📊 ETST Key Takeaways
Is Earth Science Tech, Inc. (ETST) a Good Investment?
Earth Science Tech demonstrates exceptional profitability metrics with 73.3% gross margins and 8.9% net margins, supported by strong returns on equity (40.4%) and assets (29.0%). However, the astronomical 156,396% revenue growth warrants extreme scrutiny regarding sustainability, accounting quality, and whether this represents genuine business expansion or potential restatement risk. Critical due diligence is required on revenue recognition and the underlying drivers of this unprecedented growth before increasing conviction.
Earth Science Tech shows a sharp improvement in scale and has turned profitable, with strong gross margins, positive operating income, and positive free cash flow. The balance sheet is lightly levered and returns on equity and assets are strong, but the quality and durability of growth remain uncertain given the extreme revenue jump, modest free cash flow margin, and only moderate liquidity. Fundamentally, the company looks improved but still too fragile to justify a more aggressive rating without clearer evidence that earnings and cash generation can sustain.
Why Buy Earth Science Tech, Inc. Stock? ETST Key Strengths
- Exceptional gross margin of 73.3% indicates strong pricing power and efficient manufacturing
- Excellent profitability with 8.9% net margin and 40.4% ROE suggests efficient capital deployment
- Minimal leverage with 0.01x debt-to-equity ratio and strong interest coverage of 132.6x provides financial flexibility
- Positive free cash flow generation of $453.6K demonstrates ability to convert profits to cash
- Revenue and earnings improved substantially, with positive operating and net income
- High gross margin of 73.3% indicates strong product-level economics
- Very low leverage and strong interest coverage reduce financial distress risk
ETST Stock Risks: Earth Science Tech, Inc. Investment Risks
- Extreme revenue growth of 156,396% YoY is mathematically implausible for organic pharmaceutical company and raises red flags for accounting errors, prior year anomalies, or unsustainable one-time events
- Very low cash position of $415.7K relative to $26.2M revenue creates liquidity concerns and limits operational flexibility for a pharmaceutical business
- Quick ratio of 0.86x indicates potential short-term liquidity stress despite adequate current ratio, suggesting inventory concentration or receivables quality issues
- Zero insider Form 4 filings in last 90 days indicates lack of insider confidence or potential restricted trading periods
- Revenue growth appears unusually extreme, raising questions about sustainability and comparability
- Quick ratio of 0.86x and low cash balance of $415.70K suggest limited near-term liquidity cushion
- Free cash flow margin of 1.7% is thin relative to reported profitability, which may signal weaker cash conversion
Key Metrics to Watch
- Revenue sustainability and composition in subsequent quarters to verify this growth is not a one-time event or accounting anomaly
- Cash position trend and working capital management given low absolute cash levels relative to revenue scale
- Accounts receivable aging and collection rates to validate revenue quality and customer creditworthiness
- Operating cash flow consistency relative to net income given reliance on non-cash adjustments
- Gross margin maintenance as revenue scales to confirm sustainability of 73.3% margin
- Operating cash flow and free cash flow conversion relative to net income
- Current ratio, quick ratio, and cash balance trend
Earth Science Tech, Inc. (ETST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility.
ETST Profit Margin, ROE & Profitability Analysis
ETST vs Healthcare Sector: How Earth Science Tech, Inc. Compares
How Earth Science Tech, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Earth Science Tech, Inc. Stock Overvalued? ETST Valuation Analysis 2026
Based on fundamental analysis, Earth Science Tech, Inc. appears fundamentally strong relative to the Healthcare 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.
Earth Science Tech, Inc. Balance Sheet: ETST Debt, Cash & Liquidity
ETST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Earth Science Tech, Inc.'s revenue has grown significantly by 6,194% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 reflects profitable operations.
ETST Revenue Growth, EPS Growth & YoY Performance
ETST Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.4M | $206.4K | $0.00 |
| Q2 2026 | $8.5M | $798.4K | $0.00 |
| Q3 2025 | $3.8M | $206.4K | $0.00 |
| Q2 2025 | $1.9M | $357.4K | $0.00 |
| Q1 2025 | $219.9K | -$35.6K | $0.00 |
| Q3 2023 | $2.5K | -$30.7K | N/A |
| Q2 2023 | $1.9M | -$73.7K | N/A |
| Q1 2023 | $7.5K | -$22.4K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Earth Science Tech, Inc. Dividends, Buybacks & Capital Allocation
ETST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Earth Science Tech, Inc. (CIK: 0001538495)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ETST
What is the AI rating for ETST?
Earth Science Tech, Inc. (ETST) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 52% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETST's key strengths?
Claude: Exceptional gross margin of 73.3% indicates strong pricing power and efficient manufacturing. Excellent profitability with 8.9% net margin and 40.4% ROE suggests efficient capital deployment. ChatGPT: Revenue and earnings improved substantially, with positive operating and net income. High gross margin of 73.3% indicates strong product-level economics.
What are the risks of investing in ETST?
Claude: Extreme revenue growth of 156,396% YoY is mathematically implausible for organic pharmaceutical company and raises red flags for accounting errors, prior year anomalies, or unsustainable one-time events. Very low cash position of $415.7K relative to $26.2M revenue creates liquidity concerns and limits operational flexibility for a pharmaceutical business. ChatGPT: Revenue growth appears unusually extreme, raising questions about sustainability and comparability. Quick ratio of 0.86x and low cash balance of $415.70K suggest limited near-term liquidity cushion.
What is ETST's revenue and growth?
Earth Science Tech, Inc. reported revenue of $26.2M.
Does ETST pay dividends?
Earth Science Tech, Inc. does not currently pay dividends.
Where can I find ETST SEC filings?
Official SEC filings for Earth Science Tech, Inc. (CIK: 0001538495) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ETST's EPS?
Earth Science Tech, Inc. has a diluted EPS of $0.01.
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 ETST a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Earth Science Tech, Inc. has a HOLD rating with 52% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ETST stock overvalued or undervalued?
Valuation metrics for ETST: ROE of 40.4% (sector avg: 15%), net margin of 8.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy ETST stock in 2026?
Our dual AI analysis gives Earth Science Tech, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ETST's free cash flow?
Earth Science Tech, Inc.'s operating cash flow is $1.1M, with capital expenditures of $601.5K. FCF margin is 1.7%.
How does ETST compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.9% (avg: 12%), ROE 40.4% (avg: 15%), current ratio 1.34 (avg: 2).
Why is ETST's return on equity (ROE) so high?
Earth Science Tech, Inc. has a return on equity of 40.4%, significantly above the Healthcare sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 8.9% net margin.