Denison Mines (DML) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 65
• Sector: Energy
• Sector Strength: 44
• Industry: Uranium
• EPS (TTM): -0.10
• Shares Outstanding: 895,744,100
• 10 Day Avg. Volume: 2,370,829
• 30 Day Avg. Volume: 2,270,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 476.91
• Price to Cash Flow (P/CF): -59.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.86
• Price Target Upside: 112.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Denison Mines' financial struggles with profitability and cash flow overshadow its strong equity base. Technical indicators point to a downtrend, with high beta indicating risk. Valuation concerns persist due to negative earnings. However, recent corporate events involving strategic board changes and project advancements provide a potential upside, somewhat improving the outlook.

Positive Factors

Financial Strength

Denison has one of the strongest balance sheets for funding its relatively modest capital requirements.

Industry Developments

Most recent developments have been positive for uranium, including announcements of another wave of new nuclear reactors in China and an agreement to restart Three Mile Island in the U.S.

Valuation

Denison now offers one of the most attractive P/NPV's at 0.9x with clear near-term catalysts.

Negative Factors

Project Timeline

The company targets first production in 2027/2028, which could see upside to estimates.

Denison Mines Business Overview & Revenue Model

Company Description

Denison Mines Corp. engages in the acquisition, exploration, development, extraction, processing, selling of, and investing in uranium properties in Canada. Its flagship project is the 95% interest owned Wheeler River uranium project located in the Athabasca Basin region in northern Saskatchewan. The company was formerly known as International Uranium Corporation and changed its name to Denison Mines Corp. in December 2006. Denison Mines Corp. was founded in 1997 and is headquartered in Toronto, Canada.

How the Company Makes Money

Denison Mines makes money primarily through the exploration and development of uranium properties. Its key revenue streams include the sale of uranium concentrates produced from its mining operations, strategic partnerships, and joint ventures with other mining companies. The company also generates income through royalties and management services related to its investments in other uranium projects. Additionally, Denison Mines may earn revenue from strategic divestments of certain assets or stakes in projects when deemed beneficial. The company's focus on innovative mining techniques and strategic alliances enhances its ability to maximize resource extraction and revenue generation.

Denison Mines Financial Statement Overview

Summary

Denison Mines is experiencing significant financial challenges. The income statement shows declining revenues and profitability, with negative margins indicating operational inefficiencies. The balance sheet remains stable due to strong equity and no debt, but profitability issues are evident. Cash flow analysis reveals negative operating and free cash flow, highlighting ongoing financial strain.

Income Statement

Denison Mines has experienced a significant decline in revenue and profitability. The TTM data shows a negative gross profit margin, net profit margin, and EBIT margin, indicating operational inefficiencies and substantial losses. Revenue growth is negative, reflecting a sharp downturn compared to previous periods. These factors suggest financial instability and challenges in revenue generation.

Balance Sheet

Denison Mines maintains a strong equity position with zero total debt, resulting in a favorable debt-to-equity ratio. However, the company's return on equity has turned negative in the TTM period due to considerable net losses, marking a decline in profitability. The equity ratio remains strong, suggesting a stable financial structure despite profitability concerns.

Cash Flow

The cash flow analysis reveals a negative operating cash flow and free cash flow, highlighting ongoing cash challenges. The operating cash flow to net income and free cash flow to net income ratios reflect inefficiencies in converting income into cash. The negative free cash flow growth rate further underscores the financial strain.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-2.64M	1.85M	16.95M	20.00M	14.42M	15.55M
	Gross Profit
-13.67M	-2.04M	5.57M	7.38M	4.09M	1.32M
	EBIT
-43.91M	-48.90M	-39.33M	-23.62M	-18.04M	-24.31M
	EBITDA
-67.14M	97.27M	18.81M	21.68M	-10.89M	-15.60M
	Net Income Common Stockholders
-27.14M	90.38M	14.35M	18.98M	-16.28M	-18.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.27M	141.45M	58.94M	78.44M	41.65M	8.19M
	Total Assets
904.79M	726.60M	515.80M	510.28M	320.69M	300.00M
	Total Debt
19.22M	417.00K	576.00K	508.00K	615.00K	1.00M
	Net Debt
5.94M	-130.64M	-50.34M	-63.49M	-24.38M	-7.19M
	Total Liabilities
149.66M	84.82M	79.78M	113.59M	93.41M	89.85M
	Stockholders Equity
755.13M	641.78M	436.02M	396.69M	227.28M	210.15M
Cash Flow		Free Cash Flow
-44.13M	-33.90M	-35.01M	-22.48M	-13.76M	-19.73M
	Operating Cash Flow
-37.23M	-30.67M	-28.14M	-21.25M	-13.48M	-18.80M
	Investing Cash Flow
8.38M	-719.00K	-6.76M	-99.00M	305.00K	-921.00K
	Financing Cash Flow
73.00M	111.18M	20.96M	159.82M	30.51M	4.71M

Denison Mines Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DML, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 2.13, and below the 200-day MA of 2.56, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 32.56 is Neutral, neither overbought nor oversold. The STOCH value of 8.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DML.

Denison Mines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$7.56B	4.34	-4.83%	6.50%	-0.19%	-64.60%
DML	47 Neutral	$1.54B	33.39	-4.64%	―	―	―
FSY	45 Neutral	C$99.02M	―	-12.23%	―	―	54.70%
LAM	28 Underperform	C$162.11M	―	-6.64%	―	―	-34.39%

Denison Mines Corporate Events

Denison Mines Files 2024 Annual Report, Strengthening Regulatory Compliance

Denison Mines Corp. announced the filing of its 2024 Annual Report on Form 40-F with the U.S. Securities and Exchange Commission, which includes comprehensive financial and operational details for the year. This filing is a critical step for Denison, as it underscores the company’s ongoing commitment to transparency and regulatory compliance, potentially enhancing its credibility and attractiveness to investors and stakeholders in the uranium sector.

Denison Mines Strengthens Board with Strategic Appointments

Denison Mines Corp. has appointed Ken Hartwick, former CEO of Ontario Power Generation, and Jinsu Baik, a senior manager from Korea Hydro Nuclear Power, to its Board of Directors. These appointments are expected to enhance the board’s expertise in nuclear power generation and support Denison’s strategic initiatives, including the execution and marketing of its Phoenix project. The changes follow the retirement of long-serving director Brian Edgar, who contributed significantly to the company’s strategic direction and governance.

Denison Mines Advances Phoenix Project Amid Strong Uranium Market

Denison Mines Corp. has made significant progress in advancing its Phoenix In-Situ Recovery project, with regulatory approvals potentially allowing construction to begin in early 2026 and production by 2028. The company has secured agreements with local communities, progressed engineering efforts, and is preparing for mining restarts and exploration collaborations, positioning itself well in the evolving uranium market.

Denison Mines Advances Wheeler River Project with CNSC Hearing Schedule

Denison Mines Corp. announced the Canadian Nuclear Safety Commission has scheduled public hearings for the Wheeler River Uranium Project, marking the final step in federal approval for the project’s Environmental Assessment and Licence. This development reduces uncertainty in the project’s timeline, allowing Denison to plan for construction of the Phoenix In-Situ Recovery project, with potential commencement in early 2026 and first production by 2028. The announcement follows key regulatory milestones achieved in 2024, indicating strong support from CNSC staff for the project’s advancement.