EcoSynthetix Inc. (ECO.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

EcoSynthetix Inc., a renewable chemicals company, develops and commercializes bio-based technologies that are used as replacement solutions for synthetic, petrochemical-based adhesives, and other related products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company offers EcoMer biomonomer for use in pressure sensitive adhesives, ink, toner resins, and paints; EcoSphere biolatex, a bio-based latex binder used in paper and paperboard coatings; EcoStix, a family of sugar-acrylic and pressure-sensitive adhesives, which include customizable resin grades and formulated grades; and DuraBind engineered biopolymers that enable manufacturers of particle board, MDF, veneers, and laminates to decrease the amount of highly regulated chemicals, such as formaldehyde in their formulation.Its products are used in various industries, such as paper and paper board; building materials; adhesives, paints, and coatings; films, recyclable packaging, labels, and stamps; and personal care products.

The company was founded in 1996 and is headquartered in Burlington, Canada.

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1.b. Last Insights on ECO

EcoSynthetix's recent performance was driven by a significant purchase order for its proprietary strength aid, SurfLock, from a leading global pulp manufacturer. This order, valued at approximately $800 thousand, represents a second purchase ahead of the original plan, indicating strong demand for the company's bio-based products. Additionally, the company's inclusion in TSX Penny Stocks To Watch In July 2025 highlights its potential as a growth opportunity for investors seeking hidden gems in the market.

1.c. Company Highlights

Last Price	4.8
Change Percentage	-1.64%
Open	4.9
Previous Close	4.88
Market Cap ( Millions)	281
Volume	33450
Year High	5.32
Year Low	3.8
M A 50	4.3
M A 200	4.27

FCF Yield	-0.08%
Dividend Yield	0.00%
ROE	-1.43%
Debt / Equity	0.22%
Net Debt / EBIDTA	580.74%
Price To Book	5.19
Price Earnings Ratio	-358.7
Price To FCF	-1233.95
Price To sales	10.18
EV / EBITDA	-199.38

2. Transcript Summary

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3. NewsRoom

EcoSynthetix Inc (ECSNF) Q3 2025 Earnings Call Highlights: Strong Growth Amid Economic Uncertainty

01:03

Source:

TSX Penny Stocks Under CA$300M Market Cap To Consider

Nov -06

Source:

EcoSynthetix to Host 2025 Third Quarter Results Conference Call

Oct -24

Source:

EcoSynthetix Wins Two New Tissue Lines for SurfLock™ from Relationship with European Distributor

Oct -06

Source:

Promising TSX Penny Stocks To Watch In October 2025

Oct -01

Source:

TSX Penny Stocks To Watch In August 2025

Aug -25

Source:

EcoSynthetix Says Received Second Purchase Order for SurfLock Strength Aids Ahead of Original Plan from Global Pulp Manufacturer

Jul -22

Source:

EcoSynthetix Receives Second Purchase Order for SurfLock™ Strength Aids Ahead of Original Plan from a Leading Global Pulp Manufacturer

Jul -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Biopolymer Nanosphere Technology Platform

Expected Growth: 12.4%

Growing demand for sustainable and biodegradable materials, increasing adoption in biomedical and personal care applications, and expanding industrial uses drive the growth of EcoSynthetix's Biopolymer Nanosphere Technology Platform.

7. Detailed Products

EcoSphere

A biodegradable, non-toxic, and renewable biolatex binder used in the production of paper and paperboard products.

DuraBind

A sustainable, bio-based binder used in the production of various industrial products such as insulation, filtration, and construction materials.

EcoMer

A biodegradable, non-toxic, and renewable biolatex binder used in the production of various industrial products such as adhesives, coatings, and composites.

8. EcoSynthetix Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for EcoSynthetix Inc. is medium due to the availability of alternative bioproducts in the market.

Bargaining Power Of Customers

The bargaining power of customers for EcoSynthetix Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for EcoSynthetix Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for EcoSynthetix Inc. is high due to the growing demand for bioproducts and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for EcoSynthetix Inc. is high due to the presence of several established players in the bioproducts market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.41%
Debt Cost	3.95%
Equity Weight	98.59%
Equity Cost	8.45%
WACC	8.39%
Leverage	1.43%

11. Quality Control: EcoSynthetix Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

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

Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

Perimeter Solutions

A-Score: 4.8/10

Value: 3.8

Growth: 6.8

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

5N Plus

A-Score: 4.3/10

Value: 1.6

Growth: 4.6

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

EcoSynthetix

A-Score: 3.7/10

Value: 6.6

Growth: 4.7

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

98.21%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.39%

EcoSynthetix Inc. - CA27923D1087

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ECO

1.c. Company Highlights

Strong Momentum

Lower Quality

Average Yield

Stable Momentum

Average Growth

Fairly Valued

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Biopolymer Nanosphere Technology Platform

Expected Growth: 12.4%

7. Detailed Products

EcoSphere

DuraBind

EcoMer

8. EcoSynthetix 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: EcoSynthetix Inc. passed 5 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

4.8$

Current Price

4.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA