Canada Rare Earth (LL) AI Stock Analysis

• Market Cap: C$6.35M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 211,587,690
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): -3.71
• Price to Sales (P/S): 4.13
• P/FCF Ratio: 7.69
• 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: 41 Neutral
• Price Target: ―

Canada Rare Earth's overall score is driven by weak financial performance highlighted by a significant decline in revenue and profitability, coupled with a precarious balance sheet. While the stock shows some positive short-term momentum, the lack of valuation metrics and potential overbought condition limit its appeal. The company's high financial risk and inability to generate consistent cash flow are significant concerns.

Positive Factors

Improved Operating Cash Flow

Positive operating cash flow indicates better cash conversion from operations, enhancing liquidity and operational flexibility, which is crucial for sustaining business activities and investments.

Strategic Partnerships

Strategic partnerships can enhance market reach and ensure steady demand, providing a competitive edge and supporting long-term revenue stability.

Industry Demand

Growing demand in high-tech industries for rare earth elements supports long-term market potential, positioning the company to benefit from structural industry trends.

Negative Factors

Negative Equity

Negative equity signals financial instability, limiting the company's ability to raise capital and invest in growth, posing a risk to long-term viability.

Revenue Decline

Declining revenue impacts profitability and operational efficiency, challenging the company's ability to sustain growth and compete effectively in the market.

Operational Losses

Operating losses reflect inefficiencies and hinder the company's capacity to generate profits, affecting its long-term financial health and strategic initiatives.

Canada Rare Earth Business Overview & Revenue Model

Company Description

Canada Rare Earth Corp., a development stage company, focuses on developing an integrated business within the rare earth industry in Asia. The company offers high-purity rare earth oxides, rare earth fluorides, larger particle/nano rare earth oxides, and other products. Its products are used in various industries, such as high-end electronics, lighting solutions, ceramics and glass, catalytic and cracking, magnets, and atomic energy. The company was formerly known as Rare Earth Metals Inc. and changed its name to Canada Rare Earth Corp. in February 2013. Canada Rare Earth Corp. was incorporated in 1987 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Canada Rare Earth (LL) generates revenue through the extraction, processing, and sale of rare earth elements. The company earns money by mining rare earth deposits, refining these materials to meet industry standards, and then selling them to manufacturers and distributors who require these elements for their products. Additionally, the company may engage in strategic partnerships with technology firms and other stakeholders in the supply chain to ensure a steady demand for its products. Revenue streams are also bolstered by long-term supply contracts and collaborations with international partners to expand market reach and efficiency in distribution.

Canada Rare Earth Financial Statement Overview

Summary

Canada Rare Earth's financial health is weak, with a significant decline in revenue and profitability. The balance sheet is precarious with negative equity, indicating high financial risk. Despite improvements in operating cash flows, the company faces substantial challenges, particularly with its leverage and equity position.

Income Statement

Canada Rare Earth has shown significant volatility in revenue with a sharp decline from the previous year, impacting gross profit margins negatively. The company is currently operating at a loss, with both EBIT and net income in the red, indicating operational inefficiencies. The negative EBITDA margin further reflects on the company's inability to generate positive earnings before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, indicating liabilities exceed assets, which is a significant red flag. The debt-to-equity ratio cannot be calculated due to negative equity, but the presence of substantial liabilities suggests high financial risk. Overall, the company is in a precarious financial position.

Cash Flow

The company has shown improvement in operating cash flow, turning positive in the most recent period. However, free cash flow remains highly volatile, reflecting on its inconsistent cash generation ability. The operating cash flow to net income ratio is favorable, indicating better cash conversion from operations, yet the overall cash flow situation remains unstable.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28M	5.38M	410.30K	1.28M	597.19K
Gross Profit	292.29K	1.30M	42.08K	252.59K	146.85K
EBITDA	-1.10M	370.90K	-927.00K	-607.00K	-505.00K
Net Income	-912.00K	171.27K	-1.03M	-668.00K	-674.00K
Balance Sheet
Total Assets	3.28M	2.27M	603.11K	1.52M	1.11M
Cash, Cash Equivalents and Short-Term Investments	489.59K	220.63K	33.84K	204.27K	514.23K
Total Debt	1.04M	1.24M	3.26K	40.10K	1.12M
Total Liabilities	4.70M	2.27M	786.65K	1.57M	1.99M
Stockholders Equity	-1.42M	6.13K	-183.54K	-45.95K	-882.14K
Cash Flow
Free Cash Flow	685.67K	63.82K	-153.33K	-922.82K	-974.73K
Operating Cash Flow	685.67K	110.78K	-74.00K	-136.49K	-965.10K
Investing Cash Flow	-245.09K	-416.47K	-79.32K	-786.33K	-9.63K
Financing Cash Flow	-439.65K	410.53K	-6.84K	601.40K	601.40K

Canada Rare Earth Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LL, the sentiment is Negative. 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 below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LL.

Canada Rare Earth 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%
GNG	51 Neutral	C$4.44M	-8.64	―	―	―	-495.41%
ERKA	50 Neutral	C$8.85M	-5.15	-34.14%	―	―	93.17%
GQ	44 Neutral	C$4.17M	-1.27	-9999.00%	―	―	-17.96%
LL	41 Neutral	C$6.35M	-2.36	―	―	―	―
RSH	29 Underperform	C$10.40M	―	―	―	―	―

Canada Rare Earth Corporate Events

Canada Rare Earth Abandons Acquisition, Focuses on Expansion

Canada Rare Earth Corp. announced that it will not proceed with the acquisition of a 70% interest in a rare earth processing facility due to geopolitical pressures in Southeast Asia. Despite this setback, the company remains committed to developing its rare earth refining capabilities and expanding its supply network across Africa and South America. Additionally, Canada Rare Earth is advancing its Bom Futuro project in Brazil and has secured a US$500,000 loan to enhance financial flexibility.