Edison Lithium (EDDY) AI Stock Analysis

• Market Cap: $1.42M
• Dividend Yield: N/A
• Average Volume (3M): 13.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: N/A
• EPS Growth: 46.67%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 18,970,583
• 10 Day Avg. Volume: 13,100
• 30 Day Avg. Volume: 13,935
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: ―

Edison Lithium's stock score is primarily impacted by its weak financial performance due to lack of revenue and negative cash flows. The stock benefits from positive technical indicators and strategic corporate events, but poor valuation metrics weigh heavily on the score.

Edison Lithium Business Overview & Revenue Model

Company Description

Edison Lithium Corp., a junior mining exploration company, engages in the procurement, exploration, and development of mineral properties. It primarily explores for cobalt, lithium, and other energy metal properties. The company holds a 100% interest in the Kittson Cobalt Project comprising 5 unpatented mining claims totaling 68 units covering an area of approximately 1,090 hectares located in the northeastern Ontario, Canada. It also holds an option to acquire interest in the Lithium Brine claims covering an area of 148,000 hectares located in the province of Catamarca, Argentina. The company was formerly known as Edison Battery Metals Corp. and changed its name to Edison Lithium Corp. in November 2021. Edison Lithium Corp. was incorporated in 2009 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Edison Lithium makes money through the exploration and development of lithium mining projects. The company's revenue model involves acquiring promising lithium-rich properties, conducting exploratory activities to assess the potential yields, and subsequently developing these sites for commercial extraction. Revenue is primarily generated through the sale of lithium extracted from their developed mines. Additionally, Edison Lithium may form strategic partnerships or joint ventures with larger mining companies or technology firms to co-develop projects, providing additional revenue streams through shared profits or licensing fees. The company's earnings are influenced by global lithium demand, market prices, and its ability to efficiently operate and expand its mining operations.

Edison Lithium Financial Statement Overview

Summary

Edison Lithium's financials reflect an exploration-stage company with no revenue and consistent operational losses. A strong equity position and no debt are positives, but negative cash flows and lack of revenue are significant concerns.

Income Statement

Edison Lithium has consistently reported zero total revenue, indicating an early-stage or exploration-phase mining company. The net income has been negative across all periods, with EBIT and EBITDA also negative, reflecting continuous operational losses. There is no revenue growth due to the lack of revenue, which severely impacts the income statement score.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of zero, indicating no debt burden. The equity ratio is high, reflecting a solid capital structure with significant stockholders' equity relative to total assets. However, the lack of revenue generation poses a risk to long-term sustainability without external financing.

Cash Flow

Operating cash flows are negative, reflecting the company's inability to generate cash from operations. Free cash flow is also negative, primarily driven by capital expenditures. The lack of positive cash flow generation is concerning, although the company has managed to maintain a cash reserve that slightly mitigates risk.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	―	0.00	0.00	0.00	0.00
EBITDA	―	-757.00K	-1.47M	-1.53M	-120.00K
Net Income	―	-913.00K	-1.45M	-1.53M	-84.73K
Balance Sheet
Total Assets	8.96M	9.16M	9.85M	10.89M	6.19M
Cash, Cash Equivalents and Short-Term Investments	999.73K	1.50M	2.17M	3.72M	718.57K
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	339.87K	169.33K	45.60K	177.98K	17.33K
Stockholders Equity	8.62M	8.99M	9.80M	10.71M	6.17M
Cash Flow
Free Cash Flow	-1.43M	-805.22K	-1.58M	-959.03K	-259.58K
Operating Cash Flow	-1.22M	-676.51K	-1.09M	-659.03K	-117.08K
Investing Cash Flow	798.38K	509.52K	-1.49M	-349.63K	-142.50K
Financing Cash Flow	437.66K	0.00	36.00K	4.01M	0.00

Edison Lithium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDDY, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EDDY.

Edison Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	50 Neutral	C$1.09B	-16.66	-47.88%	―	-25.68%	-637.02%
AVL	49 Neutral	C$25.51M	-3.92	-0.50%	―	―	-10100.00%
LAC	49 Neutral	C$2.14B	-26.36	―	―	―	―
EDDY	36 Underperform	$1.42M	―	-9.82%	―	―	46.67%
LTHM	27 Underperform	C$2.79M	-0.96	―	―	―	67.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Edison Lithium Corporate Events

Edison Lithium Updates on Argentinian Subsidiary Sale

Edison Lithium Corp. has announced an update on the proposed sale of its Argentinian subsidiary, Resource Ventures S.A., to Mava Gasoil LLC. The transaction, valued at USD$3.5 million, is pending the finalization of a definitive agreement and other closing conditions. This sale is part of Edison’s strategy to optimize its portfolio and focus on its core operations, potentially enhancing its market positioning and providing financial benefits to its stakeholders.

Spark’s Take on TSE:EDDY Stock

According to Spark, TipRanks’ AI Analyst, TSE:EDDY is a Neutral.

Edison Lithium’s overall stock score is impacted by its financial performance, which reflects an early-stage exploration company with no revenue and negative cash flows. The strong technical indicators provide some positive momentum, but the negative valuation metrics due to unprofitability and lack of dividends weigh heavily. The recent corporate event of extending warrant expiry is a positive strategic move but not enough to significantly enhance the score.

To see Spark’s full report on TSE:EDDY stock, click here.

Edison Lithium Extends Warrant Expiry to Strengthen Market Position

Edison Lithium Corp. has announced its intention to extend the expiry date of 4,000,000 common share purchase warrants by 24 months to October 26, 2027. This extension, which maintains the current exercise price, is subject to approval by the TSX Venture Exchange and reflects the company’s strategic efforts to enhance its market positioning and shareholder value in the growing battery metals sector.