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BluMetric Environmental Inc. (Market Cap: C$52.47M; Price: C$1.40) is a Canadian environmental solutions and CleanTech company operating under two main divisions: Watertech, which focuses on engineered and manufactured water solutions, and Professional Services, known for its strong client relationships and impressive 92% client retention rate.
Under new management, BluMetric has spent the past few years resolving legacy challenges and is now well-positioned for strategic growth, both organically and through acquisitions.
On the organic growth side, BluMetric is pursuing opportunities in high-value military markets. Recent milestones include a C$3.8 million contract with Thales Canada, a C$5.8 million Master Service Agreement with the Canadian Department of National Defense for water purification systems, and a $12.2 million contract with Rheinmetall Canada to produce 26 self-contained water treatment units for the Canadian Armed Forces.
In terms of inorganic growth, Blumetric recently acquired Gemini, expanding its water technology footprint in the U.S. market. To accelerate growth, BluMetric doubled Gemini’s workforce and expanded production capacity from 10,000 to 25,000 square feet.
BluMetric is currently unprofitable; however, analysts estimate the company will generate C$0.10 in EPS in FY2026, implying a price-to-earnings multiple of 14.0x, which is relatively attractive.
On an EV/TTM sales basis, BluMetric trades at 0.89x, well below its peer group. Comparable water technology companies, such as BQE Water Inc. and Consolidated Water Co. Ltd., trade at 2.00x and 3.64x sales, respectively. In the professional services sector, larger peers like WSP Global Inc. and Tetra Tech Inc. trade at 2.37x and 1.73x sales. Given this discount to peers, combined with BluMetric’s organic growth prospects and potential strategic M&A opportunities, there appears to be meaningful upside for multiple expansion.
The primary risks facing BluMetric include M&A execution and integration, lengthy government contracting cycles, potential tariff and supply chain disruptions, and the time required to scale U.S. operations.