Uranium Royalty Corp (URC) AI Stock Analysis

• Market Cap: $348.79M
• Dividend Yield: N/A
• Average Volume (3M): 223.25K
• Price to Earnings (P/E): 253.4
• Beta (1Y): 1.53
• Revenue Growth: -47.81%
• EPS Growth: -83.25%
• Country: CA
• Employees: 14
• Sector: Energy
• Sector Strength: 47
• Industry: Uranium
• EPS (TTM): 0.01
• Shares Outstanding: 133,636,120
• 10 Day Avg. Volume: 149,846
• 30 Day Avg. Volume: 223,248
• PEG Ratio: 0.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: $5.06
• Price Target Upside: 94.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Uranium Royalty Corp's stock score reflects a mix of strengths and weaknesses. The company's strong balance sheet is a positive, providing some financial stability in a challenging operational environment marked by declining income and negative cash flows. However, technical indicators highlight a bearish trend, and the stock appears overvalued based on its high P/E ratio. These factors combined result in a cautious but not overly negative outlook.

Positive Factors

Demand for nuclear power

Increasing demand for the generation of electricity, coupled with the ongoing decarbonization of global electrical grids, remain significant catalysts for nuclear power.

Pricing power

The demand for cost-effective energy continues to grow, which should allow for favorable pricing power.

Uranium Royalty Corp's portfolio

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.

Negative Factors

Geopolitical tensions

Geopolitical tensions and uncertainty apply downward pressure on the uranium spot price.

Valuation concerns

The decreased PT is driven by a decrease in P/NAV multiple on the firm given the current pricing environment for uranium.

Uranium Royalty Corp Business Overview & Revenue Model

Company Description

Uranium Royalty Corp (URC) is a company engaged in the uranium sector, focusing primarily on the acquisition, investment, and management of uranium royalty and streaming interests. The company leverages its expertise to provide strategic capital to uranium projects, thereby securing rights to future uranium production and benefiting from the financial upside as these projects progress.

How the Company Makes Money

Uranium Royalty Corp makes money primarily through its portfolio of royalty and streaming interests in uranium projects. The company earns revenue by investing in uranium projects and acquiring royalty rights, which entitle it to a percentage of the revenue or production from these projects once they start operating. This model allows URC to benefit from the rising value of uranium and the increased production capacity of its partnered projects. Additionally, the company may engage in strategic partnerships and investments that enhance its portfolio's value, contributing to its earnings.

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

Uranium Royalty Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.61
• 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:URC, the sentiment is Neutral. The current price of 2.61 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.57, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	56 Neutral	$6.99B	3.76	-4.38%	5.90%	-0.24%	-48.46%
NXE	53 Neutral	$4.18B	27.25	-7.77%	―	―	-197.27%
URC	50 Neutral	$348.79M	253.40	0.45%	―	-47.81%	-83.25%
DML	49 Neutral	$1.80B	33.39	-4.64%	―	―	―
EU	42 Neutral	C$410.71M	―	-16.36%	―	―	-72.21%
URG	41 Neutral	$248.68M	―	-51.22%	―	90.66%	-45.75%
LAM	38 Underperform	C$169.77M	―	-6.64%	―	―	-29.27%