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Westwater Resources Inc (WWR)
:WWR

Westwater Resources (WWR) AI Stock Analysis

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Westwater Resources

(NYSE MKT:WWR)

Rating:36Underperform
Price Target:
Westwater Resources' overall stock score reflects its precarious financial position, marked by net losses and weak cash flows. The technical indicators suggest a bearish outlook, compounded by challenging valuation metrics due to negative earnings. While the corporate event regarding the graphite plant's financing shows promise, the delay and ongoing due diligence reflect underlying risks, keeping the score low.

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

Westwater Resources Business Overview & Revenue Model

Company DescriptionWestwater Resources, Inc. operates as an energy materials developer. The company holds interests in Coosa graphite project covering an area of approximately 41,965 acres situated in Coosa County, Alabama. The company was formerly known as Uranium Resources, Inc. and changed its name to Westwater Resources, Inc. in August 2017. Westwater Resources, Inc. was incorporated in 1977 and is based in Centennial, Colorado.
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 faces significant financial challenges with persistent net losses, lack of revenue growth, and negative cash flows. Its strong equity base and low debt levels are positives, but these are overshadowed by the absence of profitability.
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.00187.00K0.000.000.00
Gross Profit
0.000.00-34.00K-180.00K-130.00K-51.00K
EBIT
-10.83M-11.16M-13.27M-11.84M-16.01M-11.24M
EBITDA
-11.79M-12.41M-7.53M-11.64M-16.13M-13.89M
Net Income Common Stockholders
-12.44M-12.66M-7.75M-11.12M-16.28M-27.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.26M4.27M10.85M75.20M115.29M51.84M
Total Assets
147.44M146.36M149.83M168.41M132.98M61.94M
Total Debt
202.00K235.00K357.00K91.00K235.00K363.00K
Net Debt
-3.06M-4.04M-10.49M-75.11M-115.06M-49.95M
Total Liabilities
12.56M13.23M9.39M26.44M6.79M4.47M
Stockholders Equity
134.88M133.12M140.44M141.97M126.20M57.47M
Cash FlowFree Cash Flow
-11.94M-11.96M-69.72M-65.97M-20.27M-19.29M
Operating Cash Flow
-5.35M-5.81M-11.43M-13.18M-16.92M-15.18M
Investing Cash Flow
-5.08M-4.64M-58.30M-52.79M-2.11M-4.10M
Financing Cash Flow
7.56M3.87M5.38M25.87M83.99M63.95M

Westwater Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.59
Price Trends
50DMA
0.51
Positive
100DMA
0.64
Negative
200DMA
0.61
Negative
Market Momentum
MACD
0.01
Negative
RSI
67.75
Neutral
STOCH
88.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWR, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.51, and below the 200-day MA of 0.61, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 88.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
50
Neutral
$127.68M-88.49%-42.39%
45
Neutral
$28.47M-34.23%-28.68%-96.77%
XPXPL
40
Underperform
$56.20M-21.64%-19.10%
WWWWR
36
Underperform
$46.91M-9.10%-40.85%
$27.85M
GTGTI
$12.75M7.89
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WWR
Westwater Resources
0.59
0.08
15.69%
XPL
Solitario Exploration & Royalty
0.69
-0.14
-16.87%
ABAT
American Battery Technology
1.37
0.19
16.10%
LITM
Snow Lake Resources
3.58
-6.69
-65.14%
GTI
Graphjet Technology
0.06
-6.00
-99.01%
GRFXY
Graphex Group ADR
0.35
-1.33
-79.17%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.