Elah Holdings (ELLH) AI Stock Analysis

• Market Cap: $11.18M
• Dividend Yield: N/A
• Average Volume (3M): 581.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -25.00%
• EPS Growth: -11.65%
• Country: US
• Employees: 14
• Sector: Financial
• Sector Strength: 70
• Industry: Shell Companies
• EPS (TTM): -0.41
• Shares Outstanding: 739,096
• 10 Day Avg. Volume: 392
• 30 Day Avg. Volume: 581
• PEG Ratio: 0.48
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 1322.98
• P/FCF Ratio: -7.13
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 638.50
• Enterprise Value/Gross Profit: 638.50
• Enterprise Value/Ebitda: -2.16
• 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: 35 Underperform
• Price Target: ―

Elah Holdings is facing significant financial and operational challenges, as evidenced by declining revenues and persistent losses. The technical indicators suggest a continued bearish trend, and the negative P/E ratio complicates valuation. While the company's debt-free balance sheet is a positive aspect, the lack of profitability and negative cash flows are major concerns, resulting in a low overall stock score.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility, reducing risk and allowing the company to focus on strategic investments without the burden of interest payments.

Strong Equity Ratio

A high equity ratio suggests solid asset financing through equity, which can be advantageous for long-term stability and resilience against financial downturns.

Operational Expertise

The company's focus on improving operational efficiencies in acquired businesses can lead to enhanced profitability and value creation over time, strengthening its business model.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market position and competitiveness, potentially impacting long-term growth prospects and financial health.

Negative Cash Flows

Negative cash flows highlight difficulties in sustaining operations and funding growth internally, increasing reliance on external financing and affecting financial stability.

Persistent Losses

Ongoing losses and negative margins indicate operational inefficiencies and challenges in achieving profitability, threatening long-term viability without strategic changes.

Elah Holdings Business Overview & Revenue Model

Company Description

Elah Holdings, Inc., a holding company, focuses on acquiring profitable businesses in the commercial and industrial markets. The company was formerly known as Real Industry, Inc. and changed its name to Elah Holdings, Inc. in May 2018. Elah Holdings, Inc. is based in Dallas, Texas.

How the Company Makes Money

Elah Holdings makes money through a strategic approach of acquiring and managing a portfolio of businesses across different industries. The company generates revenue by improving the operational efficiencies of its acquired businesses, thereby increasing their profitability. This is achieved through a combination of cost management, strategic restructuring, and leveraging synergies within its portfolio. The enhanced performance of these businesses leads to increased earnings, which contribute to Elah Holdings' overall revenue. Additionally, Elah Holdings may realize gains through the eventual sale of these improved businesses, further contributing to its revenue streams. Partnerships with financial institutions and strategic investors may also play a role in supporting its acquisition activities and enhancing its revenue potential.

Elah Holdings Financial Statement Overview

Summary

Elah Holdings faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. While its debt-free position and strong equity ratio are positives, the consistent inability to generate profit and positive cash flow is concerning. Overall, the financial stability and long-term viability of the company appear to be at risk without a strategic turnaround.

Income Statement

Elah Holdings has experienced a declining revenue trend, with a significant revenue drop from 2020 to 2024. The company consistently reports negative net income and EBIT margins, indicating ongoing operational challenges and lack of profitability. Gross profit margins remain 100% due to no cost of goods sold, but this is overshadowed by substantial losses.

Balance Sheet

The balance sheet is relatively strong with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio remains high, indicating good asset financing through equity. However, the continuous decline in equity due to consistent losses is a point of concern.

Cash Flow

Operating and free cash flows are negative, reflecting poor cash generation from core operations. The free cash flow to net income ratio is negative due to sustained losses. This raises concerns about the company's ability to sustain operations without external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.00K	11.00K	16.00K	21.00K	30.00K	179.00K
Gross Profit	9.00K	11.00K	16.00K	21.00K	30.00K	179.00K
EBITDA	-2.66M	0.00	-2.33M	-2.50M	-1.89M	-1.99M
Net Income	-2.62M	-2.07M	-2.42M	-2.35M	-1.87M	-1.75M
Balance Sheet
Total Assets	6.33M	7.81M	9.96M	12.28M	14.56M	16.40M
Cash, Cash Equivalents and Short-Term Investments	6.08M	7.59M	9.25M	11.57M	13.94M	15.65M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	621.00K	577.00K	660.00K	558.00K	486.00K	554.00K
Stockholders Equity	5.70M	7.23M	9.30M	11.72M	14.07M	15.85M
Cash Flow
Free Cash Flow	-2.39M	-2.04M	-2.32M	-2.37M	-1.71M	2.70M
Operating Cash Flow	-2.39M	-2.04M	-2.32M	-2.37M	-1.71M	2.70M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00

Elah Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELLH, the sentiment is Negative. The current price of 14 is above the 20-day moving average (MA) of 13.94, below the 50-day MA of 15.37, and below the 200-day MA of 16.86, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELLH.

Elah Holdings 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%
BSLK	40 Underperform	$9.47M	―	―	―	62620.00%	-3469.28%
ELLH	35 Underperform	$11.18M	-4.16	-37.95%	―	-25.00%	-11.65%