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Energy Fuels Trades at Premium Value: Here's How to Play the Stock
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Key Takeaways
Energy Fuels mined more than 1.6M pounds of uranium in 2025, beating its prior target by 11%.
UUUU expects 4Q25 uranium sales of 360,000 pounds and secured long-term contracts through 2032.
Energy Fuels remains debt-free and has advanced rare earths, but trades at a big sales multiple.
Energy Fuels (UUUU - Free Report) is currently trading at a forward price-to-sales ratio of 37.18X, a significant premium to the non-ferrous mining industry’s 4.30X. UUUU’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 comparison, uranium stocks like Cameco Corporartion (CCJ - Free Report) and Centrus Energy (LEU - Free Report) are trading at much lower price-to-sales multiples of 17.31X and 10.1X, respectively.
Energy Fuels has surged 186.1% in the past year, outperforming the industry’s 43.6% growth, the Zacks Basic Materials sector’s 31.6% return and the S&P 500’s 16.9% climb.
UUUU Stock’s Performance vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
The stock has fared better than Cameco which has gained 77.8% in a year. Meanwhile, Centrus Energy shares have appreciated 248.1%.
Before investors chase this steep rally, it is important to examine what is driving the momentum, the sustainability of UUUU’s growth and the associated risks.
Energy Fuels Surpasses ’05 Uranium Production Goals
UUUU recently announced that it mined more than 1.6 million pounds of uranium from its Pinyon Plain, La Sal and Pandora mines in 2025, topping the higher end of its prior stated target of 0.875-1.435 million pounds by a margin of 11%. The White Mesa Mill in Utah has processed more than 1 million pounds of finished uranium in the year.
UUUU Positioned for Improving Operating Performance
The company indicated that uranium sales in the fourth quarter of 2025 will be around 360,000 pounds, reflecting a 50% sequential rise. With a weighted average sales price of $74.93 per pound, gross uranium sales revenues for the quarter are expected to be $27 million. The company had sold 50,000 pounds of uranium on the spot market at $80.00 per pound in the fourth quarter of 2024.
Current mining operations are running at an annualized rate of roughly 2 million pounds of recoverable uranium contained in ore from the Main Zone at Pinyon Plain and the La Sal Complex. Management expects this level of activity to be maintained at least through 2026. To further enhance its resource base, Energy Fuels plans to conduct additional exploration drilling in the Juniper Zone at Pinyon Plain in 2026, aimed at better defining the ore body and potentially expanding the mineable resource.
Energy Fuels has strengthened its long-term outlook by securing two uranium supply contracts with U.S. nuclear power generators, covering deliveries from 2027 through 2032. With these additions, the company expects to sell 780,000-880,000 pounds into long-term contracts in 2026. It also plans to make additional sales on the spot markets, subject to pricing and production.
The company expects its cost of goods sold to begin declining in the first quarter of 2026, as low-cost Pinyon Plain uranium is added into the company's inventory and sold.
Energy Fuels Advances Rare Earth Ambitions
In August, UUUU produced its first kilogram of dysprosium (Dy) oxide at 99.9% purity, surpassing commercial benchmarks. Energy Fuels plans to construct and commission commercial-scale Dy, Tb and potentially samarium separation capacity at the White Mesa Mill, which could be operational by the fourth quarter of 2026.
In December 2025, Energy Fuels announced that its high-purity Dy oxide met all standards of a major South Korean automotive manufacturer for downstream rare earth permanent magnet (REPM) production. This follows the earlier qualification of its NdPr oxide (another key ingredient in REPMs) for use in NdFeB magnet applications.
This makes Energy Fuels the first U.S. company to have both its "light" and "heavy" REEs qualified for use in permanent magnet applications, a milestone in rebuilding the U.S. rare earth supply chain.
UUUU’s Balance Sheet Remains Debt-Free
Energy Fuels ended the third quarter of 2025 with $298.5 million of working capital, including $94 million of cash and cash equivalents, $141.3 million of marketable securities, $12.1 million of trade and other receivables, $74.4 million of inventory, and no debt. Meanwhile, Cameco’s debt-to-capital ratio is at 0.13 and Centrus Energy’s at 0.77.
Energy Fuels Face Losses, Sees Downward Earnings Estimate Activity
The Zacks Consensus Estimate for UUUU’s 2025 loss is pegged at 34 cents per share. The bottom-line estimate for 2026 also stands at a loss of 4 cents.
Image Source: Zacks Investment Research
Both estimates have undergone negative revisions, as shown in the chart below.
Image Source: Zacks Investment Research
UUUU’s Long-Term Case Intact
Demand for uranium and REEs in clean energy applications, along with U.S. efforts to reduce dependence on China, present major tailwinds. The White Mesa Mill in Utah, being the only U.S. facility able to process monazite and produce separated REE materials, gives the company an edge. The U.S. Geological Survey’s addition of uranium to its 2025 Critical Minerals List further highlights its strategic importance for national security and domestic supply chains.
Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. With expansion plans and a target capacity of 4-6 million pounds of uranium per year, UUUU is well-positioned for growth.
