Elemental Royalty Corporation Common Stock (ELE)
FairStock Score: 26/100 — RISKY
Key Financials
| Current Price | $15.88 |
| Market Cap | $1.2B |
| P/E Ratio | -794 |
| ROE | 0.58% |
| Dividend Yield | 0.56% |
| Sector | Basic Materials |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a value investor, I look first for a durable business with honest, owner-oriented economics. Elemental Royalty is a small royalty company, with 39 employees, that buys precious and base metal royalties. The model can be attractive: no mines to operate, zero debt per the D/E of 0.00, and an Altman Z-Score of 5.26 from FairStock suggests a strong balance sheet. In the quarter reported as fiscal Q2 2026, revenue was $23.8 million and net income was $3.6 million, a 15.13% margin. That is a real profit. Yet the overall picture is not yet that of a proven compounder. At the $16.97 close on 2026-10-13, FairStock's P/B is 1.39. Trailing free cash flow is negative $30.6 million, a negative 2.6% FCF yield. FairStock calculations show ROE of 0.58%, ROCE of 1.62%, and EV/EBITDA of 29.33. The P/E of -848.50 reflects a small trailing loss. Piotroski is 5/9, middling, and FairStock Score is 26/100. The Lynch category is none because there are only 0 years of filed results, not the 3 needed. Revenue growth has been very strong, but profit growth has been negative, and the company does not yet generate free cash. The 52-week range is $12.58-$26.96, so at $16.97 it trades below the high but not at a deep discount. Without a longer record and positive cash generation, I cannot call this a bargain. It requires watching, not paying up.
In plain English: Elemental Royalty buys the right to receive payments from mining projects, mostly gold and other metals, with a small team. In the quarter reported as 2026-Q2, it had $23.8 million in sales and $3.6 million in profit, but it is not yet generating spare cash and its returns on money invested are very low. At about $17, the price looks expensive compared with those current numbers, though it is below its 52-week high.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer