enCore Energy (EU) AI Stock Analysis

• Market Cap: C$499.18M
• Dividend Yield: N/A
• Average Volume (3M): 202.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: 58.00%
• EPS Growth: -256.97%
• Country: CA
• Employees: 21,000
• Sector: Energy
• Sector Strength: 45
• Industry: Uranium
• EPS (TTM): -0.18
• Shares Outstanding: 186,261,280
• 10 Day Avg. Volume: 180,306
• 30 Day Avg. Volume: 202,900
• PEG Ratio: 0.33
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.77
• 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$5.34
• Price Target Upside: 99.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: C$2.50 ▼( -6.72% Downside)

enCore Energy's stock score reflects solid strategic initiatives and potential market momentum, offset by significant financial and valuation challenges. While corporate events positively impact strategic focus, profitability issues and high valuation risks remain substantial concerns.

Positive Factors

Market Position

EnCore signed its eighth supply agreement, expected to increase total committed sales to 4.8Mlbs through 2033.

Operational Efficiency

The installation of PathCAD software at Alta Mesa is improving wellfield planning and uranium recovery, which may reduce permitting timelines and lower installation costs.

Revenue Growth

The company's significant increase in revenue was driven by the sale of 720,000 pounds of uranium at an average price of $81.00 per pound.

Negative Factors

Financial Loss

The company recorded a net loss of $17.5M during the quarter, with costs surpassing revenue.

Production Challenges

Management anticipates that planned expansion should address the company’s bottleneck of wellfield replacement rates, allowing for a steady ramp-up in uranium extraction.

enCore Energy Business Overview & Revenue Model

Company Description

enCore Energy Corp. engages in the acquisition and exploration of resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property consists of private mineral leases totaling 18,596 acres located in McKinley and Sandoval counties of New Mexico; the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico; and the Moonshine Springs project comprises approximately 1000 acres, including 23 owned unpatented lode mining claims, 7 unpatented lode mining claims, and 320 acres of fee land under lease located in Mohave County, Arizona. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake - Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. was incorporated in 2009 and is headquartered in Corpus Christi, Texas.

How the Company Makes Money

enCore Energy makes money primarily through the sale of electricity generated from its renewable energy assets, including solar and wind farms. The company enters into Power Purchase Agreements (PPAs) with utility companies, governments, and large enterprises, ensuring a steady revenue stream from long-term contracts. Additionally, enCore Energy generates income through government incentives and subsidies aimed at promoting renewable energy initiatives. The company also engages in strategic partnerships and joint ventures to expand its energy infrastructure and technological capabilities, thereby enhancing its profitability and market presence.

enCore Energy Financial Statement Overview

Summary

enCore Energy exhibits robust revenue growth but faces severe profitability and cash flow challenges. The company has maintained a low leverage profile, providing some financial stability. However, persistent operating losses and negative free cash flow raise concerns about long-term viability without continued external financing or improved operational efficiency.

Income Statement

enCore Energy shows a significant increase in revenue, reaching $58.3 million in 2024 from $5.4 million in 2023, indicating strong top-line growth. However, the company is struggling with profitability, as demonstrated by negative gross profit margins and substantial net losses. EBIT and EBITDA margins are also negative, highlighting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.07, reflecting minimal leverage, which is a positive sign of financial stability. However, the equity ratio has decreased, indicating a decline in the proportion of assets financed by equity. Return on equity is negative due to ongoing net losses, which is concerning for investors seeking returns.

Cash Flow

Free cash flow has worsened significantly to -$56.5 million in 2024, compared to $3.7 million in 2023. The operating cash flow to net income ratio is negative due to operating losses, highlighting cash flow challenges. The company is maintaining cash reserves through significant financing activities, but the sustainability of this strategy is uncertain.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.33M	5.40M	0.00	0.00	0.00
	Gross Profit
-7.21M	2.58M	-380.34K	-374.45K	-25.71K
	EBIT
-72.18M	-40.72M	-19.08M	-13.15M	-2.25M
	EBITDA
-67.59M	-40.47M	-20.42M	-9.85M	-2.16M
	Net Income Common Stockholders
-61.39M	-29.66M	-13.98M	-6.85M	-2.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.75M	24.38M	5.67M	11.65M	6.60M
	Total Assets
392.72M	427.98M	223.53M	202.09M	23.44M
	Total Debt
20.44M	19.71M	180.43K	316.33K	432.63K
	Net Debt
-19.26M	12.22M	-2.33M	-11.33M	-6.17M
	Total Liabilities
74.18M	53.34M	8.48M	13.02M	7.57M
	Stockholders Equity
285.74M	374.64M	215.05M	189.07M	15.87M
Cash Flow		Free Cash Flow
-56.55M	3.71M	-80.09M	-5.60M	-1.76M
	Operating Cash Flow
-45.20M	29.58M	-69.20M	-5.20M	-1.45M
	Investing Cash Flow
-29.99M	-86.04M	-12.22M	-7.56M	-1.66M
	Financing Cash Flow
107.42M	61.71M	74.95M	17.66M	6.94M

enCore Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.68
• 50DMA: Positive
• 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:EU, the sentiment is Positive. The current price of 2.68 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.09, and below the 200-day MA of 4.10, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 38.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EU.

