Elemental Royalty Corporation Common Stock (ELE)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 5.6 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 190.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($4) with negative 344% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Elemental Royalty Corporation Common Stock is a micro-cap basic materials company valued at $1.2 billion. Revenue stands at $44 million. From a quality standpoint, Elemental shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 5.6 confirms fortress-level solvency. On valuation, the stock is commanding a steep 296.5x multiple, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at 190.8% and profit growth of -2494.8%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Elemental's 191% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 297x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer