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

• Market Cap: $144.54M
• Dividend Yield: N/A
• Average Volume (3M): 250.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: 65.83%
• Country: US
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -16.75
• Shares Outstanding: 22,444,588
• 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: 0.46
• Enterprise Value/Revenue: 101.28
• Enterprise Value/Gross Profit: -12.46
• Enterprise Value/Ebitda: -5.67
• 1Y Price Target: $8.25
• Price Target Upside: 28.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 35 Underperform
• Price Target: ―

5E Advanced Materials, Inc. is facing severe financial challenges with negative profitability and equity, and its valuation is unattractive. While technical indicators show some short-term improvement, long-term technical trends remain a concern. The recent corporate restructuring is a positive step towards addressing these issues, but significant risks remain, resulting in a low overall score.

Positive Factors

Strategic Restructuring

The completion of restructuring and regaining Nasdaq compliance are pivotal steps that address financial and compliance issues, potentially stabilizing future operations and enhancing investor confidence.

Market Demand

The company's focus on boron and lithium, essential for high-tech and clean energy products, positions it well to capitalize on growing demand in sectors like EV batteries and renewable energy.

Long-term Supply Agreements

Long-term supply agreements with key players provide revenue stability and predictability, supporting sustained business operations and strategic planning.

Negative Factors

Negative Profitability

Persistent negative profitability and lack of revenue growth indicate operational inefficiencies, which may hinder the company's ability to invest in growth and innovation.

Financial Instability

Negative equity suggests liabilities exceed assets, increasing financial risk and limiting the company's ability to secure additional financing for growth initiatives.

Cash Flow Issues

Persistent negative free cash flow indicates reliance on external financing, which could challenge long-term sustainability and limit strategic flexibility.

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

Company Description

5E Advanced Materials, Inc. (FEAM) is a company focused on developing and supplying critical materials, specifically boron and lithium derivatives, which are essential for the manufacturing of high-tech and clean energy products. Operating within the advanced materials sector, 5E Advanced Materials leverages its proprietary technology and resources to produce high-purity boron compounds, serving industries such as electronics, renewable energy, and agriculture.

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

5E Advanced Materials, Inc. faces significant financial hurdles across all financial statement verticals. The income statement shows a lack of profitability and revenue growth, the balance sheet highlights financial instability with negative equity, and cash flow issues indicate reliance on external financing. These factors collectively suggest substantial financial risk and a need for strategic restructuring or operational improvements.

Income Statement

5E Advanced Materials, Inc. is experiencing significant financial challenges, as indicated by negative gross profit margins and net profit margins. The company has not been able to generate consistent revenue, resulting in no revenue growth. The EBIT and EBITDA margins are also substantially negative, reflecting operational inefficiencies.

Balance Sheet

The company has a negative equity position, indicating potential financial distress. The debt-to-equity ratio is difficult to evaluate positively due to negative equity, and the equity ratio is negative, suggesting that liabilities exceed assets. This balance sheet structure increases financial risk and limits future borrowing capacity.

Cash Flow

The cash flow analysis reveals persistent negative free cash flow, which is worsening over time. The operating cash flow to net income ratio is not favorable, indicating cash flow issues. The company is heavily reliant on financing activities to sustain operations, which could pose long-term sustainability concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	660.00K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-5.37M	0.00	-5.37M	-371.00K	-246.00K	-5.97K
EBITDA	-11.79M	-17.88M	-30.69M	-34.26M	-66.47M	-17.55M
Net Income	-37.96M	-31.55M	-62.01M	-30.62M	-66.71M	-19.25M
Balance Sheet
Total Assets	73.41M	70.73M	89.50M	100.90M	70.89M	64.61M
Cash, Cash Equivalents and Short-Term Investments	4.03M	3.84M	4.90M	20.32M	31.06M	40.81M
Total Debt	258.00K	149.00K	65.16M	37.92M	561.00K	309.00K
Total Liabilities	7.15M	7.54M	78.80M	47.33M	8.22M	2.28M
Stockholders Equity	66.26M	63.19M	10.71M	53.57M	62.66M	62.33M
Cash Flow
Free Cash Flow	-26.05M	-23.76M	-34.06M	-70.78M	-40.02M	-23.07M
Operating Cash Flow	-24.64M	-23.64M	-26.87M	-30.70M	-28.61M	-10.89M
Investing Cash Flow	-2.70M	-1.97M	-7.19M	-39.31M	-11.40M	-12.96M
Financing Cash Flow	23.39M	24.55M	18.63M	59.27K	30.62K	37.77M

5E Advanced Materials, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEAM, the sentiment is Positive. The current price of 6.44 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.28, and above the 200-day MA of 5.15, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FEAM.

5E Advanced Materials, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	82 Outperform	$652.49M	10.78	16.29%	6.95%	3.95%	27.28%
MLM	76 Outperform	$37.72B	34.65	12.10%	0.51%	1.02%	-45.31%
USLM	74 Outperform	$3.80B	30.38	24.95%	0.17%	21.97%	44.87%
CX	73 Outperform	$14.61B	9.40	7.12%	0.89%	-9.62%	795.20%
SMID	68 Neutral	$200.09M	16.64	27.87%	―	32.97%	160.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FEAM	35 Underperform	$144.54M	―	-85.40%	―	―	65.83%

5E Advanced Materials, Inc. Corporate Events

5E Advanced Materials Completes Restructuring and Regains Nasdaq Compliance

On March 5, 2025, 5E Advanced Materials, Inc. completed its restructuring and recapitalization transactions by entering an Exchange Agreement with Bluescape and Ascend, leading to the termination of a previous Note Purchase Agreement and the issuance of over 13 million shares. The company also addressed compliance issues with Nasdaq, regaining compliance with the Minimum Bid Price Requirement and working towards meeting the Stockholders’ Equity Rule, which may affect its continued listing on the Nasdaq Global Select Market.

5E Advanced Materials Approves Key Proposals in Special Meeting

On March 4, 2025, 5E Advanced Materials, Inc. held a Special Meeting where stockholders voted on several proposals, including the issuance of shares and warrants to noteholders, an amended equity compensation plan, and director compensation. All proposals received sufficient votes for approval, and the adjournment proposal was not needed.