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US Nuclear is significantly overvalued

US Nuclear Stock Gives Every Indication Of Being Significantly Overvalued, Yahoo Finance, Sat, May 15, 2021, 

The stock of US Nuclear (OTCPK:UCLE30-year Financials) is believed to be significantly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus’ estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $0.57 per share and the market cap of $13.3 million, US Nuclear stock is believed to be significantly overvalued. GF Value for US Nuclear is shown in the chart below. [on original]

Because US Nuclear is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth, which averaged 7.8% over the past five years.

Since investing in companies with low financial strength could result in permanent capital loss, investors must carefully review a company’s financial strength before deciding whether to buy shares. Looking at the cash-to-debt ratio and interest coverage can give a good initial perspective on the company’s financial strength. US Nuclear has a cash-to-debt ratio of 0.43, which ranks worse than 79% of the companies in Hardware industry. Based on this, GuruFocus ranks US Nuclear’s financial strength as 3 out of 10, suggesting poor balance sheet. This is the debt and cash of US Nuclear over the past years:

…………In short, The stock of US Nuclear (OTCPK:UCLE, 30-year Financials) gives every indication of being significantly overvalued. The company’s financial condition is poor and its profitability is poor. Its growth ranks worse than 81% of the companies in Hardware industry.

May 17, 2021 - Posted by | business and costs, USA

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