enCore Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$7.06B	3.04	-3.49%	5.80%	0.53%	-50.39%
EU	52 Neutral	C$499.18M	―	-25.71%	―	58.00%	-256.97%
AEC	32 Underperform	C$103.87M	5.61	-24.23%	―	―	-184.85%
FUUFF		$77.30M	―	-43.33%	―	―	―
MGAFF		$76.46M	―	-11.27%	―	―	―
UROY		$310.43M	284.15	0.45%	―	―	―
SASK	48 Neutral	C$107.05M	―	-7.72%	―	―	48.50%

enCore Energy Corporate Events

enCore Energy Welcomes Back Nathan Tewalt to Board of Directors

enCore Energy Corp. has appointed Mr. Nathan Tewalt to its Board of Directors, marking his return after previously serving from 2017 to 2022. With over 40 years of experience in the mineral extraction industry, particularly in uranium, Tewalt’s expertise is expected to significantly contribute to enCore’s growth and strengthen its position as a leader in the uranium extraction industry. His leadership during the company’s initial growth phases and his comprehensive knowledge of the uranium sector and enCore’s operations are seen as valuable assets for the company’s strategic direction.

enCore Energy Finalizes Sale of New Mexico Uranium Assets to Verdera

enCore Energy Corp. has finalized the sale of its New Mexico uranium projects to Verdera Energy Corp., receiving 50 million non-voting preferred shares, a 2% royalty on minerals, and $350,000 in cash. This strategic move allows enCore to focus on its core projects while retaining significant interest in Verdera, potentially benefiting from Verdera’s future public listing and financing activities.

enCore Energy Launches Fellowship to Support Future Engineers

enCore Energy has established the Dr. Dennis Stover Fellowship at Texas A&M University-Kingsville to honor Dr. Stover’s contributions to uranium extraction technology. This fellowship, funded by an initial $120,000 endowment, aims to support outstanding graduate students in chemical engineering, fostering the next generation of engineers in nuclear technology. The initiative underscores enCore’s commitment to education and innovation in the nuclear industry, reinforcing its position as a leader in clean energy solutions.

enCore Energy Sells New Mexico Uranium Assets to Verdera

enCore Energy has entered into a definitive agreement with Verdera Energy Corp. to sell its New Mexico uranium assets, including several projects in the Grants Uranium District. This transaction is part of enCore’s strategy to divest non-core assets and will result in enCore receiving 50 million non-voting preferred shares of Verdera, along with royalties and a cash payment. The deal aims to provide a dedicated focus on these assets and eventually distribute additional value to enCore shareholders through the distribution of Verdera shares. The move is expected to allow enCore to concentrate on its core operations in South Texas while enabling Verdera to advance the New Mexico projects with a focus on modernization and community engagement.

enCore Energy Reports 2024 Financial Results and Strategic Milestones

enCore Energy Corp. reported a significant increase in revenue for fiscal year 2024, driven by enhanced uranium extraction and sales activities. Despite this, the company experienced a net loss due to increased exploration and compliance costs. enCore transitioned to U.S. GAAP reporting, which is expected to positively impact future earnings by reducing non-cash expenses. The company achieved operational milestones, including the start-up of two uranium recovery plants and the formation of a joint venture with Boss Energy Ltd. enCore’s strategic focus remains on expanding its uranium extraction capabilities and securing regulatory approvals for its projects in South Texas, South Dakota, and Wyoming.

enCore Energy Corp. Reports 2024 Financial Results and Strategic Milestones

enCore Energy Corp. reported a significant increase in revenue for fiscal year 2024, driven by enhanced uranium extraction activities. Despite a net loss, the company achieved operational milestones, including the commencement of two uranium processing plants and a joint venture with Boss Energy Ltd. enCore’s transition to U.S. GAAP is expected to positively impact future earnings by reducing non-cash expenses. Looking ahead, the company plans to expand its uranium extraction capacity and strengthen its market position through strategic sales agreements and regulatory advancements.