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Uranium Energy Trades at Premium Value: How to Play the Stock?
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Key Takeaways
Uranium Energy's stock has surged 69.4% in 2025, outpacing the industry but lagging close peers.
UEC reported $66.84M in FY25 revenues but posted a wider 20-cent per-share loss.
The company advanced ISR mining projects, stayed debt-free and acquired Rio Tinto's Sweetwater Complex.
Uranium Energy (UEC - Free Report) is currently trading at a forward price-to-sales ratio of 66.55X, a significant premium to the industry's 1.42X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Image Source: Zacks Investment Research
In contrast, peers Centrus Energy (LEU), Cameco Corp. (CCJ - Free Report) and Energy Fuels (UUUU - Free Report) trade at more modest valuations of 10.10X, 16.15X and 44.62X, respectively.
Image Source: Zacks Investment Research
UEC Stock Outperforms Industry, Lags Close Peers
So far this year, UEC stock has gained 84.2%, outpacing the industry’s 26.6% growth, Basic Materials Sector’s 23.4% gain and the S&P 500’s 18.3% rise. However, it has lagged Centrus Energy, Energy Fuels and Cameco, which have gained 313.8%, 208.4% and 80.1%, respectively, year to date.
Image Source: Zacks Investment Research
Before making a decision regarding the stock, investors should take a closer look at the underlying fundamentals, growth drivers and risks (if any).
UEC Posted Strong Revenue Growth in FY25 but Reported Wider Loss
The company reported fiscal 2025 revenues of $66.84 million, a substantial increase from $0.2 million in the prior fiscal year. However, this jump reflected UEC’s decision not to sell any of its purchased uranium inventory in fiscal 2024, rather than an operational or price impact. In fiscal 2024, UEC’s revenues reflected toll processing services, which have been discontinued.
During fiscal 2025, Uranium Energy sold 810,000 pounds of uranium at an average price of around $82.50 per pound, primarily in the first half. UEC reported gross profit of $24.5 million in fiscal 2025 compared with $0.04 million in fiscal 2024. Operating costs surged 104% to $66 million in fiscal 2025.
This was driven by higher development spending on the Burke Hollow Project and the Christensen Ranch Mine. Production readiness expenditures related to the Christensen Ranch Mine, Irigaray Plant and Palangana Mine added to its cost burdens. General and administrative expenses were also higher, due to an increase in salaries, wages and management fees due to personnel hires and adjustments for inflation.
Overall, the higher operating expenses led to a 20-cent per share loss for the company in fiscal 2025, wider than the loss of seven cents per share for fiscal 2024. Adjusted loss in fiscal 2025 was 17 cents compared with the loss of eight cents per share in the last fiscal.
UEC’s Revenue Trends Waver Amid Uranium Swings
Uranium prices have been under pressure earlier this year due to oversupply and uncertain demand. However, prices had surged to around $83 per pound levels in September, fueled by growing expectations of expanded nuclear power capacity, fresh purchases by physical uranium funds and policy initiatives. Also, Cameco lowered its 2025 guidance, citing lower deliveries at the McArthur River mine, and Kazatomprom reduced its output by 10% for next year, triggering supply concerns and supporting prices. However, prices have again lost steam as Cameco expects the ongoing momentum at Cigar Lake to offset part of the shortfall this year. Also, Kazatomprom reported 33% growth rate in exports in the third quarter and a 10% increase in total output.
The company often defers sales during downturns, which can lead to uneven quarterly performance. If uranium prices soften again, UEC’s growing operating costs could further pressure its bottom line.
A Debt-Free Balance Sheet to Aid Uranium Energy’s Growth Plans
As of fiscal 2025-end, UEC held 1.36 million pounds of uranium in inventory, valued at $96.6 million at the then market prices. This excludes approximately 130,000 pounds of initial Wyoming production. The company expects its warehouse inventory to expand another 300,000 pounds through December 2025, thanks to purchase contracts priced at $37.05 per pound, in addition to new production from operations.
The company ended fiscal 2025 with $321 million in cash, inventory and equities at market prices and no debt. For comparison, Energy Fuels also maintains a debt-free balance sheet, while Cameco has debt-to-total capital ratios of 0.13.
