Uranium Royalty Corp (URC) AI Stock Analysis

• Market Cap: C$342.11M
• Dividend Yield: N/A
• Average Volume (3M): 152.82K
• Price to Earnings (P/E): 248.5
• Beta (1Y): 1.45
• Revenue Growth: -47.81%
• EPS Growth: -83.25%
• Country: CA
• Employees: 14
• Sector: Energy
• Sector Strength: 85
• Industry: Uranium
• EPS (TTM): 0.01
• Shares Outstanding: 133,636,120
• 10 Day Avg. Volume: 150,452
• 30 Day Avg. Volume: 152,817
• PEG Ratio: 0.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 15.94
• Price to Cash Flow (P/CF): -43.30
• 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$4.75
• Price Target Upside: 85.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Uranium Royalty Corp faces significant challenges. Financially, it has strong equity but struggles with income and cash flow, presenting liquidity concerns. Technically, the stock is weak with negative momentum indicators. Its valuation is high relative to its earnings, suggesting overvaluation. The combination of these factors results in a low overall stock score, reflecting substantial risks.

Positive Factors

Investment Confidence

The analyst reiterates a Buy rating on Uranium Royalty Corp, indicating confidence in the stock's potential growth.

Portfolio Expansion

A key royalty acquisition in the Athabasca Basin strengthens Uranium Royalty Corp's uranium portfolio by adding high-quality uranium assets in a premier mining region.

Resource Potential

The Millenium Project has an Indicated Mineral Resource of 75.9 million pounds, making it one of the largest undeveloped uranium projects worldwide.

Negative Factors

Market Sensitivity

UROY is considered an excellent investment for those looking to gain exposure to uranium spot prices, with market valuation sensitive to U3O8 price changes.

Uranium Royalty Corp Business Overview & Revenue Model

Company Description

Uranium Royalty Corp (URC) is a company focused on uranium investments through royalties, streams, and other uranium interests. Operating primarily in the uranium sector, URC is uniquely positioned as the first and only company to apply the successful royalty and streaming business model exclusively to the uranium industry. It holds a diversified portfolio of assets that provide exposure to the global uranium market, aiming to capitalize on the growing demand for nuclear energy as a clean power source.

How the Company Makes Money

Uranium Royalty Corp makes money by acquiring and managing a portfolio of royalties, streams, and other financial instruments that provide exposure to uranium prices and production. The company generates revenue by receiving a percentage of the revenue or a fixed amount per unit of production from uranium mines in which it holds a royalty interest. These royalties and streams are typically structured as long-term agreements, providing URC with potential ongoing cash flows tied to the production of uranium from the underlying assets. Additionally, URC may benefit from capital appreciation of its portfolio as the value of its underlying assets increases due to favorable market conditions for uranium. The company's earnings may also be influenced by strategic partnerships and investments in uranium projects globally.

Uranium Royalty Corp Financial Statement Overview

Summary

Uranium Royalty Corp shows a mixed financial performance. The income statement is weak with declining revenues and negative EBIT/EBITDA, though the net profit margin remains positive due to non-operating income. The balance sheet is strong, with low debt and a high equity ratio, indicating financial stability. However, the cash flow is concerning, with negative operating and free cash flows posing potential liquidity issues.

Income Statement

Uranium Royalty Corp has shown an inconsistent revenue trajectory. Recent TTM data shows a significant decline in revenue and profitability compared to the previous annual period. The company moved from a positive EBIT and EBITDA in the previous annual report to negative figures in the TTM, indicating operating inefficiencies or increased costs. However, the net profit margin remains positive due to non-operating income or cost reductions elsewhere.

Balance Sheet

The company's balance sheet is robust with a strong equity base and minimal debt, reflected in a very low debt-to-equity ratio. Return on equity (ROE) is slightly positive, indicating the company managed to generate some profit from its equity. The equity ratio is high, suggesting the company is well-capitalized and not heavily reliant on debt financing.

Cash Flow

Uranium Royalty Corp's cash flow situation is concerning, with negative operating and free cash flows indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting a disconnect between reported earnings and cash generation. Despite the negative free cash flow, the company has managed to secure financing, which might be used to support operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
23.14M	42.71M	13.85M	0.00	0.00	0.00
	Gross Profit
7.24M	12.95M	895.00K	-2.00K	0.00	0.00
	EBIT
-835.00K	7.08M	-3.78M	-5.49M	-1.47M	-2.27M
	EBITDA
-438.00K	7.79M	-4.20M	-5.72M	-1.85M	-1.63M
	Net Income Common Stockholders
1.08M	9.78M	-5.84M	-4.26M	-1.38M	-2.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.30M	30.35M	52.76M	56.87M	37.93M	43.05M
	Total Assets
298.66M	278.70M	185.79M	178.17M	76.18M	70.65M
	Total Debt
222.00K	193.00K	9.83M	13.03M	40.00K	40.00K
	Net Debt
-9.44M	-20.91M	-4.59M	7.95M	-7.84M	-957.66K
	Total Liabilities
1.27M	2.91M	10.42M	13.54M	546.94K	439.56K
	Stockholders Equity
297.38M	275.79M	175.37M	164.64M	75.64M	70.21M
Cash Flow		Free Cash Flow
-48.59M	-104.92M	-14.91M	-83.10M	-13.65M	-6.69M
	Operating Cash Flow
-36.93M	-104.84M	-12.74M	-69.35M	-13.65M	-3.00M
	Investing Cash Flow
-11.51M	44.54M	12.12M	-19.13M	3.95M	-4.74M
	Financing Cash Flow
54.48M	66.60M	10.54M	85.65M	5.42M	18.10M

Uranium Royalty Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 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:URC, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 3.03, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:URC.

Uranium Royalty Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$9.08B	5.25	-7.99%	7.51%	0.47%	-64.07%
URE	46 Neutral	$353.18M	―	-34.14%	―	36.51%	-14.93%
URC	42 Neutral	C$342.11M	248.54	0.45%	―	-47.81%	-83.25%
EU	41 Neutral	C$353.90M	―	-16.36%	―	―	-72.21%
NXE	38 Underperform	$3.67B	27.25	-7.77%	―	―	-197.27%
DML	38 Underperform	$1.71B	33.39	-4.64%	―	―	―
LAM	28 Underperform	C$174.58M	―	-6.64%	―	―	-34.39%