One-glance verdict
Undervalued
$16.47 our estimate vs market $1.62
Wall Street consensus: $7.00 (-57.5% lower than our fair-value estimate)
90% below our estimate, below the bear case
Fundamentals snapshot
TOMI Environmental Solutions, Inc.
TOMZ · NCM · Industrials · Pollution & Treatment Controls
Current price
$1.62
52-week range
$1.39 - $3.42
Market cap
$13.19M
Balance sheet
Distressed
-7.47x Concerning
Net debt $3.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 23.0% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -168.8% last year — the company lost money on shareholders' equity.
What this company does
TOMI Environmental Solutions, Inc.
TOMI Environmental Solutions sells a patented misting technology called SteraMist that is used to disinfect and decontaminate surfaces and entire rooms. The company makes money by selling these systems to a wide range of customers, including hospitals, pharmaceutical labs, cruise ships, and schools. This diverse customer base is important because it means the company's success isn't tied to the health of just one specific industry.
How the company got here
TOMI Environmental Solutions was incorporated in 1979 and for many years operated in the decontamination industry. A major turning point came in 2013 when the company acquired a powerful disinfection technology called Binary Ionization Technology (BIT). This technology was originally developed with funding from DARPA, a research agency of the U.S. Department of Defense, to neutralize weaponized anthrax. TOMI then commercialized this technology under the brand name SteraMist, creating a line of products for use in hospitals, labs, and other sensitive environments.
What it actually does
TOMI sells a specialized system for disinfecting rooms and surfaces that goes far beyond typical cleaning sprays. Their main product, SteraMist, uses a low-concentration hydrogen peroxide solution and turns it into a fine, ionized mist or fog. This mist, which behaves like a gas, can reach into tiny cracks and hard-to-reach areas that normal cleaning can't, killing a wide range of germs like viruses, bacteria, and mold spores. After it works, the mist breaks down into harmless water and oxygen, leaving no toxic residue behind.
SteraMist Products
This is the company's largest business area, focused on selling the equipment that creates the disinfecting mist. Customers like hospitals, pharmaceutical manufacturers, and research labs buy different types of SteraMist machines, from handheld sprayers for specific surfaces to larger, automated systems that can disinfect an entire room. The company makes money from the initial sale of this hardware, which follows a 'razor and blade' model: once a customer buys the main equipment (the razor), they must continuously buy the company's specific disinfectant solution (the blades) to use it. This creates an ongoing stream of revenue (money the company earns) from repeat solution sales.
iHP Services
Besides selling the equipment, TOMI also offers a service where its own trained technicians perform decontaminations for customers. This is for organizations that need a high level of disinfection but may not want to buy and operate the equipment themselves. The company also earns money through service contracts, support, and training for customers who own SteraMist systems. While smaller than product sales, this segment provides a steady and recurring source of income.
What management is betting on now
The company is focused on expanding its sales in high-growth areas like pharmaceutical manufacturing and biosecurity. A major priority is increasing international sales, with recent efforts to gain approvals and partnerships in Europe, Asia, and Canada. Management is also targeting new, innovative markets for its technology, such as disinfecting autonomous vehicles like robotaxis. Additionally, the company is pursuing a merger with a nuclear-grade graphite producer, which it sees as a strategic move into the clean energy and AI infrastructure sectors.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$99.93K
FY2024 Q4
$9.48K
FY2025 Q1
$-275.70K
FY2025 Q2
$-190.27K
FY2025 Q3
$-113.48K
FY2025 Q4
$-622.37K
FY2026 Q1
$290.22K
FY2026 Q2
$-1.59M
Revenue
$2.25M
Net income
$-382.30K
Diluted EPS
-0.05
Operating cash flow
$-1.59M
Free cash flow
$-1.59M
Fetching…
Sources
Revenue
$1.65M
Net income
$-810.64K
Diluted EPS
-0.04
Operating cash flow
$295.55K
Free cash flow
$290.22K
Fetching…
Sources
Revenue
$1.02M
Net income
$-1.81M
Diluted EPS
-0.10
Operating cash flow
$-619.87K
Free cash flow
$-622.37K
Fetching…
Sources
Revenue
$2.01M
Net income
$-450.35K
Diluted EPS
-0.02
Operating cash flow
$-113.48K
Free cash flow
$-113.48K
Fetching…
Sources
Revenue
$1.03M
Net income
$-1.24M
Diluted EPS
-0.06
Operating cash flow
$-187.60K
Free cash flow
$-190.27K
Fetching…
Sources
Revenue
$1.58M
Net income
$-255.59K
Diluted EPS
-0.01
Operating cash flow
$-275.70K
Free cash flow
$-275.70K
Fetching…
Sources
Revenue
$1.07M
Net income
$-3.26M
Diluted EPS
-0.15
Operating cash flow
$12.71K
Free cash flow
$9.48K
Fetching…
Sources
Revenue
$2.54M
Net income
$58.96K
Diluted EPS
0.00
Operating cash flow
$105.31K
Free cash flow
$99.93K
Fetching…
Sources
Is it cheap or expensive?
Fair value $16.47 vs current price $1.62
Wall Street consensus is the average analyst price target: $7.00 (-57.5% lower than our fair-value estimate).
Our most-likely fair value is $16.47 a share — about 916.4% above today's price of $1.62, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $3.1M. Interest coverage -7.5x.
Net debt
$3.07M
Interest coverage
-7.47x
TOMI Environmental Solutions, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TOMZ
BASELINE
TOMI Environmental Solutions, Inc.
Total debt $3.39M Interest coverage -7.47x This is the baseline the peer rows are being compared against.
Total debt $441.00K Interest coverage -21.31x Neither company has much profit cushion over interest right now.
Total debt $16.00K Interest coverage 74.64x This peer still has a real interest-payment cushion, while TOMZ does not.
Total debt $117.00K Interest coverage -13.52x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -134.38x Neither company has much profit cushion over interest right now.
Total debt $8.04M Interest coverage -29.62x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TOMZ
2 Rewards
1 Risk
Rewards
-
Revenue grew 23.0% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -168.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
13.50x
P/B
—
P/S
1.90x
EV/EBITDA
-6.25x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
52.9%
Operating margin
-10.9%
Net margin
-49.8%
ROE
-168.8%
ROA
-21.0%
Health
Liquidity and balance-sheet strength
Debt / equity
2.38x
Current ratio
1.49x
Quick ratio
0.60x
Total debt
$3.39M
Total cash
$321.90K
Growth
How the business has been compounding
Revenue TTM
$6.93M
Revenue 5Y CAGR
-7.7%
EPS TTM
-0.52
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-2.03M
Free CF TTM
$-1.20M
FCF margin
-17.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—