5E Advanced Materials, Inc. (FEAM) AI Stock Analysis

• Market Cap: $93.94M
• Dividend Yield: N/A
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: -20.54%
• Country: US
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): -25.32
• Shares Outstanding: 17,995,995
• 10 Day Avg. Volume: 11,081
• 30 Day Avg. Volume: 40,821
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -15.68
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 129.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

5E Advanced Materials, Inc. has a low overall stock score primarily due to its poor financial performance, which poses significant risks. The technical analysis suggests a lack of positive momentum, while the valuation indicates potential overvaluation due to negative earnings and no dividend yield. Although recent corporate restructuring and compliance regain are positive, they are not yet reflected in improved financial performance or technical trends.

Positive Factors

Investor confidence

FEAM's convertible debt lenders agreed to purchase $5M of equity, which signals confidence from investors.

Production efficiency

Analyst expects current spending will increase boric acid production efficiency.

Restructuring and equity funding

A special stockholder meeting is planned to approve a restructuring plan, which could help convert debt to equity and raise additional capital.

Negative Factors

Financial performance

FEAM reported a slightly wider EBITDA loss than anticipated, primarily due to increased cash salary costs.

Free cash flow

The price target for FEAM has been reduced to $1.00, reflecting lower free cash flow forecasts.

Revenue expectations

Revenue forecasts are reduced due to a longer timeline needed to build a larger boric acid processing facility.

5E Advanced Materials, Inc. Business Overview & Revenue Model

Company Description

5E Advanced Materials, Inc. (FEAM) is a company focused on developing and supplying critical materials, specifically boron and lithium derivatives, which are essential for the manufacturing of high-tech and clean energy products. Operating within the advanced materials sector, 5E Advanced Materials leverages its proprietary technology and resources to produce high-purity boron compounds, serving industries such as electronics, renewable energy, and agriculture.

How the Company Makes Money

5E Advanced Materials, Inc. generates revenue primarily through the extraction, processing, and sale of boron and lithium products. The company capitalizes on the growing demand for these materials in various high-value applications, including electric vehicle batteries, solar power systems, and specialty glass. Revenue streams are bolstered by long-term supply agreements with key industrial players, strategic partnerships, and possibly government contracts aimed at securing critical materials for technological advancement and energy transition. The company's earnings are influenced by the global demand and pricing for boron and lithium, as well as its operational efficiency and production capacity.

5E Advanced Materials, Inc. Financial Statement Overview

Summary

5E Advanced Materials, Inc. is experiencing significant financial challenges, with negative gross profit margins and net profit margins, no revenue growth, and operational inefficiencies. The balance sheet shows financial instability with negative equity, and cash flow issues indicate reliance on external financing, suggesting substantial financial risk.

Income Statement

5E Advanced Materials, Inc. is experiencing significant financial challenges, as indicated by negative gross profit margins and net profit margins. The company has not been able to generate consistent revenue, resulting in no revenue growth. The EBIT and EBITDA margins are also substantially negative, reflecting operational inefficiencies.

Balance Sheet

The company has a negative equity position, indicating potential financial distress. The debt-to-equity ratio is difficult to evaluate positively due to negative equity, and the equity ratio is negative, suggesting that liabilities exceed assets. This balance sheet structure increases financial risk and limits future borrowing capacity.

Cash Flow

The cash flow analysis reveals persistent negative free cash flow, which is worsening over time. The operating cash flow to net income ratio is not favorable, indicating cash flow issues. The company is heavily reliant on financing activities to sustain operations, which could pose long-term sustainability concerns.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	135.85K
	Gross Profit
-6.63M	-371.00K	-246.00K	-5.97K	117.03K
	EBIT
-35.86M	-36.71M	-67.83M	-17.63M	-3.06M
	EBITDA
-30.69M	-34.26M	-66.46M	-17.55M	-3.00M
	Net Income Common Stockholders
-62.01M	-30.62M	-66.71M	-19.25M	-3.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.90M	20.32M	31.06M	40.81M	26.67M
	Total Assets
89.50M	100.90M	70.89M	64.61M	50.54M
	Total Debt
68.48M	37.92M	561.00K	309.00K	0.00
	Net Debt
63.58M	17.60M	-30.50M	-40.50M	-26.67M
	Total Liabilities
78.80M	47.33M	8.22M	2.28M	2.63M
	Stockholders Equity
10.71M	53.57M	62.66M	62.33M	47.91M
Cash Flow		Free Cash Flow
-34.06M	-70.78M	-40.02M	-23.07M	-5.52M
	Operating Cash Flow
-26.87M	-30.70M	-28.61M	-10.89M	-1.44M
	Investing Cash Flow
-7.19M	-39.31M	-11.40M	-12.96M	-4.08M
	Financing Cash Flow
18.63M	59.27K	30.62K	37.77M	29.62M

5E Advanced Materials, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FEAM, the sentiment is Positive. The current price of 5.22 is above the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.23, and below the 200-day MA of 11.63, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 95.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FEAM.

5E Advanced Materials, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	74 Outperform	$2.64B	24.36	24.44%	0.23%	12.94%	45.40%
MLM	70 Outperform	$30.57B	15.58	22.83%	0.62%	-3.56%	70.93%
CPAC	68 Neutral	$528.96M	8.89	16.44%	9.11%	1.12%	17.25%
CX	67 Neutral	$7.83B	8.36	8.39%	1.40%	-5.07%	417.07%
SMID	66 Neutral	$152.77M	23.53	17.55%	―	32.40%	1034.04%
Sector *	49 Neutral	$1.95B	-1.61	-21.88%	3.78%	0.55%	-26.94%
FEAM	31 Underperform	$93.94M	―	-520.01%	―	―	-20.54%

5E Advanced Materials, Inc. Corporate Events

5E Advanced Materials Completes Restructuring and Regains Nasdaq Compliance

On March 5, 2025, 5E Advanced Materials, Inc. completed its restructuring and recapitalization transactions by entering an Exchange Agreement with Bluescape and Ascend, leading to the termination of a previous Note Purchase Agreement and the issuance of over 13 million shares. The company also addressed compliance issues with Nasdaq, regaining compliance with the Minimum Bid Price Requirement and working towards meeting the Stockholders’ Equity Rule, which may affect its continued listing on the Nasdaq Global Select Market.

5E Advanced Materials Approves Key Proposals in Special Meeting

On March 4, 2025, 5E Advanced Materials, Inc. held a Special Meeting where stockholders voted on several proposals, including the issuance of shares and warrants to noteholders, an amended equity compensation plan, and director compensation. All proposals received sufficient votes for approval, and the adjournment proposal was not needed.