Strategic Elements Ltd (SOR) AI Stock Analysis

• Market Cap: AU$15.94M
• Dividend Yield: N/A
• Average Volume (3M): 156.51K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: N/A
• EPS Growth: 8.33%
• Country: AU
• Employees: 4
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 468,808,440
• 10 Day Avg. Volume: 115,005
• 30 Day Avg. Volume: 156,515
• PEG Ratio: -1.24
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.12
• 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

• Rating: 37 Underperform
• Price Target: ―

Strategic Elements Ltd is in a precarious financial position with ongoing net losses and negative cash flows, posing significant risks. The technical indicators show bearish momentum, and the stock’s valuation is challenging due to its unprofitability. The company needs strategic improvements in revenue and cost management to enhance its stability and shareholder value.

Strategic Elements Ltd Business Overview & Revenue Model

Company Description

Strategic Elements Ltd invests in companies focusing on rare earths and rare metals exploration and materials development. The company, through its subsidiary, Strategic Materials Pty Limited, holds a 100% interest in 5 granted tenements in the South Island of New Zealand, Queensland, and New South Wales and an application for a tenement in Western Australia. Strategic Elements Ltd, through its subsidiary, Australian Advanced Materials Pty Ltd, focuses on the licensing of intellectual property related to the spectral, electronic, or magnetic properties of rare earth elements. The company was incorporated in 2006 and is based in South Perth, Australia.

How the Company Makes Money

Strategic Elements Ltd generates revenue through the development and commercialization of proprietary technologies and intellectual property. The company engages in partnerships with research institutions and industry players to leverage their expertise and market access. Revenue streams include licensing agreements, joint ventures, and government grants for innovative projects. Strategic Elements Ltd also invests in startups and technologies with high growth potential, aiming to generate returns through equity appreciation and strategic exits.

Strategic Elements Ltd Financial Statement Overview

Summary

Strategic Elements Ltd is facing financial challenges with consistent net losses and negative cash flows. While liquidity remains strong due to zero debt, declining equity and profitability concerns are significant risks. The company must improve revenue quality and cost management to stabilize.

Income Statement

Strategic Elements Ltd has faced a challenging period with consistent negative gross profits and net losses over the years. While there is a significant revenue growth from 2023 to 2024, profitability remains a concern with negative EBIT and EBITDA margins throughout. The company needs to focus on cost management and improving revenue quality to enhance margins.

Balance Sheet

The company exhibits strong liquidity with zero debt and a healthy cash position relative to its liabilities. However, the equity has been declining, indicating potential financial instability. The Equity Ratio remains robust, reflecting a solid asset base compared to liabilities, but the continued net losses could erode equity further.

Cash Flow

Negative operating cash flows are a concern, despite improvements in free cash flow due to reduced capital expenditures. The company needs to generate positive cash flows from operations to ensure sustainable financial health. The free cash flow growth rate shows improvement, but it is still negative, requiring attention.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
455.94K	129.97K	21.83K	184.50K	192.93K	433.00K
	Gross Profit
-437.21K	-875.78K	-924.53K	-1.04M	-782.43K	-1.15M
	EBIT
-2.70M	-3.28M	-3.29M	-3.93M	-3.34M	-3.19M
	EBITDA
-2.61M	-3.25M	-3.27M	-3.91M	-3.34M	-3.18M
	Net Income Common Stockholders
-2.49M	-2.59M	-2.46M	-3.47M	-2.36M	-2.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.15M	5.76M	7.99M	4.82M	7.93M	2.31M
	Total Assets
5.41M	6.00M	8.28M	5.06M	8.25M	2.48M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-5.03M	-5.64M	-7.87M	-4.71M	-7.81M	-2.27M
	Total Liabilities
504.81K	621.73K	329.87K	544.35K	519.14K	251.51K
	Stockholders Equity
4.91M	5.38M	7.95M	4.52M	7.73M	2.23M
Cash Flow		Free Cash Flow
-2.31M	-2.24M	-2.70M	-3.10M	-2.09M	-2.41M
	Operating Cash Flow
-2.28M	-2.21M	-2.70M	-3.09M	-2.05M	-2.41M
	Investing Cash Flow
-28.89K	-26.74K	-2.69K	-16.85K	-121.31K	-40.00K
	Financing Cash Flow
837.68K	0.00	5.87M	0.00	7.71M	2.33M

Strategic Elements Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOR, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of -100.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SOR.

Strategic Elements Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
SOR	37 Underperform	AU$15.94M	―	-43.87%	―	―	8.33%
BRCHF		$273.48M	―	-133.28%	―	―	―
FRDSF		$74.21M	―	-92.68%	―	―	―
RHT	64 Neutral	AU$18.38M	140.00	-3.11%	―	89.13%	69.57%
PCK	55 Neutral	AU$106.83M	―	-457.46%	―	21.93%	10.34%

Strategic Elements Ltd Corporate Events

Strategic Elements Advances Energy Ink™ Technology with Key Developments in Q1 2025

Strategic Elements Ltd’s subsidiary, Australian Advanced Materials Pty Ltd, made significant progress in developing its Energy Ink™ technology, which generates electricity from humidity. During Q1 2025, AAM advanced the fabrication of scalable Energy Ink™ prototypes, improved energy density by 40%, and reduced material costs, setting the stage for international collaboration. The company also initiated trials using commercial-scale screen printing to enhance prototype scalability, aiming to address technical challenges and prepare for future commercialization.

Strategic Elements Limited Releases Interim Financial Report for 2024

Strategic Elements Limited has released its interim financial report for the half-year ending on December 31, 2024. The report includes key financial statements such as profit or loss, comprehensive income, financial position, cash flows, and changes in equity. This financial disclosure helps stakeholders assess the company’s financial health and operational performance during the specified period.

Strategic Elements Limited Reports Increased Revenue but Continues to Face Losses in 2024 Half-Year Report

Strategic Elements Limited reported its financial results for the half-year ending December 31, 2024. The company experienced a significant increase in revenue from ordinary activities, reaching $395,000 compared to zero in the previous year, marking a 100% change. Despite this revenue growth, the company still reported a loss of $1.376 million, an improvement from the previous year’s loss of $1.470 million, reflecting a 6% reduction in losses. No interim dividends were declared or paid during this period.