Is ABAT a good long-term investment?

**American Battery Technology Company (ABAT) is not a strong candidate for long-term investment** based on current financials and market indicators:

1. **Financial Performance**: ABAT's recent financials show a net loss of $11.5 million and a diluted EPS of $-0.14 for the latest quarter ending March 31, 2025. The company has a negative return on equity of 74.43% and a negative net margin of 3,230.84%. These indicators suggest the company is not profitable and is struggling financially.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|ABAT|ABAT.O|American Battery|2024 Q4|343500|-2.3436851E7||186|
|ABAT|ABAT.O|American Battery|2025 Q1|201960|-1.1694569E7|-0.17|186|
|ABAT|ABAT.O|American Battery|2025 Q2|332440|-1.3400506E7|-0.18|186|
|ABAT|ABAT.O|American Battery|2025 Q3|979977|-1.1495947E7|-0.14|186|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|ABAT|ABAT.O|American Battery|2024 Q4|-194.7403163727985|||186|
|ABAT|ABAT.O|American Battery|2025 Q1|-31.518210179805905||10.52631578947368|186|
|ABAT|ABAT.O|American Battery|2025 Q2|-31.663309542802665||14.285714285714285|186|
|ABAT|ABAT.O|American Battery|2025 Q3|-15.015413497125001||26.315789473684205|186|

2. **Dividend Policy**: ABAT has not declared any dividends recently and does not anticipate paying any cash dividends in the foreseeable future. This indicates that the company is not committed to returning value to shareholders.
3. **Market Sentiment and Analyst Ratings**: The stock has been downgraded to a "sell" rating by Wall Street Zen, although it has been upgraded to a "hold" rating. This suggests that analysts have concerns about the company's prospects. Additionally, the stock has a high beta of -2.23, indicating significant volatility.
4. **Institutional Investor Activity**: Despite some institutional investor interest, as indicated by purchases from Soviero Asset Management LP and Chico Wealth RIA, the stock is owned by 9.88% of institutional investors and hedge funds. This suggests that while there is some interest from institutional investors, it may not be a strong endorsement for long-term investment.
5. **Strategic Position**: ABAT is working on increasing domestic US production of battery materials and has received grants for lithium-ion battery recycling facilities. These are positive signs for the company's long-term strategy. However, the company's current financials and market sentiment suggest that it may not be a good long-term investment at this time.

In conclusion, while ABAT has a positive strategic outlook, its current financial performance and market indicators do not support it as a good long-term investment. Investors should exercise caution and consider the significant risks before investing in ABAT.