enCore Energy (EU) AI Stock Analysis

• Market Cap: C$391.15M
• Dividend Yield: N/A
• Average Volume (3M): 449.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: -72.21%
• Country: CA
• Employees: 21,000
• Sector: Energy
• Sector Strength: 82
• Industry: Other Energy Sources
• EPS (TTM): -0.35
• Shares Outstanding: 186,261,280
• 10 Day Avg. Volume: 463,312
• 30 Day Avg. Volume: 449,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4641.40
• Price to Cash Flow (P/CF): 1.70
• P/FCF Ratio: 1.70
• 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$5.73
• Price Target Upside: 155.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

enCore Energy's overall stock score reflects the company's robust revenue growth and strategic asset divestiture aimed at focusing on core operations. However, significant challenges remain, including severe profitability issues, negative cash flow, and bearish technical indicators. The lack of earnings call information limits insight into management's forward guidance, while the negative P/E ratio and absence of dividends further weigh on the stock's attractiveness.

Positive Factors

Financial Stability

EnCore Energy has a strong balance sheet, holding $46.3M in cash and cash equivalents.

Market Position

Analyst reiterates a Buy rating on EU, reflecting confidence in the company's future revenue and position in the uranium market.

Revenue Growth

The company's significant increase in revenue was driven by the sale of 720,000 pounds of uranium at an average price of $81.00 per pound.

Negative Factors

Cost Management

Economies of scale are expected to further reduce the average cost per pound and ultimately anticipate profitability at Alta Mesa.

Financial Performance

The company recorded a net loss of $17.5M during the quarter, with costs surpassing revenue.

Operational Risks

Risks include commodity price risk, operational and technical risk, financing risk, and permitting risk.

enCore Energy Business Overview & Revenue Model

Company Description

enCore Energy (EU) is a leading company in the European energy sector, specializing in the exploration, development, and production of uranium resources. The company is committed to delivering sustainable and reliable energy solutions that support the transition to cleaner energy sources. enCore Energy focuses on utilizing advanced technologies to enhance uranium extraction and processing, ensuring minimal environmental impact while maximizing efficiency and output.

How the Company Makes Money

enCore Energy makes money primarily through the sale of uranium, which is a critical component for nuclear energy production. The company's revenue model is centered around the extraction and sale of uranium to nuclear power plants and energy companies that require a stable and efficient source of fuel. Key revenue streams include long-term supply contracts with utility companies, spot market sales, and strategic partnerships with other energy providers and governments. Additionally, enCore Energy may engage in joint ventures and collaborations to expand its resource base and enhance production capabilities, further contributing to its earnings.

enCore Energy Financial Statement Overview

Summary

enCore Energy exhibits robust revenue growth but faces severe profitability and cash flow challenges. The company has maintained a low leverage profile, providing some financial stability. However, persistent operating losses and negative free cash flow raise concerns about long-term viability without continued external financing or improved operational efficiency.

Income Statement

enCore Energy shows a significant increase in revenue, reaching $58.3 million in 2024 from $5.4 million in 2023, indicating strong top-line growth. However, the company is struggling with profitability, as demonstrated by negative gross profit margins and substantial net losses. EBIT and EBITDA margins are also negative, highlighting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.07, reflecting minimal leverage, which is a positive sign of financial stability. However, the equity ratio has decreased, indicating a decline in the proportion of assets financed by equity. Return on equity is negative due to ongoing net losses, which is concerning for investors seeking returns.

