Ilika plc (IKA) AI Stock Analysis

• Market Cap: £67.81M
• Dividend Yield: N/A
• Average Volume (3M): 289.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 265.67%
• EPS Growth: -16.50%
• Country: UK
• Employees: 68
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 180,832,170
• 10 Day Avg. Volume: 333,759
• 30 Day Avg. Volume: 289,646
• PEG Ratio: 0.29
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 2413.15
• P/FCF Ratio: -11.75
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 41.00p ▲(9.33% Upside)

Ilika plc's overall stock score is primarily influenced by its financial challenges and bearish technical indicators. However, the company's strategic advancements in solid-state battery technology and collaborations with industry partners provide a positive outlook for future growth. The valuation remains unattractive due to negative earnings, but corporate events suggest potential for long-term improvement.

Positive Factors

Low Leverage

Minimal leverage provides Ilika with financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of high debt.

Free Cash Flow Growth

Growth in free cash flow indicates improving efficiency in cash generation, which can support future investments and operational needs.

Revenue Growth Potential

Strong revenue growth potential from energy storage solutions positions Ilika to capitalize on the expanding market for sustainable energy technologies.

Negative Factors

Declining Revenues

Severe revenue decline indicates challenges in maintaining market share and competitiveness, which could hinder long-term growth prospects.

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies and may limit the company's ability to reinvest in its business.

Negative Operating Cash Flow

Negative cash flow from operations suggests difficulties in sustaining day-to-day business activities, impacting financial stability.

Ilika plc Business Overview & Revenue Model

Company Description

Ilika plc engages in the design, development, and production of solid-state batteries under the Stereax name primarily in the United Kingdom, Asia, rest of Europe, and North America. It offers batteries for a range of applications in the industrial Internet of Things, medical, transportation, electric vehicles, and cordless consumer electronics/ smart cities. The company was founded in 2004 and is headquartered in Romsey, the United Kingdom.

How the Company Makes Money

Ilika generates revenue primarily through the sale of its solid-state battery technology and related products to various industries, including electric vehicles, consumer electronics, and renewable energy sectors. The company has established partnerships with key players in these industries, which not only help in product development but also provide a pathway for commercialization. Additionally, Ilika may earn revenue through licensing agreements, research and development contracts, and collaborations with other technology firms and academic institutions, further diversifying its income streams.

Ilika plc Financial Statement Overview

Summary

Ilika plc is facing significant financial challenges, with declining revenues and negative profitability across key metrics. The balance sheet shows low leverage, which is a positive sign, but the negative return on equity highlights profitability issues. Cash flow remains a concern, although there is some improvement in free cash flow. Overall, the company needs to address its operational inefficiencies and improve its revenue generation to enhance financial health.

Income Statement

Ilika plc has experienced significant revenue decline with a negative growth rate of -95.77% in the latest year. The company is facing severe profitability challenges, evidenced by negative gross profit, net profit, EBIT, and EBITDA margins. These metrics indicate substantial operational inefficiencies and a lack of profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.027, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively stable, suggesting a moderate level of financial stability.

Cash Flow

Cash flow analysis reveals a negative operating cash flow and free cash flow, though there is a positive free cash flow growth rate of 27.83%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is above 1, suggesting some efficiency in converting net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	982.90K	73.50K	20.10K	33.85K	30.88K	230.45K
Gross Profit	-453.90K	-452.70K	-1.06M	-1.97M	-1.49M	-1.06M
EBITDA	-5.62M	-5.38M	-4.00M	-7.30M	-6.81M	-2.68M
Net Income	-5.90M	-5.90M	-4.81M	-7.30M	-7.13M	-3.53M
Balance Sheet
Total Assets	19.45M	19.45M	22.83M	26.91M	33.93M	16.53M
Cash, Cash Equivalents and Short-Term Investments	7.98M	7.98M	11.95M	15.87M	23.45M	9.82M
Total Debt	470.70K	470.70K	625.30K	618.48K	847.60K	827.72K
Total Liabilities	2.27M	2.27M	2.47M	2.14M	2.50M	2.34M
Stockholders Equity	17.18M	17.18M	20.36M	24.77M	31.44M	14.19M
Cash Flow
Free Cash Flow	-5.09M	-6.28M	-4.13M	-7.45M	-10.08M	-4.95M
Operating Cash Flow	-4.02M	-4.18M	-2.46M	-6.05M	-5.64M	-2.13M
Investing Cash Flow	2.07M	2.47M	-5.06M	-1.40M	-4.44M	-2.83M
Financing Cash Flow	1.93M	1.93M	-316.70K	-75.78K	23.71M	-32.94K

Ilika plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IKA, the sentiment is Negative. The current price of 37.5 is below the 20-day moving average (MA) of 40.77, below the 50-day MA of 42.99, and below the 200-day MA of 39.69, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 31.73 is Neutral, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IKA.

Ilika plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	63 Neutral	£138.84M	24.91	15.77%	―	-5.73%	―
AFC	51 Neutral	£118.06M	-4.45	-86.37%	―	732.03%	12.60%
IKA	51 Neutral	£67.81M	-10.62	-31.45%	―	265.67%	-16.50%
CWR	51 Neutral	£452.42M	-12.33	-23.26%	―	12.58%	12.39%
LPA	45 Neutral	£4.82M	-21.73	-1.39%	―	-10.88%	-122.05%

Ilika plc Corporate Events

Ilika plc Advances Solid-State Battery Technology with Key Milestones

Ilika plc has made significant progress in its solid-state battery technology, with key advancements in both its Stereax and Goliath product lines. The Stereax M300 micro-battery production line has been qualified for manufacturing at Cirtec Medical’s facility, marking a crucial step towards meeting the demand for medical-grade micro-batteries. Meanwhile, the Goliath 2Ah P1 cells have been validated by customer testing, and the company has secured a £1.25 million grant to support the development of automotive applications. The completion of an automated assembly line for Goliath batteries enhances production capabilities, positioning Ilika to release 10Ah prototypes by December 2025. Despite a decrease in revenue and an increase in EBITDA loss, these developments underscore Ilika’s commitment to advancing its battery technology and expanding its market presence.

Ilika Completes Goliath Pilot Line, Boosting Solid-State Battery Production

Ilika plc has announced the completion of its Goliath automated pilot line, marking a significant milestone in its solid-state battery production capabilities. This development enables the company to deliver 10Ah and 50Ah battery prototypes to customers, supporting internal and commercial testing programs. The pilot line’s operational status enhances manufacturing yield and consistency, positioning Ilika to meet the demands of its stakeholders and advance its commercialization and licensing objectives. Collaborations with UK Battery Industrialisation Centre and other partners will further scale up production, particularly for automotive applications.

Ilika plc Completes Commissioning of Goliath Automated Pilot Line

Ilika plc has announced the successful commissioning of its Goliath automated pilot line, marking a significant step in its solid-state battery production capabilities. This development allows Ilika to deliver solid-state battery prototypes to customers, enhancing manufacturing yield and consistency. The pilot line’s operational status supports the delivery of 10Ah and 50Ah battery prototypes for customer testing and validation, aligning with Ilika’s commercialisation strategy. The company plans to further scale production in collaboration with the UK Battery Industrialisation Centre and other partners, reinforcing its position in the battery technology industry and advancing towards its licensing objectives.

Ilika plc Announces New Share Issuance and Trading Admission

Ilika plc has announced the issuance of 30,000 new ordinary shares following the exercise of options under its share option schemes. These shares are expected to be admitted for trading on AIM by October 6, 2025. This move will increase the company’s total issued share capital to 180,832,175 ordinary shares, which will be used by shareholders for calculating their interest in the company. This development reflects Ilika’s ongoing efforts to enhance its financial structure and market presence.

Ilika plc Reports Successful AGM and Executive Share Option Awards

Ilika plc announced the successful passing of all resolutions at its recent Annual General Meeting, reflecting strong shareholder support. The company also granted share options to its executive directors as part of its deferred Bonus Scheme, indicating a strategic move to align management interests with company performance.

Ilika Launches PRIMED Solid-State Battery Programme with Key Automotive Support

Ilika plc has announced the commencement of its PRIMED solid-state battery programme, supported by key partners including Jaguar Land Rover and Oxford University. The programme aims to advance the commercialisation of Ilika’s solid-state battery technology by leveraging the UK Battery Industrialisation Centre’s facilities to scale up production. This initiative builds on previous successful projects and is expected to deliver critical outcomes such as prototype cells and a production scale model, positioning Ilika to accelerate the industrialisation of its Goliath technology for the electric vehicle market.