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Electrovaya (TSE:ELVA)
TSX:ELVA
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Electrovaya (ELVA) AI Stock Analysis

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TSE:ELVA

Electrovaya

(TSX:ELVA)

Rating:73Outperform
Price Target:
C$7.00
▲(13.64%Upside)
Electrovaya benefits from strong technical momentum and positive strategic developments, including expansion into new markets and successful financing. However, high debt levels and valuation concerns due to negative earnings impact the overall score. The company's focus on growth and operational improvements is promising, but financial risks require careful management.
Positive Factors
Financial Performance
Electrovaya reported a 40% year-over-year increase in net revenues for the quarter, highlighting strong financial performance.
Profitability
The company realized a net profit of $0.8M in the quarter, compared to a net loss in the previous year, indicating improved profitability.
Revenue Potential
Electrovaya secured $25M in new orders and has an $80M firm purchase order backlog, suggesting strong future revenue potential.
Negative Factors
Risks and Uncertainties
Risks include dilution risk, global supply-chain delays, execution risk, regulatory risks, competition risk, customer concentration, and uncertainty related to macroeconomic conditions and geopolitical factors.
Tariff Impact
Investors should expect some level of uncertainty around the issue of negative tariff environment under the Trump administration in the near-to-mid term.

Electrovaya (ELVA) vs. iShares MSCI Canada ETF (EWC)

Electrovaya Business Overview & Revenue Model

Company DescriptionElectrovaya Inc., together with its subsidiaries, engages in the designing, developing, and manufacturing lithium-ion advanced battery and battery systems in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including warehouse forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyElectrovaya makes money through the sale of its proprietary Lithium-ion battery products and systems. The company's revenue streams primarily include direct sales of batteries for electric vehicles, grid energy storage solutions, and specialized industrial applications. Additionally, Electrovaya engages in strategic partnerships and collaborations with original equipment manufacturers (OEMs) and other companies in the energy sector to expand its market reach and enhance its technology offerings. Licensing its technology and intellectual property to other manufacturers also contributes to its earnings, alongside potential government or institutional grants and subsidies for developing clean energy solutions.

Electrovaya Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q2-2025)
|
% Change Since: 52.10%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
Electrovaya reported strong financial results with significant revenue growth, profitability, and successful financing initiatives. They have shown progress in manufacturing expansion and maintained positive EBITDA. However, they faced challenges with tariffs impacting costs and continue to rely heavily on the material handling segment. Overall, the company demonstrates positive momentum and strategic growth planning.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Electrovaya reported $15 million in revenue for Q2 2025, up 40% year-over-year, maintaining over 30% gross margins. They achieved a net profit of over $800,000, marking a significant turnaround from a net loss of $0.8 million in the prior year.
Significant Order Intake
The company received over $25 million in new orders during the quarter, with strong visibility and confidence for further growth into the next fiscal year.
Successful Financing Initiatives
Electrovaya closed a $51 million direct loan from the Export-Import Bank of the United States and a $20 million working capital facility from the Bank of Montreal, reducing the cost of capital and improving working capital availability.
Progress in Manufacturing Expansion
The company remains on track for its Jamestown cell production by mid-next year, with nearly all key equipment purchases made and material vendors qualified.
Consistent Positive EBITDA
Achieved eight consecutive quarters of positive adjusted EBITDA, with $2 million for the quarter, compared to $1.5 million in the prior year.
Negative Updates
Tariff Impact on Component Costs
The company experienced marginal increased costs on certain components due to recent tariffs, affecting product mix and gross margins.
Relying Heavily on Material Handling Segment
While expanding into other verticals, the majority of Electrovaya's revenue still comes from the material handling segment, indicating a need for further market diversification.
Company Guidance
During the Electrovaya Q2 2025 financial results call, the company provided several key metrics and updates reflecting its strong performance and future outlook. Electrovaya reported $15 million in revenue for the quarter, which represents a 40% year-over-year increase, maintaining over 30% gross margins. The company achieved a net profit of over $800,000, marking a significant turnaround from a net loss of $0.8 million in the prior year. Electrovaya secured a $51 million direct loan from the Export-Import Bank of the United States and a $20 million working capital facility from the Bank of Montreal, enhancing its financial capacity. The company also experienced strong order momentum with $25 million in new orders from the material handling segment alone. Electrovaya's adjusted EBITDA for the quarter was $2 million, and it recorded positive cash flow from operations of $3.2 million. The company maintains its 2025 revenue guidance of exceeding $60 million and is on track for its Jamestown facility to begin cell production mid-next year. Electrovaya's strategic focus on developing U.S.-based manufacturing and a supply chain independent of Chinese sources is also highlighted as a competitive advantage.

