Westwater Resources, Inc. (NYSE: WWR)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0000839470
Market Cap 86.46 Mn
P/B 0.63
P/E -4.50
P/S 0.00
ROIC (Qtr) -9.12
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 10.06 Mn
Debt/Equity (Qtr) 0.07

About

Westwater Resources, Inc. (WWR), an energy technology company, has been making strides in the battery-grade natural graphite materials industry since its acquisition of Alabama Graphite Company, Inc. in 2018. The company's operations are primarily based in the United States, specifically in Alabama, where it is developing the Kellyton Graphite Plant and the Coosa Graphite Deposit. The Kellyton Graphite Plant is a processing facility designed to produce approximately 26,500 metric tons per year of ULTRA-CSPG and SG Fines, which are used as anode...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 157.73M provides 15.68x coverage of total debt 10.06M, indicating robust asset backing and low credit risk.
  • Tangible assets of 157.73M provide robust 112.35x coverage of other current liabilities 1.40M, indicating strong asset backing.
  • Strong cash position of 12.91M provides 9.19x coverage of other current liabilities 1.40M, indicating excellent liquidity.
  • Cash reserves of 12.91M provide solid 9.37x coverage of other non-current liabilities 1.38M, indicating strong liquidity.
  • Tangible assets of 157.73M provide robust 8.61x coverage of current liabilities 18.33M, showing strong asset backing.

Bear case

  • Investment activities of (7.09M) provide weak support for R&D spending of 1.18M, which is -6.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (9.99M) shows concerning coverage of stock compensation expenses of 2.81M, with a -3.55 ratio indicating potential earnings quality issues.
  • Free cash flow of (17.07M) provides weak coverage of capital expenditures of 7.09M, with a -2.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (19.21M) show weak coverage of depreciation charges of 743000, with a -25.86 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (9.99M) barely covers operating expenses of 612000 with a -16.32 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 162.30 Bn 17.99 3.17 -
2 TECK Teck Resources Ltd 24.54 Bn 27.27 3.23 3.67 Bn
3 MP MP Materials Corp. / DE 10.73 Bn -91.17 46.08 1.00 Bn
4 SKE Skeena Resources Ltd 3.07 Bn -36.58 0.00 0.04 Bn
5 MTRN MATERION Corp 2.85 Bn 87.35 2.45 0.53 Bn
6 VZLA Vizsla Silver Corp. 2.28 Bn -205.10 0.00 0.00 Bn
7 SGML Sigma Lithium Corp 1.76 Bn -65.03 15.16 0.12 Bn
8 ALM Almonty Industries Inc. 1.65 Bn -145.44 82.20 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.54 3.13
EV to Cash from Ops. EV/CFO -8.50 -51.74
EV to Debt EV to Debt 8.44 863.55
EV to EBIT EV/EBIT -4.42 -27.66
EV to EBITDA EV/EBITDA -6.85 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -4.97 -24.46
EV to Market Cap EV to Market Cap 0.98 0.59
EV to Revenue EV/Rev 0.00 42.69
Price to Book Value [P/B] P/B 0.63 10.60
Price to Earnings [P/E] P/E -4.50 -35.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.20
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.46
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.53
Interest Coverage Int. cover (Qtr) 0.00 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -8.37 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 183.98 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -139.03 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.04 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -139.03 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) -139.03 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) -100.00 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -78.92 -5,473.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 9.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.70 5.35
Current Ratio Curr Ratio (Qtr) 0.73 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.74
Interest Cover Ratio Int Coverage (Qtr) 0.00 51.59
Times Interest Earned Times Interest Earned (Qtr) 0.00 51.59
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -684.18
EBIT Margin % EBIT Margin % (Qtr) 0.00 -696.12
EBT Margin % EBT Margin % (Qtr) 0.00 -788.27
Gross Margin % Gross Margin % (Qtr) 0.00 11.29
Net Profit Margin % Net Margin % (Qtr) 0.00 -790.78