May I please have your current opinion on Electrovaya as a 3 to 5 year hold?
I see that the stock price has gone up recently.
If you could provide some insight on the company and their future prospects it would be appreciated.
Also, do you feel that there is much in the way of risk related to U.S. tariffs and the upcoming renegotiation of CUSMA.
Thanks!
ELVA is up 181% this year, bringing market cap to $401M. It trades at 71X earnings, no dividend. Revenue growth is starting to accelerate, going from $44.6M last year to an estimated $92M next year. But cash flow is still negative (-$4.5M in the 12 months to June 30). It has about $19M net debt/obligations. EPS is expected to go from a loss last year (4 cents) to profit 10 cents this year and 24 cents next year. Insiders own 29%. The battery/electric sector is getting lots of attention due to the growth of AI and ELVA has won lots of new orders and attention. We would still consider it on the high risk side of things. It has lost money since inception until this year. But, if can execute on its expected 100%+ growth investors will no doubt stay interested here. We would not expect much in the way of tariff issues here.