Pharma-Bio Serv Inc

Pharma-Bio Serv Inc operates with a strong liquidity position, as evidenced by a current ratio of 7.52 and $3.51 million in cash and equivalents, which is significantly higher than the industry median for liquidity. The company has no long-term debt, and its debt-to-equity ratio is 0.0, indicating a conservative capital structure with no leverage. However, the company reported negative operating and net income in the latest period, with operating income of -$313,370 and net income of -$213,820.

The company's profitability metrics are below industry norms, with a return on equity of -1.53% and a return on assets of -1.26%. These figures indicate that the company is not generating returns for shareholders or effectively utilizing its assets. Gross profit of $618,480 on $2.38 million in revenue suggests a gross margin of approximately 26%, which is in line with the industry median for business support services. However, the company's operating margin is negative, indicating that operating expenses exceed gross profit.

Pharma-Bio Serv Inc's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification provided in the available data. The company's operations are entirely within the business support services industry, and there is no indication of multiple revenue streams or geographic expansion. This lack of diversification increases the company's exposure to sector-specific risks.

The company's growth trajectory is uncertain, as the latest financial data shows a decline in profitability. Analysts have set a mean price target of $1.50, which is unchanged from the previous period, and a mean revenue estimate of $11.5 million for the next period, compared to $2.38 million in the latest reported period. The discrepancy between the analyst revenue estimate and the actual revenue suggests a potential for growth, but the company must address its profitability issues to meet these expectations.

Risk factors for Pharma-Bio Serv Inc include its negative net income and operating income, which could affect its ability to sustain operations without external financing. The company has no immediate filing-based liquidity or dilution flags, and its dilution risk is assessed as low. However, the company's free cash flow is negative at -$208,310, and its operating cash flow is only $25,200, which may limit its ability to fund operations or invest in growth opportunities.

Recent events and filings do not indicate any material changes in the company's operations or financial position. The company has not issued any new shares or raised capital in the latest period, and there are no upcoming events or regulatory actions that could impact its operations. The company's financial statements show no significant changes in its capital structure or liquidity position, and there are no indications of material risks in the latest filings.

Analysts project a 255% upside to a $1.50 target price, significantly above the current market price of $0.42.

The company maintains a zero long-term debt position, resulting in a debt-to-equity ratio of 0.00.

Pharma-Bio Serv Inc exhibits low dilution risk and low liquidity risk according to internal risk flag assessments.

The firm holds a strong current ratio of 7.70, indicating robust short-term liquidity relative to current liabilities.

Capital expenditure intensity is minimal at -0.03% of revenue, placing it in the top quartile of the cohort.

Free cash flow turned negative again at -$1.77 million in FY2026, worsening from the previous year's position.

Return on equity is negative at -1.53%, ranking in the bottom quartile among 378 comparable business support services firms.

Revenue $2.3M, −7,1% YoY; Operating income −2,5% YoY.

• ▍Revenue $2.3M, −7,1% YoY
• ▍Operating income −2,5% YoY
• ▍Net income +284,8% YoY
• ▍Free cash flow +151,7% YoY
• ▍Net margin 1.4%

Revenue $2.1M, −7,9% YoY; Operating income +13,5% YoY.

• ▍Revenue $2.1M, −7,9% YoY
• ▍Operating income +13,5% YoY
• ▍Net income −100,6% YoY
• ▍Free cash flow +111,4% YoY
• ▍Net margin -0.0%

Revenue $2.0M, −18,8% YoY; Operating income +17,8% YoY.

• ▍Revenue $2.0M, −18,8% YoY
• ▍Operating income +17,8% YoY
• ▍Net income +33,9% YoY
• ▍Free cash flow +37,8% YoY
• ▍Net margin -10.4%

Revenue $2.4M, +1,7% YoY; Operating income +68,6% YoY.

• ▍Revenue $2.4M, +1,7% YoY
• ▍Operating income +68,6% YoY
• ▍Net income +144,6% YoY
• ▍Free cash flow +152,8% YoY
• ▍Net margin 3.9%

Revenue $2.5M; Operating income -$92.2k.

• ▍Revenue $2.5M
• ▍Operating income -$92.2k
• ▍Net margin 0.3%

Revenue $2.3M; Operating income -$154.1k.

• ▍Revenue $2.3M
• ▍Operating income -$154.1k
• ▍Net margin 0.7%

Revenue $2.4M; Operating income -$381.8k.

• ▍Revenue $2.4M
• ▍Operating income -$381.8k
• ▍Net margin -12.8%

Revenue $2.4M; Operating income -$313.4k.

• ▍Revenue $2.4M
• ▍Operating income -$313.4k
• ▍Net margin -9.0%

Revenue $9.0M, −5,3% YoY; Operating income +50,5% YoY.

• ▍Revenue $9.0M, −5,3% YoY
• ▍Operating income +50,5% YoY
• ▍Net income +87,1% YoY
• ▍Free cash flow +33,0% YoY
• ▍Net margin -1.1%

Revenue $9.5M, −44,0% YoY; Operating income −215,2% YoY.

• ▍Revenue $9.5M, −44,0% YoY
• ▍Operating income −215,2% YoY
• ▍Net income −159,3% YoY
• ▍Free cash flow −607,2% YoY
• ▍Net margin -8.2%

Revenue $17.0M, −12,5% YoY; Operating income −4,9% YoY.

• ▍Revenue $17.0M, −12,5% YoY
• ▍Operating income −4,9% YoY
• ▍Net income +30,1% YoY
• ▍Free cash flow +84,5% YoY
• ▍Net margin 7.7%

Revenue $19.4M, −3,6% YoY; Operating income +161,9% YoY.

• ▍Revenue $19.4M, −3,6% YoY
• ▍Operating income +161,9% YoY
• ▍Net income +148,2% YoY
• ▍Free cash flow +35,9% YoY
• ▍Net margin 5.2%