The Zacks Consensus Estimate for UEC’s earnings for fiscal 2026 is at a loss of nine cents per share, indicating an improvement from the loss of 17 cents reported in fiscal 2025. The estimate for fiscal 2027 is earnings of six cents per share, indicating an improvement.
Image Source: Zacks Investment Research
However, both the estimates for fiscal 2025 and fiscal 2026 have undergone negative revisions lately.
Image Source: Zacks Investment Research
Uranium Energy Positioning Itself for Long-Term Growth
The global nuclear energy market has been gaining strength, fueled by energy security concerns and rising demand for low-carbon power solutions. It has led to renewed interest in uranium stocks. The recent inclusion of uranium in the Critical Minerals List underscores its growing strategic importance and will attract increased investment in the industry.
UEC is advancing its next generation of low-cost, in-situ recovery (ISR) uranium mining projects. The ISR mining process has an edge over conventional mining methods as it requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.
Fiscal 2025 marked a significant milestone with Uranium Energy transitioning from developer to producer. It successfully restarted operations at the Christensen Ranch ISR Mine in Wyoming’s Powder River Basin with initial production at around 130,000 pounds of precipitated uranium and dried and drummed concentrate. The ramp-up phase will continue while new production areas are being constructed in 2025 and 2026. The Burke Hollow project remains on track with an expected start-up in December 2025, strengthening its production profile.
In a strategic move, Uranium Energy also acquired Rio Tinto’s Sweetwater Complex, adding roughly 175 million pounds of historic resources and establishing its third U.S. hub-and-spoke production platform. This acquisition lifted UEC’s total licensed annual production capacity to 12.1 million pounds of uranium, the largest in the United States.
The company also launched United States Uranium Refining & Conversion Corp. to position itself as the only vertically integrated U.S. company with uranium mining, processing and planned refining and conversion capabilities
Our Final Take on UEC Stock
While Uranium Energy has made meaningful progress transitioning into production and expanding its production capabilities, the recent stock rally appears largely fueled by sector optimism rather than immediate earnings strength.
Its ambitious growth strategy, debt-free balance sheet and vertical integration are long-term positives. However, considering the company’s lofty valuation, projected loss for the ongoing fiscal and downward revisions, it seems prudent to avoid the stock for now. UEC currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Uranium Energy Trades at Premium Value: How to Play the Stock?
Key Takeaways
Uranium Energy (UEC - Free Report) is currently trading at a forward price-to-sales ratio of 66.55X, a significant premium to the industry's 1.42X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Image Source: Zacks Investment Research
In contrast, peers Centrus Energy (LEU), Cameco Corp. (CCJ - Free Report) and Energy Fuels (UUUU - Free Report) trade at more modest valuations of 10.10X, 16.15X and 44.62X, respectively.
UEC Stock Outperforms Industry, Lags Close Peers
So far this year, UEC stock has gained 84.2%, outpacing the industry’s 26.6% growth, Basic Materials Sector’s 23.4% gain and the S&P 500’s 18.3% rise.
However, it has lagged Centrus Energy, Energy Fuels and Cameco, which have gained 313.8%, 208.4% and 80.1%, respectively, year to date.
Image Source: Zacks Investment Research
Before making a decision regarding the stock, investors should take a closer look at the underlying fundamentals, growth drivers and risks (if any).
UEC Posted Strong Revenue Growth in FY25 but Reported Wider Loss
The company reported fiscal 2025 revenues of $66.84 million, a substantial increase from $0.2 million in the prior fiscal year. However, this jump reflected UEC’s decision not to sell any of its purchased uranium inventory in fiscal 2024, rather than an operational or price impact. In fiscal 2024, UEC’s revenues reflected toll processing services, which have been discontinued.
During fiscal 2025, Uranium Energy sold 810,000 pounds of uranium at an average price of around $82.50 per pound, primarily in the first half.
UEC reported gross profit of $24.5 million in fiscal 2025 compared with $0.04 million in fiscal 2024. Operating costs surged 104% to $66 million in fiscal 2025.
This was driven by higher development spending on the Burke Hollow Project and the Christensen Ranch Mine. Production readiness expenditures related to the Christensen Ranch Mine, Irigaray Plant and Palangana Mine added to its cost burdens. General and administrative expenses were also higher, due to an increase in salaries, wages and management fees due to personnel hires and adjustments for inflation.
