TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ)

Sector: Industrials Industry: Pollution & Treatment Controls CIK: 0000314227
Market Cap 14.56 Mn
P/B 6.60
P/E -2.80
P/S 2.56
ROIC (Qtr) -91.84
Div Yield % 0.00
Rev 1y % (Qtr) -20.88
Total Debt (Qtr) 3.44 Mn
Debt/Equity (Qtr) 1.56
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About

TOMI Environmental Solutions, Inc. (TOMI), a company operating in the bacteria decontamination and infectious disease control industry, is renowned for its environmentally friendly solutions. Its flagship product, SteraMist, harnesses the power of Binary Ionization Technology (BIT) to deliver a low-percentage (7.8%) hydrogen peroxide-based fog or mist, effectively treating various indoor environments and surfaces. Developed under a grant from the United States Defense Advanced Research Projects Agency (DARPA), SteraMist has been EPA-registered since...

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Investment thesis

Bull case

  • Healthy cash reserves of 490022 provide 3.50x coverage of short-term debt 139917, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 6.69M provide exceptional 21.58x coverage of deferred revenue 309752, showing strong service capability backing.
  • Operating cash flow of (564071) fully covers other non-current liabilities (309752) by 1.82x, showing strong long-term stability.
  • R&D investment of 244140 represents healthy 0.79x of deferred revenue 309752, indicating strong future innovation pipeline.
  • Tangible assets of 6.69M provide robust 5.87x coverage of other current liabilities 1.14M, indicating strong asset backing.

Bear case

  • With cash reserves of 490022 against inventory of 3.36M, the 0.15 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (289944) provide weak support for R&D spending of 244140, which is -1.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (564071) provides insufficient coverage of deferred revenue obligations of 309752, which is -1.82x, raising concerns about future service delivery capabilities.
  • Free cash flow of (569967) provides weak coverage of capital expenditures of 5896, with a -96.67 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (4.73M) show weak coverage of depreciation charges of 435835, with a -10.86 ratio indicating high capital intensity and potential reinvestment needs.

Statement Geographical Axis Breakdown of Revenue (2022)

Statement Business Segments Axis Breakdown of Revenue (2022)

Peer comparison

Companies in the Pollution & Treatment Controls
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VLTO Veralto Corp 22.76 Bn 26.05 4.31 2.67 Bn
2 ZWS Zurn Elkay Water Solutions Corp 8.65 Bn 43.69 5.10 0.54 Bn
3 FSS Federal Signal Corp /De/ 7.21 Bn 168.93 10.04 0.24 Bn
4 CECO Ceco Environmental Corp 2.77 Bn 53.33 3.85 0.24 Bn
5 PCT PureCycle Technologies, Inc. 1.46 Bn -6.40 258.45 0.43 Bn
6 ERII Energy Recovery, Inc. 0.91 Bn 46.74 6.75 0.00 Bn
7 ADUR Aduro Clean Technologies Inc. 0.33 Bn -23.93 1,516.99 0.00 Bn
8 ARQ Arq, Inc. 0.13 Bn -34.10 1.13 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.16 3.33
EV to Cash from Ops. EV/CFO -30.76 -65.71
EV to Debt EV to Debt 5.04 136.79
EV to EBIT EV/EBIT -3.66 3.75
EV to EBITDA EV/EBITDA -3.53 8.77
EV to Free Cash Flow [EV/FCF] EV/FCF -30.44 2.21
EV to Market Cap EV to Market Cap 1.19 1.03
EV to Revenue EV/Rev 3.05 89.55
Price to Book Value [P/B] P/B 6.60 6.68
Price to Earnings [P/E] P/E -2.80 15.25
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.26
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.56
Interest Coverage Int. cover (Qtr) -10.20 -107.95
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 94.56 -82.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -39.43 79.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -125.39 -265.30
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -198.01 -75.61
EBIT Growth (1y) % EBIT 1y % (Qtr) -125.39 -272.40
EBT Growth (1y) % EBT 1y % (Qtr) -112.49 -325.95
EPS Growth (1y) % EPS 1y % (Qtr) -92.31 2,177.75
FCF Growth (1y) % FCF 1y % (Qtr) 79.63 -76.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -52.66 7.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.71 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.19 2.16
Current Ratio Curr Ratio (Qtr) 1.98 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.56 0.60
Interest Cover Ratio Int Coverage (Qtr) -10.20 -107.95
Times Interest Earned Times Interest Earned (Qtr) -10.20 -107.95
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -75.60 -775.28
EBIT Margin % EBIT Margin % (Qtr) -83.24 -2,721.83
EBT Margin % EBT Margin % (Qtr) -91.40 -2,762.77
Gross Margin % Gross Margin % (Qtr) 41.00 -44.42
Net Profit Margin % Net Margin % (Qtr) -91.40 -2,763.74