enCore Energy (EU) AI Stock Analysis

• Market Cap: C$806.38M
• Dividend Yield: N/A
• Average Volume (3M): 294.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 29.59%
• EPS Growth: -86.53%
• Country: CA
• Employees: 21,000
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): -0.04
• Shares Outstanding: 187,094,530
• 10 Day Avg. Volume: 410,503
• 30 Day Avg. Volume: 293,999
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$5.17
• Price Target Upside: 16.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: C$3.50 ▼(-21.35% Downside)

enCore Energy's stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates neutral momentum, while valuation concerns arise from negative earnings and lack of dividends. The absence of earnings call data and corporate events further limits the score.

Positive Factors

Regulatory Approval

The denial of the petition allows enCore Energy to advance its Dewey Burdock Project, ensuring regulatory compliance and accelerating development, which is crucial for long-term project viability and revenue generation.

Revenue Growth

Significant revenue growth indicates strong demand and successful expansion efforts, enhancing the company's market position and potential for future profitability.

Strategic Industry Trends

The U.S. government's initiative to bolster uranium reserves supports the nuclear energy sector, providing enCore Energy with a favorable market environment for its uranium products.

Negative Factors

Profitability Challenges

Persistent profitability issues, as evidenced by negative margins, pose a risk to financial sustainability and may require strategic adjustments to achieve long-term success.

Cash Flow Challenges

Negative free cash flow highlights operational inefficiencies and reliance on external financing, which could limit growth opportunities and strain financial resources.

Equity Financing Concerns

A declining equity ratio suggests increased financial risk and potential dilution for shareholders, impacting investor confidence and long-term financial health.

enCore Energy Business Overview & Revenue Model

Company Description

enCore Energy Corp. engages in the acquisition and exploration of resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property consists of private mineral leases totaling 18,596 acres located in McKinley and Sandoval counties of New Mexico; the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico; and the Moonshine Springs project comprises approximately 1000 acres, including 23 owned unpatented lode mining claims, 7 unpatented lode mining claims, and 320 acres of fee land under lease located in Mohave County, Arizona. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake - Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. was incorporated in 2009 and is headquartered in Corpus Christi, Texas.

How the Company Makes Money

enCore Energy (EU) generates revenue through the sale of uranium, which is a critical component for nuclear energy production. The company's revenue model primarily revolves around the exploration and development of uranium-rich sites, mining, and processing uranium ore. Key revenue streams include direct sales of uranium to energy utilities and nuclear power plants, as well as long-term supply contracts with these entities. Additionally, enCore Energy (EU) may engage in strategic partnerships with other energy companies or governments, which can provide steady income through collaborative projects or technology licensing agreements. The company also benefits from fluctuations in uranium market prices, which can impact profitability.

enCore Energy Financial Statement Overview

Summary

enCore Energy shows strong revenue growth but faces severe profitability and cash flow challenges. The company maintains low leverage, providing some financial stability, but persistent operating losses and negative free cash flow raise concerns about long-term viability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.52M	58.33M	22.15M	0.00	0.00	0.00
Gross Profit	-4.39M	-7.21M	2.58M	1.59M	-374.00K	―
EBITDA	-85.90M	-67.59M	-16.88M	-20.42M	-9.85M	-2.16M
Net Income	-78.49M	-61.39M	-29.66M	-21.50M	-8.56M	-2.20M
Balance Sheet
Total Assets	359.38M	392.72M	427.98M	223.53M	202.09M	23.44M
Cash, Cash Equivalents and Short-Term Investments	38.25M	63.75M	24.38M	5.67M	11.65M	6.60M
Total Debt	10.30M	20.44M	19.71M	180.43K	316.33K	432.63K
Total Liabilities	64.46M	74.18M	53.34M	8.48M	13.02M	7.57M
Stockholders Equity	264.68M	285.74M	374.64M	215.05M	189.07M	15.87M
Cash Flow
Free Cash Flow	-39.48M	-56.55M	3.71M	-80.09M	-5.60M	-1.76M
Operating Cash Flow	-29.71M	-45.20M	29.58M	-69.20M	-5.20M	-1.45M
Investing Cash Flow	-79.84M	-29.99M	-86.04M	-12.22M	-7.56M	-1.66M
Financing Cash Flow	78.67M	107.42M	61.71M	74.95M	17.66M	6.94M

enCore Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.45 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.66, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 77.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EU.

enCore Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URC	53 Neutral	796.48M	-387.01	-1.92%	―	14.29%	-116.45%
SASK	48 Neutral	214.09M	-21.13	―	―	―	72.48%
EU	47 Neutral	C$806.38M	―	-22.78%	―	29.59%	-86.53%
MGA	37 Underperform	161.84M	-12.08	―	―	―	-326.75%
FUU	37 Underperform	104.50M	-5.00	―	―	―	-8.26%
AEC	32 Underperform	189.01M	-12.74	―	―	―	-222.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

enCore Energy Corporate Events

enCore Energy’s Dewey Burdock Project Advances with EPA Approval

enCore Energy Corp. announced that the U.S. Environmental Protection Agency’s Environmental Appeals Board has denied a petition challenging the issuance of permits for its Dewey Burdock ISR Uranium Project in South Dakota. This decision allows the project to advance through federal permitting, moving it closer to development and reinforcing enCore’s strategy to strengthen domestic uranium production. The ruling confirms the validity of enCore’s permits, which are essential for the project’s operations, and highlights the company’s role in supporting America’s clean energy goals.

The most recent analyst rating on (TSE:EU) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on enCore Energy stock, see the TSE:EU Stock Forecast page.

enCore Energy Announces Board Resignation

enCore Energy Corp. announced the resignation of Ms. Stacy Nieuwoudt from its Board of Directors, clarifying that her departure was not due to any disagreements with the company’s operations or policies. This change in the board is not expected to impact the company’s strategic direction or its ongoing projects, as enCore continues to focus on its expansion plans and collaboration with local communities.

The most recent analyst rating on (TSE:EU) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on enCore Energy stock, see the TSE:EU Stock Forecast page.