Uranium Royalty Corp (URC) AI Stock Analysis

• Market Cap: C$406.25M
• Dividend Yield: N/A
• Average Volume (3M): 165.79K
• Price to Earnings (P/E): 298.1
• Beta (1Y): 1.45
• Revenue Growth: -47.81%
• EPS Growth: -83.25%
• Country: CA
• Employees: 14
• Sector: Energy
• Sector Strength: 48
• Industry: Uranium
• EPS (TTM): -0.01
• Shares Outstanding: 133,636,120
• 10 Day Avg. Volume: 186,898
• 30 Day Avg. Volume: 165,787
• PEG Ratio: -3.98
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.37
• 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$5.22
• Price Target Upside: 71.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: C$3.50 ▲(15.13%Upside)

Uranium Royalty Corp scores moderately due to a strong balance sheet and positive corporate events like the strategic acquisition, which bolster future growth potential. However, significant challenges remain with weak income and cash flow performance alongside a high valuation, which tempers the overall score. Technical indicators show bullish momentum, though current overbought conditions suggest caution.

Positive Factors

Analyst Confidence

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

Market Demand

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

Strategic Positioning

UROY remains well-positioned to continue benefiting from strength in the uranium space based on inventories and royalty interests in the McArthur River, Langer Heinrich, and Cigar Lake projects.

Negative Factors

Geopolitical Tensions

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

Pricing Environment

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 strong balance sheet with minimal debt, but faces challenges in income and cash flow. The income statement reflects operating inefficiencies and declining profitability, while the cash flow statement indicates liquidity issues. Overall, financial performance is mixed, with the balance sheet providing some stability.

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	45.23M	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: Positive
• Last Price: 3.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 3.04 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.68, and below the 200-day MA of 3.13, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:URC.

Uranium Royalty Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URC	60 Neutral	C$406.25M	298.06	0.45%	―	-47.81%	-83.25%
EU	58 Neutral	C$534.57M	―	-25.71%	―	58.00%	-256.97%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
MGA	37 Underperform	C$106.87M	―	-11.27%	―	―	-485.07%
FUU	37 Underperform	$117.59M	―	-28.31%	―	―	-2288.89%
WUC	32 Underperform	C$53.45M	―	-33.85%	―	-56.80%	-66.14%
AEC	32 Underperform	C$115.41M	5.61	-22.57%	―	―	-184.85%

Uranium Royalty Corp Corporate Events

Uranium Royalty Corp. Acquires Royalty on Promising Canadian Uranium Project

Uranium Royalty Corp. has acquired a 2.0% gross overriding royalty on the Aberdeen Uranium Project in Nunavut, Canada, operated by Forum Energy Metals Corp. This strategic acquisition, valued at CAD$1 million, positions URC favorably in the uranium market, given the project’s proximity to the substantial Kiggavik uranium project and its location in the promising Thelon Basin. The acquisition enhances URC’s portfolio and strengthens its market position as a key player in the uranium industry, potentially benefiting stakeholders through increased exposure to high-grade uranium resources.

The most recent analyst rating on (TSE:URC) stock is a Buy with a C$4.50 price target. To see the full list of analyst forecasts on Uranium Royalty Corp stock, see the TSE:URC Stock Forecast page.