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Elcora Advanced Materials Corp (TSE:ERA)
:ERA

Elcora Advanced Materials (ERA) AI Stock Analysis

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Elcora Advanced Materials

(ERA)

Rating:21Underperform
Price Target:
Elcora Advanced Materials faces significant financial challenges, with weak income and balance sheet positions dominating its outlook. Technical analysis indicates ongoing bearish momentum, while valuation metrics reveal substantial hurdles in achieving market attractiveness. However, recent corporate events such as share consolidation and shareholder approvals provide a modest positive outlook. Overall, the stock is in a precarious position, with substantial risks overshadowing potential upside.

Elcora Advanced Materials (ERA) vs. iShares MSCI Canada ETF (EWC)

Elcora Advanced Materials Business Overview & Revenue Model

Company DescriptionElcora Advanced Materials (ERA) is a company specializing in the development and supply of advanced materials, with a focus on graphite and graphene production. The company is engaged in the mining, processing, and refining of these materials, which are essential components in various high-tech applications, including battery production, electronics, and nanotechnology. Elcora's vertically integrated operations enable them to maintain quality control and sustainability throughout the supply chain.
How the Company Makes MoneyElcora Advanced Materials makes money through the extraction, processing, and sale of graphite and graphene products. The company's primary revenue streams include selling raw graphite materials to industrial clients and providing high-purity graphite and graphene for specialized applications such as lithium-ion batteries, fuel cells, and other energy storage solutions. Additionally, Elcora may engage in partnerships or joint ventures with technology and manufacturing companies to develop new applications for its materials, thereby expanding its market reach and revenue potential.

Elcora Advanced Materials Financial Statement Overview

Summary
Elcora Advanced Materials is facing substantial financial challenges across its financial statements. The income statement shows persistent losses and declining revenue. The balance sheet reinforces the company's financial instability with negative equity and high leverage. Despite a slight improvement in operating cash flow, cash constraints persist. Overall, the company is in a precarious financial position, with significant risks and limited signs of recovery.
Income Statement
10
Very Negative
The income statement reveals significant challenges, with negative revenues and worsening net income over time. The negative gross and net profit margins indicate ongoing difficulties in achieving profitability. Moreover, the substantial losses in EBIT and EBITDA margins highlight operational inefficiencies. Overall, the financial performance is weak, with no signs of improvement in revenue or profitability.
Balance Sheet
5
Very Negative
The balance sheet reflects a precarious financial position, with negative stockholders' equity indicating insolvency. The high debt levels relative to equity suggest a heavily leveraged structure, increasing financial risk. The equity ratio is negative, reinforcing the company's weak solvency. Overall, the balance sheet shows significant financial instability and risk.
Cash Flow
15
Very Negative
The cash flow statement indicates some improvement in operating cash flow, transitioning from negative to positive in the recent period. However, free cash flow remains negative, and the free cash flow to net income ratio is unfavorable, indicating ongoing cash constraints. While there are minor improvements, the cash flow position remains strained.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue-63.03K120.98K0.000.000.000.00
Gross Profit-71.98K56.70K-71.21K-91.52K-149.22K-166.93K
EBITDA-1.17M-1.07M-1.42M-728.81K-626.10K-855.27K
Net Income-1.34M-1.26M-1.60M-959.09K-880.91K-1.14M
Balance Sheet
Total Assets2.01M1.72M1.86M1.66M486.95K349.95K
Cash, Cash Equivalents and Short-Term Investments208.94K14.60K15.21K309.13K290.43K33.19K
Total Debt1.45M1.13M939.47K887.46K1.21M821.57K
Total Liabilities4.06M3.17M2.19M1.81M2.62M2.17M
Stockholders Equity-2.04M-1.45M-320.81K-143.35K-2.13M-1.82M
Cash Flow
Free Cash Flow-186.60K-274.13K-999.23K-2.51M-179.21K-513.96K
Operating Cash Flow32.03K-146.83K-511.40K-1.43M-179.21K-504.08K
Investing Cash Flow-260.09K-127.30K-487.83K-1.08M0.00-9.88K
Financing Cash Flow266.87K273.52K705.31K2.53M436.44K-32.20K

Elcora Advanced Materials Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.13
Price Trends
50DMA
0.13
Negative
100DMA
0.13
Negative
200DMA
0.16
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
42.83
Neutral
STOCH
27.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERA, the sentiment is Negative. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.83 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:ERA.

Elcora Advanced Materials Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLLG
61
Neutral
C$10.16M0.88-18.56%
44
Neutral
C$992.05M-6.72-13.73%2.53%17.45%-32.50%
TSZEN
39
Underperform
$161.25M-57.57%2826.26%16.22%
36
Underperform
C$44.38M-23.89%-57.70%
TSERA
21
Underperform
C$2.04M
-134.26%5.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ERA
Elcora Advanced Materials
0.13
-0.12
-48.00%
TSE:ZEN
Zentek
1.50
0.15
11.11%
TSE:NEXT
NextSource Materials Inc
0.24
-0.65
-73.03%
TSE:LLG
Mason Graphite
0.06
-0.04
-40.00%

Elcora Advanced Materials Corporate Events

Stock SplitBusiness Operations and Strategy
Elcora Advanced Materials Corp. Announces Share Consolidation
Neutral
Jan 31, 2025

Elcora Advanced Materials Corp. has received approval from the TSX Venture Exchange to consolidate its issued and outstanding common shares at a ratio of one post-consolidation share for every ten pre-consolidation shares. This move reduces the number of outstanding shares from 170,377,013 to approximately 17,037,701, which may streamline the company’s share structure and potentially enhance its market appeal. The consolidation is scheduled to take effect on or about February 7, 2025.

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: Apr 20, 2025