Biomerica Inc. Common Stock (BMRA)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, generate cash, and sell below intrinsic value. Biomerica fails the first two tests. In fiscal FY2026 ended 2026-05-31, revenue was $4.5 million and net loss was $3.8 million; FY2025 revenue was $5.3 million with a $5.0 million loss; FY2024 revenue was $5.4 million with a $6.0 million loss. Revenue has drifted down from $5.4 million to $4.5 million while losses, though narrower, remain severe. The latest quarter shown had revenue of $875,000 and a net loss of $1.1 million. Trailing free cash flow is negative $3.4 million, a -40.2% FCF yield on an $8.5 million market cap. That is a business consuming capital, not compounding it. Financial strength is poor: FairStock calculations show a Piotroski F-Score of 2/9, Altman Z-score of -10.90, ROE of -112.10%, ROCE of -52.35%, and D/E of 0.91. At the 2026-10-13 close of $1.85, the stock trades at 2.26 times book despite negative returns, so there is no Graham-style margin of safety in the accounts. A moat? I see a 50-employee diagnostic company with no demonstrated pricing power; it has four straight loss years and no Lynch category. The supplied growth figures of 16.82% revenue growth and 25.84% profit growth do not offset persistent losses and cash burn. The burden of proof remains on durable positive cash flow and a stronger balance sheet.

In plain English: Biomerica makes diagnostic test kits and some therapeutic products. The business is losing money, its annual sales have slipped in recent years, and it uses more cash than it brings in. At $1.85, the price does not look clearly cheap for a company with these weak numbers, even though it is near the low end of its 52-week range.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · fiscal Q3 2025 10-Q (period ended 2025-02-28) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer