E3 Metals (ETL) AI Stock Analysis

• Market Cap: $57.20M
• Dividend Yield: N/A
• Average Volume (3M): 78.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: 6.97%
• Country: CA
• Employees: 29
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): -0.13
• Shares Outstanding: 75,269,394
• 10 Day Avg. Volume: 47,342
• 30 Day Avg. Volume: 78,636
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -11.40
• P/FCF Ratio: 0.00
• 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: C$4.26
• Price Target Upside: 460.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

E3 Metals faces significant financial challenges with no revenue and persistent losses, despite a strong balance sheet. Technical indicators show weak momentum, and valuation metrics suggest caution due to negative profitability. These factors result in a low overall stock score.

E3 Metals Business Overview & Revenue Model

Company Description

E3 Metals Corp (ETL) is a Canadian-based resource company primarily operating in the energy sector, focusing on the development of lithium extraction projects. The company aims to produce high-purity lithium products for the growing battery and renewable energy markets. E3 Metals utilizes innovative extraction technologies to tap into significant lithium resources in Alberta, Canada, positioning itself as a key player in the clean energy transition.

How the Company Makes Money

E3 Metals generates revenue through the exploration and potential production of lithium, an essential component in batteries for electric vehicles and renewable energy storage systems. The company's revenue model relies on advancing its proprietary Direct Lithium Extraction (DLE) technology, which is expected to improve the efficiency and sustainability of lithium extraction from brine resources. E3 Metals capitalizes on partnerships and collaborations with technology developers and industry players to enhance its extraction processes and scale operations. As the company progresses towards commercial production, it aims to secure offtake agreements with battery manufacturers and other industrial clients, providing a steady revenue stream from the sale of lithium products.

E3 Metals Financial Statement Overview

Summary

E3 Metals demonstrates significant financial challenges, primarily due to its absence of revenue and profitability. While the balance sheet is a strong point with low leverage and high equity ratio, persistent net losses and negative cash flows highlight operational and liquidity concerns.

Income Statement

E3 Metals has consistently reported zero revenue, indicating no operational income. The company also exhibits deteriorating profitability metrics, with increasing net losses and negative EBIT and EBITDA margins in TTM. The lack of revenue growth and persistent negative margins highlight challenges in operational performance.

Balance Sheet

The balance sheet shows a healthy equity position with a low debt-to-equity ratio, suggesting financial stability. The equity ratio is strong at 94.77% in TTM, indicating the company is well-capitalized. However, the absence of operational revenue and consistent net losses pose potential risks to sustaining this stability.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, indicating cash burn. Although financing activities have been positive, mainly from equity financing, the negative operating cash flow to net income ratio reflects insufficient cash generation from operations. The company faces challenges in maintaining liquidity without external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-203.00K	-179.00K	-175.00K	-128.00K	-49.41K	-33.63K
	EBIT
-7.88M	-9.47M	-6.59M	-4.75M	-2.11M	-2.34M
	EBITDA
-9.28M	-9.60M	-6.73M	-4.63M	-2.07M	-2.33M
	Net Income Common Stockholders
-9.54M	-9.04M	-7.26M	-4.80M	-2.10M	-2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.14K	30.02M	13.25M	17.84M	6.47M	277.46K
	Total Assets
101.16K	61.99M	36.10M	25.99M	10.64M	4.48M
	Total Debt
0.00	637.00K	584.00K	266.00K	168.31K	12.64K
	Net Debt
-8.14K	-29.38M	-12.66M	-17.57M	-6.30M	-264.82K
	Total Liabilities
14.17K	4.83M	2.63M	990.00K	544.18K	455.69K
	Stockholders Equity
86.99K	57.15M	33.47M	25.00M	10.10M	4.02M
Cash Flow		Free Cash Flow
-16.69M	-8.41M	-9.47M	-5.58M	-2.40M	-2.38M
	Operating Cash Flow
-6.01M	-5.86M	-5.49M	-2.85M	-1.59M	-1.93M
	Investing Cash Flow
-13.27M	-13.81M	-12.71M	-3.36M	-807.68K	-448.48K
	Financing Cash Flow
6.29M	36.44M	13.60M	17.33M	7.90M	3.26M

E3 Metals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ETL, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.83, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ETL.

E3 Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRE	49 Neutral	$103.48M	66.20	2.13%	―	―	―
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%
ETL	43 Neutral	$57.20M	―	-17.12%	―	―	6.97%
AVL	42 Neutral	C$15.21M	―	-5.00%	―	―	-1118.18%
LAC	42 Neutral	C$863.81M	―	-4.13%	―	―	―
LTHM	27 Underperform	C$2.79M	―	-788.70%	―	―	14.62%

E3 Metals Corporate Events

E3 Lithium Advances in Setting Global Lithium Standards

E3 Lithium is actively participating in the ISO TC 333 Lithium mirror committee to develop standardized testing methods for lithium product quality, which is crucial for pricing and market acceptance in the battery industry. The company’s Calgary Lab plays a significant role in testing and verifying these standards, contributing to the accuracy and reliability of lithium quality assessments, thereby strengthening its industry position and stakeholder trust.

E3 Lithium Releases Promising Q3 Financials

E3 Lithium, a key player in the Canadian lithium market, has published its third-quarter 2024 financial results, showcasing their significant lithium resources in Alberta and Saskatchewan. The company is focused on advancing its Clearwater Project with promising pre-tax and after-tax net present values, highlighting their potential to meet the growing demand for high-purity lithium products.