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Electrovaya (TSE:ELVA)
TSX:ELVA

Electrovaya (ELVA) AI Stock Analysis

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Electrovaya

(TSX:ELVA)

58Neutral
Electrovaya shows potential for growth with strong revenue increase and positive operating cash flow developments. However, high leverage, negative earnings, and valuation concerns temper the outlook. The recent earnings call provided a mix of positive strategic directions and existing operational challenges.
Positive Factors
Financial Performance
Electrovaya demonstrated gross margins improvement from roughly 26.9% in FY2023 to 30.7% in FY2024, with potential for further improvements as revenues grow.
Market Opportunities
The company remains on a solid fundamental footing with its market opportunity in industrial electrification.
Negative Factors
Revenue Guidance
The price target for Electrovaya has been lowered to $10 from $16 due to revenue guidance for FY2025 being lower than expected.

Electrovaya (ELVA) vs. S&P 500 (SPY)

Electrovaya Business Overview & Revenue Model

Company DescriptionElectrovaya, Inc. develops and manufactures proprietary Lithium Ion. The firm engages in designing, developing and manufacturing batteries, battery systems and battery-related products for energy storage, clean electric transportation and other specialized applications. Its main businesses include: lithium-ion batteries to power MHEVs including forklifts and Automated Guided Vehicles as well as accessories such as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses and other transportation applications; industrial products for energy storage; and specialty applications which require complex power solutions, including competencies in building systems for third parties. The company was founded by Sankar Das Gupta and James K. Jacobs in September 1996 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyElectrovaya generates revenue primarily through the sale of its lithium-ion battery systems and related products. The company's key revenue streams include direct sales to industrial customers, partnerships with original equipment manufacturers (OEMs), and contracts with energy companies for large-scale energy storage solutions. Electrovaya's strategic collaborations with industry leaders and its focus on innovation in battery technology contribute significantly to its earnings. Additionally, the company may engage in licensing agreements for its proprietary technologies, further enhancing its revenue potential. The demand for sustainable energy solutions and the growth of the electric vehicle market are essential factors driving Electrovaya's financial performance.

Electrovaya Financial Statement Overview

Summary
Electrovaya exhibits strong revenue growth and improving operational cash flow, which are positive indicators for future profitability. However, high debt levels and negative net margins present substantial financial risks. Continued focus on cost management and debt reduction will be crucial for strengthening its financial health.
Income Statement
70
Positive
Electrovaya's revenue has shown impressive growth over recent years, with the latest year seeing a 2.83% increase from the previous year. However, profitability remains a challenge as indicated by negative net profit margins, although there is a positive gross profit margin of 30.63% and an EBITDA margin of 6.55%, reflecting some operational efficiency. The company has been narrowing its EBIT losses, suggesting cost management improvements.
Balance Sheet
55
Neutral
The company's balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio of 2.42, indicating significant leverage. A positive equity ratio of 21.75% suggests that while the company has improved its equity position, it remains vulnerable to debt-related risks. Return on Equity (ROE) remains negative due to persistent net losses.
Cash Flow
65
Positive
Electrovaya has demonstrated a turnaround in cash flow from operations, switching from negative to positive, which is a positive sign for liquidity. Free cash flow has also improved significantly with a growth rate of 117.02%. The operating cash flow to net income ratio is positive, reflecting improved cash generation relative to net income losses.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
32.97M44.59M43.37M19.17M9.92M13.66M
Gross Profit
9.82M13.66M11.16M4.33M2.26M4.07M
EBIT
-64.00K729.00K1.20M-7.09M-7.28M-3.90M
EBITDA
2.10M2.92M1.25M-6.42M-4.55M4.42M
Net Income Common Stockholders
-858.00K-1.49M-1.48M-6.55M-7.53M1.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.17M781.00K1.03M626.00K4.20M1.12M
Total Assets
45.07M39.48M36.51M18.08M14.98M10.64M
Total Debt
17.37M20.77M19.03M19.11M11.53M12.81M
Net Debt
9.20M19.99M18.00M18.49M7.33M11.69M
Total Liabilities
25.01M30.90M29.37M24.00M16.67M19.36M
Stockholders Equity
20.06M8.59M7.15M-5.92M-1.70M-8.71M
Cash FlowFree Cash Flow
1.99M913.00K-5.36M-11.86M-8.68M-3.94M
Operating Cash Flow
2.03M1.04M-4.86M-11.81M-8.12M-3.90M
Investing Cash Flow
-281.00K-666.00K-903.00K-423.00K-560.00K-115.00K
Financing Cash Flow
5.37M-629.00K6.20M9.52M10.92M3.56M

Electrovaya Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.37
Price Trends
50DMA
3.52
Negative
100DMA
3.40
Negative
200DMA
3.33
Positive
Market Momentum
MACD
-0.08
Negative
RSI
50.81
Neutral
STOCH
75.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELVA, the sentiment is Neutral. The current price of 3.37 is above the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.52, and above the 200-day MA of 3.33, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ELVA.

Electrovaya Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$8.16B12.810.47%3.07%3.83%-16.36%
58
Neutral
$135.10M-12.31%-8.28%-1633.33%
TSGRN
55
Neutral
C$12.55M-65.49%5.42%-55.46%
TSSVA
36
Underperform
C$60.77M248.46%18.35%
30
Underperform
C$66.86M-96.97%-4.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ELVA
Electrovaya
3.37
-1.91
-36.17%
MGA
Magna International
36.37
-13.36
-26.87%
TSE:NANO
Nano One Materials
0.60
-1.11
-64.91%
TSE:SVA
Sernova
0.18
-0.38
-67.86%
TSE:GRN
Greenlane Renewables Inc
0.08
-0.05
-38.46%
LAC
Lithium Americas Corp.
2.89
-3.10
-51.75%

Electrovaya Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -2.88% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong financial performance, strategic expansions, and positive sales momentum countered by revenue decline, net loss increase, and customer delivery delays. The company's future growth plans and financial strength were positively highlighted, yet certain challenges remain.
Highlights
Strong Financial Performance
Electrovaya delivered $11.2 million in revenue with over 30% margins and the seventh consecutive quarter of positive adjusted EBITDA.
EXIM Bank Loan Approval
Secured a $51 million direct loan approval from the Export-Import Bank of the United States to expand lithium ion cell manufacturing in Jamestown, New York.
Successful Equity Raise
Completed an equity raise with gross proceeds of $12.8 million, strengthening the balance sheet and financial position.
Expansion Plans
Accelerated plans for battery system assembly operations at the Jamestown facility, with commercial operations expected to commence by April 2025.
Growing Sales Momentum
Good sales momentum from material handling OEM partners and new leasing program generating high sales interest.
Positive Cash Flow
Generated positive cash flow provided by operation activities of $1 million in Q1 2025.
Lowlights
Revenue Decline
Revenue for Q1 2025 was $11.2 million, down from $12.1 million in Q1 2024 due to delivery timing issues.
Net Loss Increase
Overall net loss for the quarter was $0.4 million, compared to $0.2 million in the prior year.
Customer Delivery Delays
Approximately $20 million of orders were pushed out of fiscal 2024 due to customer delays.
Operating Loss
Operating loss slightly increased year-over-year, impacted by $340,000 of non-recurring operating expenses.
Company Guidance
In the Q1 2025 financial results call, Electrovaya reported strong performance metrics including $11.2 million in revenue with gross margins exceeding 30%. The company achieved positive adjusted EBITDA for the seventh consecutive quarter. Significant developments included securing a $51 million loan approval from the Export-Import Bank of the United States to expand lithium-ion cell manufacturing in Jamestown, New York, and raising $12.8 million in equity to support this expansion. The company expects to commence commercial operations in Jamestown by April 2025. Electrovaya reiterated its revenue guidance for 2025, projecting a ramp-up starting in Q2, with a breakeven target at $50 million. Operational highlights included growing sales momentum with OEM partners, a newly introduced leasing program, and strategic progress in solid-state battery development.

Electrovaya Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Electrovaya Secures $50.8 Million Loan for U.S. Battery Manufacturing Expansion
Positive
Mar 10, 2025

Electrovaya has secured a $50.8 million direct loan from the Export-Import Bank of the United States to expand its battery manufacturing facility in Jamestown, New York. This funding, combined with additional financial resources, will support the company’s aggressive expansion plans in the U.S., creating over 250 jobs and enhancing its export capabilities to countries like Japan, Canada, and Australia. The expansion will also contribute to the development of U.S. supply chains for lithium-ion battery production.

Private Placements and FinancingBusiness Operations and Strategy
Electrovaya Secures $20M Credit Facility to Boost Growth and Cut Costs
Positive
Mar 10, 2025

Electrovaya has secured a $20 million credit facility from the Bank of Montreal to enhance its growth and reduce costs. This new facility, which includes a three-year term and an option to expand by $5 million, replaces existing debt and lowers capital costs, thus strengthening Electrovaya’s financial position. It supports operations in both the U.S. and Canada and enables financing from the U.S. Export-Import Bank for manufacturing investments in Jamestown. This strategic financial move is expected to bolster Electrovaya’s expansion plans and facilitate its pursuit of vertically integrated lithium-ion battery manufacturing in the U.S.

