Uranium Royalty Corp. (NASDAQ: UROY)

Sector: Energy Industry: Uranium CIK: 0001711570
Market Cap 104.45 Mn
P/B 0.44
P/E 285.60
P/S 3.85
ROIC (Qtr) -1.49
Div Yield % 0.00
Rev 1y % (Qtr) -99.63
Total Debt (Qtr) 130,714.29
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Strong operating cash flow of 21.17M provides robust 161.93x coverage of total debt 130714.29, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 51.89M provide 1252.47x coverage of short-term debt 41428.57, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 236.84M provides 1811.90x coverage of total debt 130714.29, indicating robust asset backing and low credit risk.
  • Operating cash flow of 21.17M provides exceptional 240.93x coverage of interest expenses 87857.14, showing strong debt service capability.
  • Operating cash flow of 21.17M provides strong 31.76x coverage of stock compensation 666428.57, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 21.17M provides minimal -179.60x coverage of tax expenses of (117857.14), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 335714.29 show weak coverage of depreciation charges of 115714.29, with a 2.90 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 20.42M represents just -1.44x of debt issuance (14.15M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 21.17M is outpaced by equity issuance of 33.73M (0.63 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 236.84M provide limited backing for working capital of 194.02M, which is 1.22x, suggesting increased operational risk in market downturns.

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 -0.36 3.07
EV to Cash from Ops. EV/CFO -4.05 -35.53
EV to Debt EV to Debt -655.78 -44.61
EV to EBIT EV/EBIT -255.34 -42.94
EV to EBITDA EV/EBITDA 44.07 -16.75
EV to Free Cash Flow [EV/FCF] EV/FCF -4.20 -5.26
EV to Market Cap EV to Market Cap -0.82 0.69
EV to Revenue EV/Rev -3.16 109.48
Price to Book Value [P/B] P/B 0.44 6.09
Price to Earnings [P/E] P/E 285.60 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) 3.82 -4.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 91.17 -100.48
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 449.08 137.12
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -90.20 -82.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -149.82 -53.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -90.54 -84.03
EBT Growth (1y) % EBT 1y % (Qtr) -92.52 -137.30
EPS Growth (1y) % EPS 1y % (Qtr) -67.14 -106.13
FCF Growth (1y) % FCF 1y % (Qtr) 123.16 -23.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -55.92 -19.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 0.11
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 70.80 13.47
Current Ratio Curr Ratio (Qtr) 265.74 37.30
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.48
Interest Cover Ratio Int Coverage (Qtr) 3.82 -4.27
Times Interest Earned Times Interest Earned (Qtr) 3.82 -4.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.70 -178.16
EBIT Margin % EBIT Margin % (Qtr) 1.73 -270.80
EBT Margin % EBT Margin % (Qtr) 0.91 -512.43
Gross Margin % Gross Margin % (Qtr) 15.80 9.66
Net Profit Margin % Net Margin % (Qtr) 1.30 -509.86