Is uuuu a good long term investment
7/28/2025 07:57am
**Energy Fuels (UUUU) does not appear to be a strong candidate for a long-term investment** based on the available financial data and market indicators. Here's why:
1. **Financial Performance**: The company's recent financials show a net loss of $26.32 million and a diluted EPS of -$0.13 for the quarter ending March 31, 2025. Additionally, the revenue growth rate is negative at -33.54%, indicating a decline in sales. The 5-year CAGR for diluted EPS is 5.04%, which is relatively low, suggesting slow earnings growth over the long term.
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|UUUU|UUUU.A|Energy Fuels|2024 Q2|-31.402251791197543|27.043566953227447|-33.33333333333334|170|
|UUUU|UUUU.A|Energy Fuels|2024 Q3|-215.37873722418567|-63.165559297351415|-200|170|
|UUUU|UUUU.A|Energy Fuels|2024 Q4|-64.14174090479271|8485.376344086022||170|
|UUUU|UUUU.A|Energy Fuels|2025 Q1|-823.5843870258384|-33.54047038464564|-750|170|
2. **Cash Flow**: The company's operating cash flow is negative at -$18.83 million, and free cash flow is -$27.42 million, indicating significant cash outflows. This could be a red flag for long-term investors who prefer companies with positive cash flows.
|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|UUUU|UUUU.A|Energy Fuels|2024 Q2|-8.3808E7|-2.0131E7|-9675000|53000|170|
|UUUU|UUUU.A|Energy Fuels|2024 Q3|-5.5844E7|3.1365E7|-7154000|3000|170|
|UUUU|UUUU.A|Energy Fuels|2024 Q4|-1.5450988492E7|-9707000|-3.5985E7|1.2029E7|170|
|UUUU|UUUU.A|Energy Fuels|2025 Q1|-2.571100654E7|-2.3369E7|-1.8831E7|7.7841E7|170|
3. **Dividends**: Energy Fuels does not pay dividends, which is a common characteristic of companies focused on growth or those that are not yet profitable. Since dividends are not a factor in long-term investment decisions for income generation, this may not be a concern for some investors.
4. **Market Sentiment**: Despite the poor financials, the stock price has surged by 18.56% in a week due to strategic developments. However, these gains may not be sustainable in the long term without a strong underlying financial foundation.
5. **Strategic Position**: Energy Fuels is positioning itself in the uranium and rare earth elements sectors, which are critical for energy transition and technological advancements. This strategic positioning could be positive in the long term if the company successfully executes its plans.
In conclusion, while the company's strategic direction may be promising, the current financial health and lack of dividend payments make Energy Fuels a less attractive long-term investment option compared to companies with stronger financials and consistent dividend histories. Investors should carefully weigh these factors against their investment goals and risk tolerance.