Cash Flow

Free cash flow has worsened significantly to -$56.5 million in 2024, compared to $3.7 million in 2023. The operating cash flow to net income ratio is negative due to operating losses, highlighting cash flow challenges. The company is maintaining cash reserves through significant financing activities, but the sustainability of this strategy is uncertain.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.33M	5.40M	0.00	0.00	0.00
	Gross Profit
-7.21M	2.58M	-380.34K	-374.45K	-25.71K
	EBIT
-72.18M	-40.72M	-19.08M	-13.15M	-2.25M
	EBITDA
-67.59M	-40.47M	-20.42M	-9.85M	-2.16M
	Net Income Common Stockholders
-61.39M	-29.66M	-13.98M	-6.85M	-2.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.75M	24.38M	5.67M	11.65M	6.60M
	Total Assets
392.72M	427.98M	223.53M	202.09M	23.44M
	Total Debt
20.44M	19.71M	180.43K	316.33K	432.63K
	Net Debt
-19.26M	12.22M	-2.33M	-11.33M	-6.17M
	Total Liabilities
74.18M	53.34M	8.48M	13.02M	7.57M
	Stockholders Equity
285.74M	374.64M	215.05M	189.07M	15.87M
Cash Flow		Free Cash Flow
-56.55M	3.71M	-80.09M	-5.60M	-1.76M
	Operating Cash Flow
-45.20M	29.58M	-69.20M	-5.20M	-1.45M
	Investing Cash Flow
-29.99M	-86.04M	-12.22M	-7.56M	-1.66M
	Financing Cash Flow
107.42M	61.71M	74.95M	17.66M	6.94M

enCore Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EU, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.81, below the 50-day MA of 3.91, and below the 200-day MA of 4.90, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EU.

enCore Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$8.64B	5.22	-5.79%	7.32%	-0.29%	-68.79%
EFR	51 Neutral	$1.28B	―	-10.58%	―	110.44%	-144.93%
EU	40 Underperform	C$391.15M	―	-16.36%	―	―	-72.21%
NXE	38 Underperform	$3.93B	27.25	-7.77%	―	―	-197.27%
DML	38 Underperform	C$1.85B	33.39	-4.64%	―	―	―
LAM	28 Underperform	C$149.64M	―	-5.74%	―	―	-34.39%

enCore Energy Corporate Events

enCore Energy Sells New Mexico Uranium Assets to Verdera

enCore Energy has entered into a definitive agreement with Verdera Energy Corp. to sell its New Mexico uranium assets, including several projects in the Grants Uranium District. This transaction is part of enCore’s strategy to divest non-core assets and will result in enCore receiving 50 million non-voting preferred shares of Verdera, along with royalties and a cash payment. The deal aims to provide a dedicated focus on these assets and eventually distribute additional value to enCore shareholders through the distribution of Verdera shares. The move is expected to allow enCore to concentrate on its core operations in South Texas while enabling Verdera to advance the New Mexico projects with a focus on modernization and community engagement.

enCore Energy Reports 2024 Financial Results and Strategic Milestones

enCore Energy Corp. reported a significant increase in revenue for fiscal year 2024, driven by enhanced uranium extraction and sales activities. Despite this, the company experienced a net loss due to increased exploration and compliance costs. enCore transitioned to U.S. GAAP reporting, which is expected to positively impact future earnings by reducing non-cash expenses. The company achieved operational milestones, including the start-up of two uranium recovery plants and the formation of a joint venture with Boss Energy Ltd. enCore’s strategic focus remains on expanding its uranium extraction capabilities and securing regulatory approvals for its projects in South Texas, South Dakota, and Wyoming.

enCore Energy Corp. Reports 2024 Financial Results and Strategic Milestones

enCore Energy Corp. reported a significant increase in revenue for fiscal year 2024, driven by enhanced uranium extraction activities. Despite a net loss, the company achieved operational milestones, including the commencement of two uranium processing plants and a joint venture with Boss Energy Ltd. enCore’s transition to U.S. GAAP is expected to positively impact future earnings by reducing non-cash expenses. Looking ahead, the company plans to expand its uranium extraction capacity and strengthen its market position through strategic sales agreements and regulatory advancements.

enCore Energy Advances Dewey-Burdock Uranium Project with SEC Filing

enCore Energy has filed an S-K 1300 Technical Report Summary with the SEC for its Dewey-Burdock Project in South Dakota, outlining updated resource estimates and a preliminary economic assessment. The project received necessary permits and demonstrates strong economic potential with a significant NPV and IRR, positioning enCore as a potential major supplier of uranium for nuclear power amidst growing domestic energy needs.