Our Final Take on Energy Fuels Stock
UUUU offers compelling long-term potential, supported by a robust balance sheet, strategic REE advancements and strengthening uranium output. However, considering the premium valuation, expected losses through 2026 and the downward estimate revisions, it is better to steer clear of the stock for now. Energy Fuels currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Energy Fuels Trades at Premium Value: Here's How to Play the Stock
Key Takeaways
Energy Fuels (UUUU - Free Report) is currently trading at a forward price-to-sales ratio of 37.18X, a significant premium to the non-ferrous mining industry’s 4.30X.
UUUU’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 comparison, uranium stocks like Cameco Corporartion (CCJ - Free Report) and Centrus Energy (LEU - Free Report) are trading at much lower price-to-sales multiples of 17.31X and 10.1X, respectively.
Energy Fuels has surged 186.1% in the past year, outperforming the industry’s 43.6% growth, the Zacks Basic Materials sector’s 31.6% return and the S&P 500’s 16.9% climb.
UUUU Stock’s Performance vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
The stock has fared better than Cameco which has gained 77.8% in a year. Meanwhile, Centrus Energy shares have appreciated 248.1%.
Before investors chase this steep rally, it is important to examine what is driving the momentum, the sustainability of UUUU’s growth and the associated risks.
Energy Fuels Surpasses ’05 Uranium Production Goals
UUUU recently announced that it mined more than 1.6 million pounds of uranium from its Pinyon Plain, La Sal and Pandora mines in 2025, topping the higher end of its prior stated target of 0.875-1.435 million pounds by a margin of 11%. The White Mesa Mill in Utah has processed more than 1 million pounds of finished uranium in the year.
UUUU Positioned for Improving Operating Performance
The company indicated that uranium sales in the fourth quarter of 2025 will be around 360,000 pounds, reflecting a 50% sequential rise. With a weighted average sales price of $74.93 per pound, gross uranium sales revenues for the quarter are expected to be $27 million. The company had sold 50,000 pounds of uranium on the spot market at $80.00 per pound in the fourth quarter of 2024.
Current mining operations are running at an annualized rate of roughly 2 million pounds of recoverable uranium contained in ore from the Main Zone at Pinyon Plain and the La Sal Complex. Management expects this level of activity to be maintained at least through 2026. To further enhance its resource base, Energy Fuels plans to conduct additional exploration drilling in the Juniper Zone at Pinyon Plain in 2026, aimed at better defining the ore body and potentially expanding the mineable resource.
Energy Fuels has strengthened its long-term outlook by securing two uranium supply contracts with U.S. nuclear power generators, covering deliveries from 2027 through 2032. With these additions, the company expects to sell 780,000-880,000 pounds into long-term contracts in 2026. It also plans to make additional sales on the spot markets, subject to pricing and production.
The company expects its cost of goods sold to begin declining in the first quarter of 2026, as low-cost Pinyon Plain uranium is added into the company's inventory and sold.
Energy Fuels Advances Rare Earth Ambitions
In August, UUUU produced its first kilogram of dysprosium (Dy) oxide at 99.9% purity, surpassing commercial benchmarks. Energy Fuels plans to construct and commission commercial-scale Dy, Tb and potentially samarium separation capacity at the White Mesa Mill, which could be operational by the fourth quarter of 2026.
In December 2025, Energy Fuels announced that its high-purity Dy oxide met all standards of a major South Korean automotive manufacturer for downstream rare earth permanent magnet (REPM) production. This follows the earlier qualification of its NdPr oxide (another key ingredient in REPMs) for use in NdFeB magnet applications.
This makes Energy Fuels the first U.S. company to have both its "light" and "heavy" REEs qualified for use in permanent magnet applications, a milestone in rebuilding the U.S. rare earth supply chain.
UUUU’s Balance Sheet Remains Debt-Free
Energy Fuels ended the third quarter of 2025 with $298.5 million of working capital, including $94 million of cash and cash equivalents, $141.3 million of marketable securities, $12.1 million of trade and other receivables, $74.4 million of inventory, and no debt. Meanwhile, Cameco’s debt-to-capital ratio is at 0.13 and Centrus Energy’s at 0.77.
Energy Fuels Face Losses, Sees Downward Earnings Estimate Activity
The Zacks Consensus Estimate for UUUU’s 2025 loss is pegged at 34 cents per share. The bottom-line estimate for 2026 also stands at a loss of 4 cents.
Image Source: Zacks Investment Research
Both estimates have undergone negative revisions, as shown in the chart below.
Image Source: Zacks Investment Research
UUUU’s Long-Term Case Intact
Demand for uranium and REEs in clean energy applications, along with U.S. efforts to reduce dependence on China, present major tailwinds. The White Mesa Mill in Utah, being the only U.S. facility able to process monazite and produce separated REE materials, gives the company an edge. The U.S. Geological Survey’s addition of uranium to its 2025 Critical Minerals List further highlights its strategic importance for national security and domestic supply chains.
Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. With expansion plans and a target capacity of 4-6 million pounds of uranium per year, UUUU is well-positioned for growth.
Our Final Take on Energy Fuels Stock
UUUU offers compelling long-term potential, supported by a robust balance sheet, strategic REE advancements and strengthening uranium output. However, considering the premium valuation, expected losses through 2026 and the downward estimate revisions, it is better to steer clear of the stock for now.
Energy Fuels currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.