Overall, the higher operating expenses led to a 20-cent per share loss for the company in fiscal 2025, wider than the loss of seven cents per share for fiscal 2024. Adjusted loss in fiscal 2025 was 17 cents compared with the loss of eight cents per share in the last fiscal.
UEC’s Revenue Trends Waver Amid Uranium Swings
Uranium prices have been under pressure earlier this year due to oversupply and uncertain demand. However, prices had surged to around $83 per pound levels in September, fueled by growing expectations of expanded nuclear power capacity, fresh purchases by physical uranium funds and policy initiatives. Also, Cameco lowered its 2025 guidance, citing lower deliveries at the McArthur River mine, and Kazatomprom reduced its output by 10% for next year, triggering supply concerns and supporting prices. However, prices have again lost steam as Cameco expects the ongoing momentum at Cigar Lake to offset part of the shortfall this year. Also, Kazatomprom reported 33% growth rate in exports in the third quarter and a 10% increase in total output.
The company often defers sales during downturns, which can lead to uneven quarterly performance. If uranium prices soften again, UEC’s growing operating costs could further pressure its bottom line.
A Debt-Free Balance Sheet to Aid Uranium Energy’s Growth Plans
As of fiscal 2025-end, UEC held 1.36 million pounds of uranium in inventory, valued at $96.6 million at the then market prices. This excludes approximately 130,000 pounds of initial Wyoming production. The company expects its warehouse inventory to expand another 300,000 pounds through December 2025, thanks to purchase contracts priced at $37.05 per pound, in addition to new production from operations.
The company ended fiscal 2025 with $321 million in cash, inventory and equities at market prices and no debt. For comparison, Energy Fuels also maintains a debt-free balance sheet, while Cameco has debt-to-total capital ratios of 0.13.
UEC Witnesses Downward Earnings Estimate Revisions
The Zacks Consensus Estimate for UEC’s earnings for fiscal 2026 is at a loss of nine cents per share, indicating an improvement from the loss of 17 cents reported in fiscal 2025. The estimate for fiscal 2027 is earnings of six cents per share, indicating an improvement.
Image Source: Zacks Investment Research
However, both the estimates for fiscal 2025 and fiscal 2026 have undergone negative revisions lately.
Image Source: Zacks Investment Research
Uranium Energy Positioning Itself for Long-Term Growth
The global nuclear energy market has been gaining strength, fueled by energy security concerns and rising demand for low-carbon power solutions. It has led to renewed interest in uranium stocks. The recent inclusion of uranium in the Critical Minerals List underscores its growing strategic importance and will attract increased investment in the industry.
UEC is advancing its next generation of low-cost, in-situ recovery (ISR) uranium mining projects. The ISR mining process has an edge over conventional mining methods as it requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.
Fiscal 2025 marked a significant milestone with Uranium Energy transitioning from developer to producer. It successfully restarted operations at the Christensen Ranch ISR Mine in Wyoming’s Powder River Basin with initial production at around 130,000 pounds of precipitated uranium and dried and drummed concentrate. The ramp-up phase will continue while new production areas are being constructed in 2025 and 2026. The Burke Hollow project remains on track with an expected start-up in December 2025, strengthening its production profile.
In a strategic move, Uranium Energy also acquired Rio Tinto’s Sweetwater Complex, adding roughly 175 million pounds of historic resources and establishing its third U.S. hub-and-spoke production platform. This acquisition lifted UEC’s total licensed annual production capacity to 12.1 million pounds of uranium, the largest in the United States.
The company also launched United States Uranium Refining & Conversion Corp. to position itself as the only vertically integrated U.S. company with uranium mining, processing and planned refining and conversion capabilities
Our Final Take on UEC Stock
While Uranium Energy has made meaningful progress transitioning into production and expanding its production capabilities, the recent stock rally appears largely fueled by sector optimism rather than immediate earnings strength.
Its ambitious growth strategy, debt-free balance sheet and vertical integration are long-term positives. However, considering the company’s lofty valuation, projected loss for the ongoing fiscal and downward revisions, it seems prudent to avoid the stock for now. UEC currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.