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya Secures Additional $4.2 Million Battery Order from US Cold Storage Operator
Positive
Mar 4, 2025

Electrovaya has secured an additional US$4.2 million order for its lithium-ion batteries from a rapidly growing cold storage logistics operator in the United States. This repeat order underscores the customer’s reliance on Electrovaya’s advanced battery technology, with over $13 million in purchases and plans for further expansion, highlighting the company’s strengthening position in the energy storage market and its potential impact on the logistics sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Electrovaya to Launch Jamestown Battery Assembly Operations in April 2025
Positive
Mar 3, 2025

Electrovaya Inc. has announced the early startup of its battery system assembly operations in Jamestown, New York, set for April 2025. This initiative marks the first phase of a significant investment in American manufacturing, with plans to invest over $70 million in their Jamestown facility. This expansion is driven by increasing demand for Electrovaya’s products in heavy-duty and mission-critical electrified applications, positioning the company as a key independent lithium-ion battery manufacturer in the U.S.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Electrovaya Reports Strong Q1 2025 Results and Expands US Manufacturing
Positive
Feb 13, 2025

Electrovaya Inc. reported strong financial results for Q1 2025, with a revenue of $11.2 million and a positive adjusted EBITDA for the seventh consecutive quarter. The company has strengthened its balance sheet, improved its financial position, and is making significant progress in securing financing to support its U.S. manufacturing expansion in Jamestown, New York. Electrovaya reaffirmed its fiscal 2025 revenue guidance exceeding $60 million, driven by a strong order pipeline. This positions the company for continued growth and reinforces its strategic initiatives in the energy storage industry.

Financial Disclosures
Electrovaya to Announce Q1-2025 Financial Results and Host Conference Call
Neutral
Feb 3, 2025

Electrovaya Inc. has announced that it will release its first-quarter financial results for the period ending December 31, 2024, on February 13, 2025, followed by a conference call led by its CEO and CFO. This announcement highlights the company’s ongoing transparency with investors and its commitment to keeping stakeholders informed about its financial performance and business developments.

Electrovaya Expands U.S. Operations with New Jamestown Facility
Jan 14, 2025

Electrovaya Inc. has initiated capital investments for its new Jamestown battery manufacturing facility, starting with the purchase of assembly equipment and hiring personnel, aiming to begin battery system assembly by the second quarter of 2025. This move is in response to growing demand for lithium-ion batteries in heavy-duty and mission-critical applications, and is part of Electrovaya’s strategy to expand its operations in the U.S., enhancing its market position in the field of energy transformation.

Electrovaya Raises $12.8 Million to Bolster Growth
Dec 18, 2024

Electrovaya Inc. has successfully closed the full exercise of an over-allotment option, raising an additional $1.7 million from its recent public offering, bringing the total proceeds to approximately $12.8 million. The funds will be used to meet loan conditions, refinance existing debt, and cover costs associated with its manufacturing facility in Jamestown, New York.

Electrovaya Secures $11.1 Million in Public Offering
Dec 18, 2024

Electrovaya Inc., a leader in lithium-ion battery technology, has successfully closed a public offering, raising approximately $11.1 million. The company plans to use the funds to meet conditions related to a loan from the Export-Import Bank of the United States and to repay existing financial obligations.

Electrovaya’s $11.1 Million Public Offering Announcement
Dec 17, 2024

Electrovaya Inc., a key player in lithium-ion battery technology, has announced a public offering of common shares priced at US$2.15 each, aiming to raise approximately US$11.1 million. The proceeds are intended for loan collateral, refinancing, and purchasing a manufacturing facility. The offering is expected to close by December 18, 2024, pending customary approvals.

Electrovaya Plans Public Offering to Boost Finances
Dec 16, 2024

Electrovaya Inc., a leader in lithium-ion battery technology, has announced an underwritten public offering of common shares to fund strategic financial initiatives, including loan conditions and facility purchases. The offering will be conducted in the U.S. and Canada, with major financial firms acting as co-lead managers. The terms and completion of the offering depend on market conditions and customary closing requirements.

Electrovaya Earns UL2580 Safety Certification
Dec 16, 2024

Electrovaya Inc. has achieved UL2580 recognition for its Infinity Series Lithium Ion Phosphate cells, highlighting the safety and reliability of its battery technology. This certification confirms Electrovaya’s commitment to meeting the highest safety standards for electric vehicle applications. The company plans to manufacture these cells alongside its NMC products at a new facility in Jamestown, New York.

Electrovaya’s Strong Fiscal Year 2024 Performance
Dec 12, 2024

Electrovaya has reported a solid financial performance for fiscal year 2024, with revenue reaching $44.6 million and an adjusted EBITDA of $4 million, marking its sixth consecutive quarter of positive earnings. The company also announced a $51 million loan approval from the Export-Import Bank of the United States to support its lithium-ion cell and battery manufacturing facility in New York.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.