Energy Resources of Australia Class A (ERA) AI Stock Analysis

• Market Cap: AU$1.62B
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: -100.00%
• EPS Growth: 98.06%
• Country: AU
• Employees: 190
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): 0.00
• Shares Outstanding: 405,396,250,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: <0.01
• Price to Book (P/B): -0.17
• Price to Sales (P/S): 5.30
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: <$0.01 ▼(-10.00% Downside)

The overall stock score for Energy Resources of Australia Class A is significantly impacted by its poor financial performance, characterized by declining revenues, substantial losses, and negative equity. The lack of technical analysis data further limits the ability to assess the stock's potential. The absence of valuation metrics and earnings call insights prevents a comprehensive evaluation, resulting in a low overall score.

Positive Factors

Environmental Rehabilitation

Securing the rehabilitation authority ensures ERA's compliance with regulations and commitment to sustainable practices, enhancing its long-term operational credibility and environmental stewardship.

Strategic Partnerships

Strategic partnerships and joint ventures enhance ERA's operational capabilities and market reach, providing a competitive advantage and supporting long-term revenue stability.

High Gross Profit Margins

High gross profit margins indicate strong pricing power and cost management, which can support long-term profitability if operational inefficiencies are addressed.

Negative Factors

Financial Instability

Negative equity and liabilities exceeding assets highlight financial instability, limiting ERA's ability to invest in growth and potentially requiring restructuring.

Declining Revenue

Declining revenue trends suggest challenges in market demand or competitive positioning, which could impact long-term growth prospects unless reversed.

Cash Flow Challenges

Persistent negative cash flows indicate operational inefficiencies and financial strain, potentially affecting ERA's ability to fund operations and growth initiatives.

Energy Resources of Australia Class A Business Overview & Revenue Model

Company Description

Energy Resources of Australia Class A (ERA) is a leading Australian company engaged in the exploration, mining, and processing of uranium, primarily at its Ranger Project located in the Northern Territory. The company operates within the energy sector, focusing on the production of uranium oxide, which serves as a critical fuel source for nuclear power generation. ERA is committed to sustainable practices and environmental stewardship while contributing to Australia's energy resources and supporting the global transition towards cleaner energy alternatives.

How the Company Makes Money

ERA primarily generates revenue through the sale of uranium oxide, which is sold to various nuclear power plants and energy companies worldwide. The company operates under a long-term sales agreement with key customers, which provides a stable revenue stream. Additionally, ERA benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The fluctuating global price of uranium also significantly impacts its earnings, as higher market prices can lead to increased revenue from sales. Cost management and operational efficiency are essential for maintaining profitability, especially in a competitive mining sector.

Energy Resources of Australia Class A Financial Statement Overview

Summary

Energy Resources of Australia Class A is facing significant financial challenges. The company is struggling with declining revenues, substantial losses, and negative equity. Operational inefficiencies and high costs are evident in the negative profit margins. The negative cash flows further exacerbate the financial instability, indicating a need for strategic restructuring or capital infusion to stabilize operations.

