Strategic Elements Ltd (SOR) AI Stock Analysis

• Market Cap: AU$25.56M
• Dividend Yield: N/A
• Average Volume (3M): 670.45K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.71
• Revenue Growth: 66.69%
• EPS Growth: 5.17%
• Country: AU
• Employees: 4
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 482,349,060
• 10 Day Avg. Volume: 835,063
• 30 Day Avg. Volume: 670,449
• PEG Ratio: 1.13
• Price to Book (P/B): 3.85
• Price to Sales (P/S): -490.89
• P/FCF Ratio: -6.29
• 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: 45 Neutral
• Price Target: AU$0.05 ▼(-13.33% Downside)

The score is primarily held down by weak financial performance (recurring losses, shrinking equity, and ongoing cash burn). Technicals also lean soft with below-average price versus key short/medium-term moving averages and sub-50 momentum indicators. Valuation provides limited support due to negative earnings (negative P/E) and no dividend data.

Positive Factors

Debt-free balance sheet

A zero-debt profile is a durable financial strength: it removes interest and refinancing risk and lowers fixed financial obligations. Over 2–6 months this preserves flexibility to pursue partnerships or raise capital on better terms, though funding may still be required for operations.

IP focus in printable electronics

Proprietary technology in printable electronics and sensor IP is a structural advantage. If commercialised successfully, it supports licensing, long-term recurring royalties and product differentiation, providing sustainable revenue pathways beyond one-off sales.

Multiple commercialisation pathways

A diversified commercialisation model (products, licensing, collaborations, portfolio actions) reduces reliance on a single revenue stream. Structurally this lowers binary risk, enabling milestone or licensing income while product units scale, improving resilience over months.

Negative Factors

Persistent cash burn

Consistent negative operating cash flow is a durable weakness: it erodes reserves and forces recurring financing. Over a multi-month horizon this limits the firm's ability to fund R&D, commercial rollout, or partnerships without dilution, raising execution risk.

Recurring operating and net losses

Persistent operating and net losses indicate the business has not reached sustainable profitability. This undermines reinvestment capacity and partner confidence, and implies ongoing dependency on external funding, making long-term growth and margin sustainability uncertain.

Eroding equity and shrinking asset base

Falling equity and declining assets reduce the company’s financial buffer and strategic optionality. Over time this constrains borrowing capacity, increases vulnerability to shocks, and heightens the chance that future capital raises will be dilutive or come on less favorable terms.

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

Overall fundamentals are weak: recurring operating/net losses, inconsistent and deteriorating revenue (including negative annual revenue in 2025), and persistent negative operating/free cash flow indicating ongoing cash burn. The key offset is a debt-free balance sheet, but equity has been shrinking due to losses, increasing sustainability and funding risk.

Income Statement

Financial performance remains weak and volatile. Revenue has been inconsistent and deteriorated sharply in 2025 (annual revenue turned negative), following modest growth in 2024. Profitability is persistently poor with sizable operating and net losses every year (roughly $2.4M–$3.9M losses annually), and margins are erratic due to the very small revenue base (including extreme margin readings in 2025). A key positive is the absence of interest burden (no debt), but the core issue is that the business has not demonstrated a sustainable path to positive earnings.

Balance Sheet

The balance sheet is relatively conservative because total debt is consistently zero, removing refinancing and interest-rate risk. However, equity has trended down over time (from ~7.95M in 2023 to ~3.89M in 2025), reflecting ongoing losses, and returns on equity are materially negative across all periods. Asset levels have also declined versus prior years, indicating a shrinking capital base and reduced financial flexibility if losses persist.