Electrovaya Financial Statement Overview

Summary
Electrovaya shows strong revenue growth and improved cash flow, but high debt levels and negative net margins present financial risks.
Income Statement
70
Positive
Electrovaya's revenue has shown impressive growth over recent years, with the latest year seeing a 2.83% increase from the previous year. However, profitability remains a challenge as indicated by negative net profit margins, although there is a positive gross profit margin of 30.63% and an EBITDA margin of 6.55%, reflecting some operational efficiency. The company has been narrowing its EBIT losses, suggesting cost management improvements.
Balance Sheet
55
Neutral
The company's balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio of 2.42, indicating significant leverage. A positive equity ratio of 21.75% suggests that while the company has improved its equity position, it remains vulnerable to debt-related risks. Return on Equity (ROE) remains negative due to persistent net losses.
Cash Flow
65
Positive
Electrovaya has demonstrated a turnaround in cash flow from operations, switching from negative to positive, which is a positive sign for liquidity. Free cash flow has also improved significantly with a growth rate of 117.02%. The operating cash flow to net income ratio is positive, reflecting improved cash generation relative to net income losses.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue44.59M43.37M19.17M9.92M13.66M
Gross Profit13.66M11.16M4.33M2.26M4.07M
EBITDA2.92M1.25M-6.42M-4.55M4.42M
Net Income-1.49M-1.48M-6.55M-7.53M1.11M
Balance Sheet
Total Assets39.48M36.51M18.08M14.98M10.64M
Cash, Cash Equivalents and Short-Term Investments781.00K1.03M626.00K4.20M1.12M
Total Debt20.77M19.03M19.11M11.53M12.81M
Total Liabilities30.90M29.37M24.00M16.67M19.36M
Stockholders Equity8.59M7.15M-5.92M-1.70M-8.71M
Cash Flow
Free Cash Flow913.00K-5.36M-11.86M-8.68M-3.94M
Operating Cash Flow1.04M-4.86M-11.81M-8.12M-3.90M
Investing Cash Flow-666.00K-903.00K-423.00K-560.00K-115.00K
Financing Cash Flow-629.00K6.20M9.52M10.92M3.56M

Electrovaya Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.16
Price Trends
50DMA
4.70
Positive
100DMA
4.14
Positive
200DMA
3.76
Positive
Market Momentum
MACD
0.36
Negative
RSI
79.81
Negative
STOCH
78.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELVA, the sentiment is Positive. The current price of 6.16 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 4.70, and above the 200-day MA of 3.76, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 79.81 is Negative, neither overbought nor oversold. The STOCH value of 78.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELVA.

Electrovaya Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$256.68M-0.21%2.20%89.34%
65
Neutral
$11.05B15.765.13%1.92%3.11%-24.90%
C$3.39M
47
Neutral
C$4.96M-1239.25%-7.76%-2.15%
47
Neutral
C$17.02M-200.00%177.07%29.71%
$27.16M-3009.52%
$1.46M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ELVA
Electrovaya
6.16
2.64
75.00%
TSE:EGT
Eguana Technologies
0.08
-0.02
-20.00%
TSE:LPS
Legend Power Systems
0.11
-0.10
-47.62%
TSE:BES
Braille Energy Systems Inc
0.06
-0.02
-25.00%
EXROF
Exro Technologies
0.05
-0.35
-87.50%
ZAIRF
Zinc8 Energy Solutions
0.04
-0.06
-60.00%

Electrovaya Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya Launches New Battery Systems for Robotic Vehicles with Leading OEMs
Positive
Jul 22, 2025

Electrovaya has launched multiple battery system products for robotic vehicle platforms in collaboration with three leading OEMs, two in the USA and one in Japan. These products target the rapidly growing robotics segment, offering long run times and rapid wireless charging, with initial deliveries starting this quarter and commercial deliveries expected to accelerate from FY 2026 onwards. This strategic move aligns with Electrovaya’s strengths in lithium-ion technology and positions the company to capitalize on the expanding robotics market, driven by advancements in AI.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Business Operations and Strategy
Electrovaya Secures Additional $4.5 Million Order from Fortune 100 Client
Positive
Jul 15, 2025

Electrovaya Inc. announced a new purchase order of approximately US$4.5 million from a leading Fortune 100 e-commerce company, increasing the total demand from this customer to over US$20 million in fiscal 2025. This order highlights the continued demand for Electrovaya’s Infinity battery systems, which are used to power material handling electric vehicles at distribution centers across North America. The company’s collaboration with this major client underscores its role in supporting the transition to clean energy solutions in logistics operations, potentially enhancing its industry positioning and stakeholder value.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya Strengthens Market Position with UL2580 Certification for Next-Gen Batteries
Positive
Jul 10, 2025

