Burcon NutraScience Corp

Burcon NutraScience Corp has a current liquidity position characterized by a current ratio of 3.83, indicating that the company holds significantly more current assets than current liabilities. However, the company's free cash flow is negative at -1,875,130 CAD, and operating cash flow is also negative at -5,776,990 CAD, suggesting ongoing cash outflows from operations. The company's debt-to-equity ratio is 1.29, which is relatively high and indicates a significant reliance on debt financing.

In terms of profitability, the company is currently unprofitable, with a net income of -2,069,300 CAD and an operating income of -1,820,260 CAD. The return on equity is -40.15%, and the return on assets is -16.03%, both of which are well below the industry norms for a food processing company. These metrics suggest that the company is not generating returns that meet the expectations of its equity and asset base.

The company's revenue is not disclosed by segment or geographic region, but the financial snapshot indicates that the company's operations are concentrated in a single business line. This lack of diversification could pose a risk if the demand for plant-based protein and oil ingredients declines or if the company faces supply chain disruptions. The company's revenue concentration is a concern, as it does not provide a breakdown of revenue by geographic region or product line.

Looking at the company's growth trajectory, the most recent actual revenue was 381,000 CAD, while the mean revenue estimate for the next period is 2,800,000 CAD. This suggests a significant increase in expected revenue, but the company's historical performance shows a decline in revenue to zero in the latest period. The company's capital expenditure is relatively low at -127,110 CAD, indicating minimal investment in new assets or expansion.

The company's risk assessment highlights a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt indicates that the company may face challenges in meeting its short-term obligations. The company's dilution potential is low, but the high debt-to-equity ratio suggests that the company may need to issue additional equity or debt to fund its operations, which could dilute existing shareholders.

Recent events and filings indicate that the company is in a challenging financial position, with negative earnings and cash flows. The company's financial performance has not met analyst expectations, as the last actual EPS was -1.06 CAD, compared to a mean estimate of -0.94 CAD. The company's EBIT is also expected to be significantly negative, with a mean estimate of -8,600,000 CAD. These indicators suggest that the company is not currently in a position to generate positive returns for its shareholders.

Revenue surged 106.9% year-over-year to CAD 381,400 in fiscal 2025, demonstrating strong top-line growth momentum.

The company achieved a four-year revenue CAGR of 10.2%, indicating consistent long-term expansion despite recent volatility.

Cash conversion metrics rank in the top quartile relative to the Food Processing cohort median of 1.02.

Dilution risk is assessed as low, suggesting limited immediate threat to shareholder equity from share issuance.

Net income loss narrowed by 11.0% year-over-year in fiscal 2025, showing slight improvement in profitability trajectory.

Long-term debt skyrocketed to CAD 22.4 million in fiscal 2025, significantly increasing leverage and financial risk.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or securing favorable financing.

Debt-to-equity ratio of 1.29 is in the bottom quartile compared to the cohort median of 0.32.

Revenue C$739.1k, +1 102,0% YoY; Operating income −48,8% YoY.

• ▍Revenue C$739.1k, +1 102,0% YoY
• ▍Operating income −48,8% YoY
• ▍Net income −100,4% YoY
• ▍Free cash flow −83,4% YoY
• ▍Net margin -483.8%

Revenue C$357.2k, +782,8% YoY; Operating income −31,7% YoY.

• ▍Revenue C$357.2k, +782,8% YoY
• ▍Operating income −31,7% YoY
• ▍Net income −52,6% YoY
• ▍Free cash flow −54,5% YoY
• ▍Net margin -1005.9%

Revenue C$342.2k, +44,6% YoY; Operating income −40,4% YoY.

• ▍Revenue C$342.2k, +44,6% YoY
• ▍Operating income −40,4% YoY
• ▍Net income −85,9% YoY
• ▍Free cash flow −57,2% YoY
• ▍Net margin -1015.5%

Revenue C$42.8k; Operating income −6,6% YoY.

• ▍Revenue C$42.8k
• ▍Operating income −6,6% YoY
• ▍Net income −9,1% YoY
• ▍Free cash flow −8,9% YoY
• ▍Net margin -5268.7%

Revenue C$61.5k; Operating income -C$1.8M.

• ▍Revenue C$61.5k
• ▍Operating income -C$1.8M
• ▍Net margin -2901.2%

Revenue C$40.5k; Operating income -C$2.2M.

• ▍Revenue C$40.5k
• ▍Operating income -C$2.2M
• ▍Net margin -5820.5%

Revenue C$381.4k, +106,9% YoY; Operating income −9,7% YoY.

• ▍Revenue C$381.4k, +106,9% YoY
• ▍Operating income −9,7% YoY
• ▍Net income −11,0% YoY
• ▍Free cash flow −12,4% YoY
• ▍Net margin -2167.0%

Revenue C$184.4k, −49,3% YoY; Operating income +54,8% YoY.

• ▍Revenue C$184.4k, −49,3% YoY
• ▍Operating income +54,8% YoY
• ▍Net income +70,6% YoY
• ▍Free cash flow +73,0% YoY
• ▍Net margin -4038.9%

Revenue C$363.9k, +112,2% YoY; Operating income −109,7% YoY.

• ▍Revenue C$363.9k, +112,2% YoY
• ▍Operating income −109,7% YoY
• ▍Net income −147,2% YoY
• ▍Free cash flow −153,6% YoY
• ▍Net margin -6969.9%

Revenue C$171.5k, −33,7% YoY; Operating income −61,0% YoY.

• ▍Revenue C$171.5k, −33,7% YoY
• ▍Operating income −61,0% YoY
• ▍Net income −1 561,3% YoY
• ▍Free cash flow −709,9% YoY
• ▍Net margin -5982.6%

Revenue C$258.6k; Operating income -C$4.6M.

• ▍Revenue C$258.6k
• ▍Operating income -C$4.6M
• ▍Net margin -238.7%