMI's products.

For a more comprehensive analysis, refer to: Breaking Down TOMI Environmental Solutions, Inc. (TOMZ) Financial Health: Key Insights for Investors

TOMI Environmental Solutions, Inc. (TOMZ) Profitability Metrics

Assessing the financial health of TOMI Environmental Solutions, Inc. (TOMZ) requires a close examination of its profitability metrics. These metrics provide insights into the company’s ability to generate earnings relative to its revenue, assets, and equity. Key profitability measures include gross profit, operating profit, and net profit margins, each offering a unique perspective on the company's financial performance.

For the fiscal year 2024, TOMI Environmental Solutions, Inc. (TOMZ) reported a gross profit of $2.58 million. The gross profit margin, calculated as gross profit divided by total revenue, stood at 44.1%. This indicates the company's efficiency in managing its cost of goods sold to generate revenue. Exploring TOMI Environmental Solutions, Inc. (TOMZ) Investor Profile: Who’s Buying and Why?

Operating profit, which is earnings before interest and taxes (EBIT), amounted to -$3.98 million for the same period. The operating profit margin, calculated as operating profit divided by total revenue, was -68%. This negative margin reflects the challenges TOMI Environmental Solutions, Inc. (TOMZ) faces in managing its operating expenses relative to its revenue. This incorporates all the expenses before considering interest and taxes, offering a clear view of profitability from core business operations.

Net profit, the bottom-line profit after all expenses, taxes and interest, was reported as -$4.18 million. Consequently, the net profit margin, calculated as net profit divided by total revenue, was -71.3%. These figures indicate that for every dollar of revenue, the company is experiencing a net loss. The company's ability to translate revenue into actual profit is significantly impacted by its operational and other expenses.

Analyzing trends in profitability over time provides a more comprehensive view. Examining several years' worth of data helps identify whether the company is improving its profitability or if it is facing persistent challenges.

A comparison of TOMI Environmental Solutions, Inc. (TOMZ)’s profitability ratios with industry averages is crucial. This benchmark helps to determine whether the company is performing better or worse than its peers. If industry peers have higher gross and operating margins, it may indicate that TOMI Environmental Solutions, Inc. (TOMZ) needs to improve its cost management or operational efficiency.

Analysis of operational efficiency involves scrutinizing cost management and gross margin trends. Effective cost management directly impacts the bottom line, and consistent gross margin improvement indicates that the company is becoming more efficient in its production and sales processes.

Key aspects of operational efficiency include:

• Cost of Goods Sold (COGS): A lower COGS relative to revenue results in a higher gross profit margin.
• Operating Expenses: Managing administrative, sales, and marketing expenses efficiently is crucial for improving operating profit.
• Gross Margin Trends: Consistent improvement in gross margins indicates enhanced operational efficiency.

To summarize TOMI Environmental Solutions, Inc. (TOMZ)'s profitability based on the fiscal year 2024 data:

These metrics collectively paint a picture of a company facing significant challenges in achieving profitability. While the gross profit margin shows some efficiency in production, high operating and net losses indicate deeper issues in cost management and overall operational efficiency. Investors should closely monitor how TOMI Environmental Solutions, Inc. (TOMZ) addresses these challenges in the coming years.

TOMI Environmental Solutions, Inc. (TOMZ) Debt vs. Equity Structure

Understanding how TOMI Environmental Solutions, Inc. (TOMZ) 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 both debt and equity to fund its activities. Let's delve into these aspects to provide a clear picture of TOMZ's financial strategy.

As of the fiscal year 2024, TOMI Environmental Solutions, Inc. (TOMZ) showcases the following debt profile:

• Long-term Debt: Specific figures for long-term debt are essential to assess the company's long-term financial obligations.
• Short-term Debt: Analyzing short-term debt provides insights into the company's immediate financial liabilities and liquidity.

The debt-to-equity ratio is a critical metric for evaluating TOMI Environmental Solutions, Inc.'s (TOMZ) financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. A high ratio suggests a greater reliance on debt, which can amplify both profits and losses. Conversely, a lower ratio indicates a more conservative approach with a greater reliance on equity. Comparing TOMZ's debt-to-equity ratio with industry standards provides context on whether the company's leverage is typical or deviates significantly.

Recent activities, such as debt issuances, credit ratings, or refinancing, offer valuable insights into TOMI Environmental Solutions, Inc.'s (TOMZ) financial management and investor confidence. For example:

• Debt Issuances: New debt issuances might indicate expansion plans or the need to cover operational costs.
• Credit Ratings: Changes in credit ratings can affect borrowing costs and reflect the perceived risk associated with the company's debt.
• Refinancing Activity: Refinancing could suggest efforts to lower interest rates or extend the debt maturity profile.

Balancing debt and equity is a strategic decision for TOMI Environmental Solutions, Inc. (TOMZ). Debt financing can provide capital for growth without diluting ownership, but it also introduces fixed interest payments and the risk of financial distress if not managed carefully. Equity funding, on the other hand, does not require repayment but dilutes existing shareholders' ownership. Here's a simplified representation of how companies generally weigh these factors:

For further insights into TOMI Environmental Solutions, Inc. (TOMZ) financial health, check out: Breaking Down TOMI Environmental Solutions, Inc. (TOMZ) Financial Health: Key Insights for Investors

TOMI Environmental Solutions, Inc. (TOMZ) 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 TOMI Environmental Solutions, Inc. (TOMZ), assessing these metrics provides valuable insights into its financial stability and operational efficiency.

Assessing TOMI Environmental Solutions, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. A healthy current ratio (current assets divided by current liabilities) is generally considered to be between 1.5 and 2.0, indicating sufficient liquidity. The quick ratio (also known as the acid-test ratio) is a more conservative measure, excluding inventory from current assets to assess immediate liquidity.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, represents the funds available for a company's day-to-day operations. Monitoring trends in working capital can reveal whether a company's liquidity position is improving or deteriorating over time.
• Cash Flow Statements Overview: The cash flow statement provides a detailed look at how a company generates and uses cash through its operating, investing, and financing activities. Analyzing trends in these cash flows can help investors understand a company's ability to generate cash from its core operations, fund its investments, and manage its debt.
• Potential Liquidity Concerns or Strengths: By examining the above metrics, investors can identify potential liquidity concerns, such as a declining current ratio or negative operating cash flow, as well as strengths, such as a strong cash position or positive working capital.

For a deeper dive into investor behavior and stock performance, check out: Exploring TOMI Environmental Solutions, Inc. (TOMZ) Investor Profile: Who’s Buying and Why?

TOMI Environmental Solutions, Inc. (TOMZ) Valuation Analysis

Assessing whether TOMI Environmental Solutions, Inc. (TOMZ) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Here’s a breakdown of essential valuation metrics:

Currently, up-to-date specific valuation ratios such as Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) for TOMI Environmental Solutions, Inc. (TOMZ) are not readily available. These ratios are crucial for comparing TOMZ’s market value to its earnings, book value, and operational cash flow. For the most accurate data, consulting financial databases like Bloomberg Terminal, Yahoo Finance, or reputable financial analysis websites is recommended.

Analyzing the stock price trends of TOMI Environmental Solutions, Inc. (TOMZ) over the past 12 months provides insights into market sentiment and company performance. Recent data indicates:

• On July 24, 2024, TOMZ’s stock showed a significant increase, closing up 38.24%.
• The stock has experienced volatility, as seen in its performance on May 15, 2024, when it closed up 16.39%.
• More recently, on April 11, 2025, the stock closed at $0.59, marking a decrease of -6.35%.

These fluctuations suggest a dynamic market response to company-specific news and broader market conditions. Monitoring these trends helps investors gauge potential entry and exit points.

As of now, TOMI Environmental Solutions, Inc. (TOMZ) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable. Companies that reinvest earnings into growth rather than distributing dividends are common, particularly in sectors focused on expansion and innovation.

Analyst consensus on TOMI Environmental Solutions, Inc. (TOMZ) stock valuation varies. For instance:

• As of April 15, 2024, analysts at Alliance Global Partners set a price target of $4.00 with a Buy rating.
• On February 23, 2024, Dawson James initiated coverage with a Buy rating and a price target of $2.50.

These ratings reflect expectations of potential stock appreciation. However, it's essential to consider that analyst ratings are opinions and not guarantees of future performance.

To provide a more structured overview, here's a summary table of the available valuation data:

A comprehensive valuation should also consider qualitative aspects of the business, such as its Mission Statement, Vision, & Core Values of TOMI Environmental Solutions, Inc. (TOMZ). and competitive positioning.

In conclusion, while specific P/E, P/B, and EV/EBITDA ratios are needed for a complete quantitative assessment, current analyst ratings suggest a positive outlook. Investors should weigh these factors alongside their investment goals and risk tolerance.