Cash Flow

Cash generation is a major weakness. Operating cash flow is negative every year (about $2.0M–$3.1M outflow), and free cash flow is also consistently negative, implying continued cash burn. While free cash flow improved in 2025 versus 2024, it remains deeply negative, and the company is not self-funding operations—cash outflows exceed reported net losses in most years, pointing to ongoing cash consumption that will likely require funding over time.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	394.84K	-30.54K	136.46K	21.83K	184.50K	192.93K
Gross Profit	-972.03K	-35.38K	129.97K	-924.53K	-1.04M	-782.43K
EBITDA	-2.58M	-2.54M	-3.25M	-3.27M	-3.91M	-3.34M
Net Income	-2.56M	-2.56M	-2.59M	-2.46M	-3.47M	-2.36M
Balance Sheet
Total Assets	4.42M	4.42M	6.00M	8.28M	5.06M	8.25M
Cash, Cash Equivalents and Short-Term Investments	4.22M	4.22M	5.76M	7.99M	4.82M	7.93M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	530.38K	530.38K	621.73K	329.87K	544.35K	519.14K
Stockholders Equity	3.89M	3.89M	5.38M	7.95M	4.52M	7.73M
Cash Flow
Free Cash Flow	-2.38M	-2.38M	-2.24M	-2.70M	-3.10M	-2.09M
Operating Cash Flow	-2.37M	-2.37M	-2.21M	-2.70M	-3.09M	-2.05M
Investing Cash Flow	-12.96K	-12.96K	-26.74K	-2.69K	-16.85K	-121.31K
Financing Cash Flow	837.68K	837.68K	0.00	5.87M	0.00	7.71M

Strategic Elements Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PVL	62 Neutral	AU$23.12M	9.35	13.13%	―	101.80%	355.88%
LCE	55 Neutral	AU$26.98M	53.13	2.17%	2.94%	38.32%	―
IPC	54 Neutral	AU$10.87M	57.64	1.82%	3.50%	-50.00%	-52.07%
BPH	54 Neutral	AU$14.89M	1.75	19.93%	―	―	29.55%
SOR	45 Neutral	AU$25.56M	-9.82	-55.22%	―	66.69%	5.17%
KBC	43 Neutral	AU$9.72M	―	―	―	―	―

Strategic Elements Ltd Corporate Events

Strategic Elements Lands First Commercial EdgeiQ Pilot in WA Underground Gold Mine

Strategic Elements’ subsidiary Stealth Technologies has secured its first commercial order for its EdgeiQ production-efficiency platform, winning a A$225,000 pilot deployment with a major global gold producer at an operating underground mine in Western Australia. The 12‑month pilot, which includes system supply, installation, software licensing, monitoring and support, will test EdgeiQ’s performance under live underground conditions and is intended to serve as a showcase for potential broader rollouts across gold and copper operations, where high-value ore makes efficiency gains particularly attractive; while any expansion would require new agreements, the trial underscores growing industry interest in digital efficiency tools and marks a key step in validating Stealth’s field‑ready technology and Strategic Elements’ strategy of using pilot projects to build commercial traction.

The most recent analyst rating on (AU:SOR) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Strategic Elements Ltd stock, see the AU:SOR Stock Forecast page.

Strategic Elements Advances Early-Stage Tech Ventures on Strong Cash Base

In its December quarter update, Strategic Elements reported active progress across its portfolio, advancing Energy Ink™ from lab work toward externally validated development through prototype fabrication and performance characterisation, while Stealth Technologies refined system designs for potential underground mining pilots and pursued defence and national security applications aligned with Australian government priorities. Cognition Engines continued early-stage scoping of practical and secure AI deployment technologies, and the group maintained a solid financial footing with $3.38 million in cash, no debt and modest net expenditure, positioning the company to continue funding its ventures and scout new opportunities in the Australian innovation ecosystem under its tax-advantaged Pooled Development Fund framework.

The most recent analyst rating on (AU:SOR) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Strategic Elements Ltd stock, see the AU:SOR Stock Forecast page.

Strategic Elements Discloses Shareholdings as Director Matthew Howard Departs Board

Strategic Elements Ltd has notified the ASX that director Matthew Howard ceased to be a director of the company effective 31 December 2025. In connection with his departure, the company disclosed that Howard held 10,287,822 ordinary shares as a registered holder at the time of cessation, providing transparency to investors regarding his equity interests as he exits the board.

The most recent analyst rating on (AU:SOR) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Strategic Elements Ltd stock, see the AU:SOR Stock Forecast page.

