Shares of Energy Fuels UUUU hit a new 52-week low of $3.78 during yesterday’s trading before finishing a tad higher at $3.80. The company reported fourth-quarter 2024 results on Feb. 27, and its shares have lost 14% since then. Despite delivering higher revenues, Energy Fuels incurred a loss of 19 cents in the quarter. It was wider than the last-year quarter, which also missed the Zacks Consensus Estimate.

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UUUU shares have been in the red for a while. The stock has declined 37.4% in the past year against the industry’s 6.1% rise. It has also lagged the broader Zacks Basic Materials sector’s dip of 0.6% and the S&P 500’s climb of 21.5%. 

UUUU Stock's 1-Year Performance

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Technical indicators show that Energy Fuels has been trading below the 50-day and 200-day simple moving averages (SMAs) since Jan. 24, 2025. Following a death crossover on Feb. 3, 2025, the 50-day SMA continues to read lower than the 200-day SMA, indicating a bearish trend.

UUUU Shares Trade Below 50 & 200-Day SMAs

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Is this dip in the UUUU stock a buying opportunity? To assess the same, it is important to look at the factors influencing the decline, review the fourth-quarter results and evaluate the stock’s investment potential.

Decoding Energy Fuels’ Q4 & 2024 Results

Energy Fuels reported revenues of around $40 million in the fourth quarter of 2024, way higher than the year-ago quarter’s $0.5 million. Full-year revenues were $78 million, marking a 106% surge from 2023. 

The improvement in revenues was attributed to the contribution of revenues from Heavy Mineral Sands (HMS) following the acquisition of Base Resources. The company also reported a 9% increase in uranium revenues, aided by 42% higher realized sales prices that offset the impacts of a 20% decline in sales volumes.

Energy Fuels sold 450,000 pounds of uranium in 2024 for $84.23 per pound compared with 560,000 pounds sold for $59.42 in 2023. Click here for more details on UUUU’s fourth-quarter and 2024 results. 

The company reported a fourth-quarter loss per share of 19 cents compared with a loss of 13 cents in the year-ago quarter. For 2024, the loss was 28 cents compared with an adjusted loss of 19 cents in 2023.

The loss was due to transaction and integration costs related to the acquisition of Base Resources and the Donald Project joint venture, as well as recurring operating expenses. Expenses associated with the increased headcount of retained Base Resources employees and Kwale HMS mine reclamation costs also led to the loss. This was partially offset by sales of natural uranium concentrates and mineral sand products.

Key Developments for UUUU in 2024

The acquisition of Base Resources Limited in October 2024 gave Energy Fuels access to the promising Toliara Mineral Sand Project. In addition to rare earth element (REE) metals, this move will strengthen UUUU’s potential to become a major producer of titanium and zirconium minerals.

The Toliara project ensures a long-term supply of monazite that can be processed to produce advanced REE materials at its White Mesa Mill, a cost-effective and capital-efficient strategy. In December 2024, the Madagascar government lifted the suspension on the Toliara project, and Energy Fuels can now develop this project.

With the RadTran LLC buy, UUUU made its foray into the promising medical isotope market.

Energy Fuels’ Outlook For 2025-2029

The company is currently producing from 3 uranium mines. The expected ore production for 2025 is at 730,000-1,170,000 pounds of contained uranium. The company expects uranium contract sales of 200,000-300,000 pounds in 2025.

Energy Fuels added a fourth long-term uranium sales contract to its portfolio in 2024. Per the contract, UUUU expects to deliver 270,000-330,000 pounds of uranium between 2026 and 2027, and an additional 180,000-220,000 pounds through 2029. This will be under a "hybrid" pricing formula, subject to floor and ceiling prices, which maintains exposure to uranium market upside and protection from inflation.

UUUU Witnesses Downward Estimate Revisions Post Q4 Earnings

The estimates for Energy Fuels have undergone negative revisions following the results, as shown in the chart below.

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Energy Fuels is expected to report a loss of 14 cents in 2025, in contrast to the earlier mentioned earnings of 7 cents per share. The estimate for 2025 revenues is pegged at $72.27 million, suggesting a 7.5% year-over-year decline.

The estimate for 2026 revenues is pinned at $180.20 million, implying a 149% year-over-year upsurge. The consensus estimate for earnings is pegged at 13 cents. This will be UUUU’s first year of profit since it started trading on the NYSE in December 2013.

Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

UUUU Boasts Debt-Free Balance Sheet

As of Dec. 31, 2024, Energy Fuels had $170.90 million of working capital, including $38.60 million of cash and cash equivalents, $80.85 million of marketable securities, and $37.76 million in trade and other receivables. 

Uranium Price Decline is Concerning for UUUU

Uranium prices have declined 10.34% since the beginning of 2025 and 30% in a year. Currently, prices are around $65.45 per pound. The decline comes amid a landscape of adequate supply and uncertain demand. 

Recent reports indicate that Microsoft MSFT has canceled several data center leases in the United States, contradicting the prevailing view that tech giants are aggressively securing new power capacity. This development has raised concerns about future uranium demand.

UUUU’s Valuation Looks Stretched

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Energy Fuels is currently trading at a forward price-to-sales multiple of 4.65, above the industry average of 2.64. UUUU’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
The company is, however, cheaper than peers Cameco CCJ and Uranium Energy UEC, which are trading at price-to-sales ratios of 6.92 and 16.36, respectively.

Our Final Take on UUUU Stock

Backed by Energy Fuels’ debt-free balance sheet, the company is advancing with its growth plans to capitalize on the expected surge in uranium and REE demand. However, considering the premium valuation, decline in uranium prices, downward earnings revisions and expected loss for the current year, selling this stock would be a prudent move at present. The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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