Critical Elements Lithium Corp V.CRE

Simply Wall Street says

[settoretire]

Critical Elements Lithium

CRE

Share Price

7 Day

1 Year

1.75

0.0%

14.4%

New major risk - Revenue and earnings growth

Earnings have declined by 4.2% per year over the past 5 years.

This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. 

Currently, the following risks have been identified for the company: 

Major Risks

• Earnings have declined by 4.2% per year over the past 5 years.
• Revenue is less than US$1m.

Minor Risk

• Shareholders have been diluted in the past year (5.5% increase in shares outstanding).

[ahkow42]

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