Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: $15.60M
• Dividend Yield: N/A
• Average Volume (3M): 36.04K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.93
• 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: 37,402
• 30 Day Avg. Volume: 36,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 171.03
• Enterprise Value/Gross Profit: 438.91
• Enterprise Value/Ebitda: -4.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and persistent losses. Technical analysis provides some short-term stability, but long-term trends remain weak. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further weighing down the score.

Electric Royalties Business Overview & Revenue Model

Company Description

Electric Royalties (ELEC) is a company engaged in the innovative financing of mining projects through royalty agreements. It focuses on securing revenue streams from the production of minerals critical to the electric vehicle (EV) and renewable energy sectors, such as lithium, cobalt, and nickel. By investing in and acquiring royalties on various mining operations, Electric Royalties provides an alternative funding mechanism for mining companies while offering investors exposure to the growth of the electric economy.

How the Company Makes Money

Electric Royalties generates revenue primarily through its royalty agreements with mining companies. When these companies produce minerals, Electric Royalties receives a percentage of the revenue generated from the sale of these minerals, which constitutes its key revenue stream. Additionally, the company may earn income from the acquisition of new royalty interests, which can diversify its portfolio and enhance its earnings potential. Strategic partnerships with mining firms and investment in high-demand mineral projects are significant factors contributing to its financial growth and stability.

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	138.08K	31.14K	165.81K	0.00	0.00	0.00
Gross Profit	53.81K	11.01K	-289.69K	-6.82K	-4.54K	0.00
EBITDA	-5.45M	-5.42M	-5.60M	-2.07M	-2.26M	-326.03K
Net Income	-6.69M	-6.36M	-6.00M	-1.92M	-2.30M	-2.64M
Balance Sheet
Total Assets	20.76M	20.16M	18.01M	18.41M	15.54M	5.22M
Cash, Cash Equivalents and Short-Term Investments	714.66K	28.08K	442.52K	1.24M	2.10M	2.58M
Total Debt	9.16M	10.84K	4.36M	25.32K	30.51K	0.00
Total Liabilities	9.36M	10.43M	4.49M	155.64K	367.73K	123.06K
Stockholders Equity	11.40M	9.74M	13.52M	18.25M	15.17M	5.09M
Cash Flow
Free Cash Flow	-7.33M	-6.13M	-5.34M	-3.99M	-2.00M	-3.03M
Operating Cash Flow	-1.98M	-1.18M	-1.38M	-2.04M	-1.50M	-1.78M
Investing Cash Flow	-5.00M	-4.72M	-3.85M	-1.64M	-1.01M	-1.23M
Financing Cash Flow	7.53M	5.48M	4.44M	2.82M	2.03M	5.50M

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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	63 Neutral	34.03M	11.98	11.61%	―	7.21%	526.19%
ILI	53 Neutral	6.81M	-150.00	0.00%	―	0.00%	-104.55%
ELEC	47 Neutral	$15.60M	―	-52.97%	―	122.13%	9.33%
TGOL	44 Neutral	17.64M	-15.63	0.00%	―	0.00%	-92.00%
ORNG	32 Underperform	12.92M	-3.31	0.00%	―	0.00%	-351.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Electric Royalties Corporate Events

Electric Royalties Appoints New CFO to Drive Growth and Efficiency

Electric Royalties Ltd. announced the appointment of Robert Scott as the new Chief Financial Officer, succeeding Luqman Khan. Scott brings over 25 years of experience in finance and accounting, and his leadership is expected to support the company’s growth phase. The transition to Corex Management Inc., led by Scott, aims to reduce overhead and administrative costs while maintaining a focus on building a growth-oriented royalty portfolio. This strategic move is anticipated to strengthen Electric Royalties’ position in the market by enhancing operational efficiency and supporting its mission to invest in commodities essential for the electric revolution.

The most recent analyst rating on (TSE:ELEC) stock is a Buy with a C$1.12 price target. To see the full list of analyst forecasts on Electric Royalties stock, see the TSE:ELEC Stock Forecast page.

Electric Royalties Strengthens Position Amid China’s Mineral Export Ban

Electric Royalties Ltd. has strategically positioned itself to benefit from China’s recent export restrictions on critical minerals like germanium, gallium, and antimony, which are vital for clean energy and technology sectors. The company’s focus on projects in North America and other stable regions aligns with global efforts to secure alternative mineral sources, enhancing its appeal to investors and governments prioritizing sustainable supply chains. This strategic positioning is expected to capitalize on the growing demand for critical minerals essential for the energy transition.

The most recent analyst rating on (TSE:ELEC) stock is a Buy with a C$1.12 price target. To see the full list of analyst forecasts on Electric Royalties stock, see the TSE:ELEC Stock Forecast page.