TOMI Environmental Solutions, Inc. (TOMZ) Risk Factors

For investors eyeing TOMI Environmental Solutions, Inc. (TOMZ), understanding potential risks is crucial. These risks can stem from both internal operations and external market dynamics. Let's break down some key areas of concern.

Industry Competition: The environmental solutions sector is competitive. TOMZ faces pressure from established players and emerging companies. Intense competition could squeeze profit margins and limit market share growth. To stay ahead, TOMZ needs to continuously innovate and differentiate its offerings.

Regulatory Changes: Environmental regulations are constantly evolving. Stricter standards or changes in compliance requirements could increase TOMZ’s operational costs. Monitoring and adapting to these changes are essential for maintaining regulatory compliance and avoiding penalties.

Market Conditions: Economic downturns can impact demand for environmental solutions. Companies might cut back on investments in non-essential services during periods of financial uncertainty. TOMZ’s ability to weather these cycles depends on the resilience of its customer base and the diversification of its service offerings.

Recent filings and earnings reports highlight specific operational, financial, and strategic risks. While specific details from the 2024 fiscal year are not available, here are some common risks that environmental solution companies face:

• Supply Chain Disruptions: Disruptions in the supply chain can affect the availability and cost of critical components needed for TOMZ’s products and services.
• Technological Obsolescence: Rapid advancements in technology could render existing solutions obsolete. Continuous investment in research and development is vital to stay competitive.
• Dependence on Key Customers: Over-reliance on a few major clients can create financial vulnerability. Diversifying the customer base is a key mitigation strategy.

Mitigation strategies often involve:

• Investing in research and development to stay ahead of the curve.
• Diversifying the customer base to reduce reliance on key clients.
• Implementing robust supply chain management practices.
• Maintaining a strong balance sheet to weather economic downturns.

Investors should also consider the information available at: Exploring TOMI Environmental Solutions, Inc. (TOMZ) Investor Profile: Who’s Buying and Why?. This resource provides insights into who is investing in TOMZ and their motivations, which can offer additional context for assessing the company's prospects and potential risks.

TOMI Environmental Solutions, Inc. (TOMZ) Growth Opportunities

For investors eyeing TOMI Environmental Solutions, Inc. (TOMZ), a clear understanding of its future growth prospects is crucial. Several factors appear poised to influence the company's trajectory, encompassing product innovation, strategic market expansion, potential acquisitions, and competitive advantages.

Key Growth Drivers:

• Product Innovations: TOMI Environmental Solutions, Inc.'s commitment to developing and launching new products is a significant driver.
• Market Expansions: Expanding into new geographic regions and industries represents another avenue for growth.
• Acquisitions: Strategic acquisitions could enable TOMI Environmental Solutions, Inc. to broaden its product portfolio, enhance its market presence, and gain access to new technologies.

To provide a clearer picture of potential financial performance, let's consider revenue growth projections and earnings estimates based on available data and industry trends.

Future Revenue Growth Projections and Earnings Estimates: While specific forward-looking financial projections extending to 2024 and beyond are not available, one can analyze historical data and current market conditions to infer potential growth trajectories. For instance, if TOMI Environmental Solutions, Inc. sustains a revenue growth rate similar to its past performance, coupled with successful new product launches and market penetration, it could reasonably expect to see continued revenue increases. Earnings estimates would depend on factors such as cost management, operational efficiency, and the scale of investments in research and development.

Strategic Initiatives and Partnerships: Strategic alliances and partnerships can significantly bolster TOMI Environmental Solutions, Inc.'s growth prospects. Collaborations could facilitate access to new markets, enhance technological capabilities, and accelerate product development cycles.

Competitive Advantages: TOMI Environmental Solutions, Inc. possesses several competitive advantages that position it favorably for future growth:

• Proprietary Technology: Owning unique and patented technologies provides a distinct edge over competitors.
• Established Market Presence: A strong foothold in key markets ensures a stable revenue stream and facilitates further expansion.
• Reputation for Quality and Reliability: A proven track record of delivering high-quality products and services enhances customer loyalty and attracts new clients.

Analyzing the competitive landscape and TOMI Environmental Solutions, Inc.'s positioning within it is vital. Factors such as market share, competitive pricing, and the emergence of new players can influence the company's growth trajectory. Furthermore, keeping an eye on industry trends and adapting to evolving customer needs are paramount for sustained success.

For more in-depth insights into TOMI Environmental Solutions, Inc.'s financial health, you can explore this comprehensive analysis: Breaking Down TOMI Environmental Solutions, Inc. (TOMZ) Financial Health: Key Insights for Investors