CEA Industries Inc. Common Stock (BNC)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

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

I look for businesses whose earnings are durable and whose assets are tangible. CEA is now a digital asset treasury company with a legacy industrial climate-control segment. That mix is difficult to underwrite. The filed numbers show a core that has not produced consistent profits: FY2022 revenue was $11.3M and net loss $5.5M; FY2023 revenue was $6.9M and net loss $2.9M; FY2024 revenue was $2.8M and net loss $3.1M. In fiscal Q2 2026, the quarter ended 2026-07-31, revenue was $7.2M and net loss $11.4M. There was a spectacular fiscal Q3 2025 gain: net income $283.6M and diluted EPS $5.36, but fiscal Q1 2026 reversed with a $106.6M net loss and diluted EPS -$2.00. That is not a moat; it is volatility from treasury holdings. The balance sheet looks light on debt, with debt-to-equity of 0.06, and the Altman Z-Score is 3.53. But trailing free cash flow is -$9.2M. FairStock's metrics at the 2026-10-13 close of $5.09 show P/B 0.71, P/E 0.01, Graham Number $252.85, and EV/EBITDA 1.33. Those optically cheap numbers are driven by enormous, possibly non-recurring earnings and asset marks, not by stable owner earnings. Fiscal Q2 2026 revenue of $7.2M is larger than FY2024's $2.8M, but that jump does not prove a durable competitive advantage. As a Buffett-Graham investor, I need predictable earnings and a margin of safety based on conservative numbers. I see neither here. The price may look cheap, but the quality and consistency are not there.

In plain English: CEA Industries is a small company that runs a digital asset treasury and also sells climate-control equipment for farms. Its filed results swing wildly: it lost money in fiscal 2022, fiscal 2023, and fiscal 2024, and in fiscal Q2 2026, while fiscal Q3 2025 showed a huge accounting gain. The stock price looks very low compared with its book value and some calculated measures, but those measures rely on one-time items, so the business does not look consistently strong or clearly cheap on durable earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-31) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-10-31) · fiscal Q1 2024 10-Q (period ended 2024-03-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31) · FY2022 10-K (period ended 2022-12-31)

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