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1. Company Snapshot

1.a. Company Description

EcoSynthetix Inc., a renewable chemicals company, develops and commercializes bio-based technologies that are used as replacement solutions for synthetic, petrochemical-based adhesives, and other related products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company offers EcoMer biomonomer for use in pressure sensitive adhesives, ink, toner resins, and paints; EcoSphere biolatex, a bio-based latex binder used in paper and paperboard coatings; EcoStix, a family of sugar-acrylic and pressure-sensitive adhesives, which include customizable resin grades and formulated grades; and DuraBind engineered biopolymers that enable manufacturers of particle board, MDF, veneers, and laminates to decrease the amount of highly regulated chemicals, such as formaldehyde in their formulation.Its products are used in various industries, such as paper and paper board; building materials; adhesives, paints, and coatings; films, recyclable packaging, labels, and stamps; and personal care products.


The company was founded in 1996 and is headquartered in Burlington, Canada.

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1.b. Last Insights on ECO

EcoSynthetix's recent performance was driven by a significant purchase order for its proprietary strength aid, SurfLock, from a leading global pulp manufacturer. This order, valued at approximately $800 thousand, represents a second purchase ahead of the original plan, indicating strong demand for the company's bio-based products. Additionally, the company's inclusion in TSX Penny Stocks To Watch In July 2025 highlights its potential as a growth opportunity for investors seeking hidden gems in the market.

1.c. Company Highlights

2. EcoSynthetix's Q3 2025 Earnings: A Strong Start to Sustainable Growth

EcoSynthetix reported net sales of $5.8 million in Q3 '25, an 11% increase year-over-year, driven primarily by higher volumes of $500,000 or 10%. The gross profit margin was 34.2% in the quarter, down from 36.8% in the same period in 2024. Adjusted EBITDA was $200,000, compared to $360,000 in Q3 '24. The company's EPS came in at -$0.00175, beating estimates of -$0.01384. With a strong demand outlook in key end markets, including pulp, tissue, wood composites, and personal care, EcoSynthetix is confident in its growth prospects.

Publication Date: Nov -19

📋 Highlights
  • 11% YoY Sales Growth: Q3 2025 net sales reached $5.8 million, up from $5.2 million in Q3 2024, driven by 10% higher volumes.
  • Pulp Market Expansion: A key customer identified a multimillion metric ton opportunity using hardwood fiber to offset softwood constraints, driving demand for EcoSynthetix’s strength aids and binders.
  • Wood Composites Growth: Strategic account’s 2030 carbon reduction plan using bio-based glues requires $50–$60 million in EcoSynthetix’s DuraBind products.
  • Vertical Integration Synergy: Collaboration with backward-integrated pulp/tissue manufacturers enhances hardwood pulp-to-tissue value chain adoption, accelerating growth.
  • Margin Profile Improvement: Revenue quality is higher, with gross margins at 34.2% in Q3 2025 (vs. 36.8% in Q3 2024), reflecting strategic market diversification.

Business Momentum

The company's key customer in the pulp market has identified a multimillion metric ton opportunity for increased use of hardwood fiber, and is expanding its team, publishing in technical journals, and promoting its product through social media. This is giving EcoSynthetix confidence that its end marketing efforts are going well, and the company is seeing other players take interest in the product, with early starts in trials. The tissue and paperboard front has also seen continued expansion of distributor relationships, which have proven to work well.

Growth Prospects

EcoSynthetix is excited about the ramp-up in its key end markets, and is relying on the consistent ramp-up in the need for its product to drive growth. The company has added suppliers within its supply chain and made significant investments in Europe to flexibly use more raw materials. With a strong demand outlook and a improving gross margin profile, EcoSynthetix is confident in hitting its $100 million top-line target, and analysts estimate next year's revenue growth at 17.3%.

Valuation

With a P/S Ratio of 8.95 and an EV/EBITDA of -174.61, EcoSynthetix's valuation suggests that the market is pricing in significant growth prospects. The company's ROE is -1.43%, and ROIC is -5.55%, indicating that it still has a way to go in terms of delivering returns on equity and invested capital. However, with a strong demand outlook and a improving gross margin profile, EcoSynthetix is well-positioned to drive sustainable growth and create value for shareholders.

3. NewsRoom

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EcoSynthetix Inc (ECSNF) Q3 2025 Earnings Call Highlights: Strong Growth Amid Economic Uncertainty

Nov -12

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TSX Penny Stocks Under CA$300M Market Cap To Consider

Nov -06

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EcoSynthetix to Host 2025 Third Quarter Results Conference Call

Oct -24

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EcoSynthetix Wins Two New Tissue Lines for SurfLock™ from Relationship with European Distributor

Oct -06

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Promising TSX Penny Stocks To Watch In October 2025

Oct -01

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TSX Penny Stocks To Watch In August 2025

Aug -25

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EcoSynthetix Says Received Second Purchase Order for SurfLock Strength Aids Ahead of Original Plan from Global Pulp Manufacturer

Jul -22

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EcoSynthetix Receives Second Purchase Order for SurfLock™ Strength Aids Ahead of Original Plan from a Leading Global Pulp Manufacturer

Jul -22

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Biopolymer Nanosphere Technology Platform

Expected Growth: 12.4%

Growing demand for sustainable and biodegradable materials, increasing adoption in biomedical and personal care applications, and expanding industrial uses drive the growth of EcoSynthetix's Biopolymer Nanosphere Technology Platform.

7. Detailed Products

EcoSphere

A biodegradable, non-toxic, and renewable biolatex binder used in the production of paper and paperboard products.

DuraBind

A sustainable, bio-based binder used in the production of various industrial products such as insulation, filtration, and construction materials.

EcoMer

A biodegradable, non-toxic, and renewable biolatex binder used in the production of various industrial products such as adhesives, coatings, and composites.

8. EcoSynthetix Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for EcoSynthetix Inc. is medium due to the availability of alternative bioproducts in the market.

Bargaining Power Of Customers

The bargaining power of customers for EcoSynthetix Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for EcoSynthetix Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for EcoSynthetix Inc. is high due to the growing demand for bioproducts and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for EcoSynthetix Inc. is high due to the presence of several established players in the bioproducts market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.41%
Debt Cost 3.95%
Equity Weight 98.59%
Equity Cost 8.45%
WACC 8.39%
Leverage 1.43%

11. Quality Control: EcoSynthetix Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Perimeter Solutions

A-Score: 4.8/10

Value: 3.8

Growth: 6.8

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
5N Plus

A-Score: 4.3/10

Value: 1.6

Growth: 4.6

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
EcoSynthetix

A-Score: 3.7/10

Value: 6.6

Growth: 4.7

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.1$

Current Price

4.1$

Potential

-0.00%

Expected Cash-Flows