5E Advanced Materials, Inc. (FEAM) AI Stock Analysis

• Market Cap: $43.26M
• Dividend Yield: N/A
• Average Volume (3M): 250.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: 80.73%
• Country: US
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.48
• Shares Outstanding: 23,511,883
• 10 Day Avg. Volume: 556,167
• 30 Day Avg. Volume: 250,726
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.18
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -3.49
• Enterprise Value/Ebitda: -13.05
• 1Y Price Target: $4.00
• Price Target Upside: 132.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▲(16.28% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by very weak financial performance (large operating and net losses plus ongoing cash burn) and bearish technicals (price below all major moving averages with negative MACD). Offsetting factors include a relatively low-debt balance sheet and a cautiously constructive earnings-call backdrop focused on commercialization milestones and potential non-dilutive financing, though key commitments (offtakes/financing) are still pending.

Positive Factors

Low leverage / strong equity base

Minimal reported debt (~$0.1M) against ~$51.6M equity creates structural balance-sheet flexibility. This reduces near-term solvency risk, supports the ability to pursue FEED/FID workstreams and federal financing, and provides a buffer while commercial scale-up and non-dilutive funding are pursued.

Commercial validation via full-scale trials

A successful full-scale glass trial and initial large shipment materially de-risks technical and early commercial assumptions. These outcomes strengthen negotiating leverage for structured offtake agreements, improve conversion odds of customer validation into recurring demand, and support a path to sustainable revenue generation.

Expanded resource base & long mine life

A large, upgraded resource and ~40-year mine life underpin long-term production optionality and economies of scale. As a domestic boron source, Fort Cady strengthens strategic supply security, enabling multi-decade revenue prospects and positioning the company to serve specialty and critical-mineral markets over the long term.

Negative Factors

Large operating losses & cash burn

Material and recurring operating losses with deeply negative operating and free cash flow indicate the business is not yet self-funding. Persistent cash burn necessitates external financing, increasing execution risk and potential dilution if non-dilutive funding or committed offtakes are not secured within the planning horizon.

Pre‑FID stage; no committed financing

Remaining in pre-FID/FEED without committed construction financing makes project timelines conditional. Dependence on competitive federal awards and contingent guarantees creates execution uncertainty; failure to secure these sources could delay FEED, increase cost risk, and push out commercial production milestones.

High global supply concentration risk

Global borates concentration creates structural geopolitical and pricing risk. Although Fort Cady offers a domestic alternative, entrenched supply from a dominant producer limits short-term pricing power and customer sourcing choices, making market-share gains and margin sustainability more challenging during commercialization.

5E Advanced Materials, Inc. Business Overview & Revenue Model

Company Description

5E Advanced Materials Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It focuses on the Fort Cady project located in Southern California. The company was formerly known as American Pacific Borates Limited. 5E Advanced Materials Inc. was incorporated in 2016 and is headquartered in Houston, Texas.

How the Company Makes Money

5E Advanced Materials, Inc. generates revenue primarily through the extraction, processing, and sale of boron and lithium products. The company capitalizes on the growing demand for these materials in various high-value applications, including electric vehicle batteries, solar power systems, and specialty glass. Revenue streams are bolstered by long-term supply agreements with key industrial players, strategic partnerships, and possibly government contracts aimed at securing critical materials for technological advancement and energy transition. The company's earnings are influenced by the global demand and pricing for boron and lithium, as well as its operational efficiency and production capacity.

5E Advanced Materials, Inc. Financial Statement Overview

Summary

Despite modest TTM revenue (~$7.1M) and positive gross margin (~37%), FEAM’s operating losses are very large (EBIT about -$41.4M) with severe net losses (net margin roughly -365%). Cash flow is a key weakness with materially negative operating cash flow (~-$21.5M) and free cash flow (~-$23.5M). The balance sheet is a partial offset with minimal debt (~$0.1M) versus sizable equity (~$51.6M), but negative ROE (about -65%) underscores ongoing value erosion.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modest at ~$7.1M with a positive gross margin (~37%), indicating some underlying pricing/cost control. However, profitability is very weak: operating losses are large (EBIT about -$41.4M) and net losses are significant (net margin roughly -365%), showing the cost base is far above the current revenue scale. Historical annual periods show little to no reported revenue and recurring net losses, reinforcing that earnings power is not yet established.

Balance Sheet

Leverage is currently very low in TTM (Trailing-Twelve-Months) with minimal debt (~$0.1M) against sizable equity (~$51.6M), which reduces near-term balance-sheet risk. Total assets are ~ $58.6M, providing an asset base to support operations. The key weakness is consistently negative returns on equity (TTM ROE about -65%), reflecting ongoing losses and value erosion; prior years also show volatility in leverage (including a period of very high debt relative to equity), which suggests the capital structure has not been consistently stable over time.

