One-glance verdict
Undervalued
$6.32 our estimate vs market $1.57
Wall Street consensus: $7.00 (10.7% higher than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
TOMI Environmental Solutions, Inc.
TOMZ · NCM · Industrials · Pollution & Treatment Controls
Current price
$1.57
52-week range
$1.21 - $3.33
Market cap
$15.42M
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 special equipment and solutions to clean and disinfect places like hospitals and schools, mainly in the United States and other countries. Their business relies on selling these cleaning systems and supplies, and it matters because their products help keep environments safe from germs.
How the company got here
TOMI Environmental Solutions, Inc. was founded in 1979 and has evolved into a global company specializing in disinfection and decontamination. Its core technology, Binary Ionization Technology (BIT), was developed with initial funding from a defense grant in association with the U.S. Department of Defense's DARPA, stemming from research after the 2001 anthrax attacks. The company has since focused on refining this technology, which uses ionized hydrogen peroxide (iHP) to create a germ-killing aerosol. TOMI has expanded its reach internationally, securing approvals in numerous European countries and establishing a global network of partners.
What it actually does
TOMI Environmental Solutions provides advanced disinfection and decontamination products and services under the SteraMist brand. Their core offering is a technology that uses ionized hydrogen peroxide (iHP) to create a mist that effectively kills germs on surfaces and in the environment. This technology is designed to be a safer and more effective alternative to traditional cleaning chemicals. The company's solutions are used across a wide range of industries to ensure clean and safe indoor environments.
SteraMist Products
The primary business line for TOMI is its SteraMist product family, which utilizes the company's patented Binary Ionization Technology (BIT). This technology transforms a low-percentage hydrogen peroxide solution into an ionized hydrogen peroxide (iHP) fog or mist. This iHP mist is a powerful disinfectant that can reach areas traditional cleaning methods might miss. Products include portable units like SteraPak for targeted disinfection, larger Environment Systems for whole-room decontamination, and custom-engineered systems for large-scale applications. These products are sold to various sectors, including healthcare, life sciences, and commercial facilities.
SteraMist Service and Support
Beyond selling equipment, TOMI also generates revenue through its SteraMist Service and Support division. This segment focuses on providing ongoing services such as training programs, application protocols, maintenance, and qualification testing for its clients. This recurring revenue stream is built on ensuring customers can effectively and safely use the SteraMist technology. The company actively works with clients, including government agencies and large pharmaceutical partners, to provide these essential support services.
What management is betting on now
TOMI's management is strategically focusing on expanding its recurring revenue base through increased sales of its BIT Solution consumables and growing its SteraMist Corporate Service contracts. They are also actively pursuing new growth markets, including the integration of their iHP technology into autonomous systems like robotaxis, drones, and robotics. This includes developing concepts for fleet depots and automated decontamination cycles, positioning TOMI at the intersection of AI, autonomous systems, and biosecurity to drive future growth.
Price history
How the share price has moved
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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 $6.32 vs current price $1.57
Wall Street consensus is the average analyst price target: $7.00 (10.7% higher than our fair-value estimate).
Our most-likely fair value is $6.32 a share — about 301.3% above today's price of $1.57, 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 $6.70M 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)
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Forward P/E
13.13x
P/B
9.00x
P/S
2.23x
EV/EBITDA
-5.84x
PEG ratio
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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
-0.50
EPS 5Y CAGR
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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
0.0%
Payout ratio
0.0%
Last ex-div date
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