NexGen Energy Ltd. (NYSE: NXE)

Sector: Energy Industry: Uranium CIK: 0001698535
Market Cap 6.68 Bn
P/B 10.03
P/E -27.65
P/S 0.00
ROIC (Qtr) -7.18
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 429.52 Mn
Debt/Equity (Qtr) 0.65
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1.13B provides 2.64x coverage of total debt 429.52M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.13B provide robust 112.63x coverage of other current liabilities 10.08M, indicating strong asset backing.
  • Cash reserves of 221.73M provide solid 32.16x coverage of other non-current liabilities 6.89M, indicating strong liquidity.
  • Strong cash position of 221.73M provides 22x coverage of other current liabilities 10.08M, indicating excellent liquidity.
  • Tangible assets of 1.13B provide robust 2.46x coverage of current liabilities 462.22M, showing strong asset backing.

Bear case

  • Operating cash flow of (23.21M) barely covers its investment activities of (127.75M), with a coverage ratio of 0.18, 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 (23.21M) shows concerning coverage of stock compensation expenses of 20.12M, with a -1.15 ratio indicating potential earnings quality issues.
  • Free cash flow of (137.74M) provides weak coverage of capital expenditures of 114.52M, with a -1.20 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (197.51M) show weak coverage of depreciation charges of 1.62M, with a -122.28 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (23.21M) provides minimal -2.25x coverage of tax expenses of 10.33M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 4.70 3.07
EV to Cash from Ops. EV/CFO -229.86 -35.53
EV to Debt EV to Debt 12.42 -44.61
EV to EBIT EV/EBIT -27.02 -42.94
EV to EBITDA EV/EBITDA -97.69 -16.75
EV to Free Cash Flow [EV/FCF] EV/FCF -38.74 -5.26
EV to Market Cap EV to Market Cap 0.80 0.69
EV to Revenue EV to Revenue 0.00 109.48
Price to Book Value [P/B] P/B 10.03 6.09
Price to Earnings [P/E] P/E -27.65 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) -5.87 -4.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.75 -100.48
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -43.93 137.12
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -261.32 -82.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.24 -53.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -258.03 -84.03
EBT Growth (1y) % EBT 1y % (Qtr) -316.20 -137.30
EPS Growth (1y) % EPS 1y % (Qtr) -290.53 -106.13
FCF Growth (1y) % FCF 1y % (Qtr) -9.08 -23.04
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 -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) 0.48 13.47
Current Ratio Curr Ratio (Qtr) 0.50 37.30
Debt to Equity Ratio Debt/Equity (Qtr) 0.65 0.48
Interest Cover Ratio Int Coverage (Qtr) -5.87 -4.27
Times Interest Earned Times Interest Earned (Qtr) -5.87 -4.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -178.16
EBIT Margin % EBIT Margin % 0.00 -270.80
EBT Margin % EBT Margin % 0.00 -512.43
Gross Margin % Gross Margin % 0.00 9.66
Net Profit Margin % Net Profit Margin % 0.00 -509.86