Energy Fuels: More Upside For UUUU Stock After 2x Gains?

CANADA – 2025/08/22: In this photo illustration, the Energy Fuels Holdings (EF) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

Energy Fuels Inc. (NYSE: UUUU), following its collaboration with Vulcan Elements to establish a domestic supply chain for rare earth magnets, saw its stock rise 18% on Tuesday, August 26, 2025. This surge has pushed the company’s year-to-date gains to an impressive 116%.

Rare earth magnets are critical components across many advanced industries, such as robotics and semiconductor manufacturing. The partnership is expected to reduce dependency on foreign supply chains, particularly from China. However, given the sharp recent rise, the central question is whether UUUU stock remains attractive. We believe it does. Our evaluation considers the company’s current valuation alongside its recent operating results and financial position, both historically and today.

That said, if you prefer upside potential with less volatility than a single stock, explore the High Quality Portfolio. This portfolio has comfortably beaten its benchmark—a mix of the S&P 500, Russell, and S&P MidCap indexes—delivering returns of more than 91% since inception. See also – RKLB Stock To $85?

How Does Energy Fuels’ Valuation Compare To The S&P 500?

Measured by what investors pay per dollar of sales or profit, UUUU stock appears very expensive relative to the broader market.

• Energy Fuels’ price-to-sales (P/S) ratio is 41.7 compared with 3.3 for the S&P 500

How Has Energy Fuels’ Revenue Grown In Recent Years?

Energy Fuels’ Revenues have shown exceptional growth in recent years.

• The company’s revenue has grown at an average annual rate of 82.7% over the past three years (vs. 5.3% growth for the S&P 500)
• Its revenue increased 42.7% from $46 Mil to $65 Mil in the last year (vs. 5.2% growth for the S&P 500)
• However, quarterly revenue dropped 51.7% to $4.2 Mil in the latest quarter from $8.7 Mil a year ago (vs. a 6.1% increase for the S&P 500)
• Note that Energy Fuels deliberately sold less uranium on the spot market this quarter, holding inventory in anticipation of higher future prices.

How Profitable Is Energy Fuels?

Energy Fuels’ profit margins are significantly weaker than most peers in the Trefis coverage set.

• Operating Income over the past four quarters was $-86 Mil, translating to a very weak Operating Margin of -131.8% (vs. 18.8% for the S&P 500)
• Operating Cash Flow (OCF) over the same period was $-88 Mil, reflecting a very poor OCF Margin of -135.1%(vs. 20.2% for the S&P 500)
• For this period, Net Income was $-93 Mil – indicating a very weak Net Margin of -143.0% (vs. 12.8% for the S&P 500)

Does Energy Fuels Appear Financially Sound?

Energy Fuels’ balance sheet is very strong.

• Debt was zero at the end of the most recent quarter, while market capitalization stood at $2.6 Bil (as of 8/26/2025).
• Cash (and equivalents) totaled $198 Mil out of $702 Mil in assets, giving a very robust Cash-to-Assets ratio of 28.2% (vs. 7.0% for the S&P 500)

How Has UUUU Stock Held Up During Downturns?

UUUU stock has generally underperformed the S&P 500 during market downturns. While many hope for a soft landing for the U.S. economy, it’s worth considering the potential downside in a recession. Our dashboard How Low Can Stocks Go During A Market Crash reviews how key stocks performed during and after the last six market crashes.

Inflation Shock (2022)

• UUUU stock dropped 55.6% from $10.99 on 12 Nov 2021 to $4.88 on 5 Jul 2022, vs. a 25.4% decline for the S&P 500
• The stock has not regained its pre-crisis high
• The highest level since then was $12.31 on 26 Aug 2025

COVID-19 Pandemic (2020)

• UUUU stock fell 55.7% from $1.91 on 1 Jan 2020 to $0.85 on 12 Mar 2020, vs. a 33.9% decline for the S&P 500
• The stock fully recovered to its pre-crisis peak by 23 Apr 2020

Global Financial Crisis (2008)

• UUUU stock dropped 98.1% from $235.00 on 13 Apr 2007 to $4.50 on 3 Dec 2008, vs. a 56.8% decline for the S&P 500
• The stock fully recovered by 24 May 2010

Bringing It All Together: UUUU Stock Outlook

Overall, Energy Fuels’ metrics stack up as follows:

• Growth: Strong
• Profitability: Very Weak
• Financial Stability: Very Strong
• Downturn Resilience: Weak
• Overall: Moderate

The Bottom Line

Although Energy Fuels Inc. appears highly valued at first glance, its long-term prospects suggest it could be a reasonable investment. Revenue is projected to fall from $112 Mil in 2024 to $61 Mil in 2025 due to the strategic decision to withhold uranium sales in expectation of higher prices. This short-term revenue dip makes the stock look expensive.

That said, analysts project a sharp rebound, with 2026 sales expected at $238 Mil—almost four times 2025 levels. At the current price of around $12, this equates to a forward P/S ratio of just 10x. That is a far more attractive valuation than its average P/S ratio of 40x over the past three years.

Despite its recent rally, this forward outlook implies the stock could still see more upside.

Of course, our view could be wrong. Investors may shy away from paying 10x forward revenue amid market uncertainty, especially given the stock’s past struggles during downturns. Yet for long-term investors with a 3–5 year horizon and tolerance for volatility, the stock could remain attractive even at current elevated levels.

Remember, investing in a single stock carries considerable risk. Consider the Trefis High Quality (HQ) Portfolio of 30 stocks, which has consistently outperformed the S&P 500 over the past four years. Why? As a group, HQ Portfolio stocks have produced stronger returns with lower risk versus the benchmark index, offering a smoother ride, as highlighted in the HQ Portfolio performance metrics.