Electrovaya Inc. Common Shares (ELVA)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 16.9% above cost of capital
• Altman Z-Score of 6.6 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 39.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 469% margin of safety—limited downside protection

AI Analysis

Electrovaya Inc. Common Shares is a micro-cap industrials company valued at $498 million. The business generates $64 million in annual revenue with a 1.6% net margin. From a quality standpoint, Electrovaya shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 6.6 confirms fortress-level solvency. On valuation, the stock is commanding a steep 92.3x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 39.3% and profit growth of 347.1%. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Electrovaya's 39% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 92x 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