enCore Energy Corp. (NASDAQ: EU)

Sector: Energy Industry: Uranium CIK: 0001500881
Market Cap 464.28 Mn
P/B 1.87
P/E -6.92
P/S 10.52
ROIC (Qtr) -28.75
Div Yield % 0.00
Rev 1y % (Qtr) -4.13
Total Debt (Qtr) 109.81 Mn
Debt/Equity (Qtr) 0.44
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About

Investment thesis

Bull case

  • Healthy cash reserves of 100.32M provide 643.08x coverage of short-term debt 156000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 440.44M provides 4.01x coverage of total debt 109.81M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 440.44M provides 3.68x coverage of working capital 119.67M, indicating strong operational backing.
  • Cash reserves of 100.32M provide robust 10.60x coverage of current liabilities 9.47M, indicating strong short-term solvency.
  • Cash reserves of 100.32M provide solid 2.23x coverage of other non-current liabilities 45.03M, indicating strong liquidity.

Bear case

  • Operating cash flow of (43.73M) barely covers its investment activities of (82.38M), with a coverage ratio of 0.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (43.73M) shows concerning coverage of stock compensation expenses of 2.29M, with a -19.07 ratio indicating potential earnings quality issues.
  • Free cash flow of (67.98M) provides weak coverage of capital expenditures of 24.25M, with a -2.80 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (71.11M) show weak coverage of depreciation charges of 7.85M, with a -9.06 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (67.98M) represents just -0.62x of debt issuance 109.36M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 0.99 3.07
EV to Cash from Ops. EV/CFO -10.05 -35.53
EV to Debt EV to Debt 4.00 -44.61
EV to EBIT EV/EBIT -6.18 -42.94
EV to EBITDA EV/EBITDA -5.36 -16.75
EV to Free Cash Flow [EV/FCF] EV/FCF -6.47 -5.26
EV to Market Cap EV to Market Cap 0.95 0.69
EV to Revenue EV/Rev 9.96 109.48
Price to Book Value [P/B] P/B 1.87 6.09
Price to Earnings [P/E] P/E -6.92 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) -34.48 -4.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -45.94 -100.48
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 85.44 137.12
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.83 -82.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -53.28 -53.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.47 -84.03
EBT Growth (1y) % EBT 1y % (Qtr) -2.80 -137.30
EPS Growth (1y) % EPS 1y % (Qtr) 7.69 -106.13
FCF Growth (1y) % FCF 1y % (Qtr) 43.69 -23.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 95.96 -19.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.11
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 10.60 13.47
Current Ratio Curr Ratio (Qtr) 13.64 37.30
Debt to Equity Ratio Debt/Equity (Qtr) 0.44 0.48
Interest Cover Ratio Int Coverage (Qtr) -34.48 -4.27
Times Interest Earned Times Interest Earned (Qtr) -34.48 -4.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -143.30 -178.16
EBIT Margin % EBIT Margin % (Qtr) -161.11 -270.80
EBT Margin % EBT Margin % (Qtr) -165.78 -512.43
Gross Margin % Gross Margin % (Qtr) -0.40 9.66
Net Profit Margin % Net Margin % (Qtr) -152.10 -509.86