Last Updated: 19 Sep 2024
Executive Summary
Electra Battery Materials Corp (ELBM) is a small-cap company in the manufacturing sector. The company is engaged in acquiring and exploring resource properties in the United States and Canada. ELBM has a market capitalization of $38.2 million and has a negative EBITDA of $12.7 million. The company's latest stock price is $0.64, which is below its 52-week high of $0.75 and above its 52-week low of $0.261.
Company Overview
Electra Battery Materials Corp was founded in 2018 and is headquartered in Toronto, Canada. The company's primary focus is on the exploration and development of cobalt, nickel, and copper properties. ELBM's flagship project is the Iron Creek Cobalt Project located in Idaho, USA. The company also has interests in the Black Horse Cobalt Project in British Columbia, Canada, and the Grassy Mountain Copper-Cobalt Project in Nevada, USA.
Fundamental Analysis
ELBM's financial performance has been weak in recent years. The company has reported negative earnings per share (EPS) in each of the past three years. In 2023, the company reported an EPS of -$1.16. ELBM's revenue has also been declining in recent years. In 2023, the company reported revenue of $0. The company's negative EBITDA and declining revenue are a concern.
ELBM's balance sheet is also weak. The company has total debt of $15.7 million and total equity of $23.5 million. The company's debt-to-equity ratio of 0.67 is relatively high. ELBM's weak financial performance and balance sheet are a concern.
Technical Analysis
ELBM's stock price has been trending lower in recent months. The stock price is currently below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold. The technical analysis suggests that ELBM's stock price could continue to decline in the short term.
Short Term Outlook
ELBM's short-term outlook is negative. The company's weak financial performance, balance sheet, and technical analysis suggest that the stock price could continue to decline in the short term. Investors should be cautious about investing in ELBM at this time.
Long Term Outlook
ELBM's long-term outlook is uncertain. The company's business model is dependent on the exploration and development of cobalt, nickel, and copper properties. The demand for these metals is expected to increase in the coming years due to the growing demand for electric vehicles. However, ELBM faces competition from other companies that are also exploring and developing these metals. The company's long-term outlook will depend on its ability to successfully explore and develop its properties and compete with other companies in the industry.
Analyst Recommendations
One analyst has a buy rating on ELBM, while no analysts have a strong buy, hold, sell, or strong sell rating on the stock. The analyst's consensus price target for ELBM is $1.40, which is 118.75% above the current stock price.
