Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: $15.60M
• Dividend Yield: N/A
• Average Volume (3M): 80.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.34
• Revenue Growth: 122.13%
• EPS Growth: 9.33%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 119,973,290
• 10 Day Avg. Volume: 127,973
• 30 Day Avg. Volume: 80,886
• PEG Ratio: 0.00
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 506.20
• P/FCF Ratio: -2.57
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 111.73
• Enterprise Value/Gross Profit: 347.02
• Enterprise Value/Ebitda: -4.47
• 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: 49 Neutral
• Price Target: C$0.16 ▲(13.57% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and persistent losses. Technical analysis provides some positive signals with the stock trading above key moving averages, but momentum indicators are mixed. Valuation metrics are unattractive due to negative profitability and lack of dividends. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Business Model Strength

The royalty-based model allows Electric Royalties to benefit from mineral production without direct operational risks, providing stable cash flow.

Market Position

Positioning in the growing EV battery market provides long-term growth opportunities as demand for critical minerals rises.

Competitive Advantages

Partnerships with mining firms provide access to high-quality projects, enhancing Electric Royalties' competitive edge in the industry.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining growth and could impact future profitability and cash flow generation.

Cash Management Issues

Negative cash flow from operations suggests difficulties in sustaining operations without external financing, limiting reinvestment capacity.

Weak Profitability

Negative profit margins highlight inefficiencies and could hinder the company's ability to achieve sustainable profitability.

Electric Royalties Business Overview & Revenue Model

Company Description

Electric Royalties (ELEC) is a Canadian-based company focused on creating a portfolio of royalties from lithium and other critical mineral projects. The company operates primarily in the mining sector, capitalizing on the increasing global demand for electric vehicle (EV) batteries and renewable energy solutions. By investing in various mining operations, Electric Royalties aims to generate sustainable revenue through royalty agreements, allowing it to benefit from the production of vital minerals without the operational risks associated with traditional mining activities.

How the Company Makes Money

Electric Royalties generates revenue primarily through its royalty agreements with mining companies. These agreements entitle Electric Royalties to a percentage of the revenue generated from the sale of minerals produced at the mines in which they have invested. As the demand for lithium and other critical minerals continues to rise, especially for use in EV batteries, the company's earnings are bolstered by the increasing production and sales from its partner mining operations. Additionally, Electric Royalties may benefit from strategic partnerships and collaborations with mining firms that enhance its portfolio and provide exposure to high-quality projects. The company's revenue model is designed to provide a steady cash flow while minimizing operational risks, positioning it favorably in the growing renewable energy sector.

Electric Royalties Financial Statement Overview

Summary

Electric Royalties faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is relatively stable but shows signs of weakening equity. Cash flow analysis reveals cash management issues, with reliance on financing activities for liquidity. The company needs to improve operational efficiency and revenue growth to enhance its financial health.

Income Statement

The company shows a lack of revenue growth, with total revenue significantly declining from 2023 to 2024. Gross and net profit margins remain negative, indicating ongoing operational challenges. The negative EBIT and EBITDA margins further highlight weak profitability and operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is low, suggesting a conservative leverage position. However, the continuous decrease in stockholders' equity signals potential financial strain. The equity ratio is relatively stable, though the declining assets may pose a risk to future growth potential.

Cash Flow

The company exhibits declining free cash flow, with negative operating cash flow indicating cash management issues. The free cash flow to net income ratio is unfavorable, which could hinder reinvestment opportunities. However, financing cash flow remains positive, providing some liquidity support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.37K	31.14K	165.81K	0.00	0.00	0.00
Gross Profit	68.06K	11.01K	-289.69K	-6.82K	-4.54K	0.00
EBITDA	-5.29M	-5.42M	-5.60M	-2.07M	-2.26M	-2.64M
Net Income	-6.59M	-6.36M	-6.00M	-1.92M	-2.30M	-2.64M
Balance Sheet
Total Assets	20.09M	20.16M	18.01M	18.41M	15.54M	5.22M
Cash, Cash Equivalents and Short-Term Investments	290.46K	28.08K	442.52K	1.24M	2.10M	2.58M
Total Debt	9.51M	9.19M	4.36M	25.32K	30.51K	0.00
Total Liabilities	9.63M	10.43M	4.49M	155.64K	367.73K	123.06K
Stockholders Equity	10.46M	9.74M	13.52M	18.25M	15.17M	5.09M
Cash Flow
Free Cash Flow	-5.62M	-6.13M	-5.34M	-3.99M	-2.00M	-3.03M
Operating Cash Flow	-1.94M	-1.18M	-1.38M	-2.04M	-1.50M	-1.78M
Investing Cash Flow	-3.34M	-4.72M	-3.85M	-1.64M	-1.01M	-1.23M
Financing Cash Flow	5.08M	5.48M	4.44M	2.82M	2.03M	5.50M

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELEC, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELEC.

Electric Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	69 Neutral	C$31.28M	10.84	19.67%	―	7.21%	526.19%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ILI	53 Neutral	C$8.52M	―	-0.33%	―	―	-104.55%
ELEC	49 Neutral	$15.60M	-2.09	-52.97%	―	122.13%	9.33%
TGOL	44 Neutral	C$16.38M	―	-10.86%	―	―	-92.00%
ORNG	32 Underperform	C$10.98M	-2.56	-47.73%	―	―	-763.79%

Electric Royalties Corporate Events

Electric Royalties Sees Revenue Boost and Expands Critical Mineral Portfolio

Electric Royalties Ltd. has reported an increase in royalty revenues from the Punitaqui Copper Mine in Chile, with expectations for further revenue growth as production ramps up. The company also provided updates on several other key projects, including advancements in the Seymour Lake Lithium Project and the Battery Hill Manganese Project, among others. These developments highlight Electric Royalties’ strategic positioning in the critical minerals market, potentially enhancing its operational footprint and offering significant implications for stakeholders as the company continues to expand its portfolio of 43 royalties.