Biomerica, Inc. (BMRA) | Investment Case

1. Company Snapshot

1.a. Company Description

Biomerica, Inc., a biomedical technology company, develops, patents, manufactures, and markets diagnostic and therapeutic products for the detection and/or treatment of medical conditions and diseases worldwide.The company's diagnostic test kits are used to analyze blood, urine, or fecal specimens 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 patient's body and stools or blood in extremely small concentrations.It primarily sells its products for gastrointestinal diseases, food intolerances, diabetes, and various esoteric tests at the physicians' offices and over-the-counter drugstores, and hospital/clinical laboratories.

The company is also developing InFoods, an irritable bowel syndrome therapy technology and diagnostic-guided therapy; Helicobacter pylori products, as well as develops, tests, validates, and sells diagnostic products for COVID-19 infection.Biomerica, Inc.was incorporated in 1971 and is headquartered in Irvine, California.

Show Full description

1.b. Last Insights on BMRA

Biomerica's recent performance has been driven by a series of positive developments. The company's prostate screening test, Fortel, received approval in the United Arab Emirates, expanding its global reach. Additionally, Biomerica's food intolerance tests for Crohn's Disease and Ulcerative Colitis achieved IVDR certification in the European Union, further solidifying its position in the medical diagnostic space. The company's inFoods IBS clinical trial results, published in Gastroenterology, demonstrated the effectiveness of its dietary therapy in reducing abdominal pain for IBS patients. Furthermore, Biomerica reported a 5% year-over-year revenue increase in its Q2 fiscal 2025 financial results, showcasing sustained revenue growth and improved gross margins.

1.c. Company Highlights

Last Price	2.31
Change Percentage	0.30%
Open	2.29
Previous Close	2.3
Market Cap ( Millions)	7
Volume	850
Year High	10.16
Year Low	2.08
M A 50	2.66
M A 200	3.48

FCF Yield	-41.72%
Dividend Yield	0.00%
ROE	-73.44%
Debt / Equity	7.24%
Net Debt / EBIDTA	77.52%
Price To Book	1.18
Price Earnings Ratio	-1.67
Price To FCF	-2.4
Price To sales	1.36
EV / EBITDA	-1.14

2. Transcript Summary

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3. NewsRoom

Biomerica's inFoods® IBS Product Featured in Biotherapeutics Quarterly, a Henry Schein Publication, Highlighting a New Precision Approach for Treating IBS

Nov -25

Source: globenewswire.com

Biomerica Expands Contract Development and Manufacturing Services to Meet Growing Market Demand

Nov -06

Source: globenewswire.com

Henry Schein and Biomerica Enter into Marketing Services Agreement for Biomerica's inFoods® IBS Test in the U.S.

Oct -16

Source: globenewswire.com

Biomerica Reports First Quarter Fiscal 2026 Financial Results

Oct -15

Source: globenewswire.com

Gary Huff, Former CEO of LabCorp Diagnostics, Appointed to Biomerica Board of Directors

Oct -08

Source: globenewswire.com

United Arab Emirates Ministry of Health and Prevention Approves Biomerica's Fortel® Kidney Test for Home Use

Sep -03

Source: globenewswire.com

Biomerica Reports Fiscal 2025 Year End Results

Aug -29

Source: globenewswire.com

United Arab Emirates Ministry of Health and Prevention Approves Biomerica's Fortel® Ulcer Test for Home Use

Aug -14

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.78%)

6. Segments

Clinical Lab

Expected Growth: 10.2%

Increasing demand for point-of-care diagnostics, growing incidence of gastrointestinal infections and inflammatory bowel disease, and rising adoption of rapid diagnostic tests drive the growth of Clinical Lab from Biomerica, Inc.

Over-the-counter

Expected Growth: 10.2%

Growing demand for self-monitoring and preventive healthcare, increasing awareness of chronic diseases, and advancements in diagnostic technologies drive the OTC diagnostic tests market growth.

Contract Manufacturing

Expected Growth: 8.1%

The contract manufacturing market is driven by increasing demand for outsourcing, reducing production costs, and focusing on core competencies. Biomerica's outsourcing strategy enables the company to allocate resources to product development and innovation, fueling growth in the contract manufacturing segment.

Physicians' Office

Expected Growth: 10.5%

Growing demand for point-of-care diagnostics, increasing prevalence of gastrointestinal disorders, and the need for rapid and accurate diagnosis in physician offices drive the growth of Biomerica's Physicians' Office diagnostic test.

7. Detailed Products

InFoods IBS

A diagnostic guided therapy that helps identify specific food sensitivities and provides personalized dietary recommendations for patients with IBS symptoms.

HP Detect

A rapid, non-invasive diagnostic test for detecting H. pylori bacteria, which can cause stomach ulcers and other gastrointestinal issues.

AZO Urinary Tract Infection (UTI) Test

A rapid, point-of-care test for detecting UTIs, providing accurate results in just minutes.

Aware Breast Self Exam (BSE) Aid

A device designed to help women perform more effective breast self-exams, promoting early detection and treatment of breast cancer.

8. Biomerica, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Biomerica, Inc. has a moderate threat of substitutes due to the availability of alternative diagnostic tests and treatments for gastrointestinal diseases.

Bargaining Power Of Customers

Biomerica, Inc.'s customers, primarily healthcare providers and patients, have limited bargaining power due to the company's specialized products and services.

Bargaining Power Of Suppliers

Biomerica, Inc. relies on a few key suppliers for raw materials and components, giving them moderate bargaining power.

Threat Of New Entrants

The biotechnology industry has high barriers to entry, including significant research and development costs, making it difficult for new entrants to compete with Biomerica, Inc.

Intensity Of Rivalry

The in vitro diagnostics market is highly competitive, with several established companies competing for market share, resulting in a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.45%
Debt Cost	3.95%
Equity Weight	91.55%
Equity Cost	-0.71%
WACC	-0.31%
Leverage	9.23%

11. Quality Control: Biomerica, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Nevro

A-Score: 4.7/10

Value: 9.2

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

Alphatec Holdings

A-Score: 4.5/10

Value: 6.6

Growth: 5.4

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Butterfly Network

A-Score: 3.8/10

Value: 7.0

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

Senseonics Holdings

A-Score: 3.7/10

Value: 6.0

Growth: 5.6

Quality: 2.5

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

Biomerica

A-Score: 3.6/10

Value: 8.2

Growth: 2.8

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 0.7

1-Year Total Return ->

Inogen

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.57%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-0.31%

Biomerica, Inc. - US09061H3075

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BMRA

1.c. Company Highlights

Lower Growth

Medium Volatility

Average Quality

Cheaper

Fairly Valued

More Volatile

Strong Momentum

Average Growth

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.78%)

6. Segments

Clinical Lab

Expected Growth: 10.2%

Over-the-counter

Expected Growth: 10.2%

Contract Manufacturing

Expected Growth: 8.1%

Physicians' Office

Expected Growth: 10.5%

7. Detailed Products

InFoods IBS

HP Detect

AZO Urinary Tract Infection (UTI) Test

Aware Breast Self Exam (BSE) Aid

8. Biomerica, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Biomerica, Inc. passed 3 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.31$

Current Price

2.31$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA