Denison Mines Corp. (NYSE: DNN)

Sector: Energy Industry: Uranium CIK: 0001063259
Market Cap 3.39 Bn
P/B 11.60
P/E -23.90
P/S 960.20
ROIC (Qtr) -11.05
Div Yield % 0.00
Rev 1y % (Qtr) 48.18
Total Debt (Qtr) 433.71 Mn
Debt/Equity (Qtr) 1.49
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About

Investment thesis

Bull case

  • Tangible assets of 802.30M provide exceptional 34.16x coverage of deferred revenue 23.49M, showing strong service capability backing.
  • Strong free cash flow of (64.71M) provides 120.35x coverage of acquisition spending (537681.16), indicating disciplined M&A strategy.
  • Operating cash flow of (49.08M) fully covers other non-current liabilities (23.49M) by 2.09x, showing strong long-term stability.
  • Tangible assets of 802.30M provide robust 15.75x coverage of other current liabilities 50.93M, indicating strong asset backing.
  • Operating cash flow of (49.08M) provides strong 3.33x coverage of operating expenses (14.74M), showing operational efficiency.

Bear case

  • Investment activities of (31.74M) provide weak support for R&D spending of 46.01M, which is -0.69x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 350.16M provide limited coverage of acquisition spending of (537681.16), which is -651.23x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (49.08M) provides insufficient coverage of deferred revenue obligations of 23.49M, which is -2.09x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (49.08M) shows concerning coverage of stock compensation expenses of 3.51M, with a -13.97 ratio indicating potential earnings quality issues.
  • Free cash flow of (64.71M) provides weak coverage of capital expenditures of 15.63M, with a -4.14 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Uranium
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CCJ Cameco Corp 49.32 Bn 114.61 19.41 0.73 Bn
2 UEC Uranium Energy Corp 6.96 Bn -89.41 139.89 0.00 Bn
3 NXE NexGen Energy Ltd. 6.68 Bn -27.65 0.00 0.43 Bn
4 UUUU Energy Fuels Inc 4.10 Bn -41.98 52.11 0.00 Bn
5 LEU Centrus Energy Corp 3.58 Bn 46.04 7.98 1.21 Bn
6 DNN Denison Mines Corp. 3.39 Bn -23.90 960.20 0.43 Bn
7 URG Ur-Energy Inc 0.48 Bn -7.00 12.17 0.00 Bn
8 EU enCore Energy Corp. 0.46 Bn -6.92 10.52 0.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.33 3.07
EV to Cash from Ops. EV/CFO -54.44 -35.53
EV to Debt EV to Debt 6.16 -44.61
EV to EBIT EV/EBIT -55.87 -42.94
EV to EBITDA EV/EBITDA -75.56 -16.75
EV to Free Cash Flow [EV/FCF] EV/FCF -41.29 -5.26
EV to Market Cap EV to Market Cap 0.79 0.69
EV to Revenue EV/Rev 757.69 109.48
Price to Book Value [P/B] P/B 11.60 6.09
Price to Earnings [P/E] P/E -23.90 27.71
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.46
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) -0.51 -4.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -218.36 -100.48
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 304.49 137.12
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -115.72 -82.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 64.43 -53.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -109.64 -84.03
EBT Growth (1y) % EBT 1y % (Qtr) -589.89 -137.30
EPS Growth (1y) % EPS 1y % (Qtr) -622.71 -106.13
FCF Growth (1y) % FCF 1y % (Qtr) -100.45 -23.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 85.26 -19.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.11
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.69 13.47
Current Ratio Curr Ratio (Qtr) 0.71 37.30
Debt to Equity Ratio Debt/Equity (Qtr) 1.49 0.48
Interest Cover Ratio Int Coverage (Qtr) -0.51 -4.27
Times Interest Earned Times Interest Earned (Qtr) -0.51 -4.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,086.50 -178.16
EBIT Margin % EBIT Margin % (Qtr) -1,871.62 -270.80
EBT Margin % EBT Margin % (Qtr) -4,028.03 -512.43
Gross Margin % Gross Margin % (Qtr) -3.10 9.66
Net Profit Margin % Net Margin % (Qtr) -4,017.70 -509.86