Westwater Resources Inc (WWR)
:WWR

Westwater Resources (WWR) AI Stock Analysis

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Westwater Resources

(NYSE MKT:WWR)

39Underperform
Westwater Resources' stock is currently hampered by poor financial performance, marked by persistent net losses and negative cash flows. Despite some positive developments regarding their graphite plant, the bearish technical indicators and poor valuation metrics weigh heavily on the stock's overall outlook.

Westwater Resources (WWR) vs. S&P 500 (SPY)

Westwater Resources Business Overview & Revenue Model

Company DescriptionWestwater Resources, Inc. (WWR) is an energy materials development company that focuses on the exploration and development of graphite and other energy-related materials. The company is primarily engaged in the production of battery-grade graphite materials, which are crucial components for electric vehicle batteries and renewable energy storage solutions. Westwater Resources operates in the energy materials sector and is committed to advancing sustainable and clean energy technologies.
How the Company Makes MoneyWestwater Resources makes money through the development and sale of high-purity graphite products, which are used in a variety of applications including electric vehicle batteries, energy storage systems, and other industrial applications. The company's revenue model is centered around mining, processing, and selling these graphite materials to manufacturers and industries that require high-quality graphite for their products. Westwater Resources also engages in strategic partnerships and collaborations with technology companies and manufacturers to enhance its market presence and expand its customer base. These partnerships, along with the growing demand for energy storage solutions, significantly contribute to the company's earnings.

Westwater Resources Financial Statement Overview

Summary
Westwater Resources is in a precarious financial position, characterized by persistent net losses, lack of revenue growth, and negative cash flows, despite a strong equity base. The low debt levels are a silver lining, but without substantial revenue improvements or cost management, the company's financial health remains at risk.
Income Statement
15
Very Negative
Westwater Resources has been struggling with negative net income and EBIT over the years, with no revenue reported in recent periods. The absence of revenue growth and continued net losses indicate severe profitability issues, typical for a company in the early or developing stage within the mining industry.
Balance Sheet
40
Negative
The company's equity position appears strong with a high equity ratio, but the total lack of revenue is concerning. The debt-to-equity ratio is low, indicating low leverage, which is a positive sign. However, the company has reported consistent net losses, impacting return on equity negatively.
Cash Flow
20
Very Negative
Westwater Resources shows negative operating and free cash flows, reflecting challenges in generating cash from operations. The cash flow to net income ratios are concerning, indicating inefficiencies in translating revenue into cash. Cash flow fluctuations suggest potential liquidity issues ahead without corrective measures.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.00187.00K0.000.000.00
Gross Profit
0.00-34.00K-180.00K-130.00K-51.00K
EBIT
0.00-13.27M-11.79M-18.23M-11.24M
EBITDA
-249.00K-7.53M-10.98M-16.13M-13.89M
Net Income Common Stockholders
-12.66M-7.75M-10.45M-16.28M-27.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.27M10.85M75.20M115.29M51.84M
Total Assets
146.36M149.83M168.41M132.98M61.94M
Total Debt
235.00K357.00K91.00K235.00K363.00K
Net Debt
-4.04M-10.49M-75.11M-115.06M-49.95M
Total Liabilities
13.23M9.39M26.44M6.79M4.47M
Stockholders Equity
133.12M140.44M141.97M126.20M57.47M
Cash FlowFree Cash Flow
-11.96M-69.72M-65.97M-20.27M-19.29M
Operating Cash Flow
-5.81M-11.43M-13.18M-16.92M-15.18M
Investing Cash Flow
-4.64M-58.30M-52.79M-2.11M-4.10M
Financing Cash Flow
3.87M5.38M25.87M83.99M63.95M

Westwater Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.52
Price Trends
50DMA
0.75
Negative
100DMA
0.70
Negative
200DMA
0.61
Negative
Market Momentum
MACD
-0.05
Negative
RSI
38.18
Neutral
STOCH
22.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWR, the sentiment is Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.75, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 22.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WWR.

Westwater Resources Risk Analysis

Westwater Resources disclosed 30 risk factors in its most recent earnings report. Westwater Resources reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Westwater Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MPMP
66
Neutral
$4.06B-5.41%-19.57%-392.96%
SQSQM
60
Neutral
$10.81B-7.56%3.46%-39.35%-120.09%
PLPLL
50
Neutral
$126.83M-6.55%
47
Neutral
$2.36B-3.00-21.73%3.58%3.97%-28.71%
ALALB
42
Neutral
$6.88B-12.18%2.76%-44.08%-183.44%
WWWWR
39
Underperform
$37.30M-9.25%-40.85%
TSLAC
39
Underperform
$793.83M-4.13%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WWR
Westwater Resources
0.52
0.05
10.64%
ALB
Albemarle
58.51
-70.85
-54.77%
SQM
Sociedad Quimica Y Minera SA
36.66
-13.00
-26.18%
PLL
Piedmont Lithium
5.78
-7.55
-56.64%
MP
MP Materials
23.06
7.04
43.95%
TSE:LAC
Lithium Americas Corp.
3.63
-5.46
-60.07%

Westwater Resources Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Westwater Resources Advances Graphite Plant Financing and Study
Positive
Jan 28, 2025

On January 28, 2025, Westwater Resources announced an update on its debt financing efforts for the Kellyton Graphite Processing Plant and the results of its definitive feasibility study for Phase II of the plant. The company received final investment committee approval from the lead lender, although the closing of the debt transaction has been delayed due to significant due diligence. The feasibility study for Phase II reveals estimated capital costs of $453 million and a pre-tax NPV of $1.4 billion, highlighting the project’s long-term potential and its importance in the battery-grade graphite market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.