Strategic Elements Discloses New Director David Lim’s Initial Equity Interests

Strategic Elements Ltd has announced the appointment of David Lim as a director effective 31 December 2025, and disclosed his initial relevant interests in the company’s securities in accordance with ASX listing rule 3.19A.1. Lim holds 4,299,367 fully paid ordinary shares, 2,125,000 unlisted options exercisable at $0.06 expiring on 16 August 2027, and 1,850,000 unvested performance rights expiring on 24 November 2028, signalling a material equity alignment with shareholders and updating the market on board composition and governance-related holdings.

The most recent analyst rating on (AU:SOR) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Strategic Elements Ltd stock, see the AU:SOR Stock Forecast page.

Strategic Elements Reshapes Board as Investment Chief David Lim Joins, Founding Director Steps Down

Strategic Elements Ltd has restructured its board, appointing David Lim, currently General Manager of investments, as a director while long-serving founding director Matthew Howard retires from the board. Howard will remain closely involved with the company as Company Secretary and a consultant, ensuring continuity as Lim brings his decade of commercial and operational experience within the group’s investee companies into a governance role, signalling a transition that balances renewal at board level with retention of institutional knowledge.

The most recent analyst rating on (AU:SOR) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Strategic Elements Ltd stock, see the AU:SOR Stock Forecast page.

Strategic Elements Ltd Updates Director’s Securities Interests

Strategic Elements Ltd announced a change in the director’s interest, specifically for Charles Murphy. The company disclosed that Murphy acquired 2,500,000 ordinary shares through the exercise of performance rights and was issued 5,680,000 new performance rights, while 2,000,000 performance rights expired. This change was approved by shareholders at the 2025 AGM and reflects the company’s ongoing adjustments in executive compensation and incentives.

Strategic Elements Issues New Shares Under Incentive Plan

Strategic Elements Ltd has issued 8,450,000 fully paid ordinary shares under its Employee Securities Incentive and Shares in Lieu Plan. This issuance, resulting from the conversion of vested Performance Rights, was conducted without disclosure to investors as per the Corporations Act. The company confirms compliance with relevant provisions of the Corporations Act and states there is no excluded information to disclose.

Strategic Elements Ltd Announces Quotation of New Securities on ASX

Strategic Elements Ltd has announced the quotation of 8,450,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of November 28, 2025. This move is part of the company’s strategy to enhance its capital structure and support its ongoing projects, potentially impacting its market positioning and offering new opportunities for stakeholders.

Strategic Elements Issues Unquoted Performance Rights

Strategic Elements Limited has announced the issuance of 11,650,000 unquoted securities in the form of performance rights under an employee incentive scheme. These securities are subject to transfer restrictions and will not be quoted on the ASX until these restrictions are lifted. This move is part of the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market competitiveness.

Strategic Elements Limited Announces Cessation of Performance Rights

Strategic Elements Limited announced the cessation of 6,000,000 performance rights due to unmet conditions, impacting the company’s issued capital. This development may affect the company’s strategic positioning and stakeholder interests as it reflects on the company’s ability to meet certain operational benchmarks.

Strategic Elements Ltd: Advancing Australian Innovation with Tax-Advantaged Capital

Strategic Elements Ltd is a federally regulated pooled development fund (PDF) that offers rare tax advantages and supports high-risk, high-reward Australian innovation through patient capital. The company is actively involved in scouting high-potential technologies within Australia’s innovation ecosystem, leveraging university partnerships and non-dilutive funding to reduce costs and accelerate progress.

Strategic Elements Achieves Key Milestones and Strengthens Financial Position

Strategic Elements Ltd reported significant progress in the September quarter, achieving key technical and business milestones. The company successfully fabricated over 2000 prototype Energy Ink™ cells in a commercial setting, paving the way for global collaborations in printed electronics. Stealth Technologies advanced its EdgeIQ system for mining and defense applications, aligning with government priorities. Strategic Elements is well-positioned financially, with a strong cash position and no debt, to support its ventures and explore new opportunities under its Pooled Development Fund framework.