Electrovaya has achieved UL2580 certification for 448 models of its next-generation lithium-ion battery systems, which include enhanced performance features and will be mass-produced in Jamestown, NY. This certification, which involves rigorous safety testing, strengthens Electrovaya’s market position in the industrial and heavy-duty vehicle sectors, particularly in the material handling industry, which constitutes a significant portion of its revenue.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya Expands into Heavy-Duty Truck Market with Janus Electric Partnership
Positive
Jul 8, 2025

Electrovaya has entered into a Commercial Supply Agreement with Janus Electric to provide advanced lithium-ion battery systems for electrifying Class 8 trucks in Australia and the US. This partnership marks Electrovaya’s expansion into the heavy-duty truck sector, leveraging its Infinity cell technology to meet the demanding requirements of long-haul transportation. The collaboration aligns with both companies’ sustainability goals and positions them to address the growing demand for clean energy solutions in the transportation industry.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Business Operations and Strategy
Electrovaya to Engage with European Investors at ROTH London Conference
Positive
Jun 25, 2025

Electrovaya Inc. announced its participation in the ROTH 15th Annual London Conference, highlighting its commitment to engaging with the global financial community. CEO Dr. Raj DasGupta will meet with European institutional investors to discuss the company’s strategic initiatives and growth outlook, which may enhance Electrovaya’s industry positioning and stakeholder engagement.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya Secures $6.3 Million Order from Fortune 100 E-commerce Giant
Positive
Jun 3, 2025

Electrovaya Inc. has secured an additional US$6.3 million order from a Fortune 100 e-commerce company in the United States, bringing the total orders from this customer to over $16 million for the fiscal year. The batteries will be used to power material handling electric vehicles across multiple distribution centers, with further orders anticipated. This development underscores Electrovaya’s role in providing clean and sustainable energy solutions and strengthens its position in the market for lithium-ion battery technology.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Business Operations and Strategy
Electrovaya Announces Investor Webcast to Discuss Strategic Insights
Neutral
May 27, 2025

Electrovaya Inc. announced an investor webcast presentation scheduled for June 3, 2025, where CEO Dr. Raj DasGupta and CFO John Gibson will discuss the company’s corporate strategy, business model, and advanced battery technology. This event signifies Electrovaya’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Electrovaya Achieves Strong Q2 2025 Results with 40% Revenue Growth
Positive
May 14, 2025

Electrovaya reported a 40% year-over-year increase in revenue to $15 million for Q2 2025, marking its eighth consecutive quarter of positive adjusted EBITDA. The company achieved a net profit of $0.8 million and maintained strong margins. Electrovaya secured significant financing, including a $51 million loan from the Export-Import Bank of the United States and a $20 million working capital facility from the Bank of Montreal, to support its manufacturing expansion in New York. The company is also expanding into new market verticals and growing its recurring revenue base, positioning itself for sustained growth and innovation in the lithium-ion battery sector.

The most recent analyst rating on (TSE:ELVA) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Electrovaya stock, see the TSE:ELVA Stock Forecast page.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Electrovaya Begins Battery System Manufacturing in Jamestown, NY
Positive
May 7, 2025

Electrovaya Inc. has commenced battery system assembly operations at its Jamestown, New York facility, marking a significant milestone in its manufacturing investment in the region. The company plans to expand operations in response to growing demand and aims to start lithium-ion cell and module production by mid-2026. With over $40 million in capital equipment orders funded by a $51 million loan from the Export Import Bank of the United States, Electrovaya is positioning itself to become a leading domestic lithium-ion battery manufacturer in the U.S., supporting its strategic growth and strengthening its market presence.

Private Placements and FinancingBusiness Operations and Strategy
Electrovaya Wins Prestigious Award for U.S. Manufacturing Expansion
Positive
Apr 30, 2025

Electrovaya Inc. has been awarded the Make More in America Deal of the Year Award at the Export-Import Bank of the United States’ 2025 Annual Conference. This recognition highlights Electrovaya’s commitment to onshoring lithium-ion battery manufacturing to the U.S., supported by a $51 million loan from EXIM to expand its production capacity in Jamestown, New York. The expansion is expected to create 290 U.S. jobs and shift a significant portion of production from Asia to the U.S., enhancing the company’s market presence and contributing to U.S. economic security.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025