TSX:DML

Stock Analysis Report

Executive Summary

Denison Mines Corp. operates as a uranium exploration and development company with focuses in the Athabasca Basin region of northern Saskatchewan, Canada.

Rewards

Revenue is forecast to grow 59.25% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Shareholders have been diluted in the past year



Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

How has Denison Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DML has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

DML

-1.6%

CA Oil and Gas

-0.3%

CA Market


1 Year Return

-27.1%

DML

3.5%

CA Oil and Gas

9.2%

CA Market

Return vs Industry: DML underperformed the Canadian Oil and Gas industry which returned 5.3% over the past year.

Return vs Market: DML underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

DMLIndustryMarket
7 Day-1.9%-1.6%-0.3%
30 Day-3.8%-1.3%1.7%
90 Day-17.7%8.3%6.0%
1 Year-27.1%-27.1%8.0%3.5%12.7%9.2%
3 Year-48.0%-48.0%-7.8%-17.4%17.0%6.4%
5 Year-53.2%-53.2%-7.1%-21.8%37.1%17.0%

Price Volatility Vs. Market

How volatile is Denison Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Denison Mines undervalued compared to its fair value and its price relative to the market?

1.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DML (CA$0.53) is trading above our estimate of fair value (CA$0.05)

Significantly Below Fair Value: DML is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DML is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: DML is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DML's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DML is overvalued based on its PB Ratio (1.5x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Denison Mines forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DML is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DML is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DML is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DML's revenue (59.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: DML's revenue (59.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DML's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Denison Mines performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DML is currently unprofitable.

Growing Profit Margin: DML is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DML is unprofitable, but has reduced losses over the past 5 years at a rate of 5.4% per year.

Accelerating Growth: Unable to compare DML's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DML is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: DML has a negative Return on Equity (-14.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Denison Mines's financial position?


Financial Position Analysis

Short Term Liabilities: DML's short term assets (CA$18.3M) exceed its short term liabilities (CA$13.8M).

Long Term Liabilities: DML's short term assets (CA$18.3M) do not cover its long term liabilities (CA$74.9M).


Debt to Equity History and Analysis

Debt Level: DML's debt to equity ratio (0.02%) is considered satisfactory.

Reducing Debt: DML's debt to equity ratio has increased from 0.02% to 0.02% over the past 5 years.


Balance Sheet

Inventory Level: DML has a high level of physical assets or inventory.

Debt Coverage by Assets: DML's debt is covered by short term assets (assets are 426.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DML has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DML has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Denison Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.5%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DML's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DML's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DML's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DML's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DML's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Denison Mines's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

David Cates (37yo)

4.8yrs

Tenure

CA$1,237,424

Compensation

Mr. David Daniel Cates, CPA, CA, MAcc, has been the Chief Executive Officer and President at Uranium Participation Corporation since January 14, 2016. Mr. Cates has been the Chief Executive Officer of Deni ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD947.12K) is above average for companies of similar size in the Canadian market ($USD672.22K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: DML's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

1.4yrs

Average Tenure

61yo

Average Age

Experienced Board: DML's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DML insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$7,97504 Jan 20
David Cates
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceCA$0.54
BuyCA$47,53317 Dec 19
Patricia Volker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares85,000
Max PriceCA$0.56
BuyCA$51,00011 Dec 19
William Dengler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares75,000
Max PriceCA$0.68
BuyCA$10,20010 Dec 19
Gabriel McDonald
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceCA$0.68
BuyCA$20,40010 Dec 19
Tim Gabruch
EntityIndividual
Shares30,000
Max PriceCA$0.68
BuyCA$149,60009 Dec 19
David Cates
EntityIndividual
Role
Chief Executive Officer
President
Shares220,000
Max PriceCA$0.68
BuyCA$13,60006 Dec 19
Catherine Jean Stefan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceCA$0.68
BuyCA$5,44007 Feb 19
William Dengler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceCA$0.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Management Team

  • Sophia Shane (57yo)

    Investor Relations

    • Michael Schoonderwoerd

      VP & Controller

      • Tenure: 7yrs
      • Compensation: CA$514.20k
    • David Bronkhorst

      Vice President of Operations

      • Tenure: 0.3yrs
    • David Cates (37yo)

      President

      • Tenure: 4.8yrs
      • Compensation: CA$1.24m
    • Mac McDonald

      Executive VP & CFO

      • Tenure: 4.8yrs
      • Compensation: CA$925.83k
    • Dale Verran

      Vice President of Exploration

      • Tenure: 4yrs
      • Compensation: CA$563.54k
    • Amanda Willett

      Corporate Counsel & Corporate Secretary

      • Tenure: 3.6yrs

    Board Members

    • Bill Rand (77yo)

      Independent Director

      • Tenure: 22.7yrs
      • Compensation: CA$56.33k
    • Ron Hochstein (57yo)

      Independent Director

      • Tenure: 19.8yrs
      • Compensation: CA$58.95k
    • Bob Dengler (78yo)

      Independent Director

      • Tenure: 13.1yrs
      • Compensation: CA$67.45k
    • Brian Edgar (69yo)

      Independent Director

      • Tenure: 14.8yrs
      • Compensation: CA$62.95k
    • Catherine Jean Stefan (66yo)

      Chairman of the Board

      • Tenure: 1.4yrs
      • Compensation: CA$83.05k
    • David Cates (37yo)

      President

      • Tenure: 4.8yrs
      • Compensation: CA$1.24m
    • Patricia Volker (61yo)

      Independent Director

      • Tenure: 1.4yrs
      • Compensation: CA$12.60k
    • Jack O. Lundin (29yo)

      Director

      • Tenure: 1.4yrs
      • Compensation: CA$13.00k
    • Geun Park (47yo)

      Director

      • Tenure: 0.8yrs

    Company Information

    Denison Mines Corp.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Denison Mines Corp.
    • Ticker: DML
    • Exchange: TSX
    • Founded: 1996
    • Industry: Coal and Consumable Fuels
    • Sector: Energy
    • Market Cap: CA$298.596m
    • Shares outstanding: 597.19m
    • Website: https://www.denisonmines.com

    Number of Employees


    Location

    • Denison Mines Corp.
    • 40 University Avenue
    • Suite 1100
    • Toronto
    • Ontario
    • M5J 1T1
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    DMLTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1997
    DNNAMEX (NYSE MKT LLC)YesCommon SharesUSUSDMay 1997
    IUQDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1997
    0URYLSE (London Stock Exchange)YesCommon SharesGBCADMay 1997

    Biography

    Denison Mines Corp. operates as a uranium exploration and development company with focuses in the Athabasca Basin region of northern Saskatchewan, Canada. Its projects primarily includes the Wheeler River, the Waterbury, the Midwest, the McClean Lake and Mill, and the Hook-Carter that covers approximately 320,000 hectares in the Athabasca Basin region. The company was formerly known as International Uranium Corporation and changed its name to Denison Mines Corp. in December 2006. Denison Mines Corp. was founded in 1996 and is headquartered in Toronto, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 00:23
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.