Income Statement

The company has experienced declining revenue over the years, with a negative revenue growth rate of -5.02% in the most recent year. Gross profit margins are high at 98.71%, but net profit margins are significantly negative at -676.69%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative due to negative equity, and the return on equity is positive but misleading due to the negative equity base. The equity ratio is also negative, highlighting financial instability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a declining free cash flow growth rate of -7.51%. The operating cash flow to net income ratio is negative, indicating cash outflows exceed income. The free cash flow to net income ratio is slightly above 1, suggesting cash flow issues despite accounting losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.24M	36.35M	34.18M	35.55M	190.35M	242.46M
Gross Profit	-39.65M	35.88M	33.08M	12.80M	-640.07M	156.65M
EBITDA	-12.60M	-135.06M	18.74M	-53.77M	-627.51M	40.47M
Net Income	-134.98M	-245.97M	-1.39B	-160.55M	-650.21M	11.46M
Balance Sheet
Total Assets	1.26B	1.35B	828.80M	679.77M	855.93M	1.00B
Cash, Cash Equivalents and Short-Term Investments	690.90M	791.33M	216.95M	87.12M	163.87M	204.35M
Total Debt	233.00K	385.00K	680.00K	13.22M	93.00K	1.77M
Total Liabilities	2.41B	2.46B	2.46B	1.28B	1.30B	785.57M
Stockholders Equity	-1.15B	-1.11B	-1.63B	-603.66M	-442.42M	214.58M
Cash Flow
Free Cash Flow	-195.26M	-184.02M	-223.32M	-147.19M	-37.98M	-19.47M
Operating Cash Flow	-195.26M	-183.95M	-223.25M	-146.96M	-37.93M	-19.28M
Investing Cash Flow	-459.55M	-459.69M	1.27M	59.28M	-43.00K	-454.19M
Financing Cash Flow	757.88M	758.00M	351.81M	10.94M	-2.51M	469.23M

Energy Resources of Australia Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BMN	56 Neutral	AU$965.67M	-189.02	-2.73%	―	―	60.83%
DYL	56 Neutral	AU$2.77B	383.78	1.08%	―	-100.00%	―
PDN	55 Neutral	AU$6.22B	-78.82	-6.47%	―	―	-163.65%
AEE	52 Neutral	£220.77M	-13.56	-26.26%	―	―	-75.25%
BKY	46 Neutral	AU$254.39M	-46.72	-6.30%	―	―	-67.12%
ERA	37 Underperform	AU$1.62B	―	―	―	-100.00%	98.06%

Energy Resources of Australia Class A Corporate Events

ERA Secures New Rehabilitation Authority for Ranger Project

Energy Resources of Australia Ltd (ERA) has received a new section 41 Rehabilitation Authority from the Minister for Resources, effective from 9 January 2026, to continue its rehabilitation activities in the Ranger Project Area. This development is crucial for ERA’s strategic priority of achieving world-class rehabilitation of the site, ensuring compliance with the Atomic Energy Act 1953. The company is also in ongoing negotiations with the Commonwealth regarding associated agreements, highlighting its commitment to a positive legacy and sustainable practices.

Energy Resources of Australia Announces Director’s Interest Change

Energy Resources of Australia Ltd has announced a change in the director’s interest notice involving Alfred Grigg. The notice details the acquisition and vesting of Rio Tinto Limited Shares and Matching RT Share Rights under the Rio Tinto Global Employee Share Plan. This change reflects the director’s participation in the share plan, which may influence the company’s governance and stakeholder interests.

Director’s Interest Update at Energy Resources of Australia

Energy Resources of Australia Ltd announced a change in the interests of Director Justin Carey, involving the acquisition of Rio Tinto Limited Shares under a global employee share plan. The changes reflect the vesting and issuance of matching share rights and additional shares acquired through a dividend reinvestment plan, indicating a strategic alignment with Rio Tinto’s employee incentive programs.

Energy Resources of Australia Reports Significant Cash Outflows Amidst Strategic Investments

Energy Resources of Australia Limited reported a significant net cash outflow from operating activities amounting to $47.064 million for the current quarter, driven by substantial payments for rehabilitation and corporate costs. The company’s cash flow from investing activities also showed a net outflow of $75.5 million, primarily due to payments for term deposits, indicating a strategic allocation of resources amidst ongoing financial challenges.

Energy Resources of Australia Faces Legal and Operational Challenges

Energy Resources of Australia Class A is facing ongoing legal proceedings regarding the Jabiluka Mineral Lease and the compulsory acquisition of its shares by Rio Tinto, which requires court approval due to shareholder objections. The company continues its rehabilitation efforts at the Ranger Project Area, with significant challenges in the dry capping of Pit 3, potentially leading to delays and increased costs. Water treatment activities are progressing, but the Brine Squeezer trials have been delayed, impacting the timeline for process water treatment.