Cash Flow

Cash generation remains a major concern: TTM (Trailing-Twelve-Months) operating cash flow is materially negative (~-$21.5M) and free cash flow is also negative (~-$23.5M), implying continued cash burn to fund operations and investment. While free cash flow is less negative than some prior years (improvement versus earlier larger outflows), the business is still not self-funding, and negative operating cash flow alongside net losses points to ongoing reliance on financing or cash reserves.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-11.46M	-20.15M	0.00	0.00	0.00	-5.97M
EBITDA	-3.06M	-4.97M	-50.48M	-23.42M	-66.47M	-17.60M
Net Income	-26.02M	-31.55M	-62.01M	-30.62M	-66.71M	-19.25M
Balance Sheet
Total Assets	58.61M	70.73M	89.50M	100.90M	70.89M	64.61M
Cash, Cash Equivalents and Short-Term Investments	571.00K	3.84M	4.90M	20.32M	31.06M	40.81M
Total Debt	111.00K	215.00K	65.16M	37.92M	561.00K	309.00K
Total Liabilities	6.99M	7.54M	78.80M	47.33M	8.22M	2.28M
Stockholders Equity	51.62M	63.19M	10.71M	53.57M	62.66M	62.33M
Cash Flow
Free Cash Flow	-23.53M	-23.76M	-34.06M	-70.78M	-40.02M	-23.07M
Operating Cash Flow	-21.49M	-23.64M	-26.87M	-30.70M	-28.61M	-10.89M
Investing Cash Flow	-3.99M	-1.97M	-7.19M	-39.31M	-11.40M	-12.96M
Financing Cash Flow	25.23M	24.55M	18.63M	59.27M	30.62M	37.77M

5E Advanced Materials, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEAM, the sentiment is Negative. The current price of 1.72 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 3.04, and below the 200-day MA of 3.90, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 27.00 is Positive, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FEAM.

5E Advanced Materials, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CX	71 Outperform	$18.94B	18.91	3.14%	0.74%	-6.34%	210.97%
MLM	69 Neutral	$39.91B	35.25	10.65%	0.51%	1.99%	-41.08%
SMID	67 Neutral	$174.10M	14.89	25.46%	―	16.37%	81.03%
CPAC	64 Neutral	$967.93M	21.09	16.04%	5.46%	9.24%	24.01%
USLM	63 Neutral	$3.03B	22.66	23.80%	0.19%	20.27%	31.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FEAM	47 Neutral	$43.26M	-0.72	-94.35%	―	―	80.73%

5E Advanced Materials, Inc. Corporate Events

5E Advanced Materials Raises $36 Million in Equity Offering

On February 3, 2026, 5E Advanced Materials closed an upsized, oversubscribed U.S. public offering of 18 million common shares at $2.00 each, raising gross proceeds of $36 million and an estimated $30.3 million in net proceeds after fees and expenses. Led by one of its largest shareholders alongside several new institutional investors, the financing strengthens the company’s balance sheet, is expected to extend its operational runway through the commercialization phase, and will fund operation of its small-scale boron facility, wellfield development, finalization of its commercial mine plan, FEED engineering, and general corporate purposes; the company also agreed to a 90‑day restriction on further common stock issuance, underscoring efforts to manage dilution while advancing its push to become a key supplier of critical boron and lithium materials.

The most recent analyst rating on (FEAM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on 5E Advanced Materials, Inc. stock, see the FEAM Stock Forecast page.

5E Advanced Materials Issues Warrants for EXIM-Backed Financing

On December 8, 2025, stockholders of 5E Advanced Materials, Inc. approved the company’s entry into a letter agreement to issue warrants to purchase common stock to BEP Special Situations IV LLC and Ascend Global Investment Fund SPC, or their affiliates, as part of securing a potential $10 million funding package from the Export-Import Bank of the United States. On January 7, 2026, the company executed this letter agreement and issued warrants with an exercise price of $3.5507 per share, allowing the guarantors to purchase up to $10 million of common stock, capped at 2,816,346 shares, in exchange for providing a guarantee on the EXIM loan, with the warrants vesting only if the loan and guarantee proceed and expiring upon either two years after loan repayment or release of the guarantee; this structure underscores 5E’s reliance on contingent equity-linked financing to secure critical funding while limiting immediate shareholder dilution.

The most recent analyst rating on (FEAM) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on 5E Advanced Materials, Inc. stock, see the FEAM Stock Forecast page.

5E Advanced Materials Holds Successful Annual Meeting

On December 8, 2025, 5E Advanced Materials, Inc. held its 2025 Annual Meeting where several key proposals were voted upon. The meeting saw the election of four directors to the Board, the ratification of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending June 30, 2026, and the approval of various proposals including director compensation, plan amendments, and stock issuance. All proposals received sufficient votes for approval, indicating strong shareholder support for the company’s strategic decisions.

The most recent analyst rating on (FEAM) stock is a Buy with a $9.25 price target. To see the full list of analyst forecasts on 5E Advanced Materials, Inc. stock, see the FEAM Stock Forecast page.

5E Advanced Materials Amends Warrants for Cashless Exercise

In March 2025, 5E Advanced Materials, Inc. issued warrants to purchase shares of common stock to several investment entities as part of its restructuring and recapitalization. On December 4, 2025, the company amended these warrants to allow cashless exercises, resulting in the full exercise of the warrants and generating approximately $2.0 million in proceeds, with the issuance of 1,067,296 shares of common stock. As of December 8, 2025, the company had 23,511,883 shares of common stock issued and outstanding.

The most recent analyst rating on (FEAM) stock is a Buy with a $9.25 price target. To see the full list of analyst forecasts on 5E Advanced Materials, Inc. stock, see the FEAM Stock Forecast page.

5E Advanced Materials Boosts Fort Cady Resource Estimates

On November 19, 2025, 5E Advanced Materials announced a significant upgrade to its mineral resource estimates at the Fort Cady Project in California, effective November 15, 2025. The updated estimates show a 61% increase in measured and indicated borate resources and a 54% increase in lithium resources. This enhancement positions 5E as a potential leading borate producer in the U.S., with the project offering expansion options for future production. The resource upgrade underscores Fort Cady’s potential to secure a domestic boron supply chain, aligning with its designation as a critical mineral by the U.S. government.

The most recent analyst rating on (FEAM) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on 5E Advanced Materials, Inc. stock, see the FEAM Stock Forecast page.