enCore Energy (EU) AI Stock Analysis

• Market Cap: C$786.02M
• Dividend Yield: N/A
• Average Volume (3M): 325.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 58.00%
• EPS Growth: -256.97%
• Country: CA
• Employees: 21,000
• Sector: Energy
• Sector Strength: 48
• Industry: Uranium
• EPS (TTM): -0.18
• Shares Outstanding: 186,261,280
• 10 Day Avg. Volume: 224,887
• 30 Day Avg. Volume: 325,388
• PEG Ratio: 0.64
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.27
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: -56.47
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: C$4.75
• Price Target Upside: 12.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: C$4.50 ▲(6.64%Upside)

enCore Energy's stock score is driven by its strong technical momentum and positive corporate developments, which are counterbalanced by significant financial performance challenges. The company's ongoing losses and negative cash flow impact its valuation attractiveness. Nonetheless, the new project approval provides a promising outlook for operational expansion.

Positive Factors

Market Demand

Longer-term estimates for enCore Energy may prove to be conservative due to an expectation of strong demand for U.S.-sourced products amid favorable M&A for domestic supply.

Operational Efficiency

The installation of PathCAD software at Alta Mesa is improving wellfield planning and uranium recovery, which may reduce permitting timelines and lower installation costs.

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

Operational Challenges

Management anticipates that planned expansion should address the company’s bottleneck of wellfield replacement rates, allowing for a steady ramp-up in uranium extraction.

enCore Energy Business Overview & Revenue Model

Company Description

enCore Energy (EU) is a company operating in the energy sector, focusing primarily on the exploration, development, and production of uranium resources. The company aims to provide sustainable and reliable energy solutions by leveraging advanced technologies and innovative methodologies in uranium extraction and processing.

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 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	22.15M	0.00	0.00	0.00
Gross Profit	-7.21M	2.58M	1.59M	-374.00K	―
EBITDA	-67.59M	-16.88M	-20.42M	-9.85M	-2.16M
Net Income	-61.39M	-29.66M	-21.50M	-8.56M	-2.20M
Balance Sheet
Total Assets	392.72M	427.98M	223.53M	202.09M	23.44M
Cash, Cash Equivalents and Short-Term Investments	63.75M	24.38M	5.67M	11.65M	6.60M
Total Debt	20.44M	19.71M	180.43K	316.33K	432.63K
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: Positive
• Last Price: 4.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.22 is above the 20-day moving average (MA) of 3.90, above the 50-day MA of 3.31, and above the 200-day MA of 3.78, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 82.93 is Negative, 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	61 Neutral	$555.93M	339.81	-1.95%	―	-63.48%	-144.11%
EU	58 Neutral	C$786.02M	―	-25.71%	―	58.00%	-256.97%
Sector *	52 Neutral	C$2.96B	-1.54	-3.48%	6.52%	3.05%	-49.39%
SASK	48 Neutral	C$194.11M	―	-4.92%	―	―	48.50%
MGA	37 Underperform	$116.67M	―	-11.27%	―	―	-485.07%
FUU	37 Underperform	$135.27M	―	-28.31%	―	―	-2288.89%
AEC	32 Underperform	C$144.95M	5.61	-22.57%	―	―	-184.85%

enCore Energy Corporate Events

enCore Energy Advances Upper Spring Creek Uranium Project with New License Approval

enCore Energy Corp. has received approval from the Texas Commission on Environmental Quality to include the Upper Spring Creek ISR Uranium Project in its existing Radioactive Materials License. This approval allows the company to commence construction of wellfields and a Satellite Ion Exchange Plant, which will support uranium extraction for the Rosita Central Processing Plant. The project is expected to enhance enCore’s operational capacity and competitive positioning in the uranium industry, with construction activities already underway.

The most recent analyst rating on (TSE:EU) stock is a Hold with a C$7.25 price target. To see the full list of analyst forecasts on enCore Energy stock, see the TSE:EU Stock Forecast page.