Grounded Lithium (GRD) AI Stock Analysis

• Market Cap: C$4.34M
• Dividend Yield: N/A
• Average Volume (3M): 37.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: 83.87%
• Country: CA
• Employees: 1,885
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 72,270,940
• 10 Day Avg. Volume: 59,475
• 30 Day Avg. Volume: 37,422
• PEG Ratio: 0.04
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 289.94
• P/FCF Ratio: -4.33
• 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

• Rating: 34 Underperform
• Price Target: ―

The overall stock score reflects significant financial and operational struggles. While the strategic partnership is a positive development, the company's financial position and technical indicators suggest caution. The negative valuation metrics further indicate challenges in achieving positive investor sentiment.

Grounded Lithium Business Overview & Revenue Model

Company Description

Grounded Lithium Corp. (GRD) is a company focused on the exploration and development of lithium brine properties. Operating primarily in the energy and mining sectors, Grounded Lithium is dedicated to advancing sustainable lithium extraction methods to support the growing demand for battery-grade lithium, essential for electric vehicles and renewable energy storage solutions.

How the Company Makes Money

Grounded Lithium makes money through the exploration, extraction, and sale of lithium resources. The company's revenue model is centered on identifying and developing lithium-rich brine deposits, which are then processed into lithium carbonate or lithium hydroxide suitable for battery production. Key revenue streams include the sale of these processed lithium products to battery manufacturers, electric vehicle companies, and technology firms. Additionally, the company may engage in strategic partnerships or joint ventures with other mining companies, technology firms, or investors to enhance its extraction technologies, expand its operational capabilities, and increase its market reach. These collaborations can provide significant funding and resource-sharing opportunities, contributing to Grounded Lithium's earnings.

Grounded Lithium Financial Statement Overview

Summary

Grounded Lithium is experiencing significant financial challenges. Despite revenue growth, the company struggles with negative profitability and cash flows. Its balance sheet shows moderate health with no debt, but ongoing losses highlight inefficiencies in generating shareholder value.

Income Statement

Grounded Lithium showed significant revenue growth from 2022 to 2023, but overall financial performance remains weak with persistent negative gross and net profit margins. The EBIT and EBITDA margins are also negative, indicating continued operational challenges.

Balance Sheet

The company's balance sheet reflects moderate financial health with a strong equity base and no debt, leading to a favorable equity ratio. However, consistent negative net income affects return on equity, highlighting inefficiencies in generating shareholder value.

Cash Flow

Grounded Lithium's cash flows are under pressure with negative operating and free cash flows. The company is heavily reliant on financing activities, which is unsustainable in the long term without improving operational cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.70K	10.76K	16.18K	19.25K	0.00	0.00
Gross Profit	7.29K	10.76K	-89.50K	-152.98K	-35.74K	0.00
EBITDA	-386.44K	-1.01M	-4.07M	-6.64M	-156.02K	-80.84K
Net Income	-397.45K	-1.07M	-4.19M	-6.98M	-376.61K	-84.14K
Balance Sheet
Total Assets	2.58M	2.91M	3.36M	6.03M	2.49M	5.04K
Cash, Cash Equivalents and Short-Term Investments	277.21K	244.97K	193.01K	2.91M	2.33M	3.03K
Total Debt	0.00	0.00	56.36K	160.40K	0.00	55.00K
Total Liabilities	408.44K	763.88K	483.05K	870.67K	144.86K	357.56K
Stockholders Equity	2.17M	2.15M	2.87M	5.16M	2.35M	-352.53K
Cash Flow
Free Cash Flow	-217.75K	-720.31K	-3.26M	-3.87M	-352.91K	-64.30K
Operating Cash Flow	-217.74K	-720.31K	-3.06M	-3.83M	-185.00K	-64.30K
Investing Cash Flow	216.34K	730.43K	1.94M	-4.48M	-159.49K	5.00K
Financing Cash Flow	0.00	-57.39K	651.47K	6.67M	2.67M	55.00K

Grounded Lithium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRD, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.06, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.64 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GRD.

Grounded Lithium 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%
SRA	39 Underperform	C$13.79M	22.30	16.97%	―	―	―
EDDY	36 Underperform	$1.48M	―	-9.82%	―	―	46.67%
LEXI.H	35 Underperform	C$2.41M	―	―	―	―	63.64%
GRD	34 Underperform	C$4.34M	―	-17.80%	―	―	83.87%
AWCM	33 Underperform	C$7.17M	―	-17.86%	―	―	92.11%
OWLI	20 Underperform	C$4.26M	―	―	―	―	24.42%

Grounded Lithium Corporate Events

Grounded Lithium Corp. Advances Kindersley Project with Strategic Partnership

Grounded Lithium Corp. reported its 2024 year-end financial and operational results, highlighting a strategic partnership with Denison Mines Corp. This partnership allows Denison to gain a majority interest in the Kindersley Lithium Project by funding project expenditures, which supports GLC’s efforts to advance the project without diluting its interests. The collaboration has initiated technical studies to support a Pre-Feasibility Study, marking a significant step towards commercial production. The company’s financial results show a reduced net comprehensive loss and cash flow used in operations compared to the previous year, indicating improved financial management. The ongoing technical work and the anticipated completion of a Pre-Feasibility Study are expected to enhance shareholder value and strengthen GLC’s position in the lithium industry.

Spark’s Take on TSE:GRD Stock

According to Spark, TipRanks’ AI Analyst, TSE:GRD is a Underperform.

Grounded Lithium’s stock score reflects significant financial struggles with negative profitability and cash flows despite revenue growth. Technical analysis signals a bearish trend, compounded by valuation issues due to a negative P/E ratio. Though recent corporate events are positive, they do not sufficiently offset the financial and operational challenges.

To see Spark’s full report on TSE:GRD stock, click here.