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Strategic Elements Ltd (AU:SOR)
ASX:SOR
Australian Market

Strategic Elements Ltd (SOR) AI Stock Analysis

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AU

Strategic Elements Ltd

(Sydney:SOR)

Rating:37Underperform
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 (SOR) vs. iShares MSCI Australia ETF (EWA)

Strategic Elements Ltd Business Overview & Revenue Model

Company DescriptionStrategic 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 MoneyStrategic 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
25
Negative
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
45
Neutral
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
30
Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
455.94K129.97K21.83K184.50K192.93K433.00K
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 SheetCash, Cash Equivalents and Short-Term Investments
5.15M5.76M7.99M4.82M7.93M2.31M
Total Assets
5.41M6.00M8.28M5.06M8.25M2.48M
Total Debt
0.000.000.000.000.000.00
Net Debt
-5.03M-5.64M-7.87M-4.71M-7.81M-2.27M
Total Liabilities
504.81K621.73K329.87K544.35K519.14K251.51K
Stockholders Equity
4.91M5.38M7.95M4.52M7.73M2.23M
Cash FlowFree 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
837.68K0.005.87M0.007.71M2.33M

Strategic Elements Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
36.31
Neutral
STOCH
-100.00
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.80B9.717.59%16985.66%12.07%-7.53%
AUSOR
37
Underperform
AU$15.94M-43.87%8.33%
$273.48M-133.28%
$74.21M-92.68%
AURHT
64
Neutral
AU$18.38M140.00-3.11%89.13%69.57%
AUPCK
55
Neutral
AU$106.83M-457.46%21.93%10.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SOR
Strategic Elements Ltd
0.03
-0.03
-50.00%
BRCHF
BrainChip Holdings
0.14
>-0.01
-6.67%
FRDSF
4DS Memory Ltd.
0.05
0.00
0.00%
AU:RHT
Resonance Health Ltd
0.04
-0.02
-33.33%
AU:PCK
PainChek Ltd
0.06
0.03
100.00%

Strategic Elements Ltd Corporate Events

Strategic Elements Advances Energy Ink™ Technology with Key Developments in Q1 2025
Apr 30, 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
Feb 24, 2025

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
Feb 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.