nuclear-news

The News That Matters about the Nuclear Industry

Uranium market outlook: not all that good

text-uranium-hypeProfit Margins Once again, without positive earnings, it’s tough to calculate a meaningful profit margin for Uranium Resources. We have to ding it here again.

Return on Equity The nuclear power stock falls short in terms of return on equity. Its early-stage investors have lost 54.65% in the last year. The equity situation isn’t great for other energy stocks, but it’s not this bad.

Is Uranium Resources a Nuclear Power Play?, I nvestment U  by Samuel Taube, Investment U Research Team Wednesday, January 25, 2017 Nuclear power has seen better days. In recent decades, pressure from environmentalist groups, the high cost compared to fossil fuels and the perceived risk to public safety has beaten the industry down.

Then along came President Trump, reverser of trends. Our new president is big on nuclear development – both the military and energy varieties. . And that means that beaten-down nuclear stocks like Uranium Resources (Nasdaq: URRE) could heat up again soon.

As you can see, Uranium Resources stock has been declining for much of the year. Other nuclear power stocks showed similarly drab performances before the election.

Now President Trump has spurred a revival in this industry. And Investment U readers are wondering whether or not it’s too late for a recovery. After such a long bear market, is Uranium Resources a good buy?

To find out, we ran Uranium Resources stock through the Investment U Fundamental Factor Test. (As a reminder, our checklist looks at six key metrics to diagnose the financial health of a stock.)

Earnings-per-Share  (EPS) Growth: Uranium Resources has a great earnings-per-share growth rate of 77.38%. That’s well above the average of 13.21% in the energy space. However, we should note that the nuclear power stock can post such impressive earnings growth because its earnings are still below zero.

Price-to-Earnings  (P/E): And since Uranium Resources has negative earnings, we can’t calculate its P/E ratio. We’re giving it the red X in this metric by default.

Debt-to-Equity The stock outperforms most other energy companies in terms of debt-to-equity ratio. Uranium Resources has a frugal 17.72% debt burden. That’s much less than the industry average of 41.87%.

Free Cash Flow per Share Growth Uranium Resources really blows other energy companies out of the water in terms of cash flow. It has grown free cash flow per share by 96.27% in the last year. Its competitors saw it shrink by -28.82% in that time.

Profit Margins Once again, without positive earnings, it’s tough to calculate a meaningful profit margin for Uranium Resources. We have to ding it here again.

Return on Equity The nuclear power stock falls short in terms of return on equity. Its early-stage investors have lost 54.65% in the last year. The equity situation isn’t great for other energy stocks, but it’s not this bad. ……http://www.investmentu.com/article/detail/53391/stockgrader-uranium-resources-nuclear-power#.WIpYkNJ97Gh

Advertisements

January 27, 2017 - Posted by | business and costs, Uranium

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: