📊 NSTM Key Takeaways
Is NSTM a Good Investment? Thesis Analysis
NovelStem exhibits critical financial distress with negative stockholders' equity of -$2.1M, indicating liabilities exceed assets and the company is technically insolvent. Revenue has collapsed 42.3% YoY while the company burns cash with negative operating cash flow of -$167.6K and free cash flow of -$303.5K, demonstrating unsustainable business operations. The anomalously high net margin of 735.8% and ROA of 15,075.9% are artifacts of near-zero revenue and negative equity, not operational strength.
Why Buy NSTM? Key Strengths
- Diluted EPS increased 171.4% YoY, though from a negligible base
- Net income of $2.4M appears positive on surface
- Long-term debt of $125.0K is relatively modest in absolute terms
NSTM Investment Risks to Consider
- Negative stockholders' equity of -$2.1M indicates technical insolvency and potential bankruptcy risk
- Revenue collapsed 42.3% YoY to only $323.4K, indicating severe business deterioration
- Negative operating cash flow of -$167.6K and free cash flow of -$303.5K show the company is burning cash unsustainably
- Current and quick ratios of 0.00x indicate severe liquidity crisis with inadequate current assets
- Operating margin of -73.8% shows core business operations are deeply unprofitable
- Liabilities of $2.2M dwarf total assets of $15.8K, creating extreme leverage crisis
- Cash position of only $333 provides minimal runway for operations
- No insider buying activity in past 90 days suggests lack of management confidence
Key Metrics to Watch
- Stockholders' equity trend - path to positive equity or continued deterioration
- Operating cash flow - whether company can achieve positive operating cash generation
- Revenue stabilization - evidence of business recovery or continued decline
- Cash balance - critical solvency indicator given minimal liquidity cushion
- Debt restructuring or capital injection announcements - potential lifeline scenarios
NSTM Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NSTM Profitability Ratios
NSTM vs Consumer Sector
How NovelStem International Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NSTM Overvalued or Undervalued?
Based on fundamental analysis, NovelStem International Corp. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NSTM Balance Sheet & Liquidity
NSTM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NovelStem International Corp.'s revenue has declined by 76% over the 5-year period, indicating business contraction. The most recent EPS of $-0.07 indicates the company is currently unprofitable.
NSTM Growth Metrics (YoY)
NSTM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2013 | $96.0K | -$476.4K | N/A |
| Q2 2013 | $102.4K | -$43.0K | N/A |
| Q1 2013 | $81.1K | -$288.7K | N/A |
| Q3 2012 | $96.0K | -$476.4K | N/A |
| Q1 2012 | $709.9K | -$412.5K | N/A |
| Q3 2011 | $860.6K | -$429.5K | N/A |
| Q2 2011 | $938.4K | $128.6K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NSTM Capital Allocation
NSTM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NovelStem International Corp. (CIK: 0000912544)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NSTM
What is the AI rating for NSTM?
NovelStem International Corp. (NSTM) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NSTM's key strengths?
Claude: Diluted EPS increased 171.4% YoY, though from a negligible base. Net income of $2.4M appears positive on surface.
What are the risks of investing in NSTM?
Claude: Negative stockholders' equity of -$2.1M indicates technical insolvency and potential bankruptcy risk. Revenue collapsed 42.3% YoY to only $323.4K, indicating severe business deterioration.
What is NSTM's revenue and growth?
NovelStem International Corp. reported revenue of $323.4K.
Does NSTM pay dividends?
NovelStem International Corp. does not currently pay dividends.
Where can I find NSTM SEC filings?
Official SEC filings for NovelStem International Corp. (CIK: 0000912544) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NSTM's EPS?
NovelStem International Corp. has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NSTM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NovelStem International Corp. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NSTM stock overvalued or undervalued?
Valuation metrics for NSTM: ROE of N/A (sector avg: 18%), net margin of 735.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy NSTM stock in 2026?
Our dual AI analysis gives NovelStem International Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NSTM's free cash flow?
NovelStem International Corp.'s operating cash flow is $-167.6K, with capital expenditures of $135.9K. FCF margin is -93.8%.
How does NSTM compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 735.8% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.00 (avg: 1.5).