Exchange: AMEX | Sector: Energy | Industry: Uranium
Q4 2024
Published: Sep 27, 2024
Earnings Highlights
EPS of $-0.04 decreased by 536.8% from previous year
Net income of -15.12M
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Uranium Energy Corp (UEC) QQ4 2024 Earnings Analysis: Negative Profitability Amid Liquidity Strength in a Volatile Uranium Market
Executive Summary
- UEC reported a challenging QQ4 2024 with a net loss of $15.11 million (-$0.038 per share) and an EBITDA of approximately -$15.75 million, driven by negative gross profit of -$10.94 million on revenue that is not disclosed in the reported metrics. Operating income stood at -$19.06 million, underscoring ongoing cost structure pressures during the quarter. The absence of reported revenue and the sizable negative gross profit indicate either a timing/recognition nuance or near-term top-line headwinds in a market navigating uranium price volatility.
- Despite the earnings softness, liquidity remains substantial. The company reports cash and cash equivalents of about $87.5 million and total cash and short-term investments around $156.3 million, yielding a net debt position of approximately -$84.9 million. This liquidity cushion supports ongoing project development and working-capital needs in a capital-intensive sector. The balance sheet shows total assets of roughly $889.8 million against total liabilities of about $111.7 million, with a current ratio of 8.05 and a cash ratio near 3.00, signaling strong short-term liquidity.
- The quarterly results are juxtaposed against a broader uranium market that features price volatility and policy-related uncertainties. While near-term profitability is weak, UEC’s portfolio of US-based uranium projects (Palangana, Goliad, Burke Hollow, Longhorn, Salvo, Reno Creek, and others) positions the company for potential long-run value creation if uranium demand recovers and production ramps, supported by favorable domestic energy security dynamics. The stock’s current valuation (e.g., price-to-book around 3.0) reflects a yet-to-be-proven earnings turnaround, with market upside contingent on commodity price stabilization and project execution.
Key Performance Indicators
Operating Income
-19.06M
QoQ: -37.68% | YoY:-67.39%
Net Income
-15.12M
QoQ: 23.18% | YoY:-555.13%
EPS
-0.04
QoQ: 21.97% | YoY:-536.78%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the QQ4 metrics; reported revenue field is null. This causes the gross profit to be negative at -$10.935 million due to costs exceeding disclosed top-line recognition for the quarter.
Gross Profit: -$10.935 million; Gross Profit Margin: not reported. YoY gross profit change: -92.93% (from the earnings metrics data).
Net Income: -$15.115 million. YoY net income change: -555.13%; QoQ change: +23.18%.
Financial Highlights
Overview of QQ4 2024 financials (USD unless noted):
- Revenue: Not disclosed in the QQ4 metrics; reported revenue field is null. This causes the gross profit to be negative at -$10.935 million due to costs exceeding disclosed top-line recognition for the quarter.
- Gross Profit: -$10.935 million; Gross Profit Margin: not reported. YoY gross profit change: -92.93% (from the earnings metrics data).
- Operating Income: -$19.057 million. YoY operating income change: -67.39%; QoQ change: -37.68%.
- EBITDA: -$15.746 million (quarterly).
- Net Income: -$15.115 million. YoY net income change: -555.13%; QoQ change: +23.18%.
- EPS (basic and diluted): -0.038. YoY EPS change: -536.78%; QoQ: +21.97%.
- Cash Flow: Net cash provided by operating activities -$12.616 million; Depreciation & amortization $0.563 million; Deferred income tax -$1.401 million; Change in working capital +$3.803 million; Free cash flow -$13.487 million.
- Ending cash/cash equivalents: $87.533 million; Total cash and short-term investments: $156.264 million; Net debt: -$84.933 million (i.e., cash exceeds debt).
- Balance sheet highlights: Total assets $889.8 million; Total current assets $235.244 million; Total current liabilities $29.222 million; Total liabilities $111.715 million; Shareholders’ equity $778.113 million.
- Liquidity and leverage: Current ratio 8.05; Quick ratio 5.46; Debt-to-equity 0.00334; Net debt to EBITDA not applicable due to negative EBITDA; Cash flow to debt ratio -4.85 (negative indicates cash generation was insufficient to cover debt in the period).
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-10.94M
-92.93%
-1 884.57%
Operating Income
-19.06M
-67.39%
-37.68%
Net Income
-15.12M
-555.13%
23.18%
EPS
-0.04
-536.78%
21.97%
Key Financial Ratios
currentRatio
8.05
returnOnAssets
-1.7%
returnOnEquity
-1.94%
debtEquityRatio
0
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
priceToBookRatio
3.03
priceEarningsRatio
-38.97
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The earnings transcript for QQ4 2024 was not provided in the dataset. As a result, there are no management quotes or transcript-based themes available in this report. If a transcript becomes available, it should be integrated to enrich the forward-looking commentary, strategy remarks, and operational color.
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Forward Guidance
- There is no formal forward guidance published within the provided QQ4 2024 data. The near-term emphasis appears to be liquidity maintenance and project portfolio management rather than earnings accretion.
- Investment thesis depends on uranium price trajectories and the ability to monetize the US project portfolio. If uranium spot and long-term contracts firm at higher levels (e.g., sustained sub-$60–$70/lb ranges and rising utility demand), UEC could translate its multi-project pipeline (Palangana, Goliad, Longhorn, etc.) into higher volume, lower unit costs through economies of scale and potential ISR optimization.
- Key catalysts to monitor: (1) progress on permitting and development of US-based ISR projects, (2) any meaningful rise in U3O8 pricing and realized pricing, (3) UEC’s ability to convert its inventory into revenue without disproportionate cost increases, (4) financing terms for capex tied to project expansion, and (5) potential strategic partnerships or joint ventures that could de-risk development.
- Our qualitative view: With solid liquidity and minimal near-term debt, UEC is positioned to weather a cyclical downturn, pending a commodity price recovery and successful execution of its US project development plan. Investors should monitor uranium market dynamics, project milestones, and operating cost trajectories to gauge an inflection toward profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
UEC Focus
0.00%
0.00%
-1.94%
-38.97%
UUUU
1.46%
-71.60%
-6.24%
-6.86%
DNN
-2.39%
-16.47%
-5.23%
-19.59%
URG
-43.90%
-1.04%
-15.10%
-5.22%
CCJ
29.90%
15.30%
2.13%
59.69%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
URANIUM ENERGY CORP sits in a strategic niche: a cash-rich, debt-light company with an extensive US uranium asset base. In QQ4 2024, the company faced negative profitability despite significant liquidity, reflecting either timing issues in revenue recognition or near-term cost pressure. The key determinant of J-turn value will be the trajectory of uranium prices and the company’s ability to monetize its pipeline through efficient project development and eventual production. Relative to peers, UEC trades with a modest price-to-book multiple (~3.0) and a lack of current earnings, versus profitable producers like Cameco (CCJ) that command higher earnings-based multiples. The investment thesis hinges on a favorable commodity backdrop and successful execution of the US project slate, which could unlock revenue growth and improved margins in the medium term. Investors should monitor uranium price signals, project milestones (permitting and capex timing), and ongoing liquidity management. In the near term, UEC offers optionality supported by a strong balance sheet, but the absence of revenue and negative earnings in QQ4 2024 underscores the high beta risk to a commodity-driven recovery.
Key Investment Factors
Growth Potential
US-based uranium assets (Palangana, Goliad, Burke Hollow, Longhorn, Salvo, Reno Creek, etc.) offer scalable production potential if uranium prices stabilize or rise. As US energy policy priorities favor domestic uranium supply, successful expansion and cost-efficient ISR operations could unlock material upside.
Profitability Risk
Commodity price volatility; regulatory and permitting risk for project development; potential cost overruns or capex funding needs; reliance on a relatively concentrated project portfolio with execution risk; potential delays in revenue recognition given limited disclosed topline data for QQ4 2024.
Financial Position
Strong liquidity with ~$87.5M cash and ~$68.7M short-term investments (total cash + short-term investments ~$156.3M); net debt of -$84.9M; minimal leverage (debt-to-equity ~0.0033); robust current ratio (~8.05) and cash ratio (~3.00), suggesting resilience to short-term disruptions despite negative near-term profitability.
SWOT Analysis
Strengths
Strong liquidity and cash position (net cash ~-$84.9M) enables ongoing project development and working-capital flexibility.
Low reported leverage (very small total debt) and absence of near-term debt maturities.
US-based asset portfolio with multiple uranium development projects (Palangana, Goliad, Longhorn, etc.).
Positive long-term uranium market potential driven by US energy security and diversification of supply.
Weaknesses
Negative quarterly profitability (EBITDA and Net Income negative in QQ4 2024).
Revenue for QQ4 2024 not disclosed, introducing topline ambiguity.
Limited near-term revenue visibility and execution risk across a multi-project pipeline.
Inventory levels and working capital dynamics appear elevated, contributing to cash burn in the quarter.
Opportunities
Rising or stabilized uranium prices could improve margins and cash generation.
US energy policy initiatives and potential utility procurement could drive demand for domestic uranium.
Potential development progress on Longhorn, Palangana expansions, or new ISR projects that could lower per-unit costs over time.
Threats
Uranium price volatility and policy/regulatory risk in mining and refining sectors.
Competition from larger, more diversified uranium producers (e.g., CCJ) with different cost structures and profitability profiles.
Execution risk in scaling up US-based uranium production and achieving favorable capex payback timelines.
Uranium Energy Corp (UEC) QQ4 2023 Financial Results – Solid cash generation and balance sheet resilience amid near-term gross loss in US uranium as...