Gratomic Inc (GRAT) AI Stock Analysis

• Market Cap: C$6.01M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 200,260,820
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• 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: 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 30 Underperform
• Price Target: ―

Gratomic Inc's overall stock score reflects significant financial and operational challenges. The inability to generate revenue and reliance on external financing present risks to its financial stability. Technical indicators point to an oversold condition, but the bearish trend remains strong. The negative valuation metrics further emphasize the company's current struggles. Strategic improvements are necessary to enhance financial health and investor confidence.

Positive Factors

Strategic Focus on Aukam Project

Focusing on the Aukam Graphite Project aligns with market demand for high-quality graphite, potentially boosting long-term revenue and market position.

Leadership Enhancement

The appointment of a seasoned mining expert as COO can strengthen operational efficiency and strategic execution, enhancing competitive advantage.

Focus on High-Grade Graphite

Targeting high-grade graphite positions Gratomic to meet growing demand in industries like EV batteries, supporting long-term growth prospects.

Negative Factors

Inability to Generate Revenue

The lack of revenue generation indicates challenges in monetizing operations, threatening financial sustainability and long-term viability.

Rising Leverage

Increasing leverage can strain financial resources, limiting flexibility and increasing risk, which may impact long-term financial health.

Negative Free Cash Flow

Negative free cash flow suggests insufficient cash generation from operations, necessitating external financing, which could hinder sustainable growth.

Gratomic Inc Business Overview & Revenue Model

Company Description

Gratomic Inc., a junior exploration company, engages in the acquisition and exploration of assets primarily in Canada and Namibia. It explores for base and rare metals, industrial minerals, and precious metals. The company holds a 100% interest in the Aukam graphite project located in the district of Bethanie, Karas Region of southern Namibia covers an area of approximately 137,473 hectares; and a 100% interest in the Buckingham graphite property that includes eight claim blocks covering an area of approximately 480 hectares located in the Quebec, Canada. It also holds a 100% interest in the Capim Grosso Property, which comprises an area of 426.03 hectares located in Capim Grosso, Brazil. The company was formerly known as CKR Carbon Corporation and changed its name to Gratomic Inc. in December 2017. Gratomic Inc. was incorporated in 2007 and is based in Toronto, Canada.

How the Company Makes Money

Gratomic Inc. generates revenue primarily through the extraction and sale of graphite. The company monetizes its operations by producing high-quality graphite from its Aukam Graphite Project and selling it to various industries that require graphite as a key component, such as the electric vehicle industry, energy storage, and other industrial applications. Gratomic aims to establish significant supply agreements and partnerships with companies in these sectors to ensure a steady demand for its graphite products. Additionally, the company may engage in strategic partnerships or joint ventures to enhance its production capabilities and market reach.

Gratomic Inc Financial Statement Overview

Summary

Gratomic Inc is facing significant financial challenges, primarily due to its inability to generate revenue. The company operates with high operational losses and increasing leverage. The negative free cash flow and reliance on external financing pose risks to its financial sustainability. Strategic changes are essential to improve its financial health and viability.

Income Statement

Gratomic Inc has reported consistent revenue of zero across all periods, indicating a lack of sales generation. The company has negative gross and net profit margins, reflecting ongoing losses without any revenue to offset costs. EBIT and EBITDA margins are deeply negative, highlighting operational inefficiencies and significant operating losses. The financial health from an income perspective is weak with no visible revenue growth trajectory.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, which has increased over time, indicating rising leverage. Stockholders' equity is decreasing, and equity ratio reflects a declining but still positive level of equity financing. However, the company's continuous losses have eroded equity, and there is potential risk due to increasing liabilities relative to assets.

Cash Flow

Gratomic Inc's cash flow analysis reveals negative free cash flow, indicating that the company is not generating sufficient cash from operations to fund its capital expenditures. The operating cash flow to net income ratio shows some improvement in TTM but remains weak overall. The dependency on financing activities for cash sustenance raises concerns about long-term financial stability.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	11.15K	0.00	391.71K	0.00	0.00	0.00
Gross Profit	-30.31K	-265.97K	0.00	0.00	0.00	-70.71K
EBITDA	-3.32M	-120.95K	-6.58M	-20.67M	-2.26M	-3.17M
Net Income	-3.35M	-5.31M	-8.16M	-21.31M	-3.64M	-3.24M
Balance Sheet
Total Assets	27.13M	27.45M	26.67M	23.11M	9.96M	8.64M
Cash, Cash Equivalents and Short-Term Investments	-2.35K	52.42K	251.98K	998.45K	1.10M	127.10K
Total Debt	1.61M	1.06M	470.18K	316.35K	557.53K	0.00
Total Liabilities	7.10M	5.59M	3.56M	979.84K	1.39M	1.17M
Stockholders Equity	20.03M	21.87M	23.11M	22.13M	6.94M	5.88M
Cash Flow
Free Cash Flow	-470.71K	-4.69M	-7.42M	-12.40M	-2.90M	-2.43M
Operating Cash Flow	76.80K	-3.27M	-4.07M	-7.17M	-2.24M	-1.93M
Investing Cash Flow	-508.06K	-1.58M	-4.34M	-6.43M	-551.02K	-1.15M
Financing Cash Flow	320.14K	4.65M	7.66M	13.49M	3.77M	643.93K

Gratomic Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRAT, the sentiment is Neutral. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GRAT.

Gratomic Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ERA	48 Neutral	C$2.73M	-2.43	―	―	―	18.74%
VOLT	47 Neutral	C$1.66M	4.55	―	―	―	―
CAMP	46 Neutral	C$3.43M	-17.65	―	―	―	90.71%
GRAT	30 Underperform	C$6.01M	-1.80	―	―	―	―
FCI	―	C$10.51M	-3.84	-198.61%	―	―	53.47%