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.

Snowflake

Fundamentals

Mediocre balance sheet with limited growth.


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


Market Performance


7 Day Return

-1.6%

DML

0.2%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-19.5%

DML

-11.3%

CA Oil and Gas

2.4%

CA Market

Return vs Industry: DML underperformed the Canadian Oil and Gas industry which returned -11.3% over the past year.

Return vs Market: DML underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

DMLIndustryMarket
7 Day-1.6%0.2%0.2%
30 Day-8.8%-5.6%-3.3%
90 Day5.1%-3.4%-1.8%
1 Year-19.5%-19.5%-7.3%-11.3%6.0%2.4%
3 Year8.8%8.8%-16.3%-24.7%14.2%4.0%
5 Year-42.1%-42.1%-20.8%-33.0%27.2%8.6%

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?

1.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DML (CA$0.62) is trading above our estimate of fair value (CA$0.04)

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 (1.7x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Denison Mines forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.3%

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 (45.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: DML's revenue (45.5% 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?

21.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DML is unprofitable, but has reduced losses over the past 5 years at a rate of 21.8% 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 (62.2%).


Return on Equity

High ROE: DML has a negative Return on Equity (-12.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DML is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DML is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Denison Mines's financial position?


Financial Position Analysis

Short Term Liabilities: DML's short term assets (CA$22.5M) exceeds its short term liabilities (CA$12.4M)

Long Term Liabilities: DML's short term assets (22.5M) do not cover its long term liabilities (76.1M)


Debt to Equity History and Analysis

Debt Level: DML is debt free.

Reducing Debt: DML has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if DML's debt is covered by short term assets.


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%6.0%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

4.6yrs

Average management tenure


CEO

David Cates (37yo)

4.6yrs

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 ($USD944.40K) is about average for companies of similar size in the Canadian market ($USD694.72K).

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


Management Age and Tenure

4.6yrs

Average Tenure

Experienced Management: DML's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

61yo

Average Age

Experienced Board: DML's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$5,44007 Feb 19
William Dengler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceCA$0.68
BuyCA$24,72010 Jan 19
Tim Gabruch
EntityIndividual
Shares40,000
Max PriceCA$0.62
BuyCA$1,36003 Jan 19
William Dengler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$0.68
BuyCA$30,29128 Dec 18
David Cates
EntityIndividual
Role
Chief Executive Officer
President
Shares47,500
Max PriceCA$0.64
BuyCA$65,65027 Nov 18
David Cates
EntityIndividual
Role
Chief Executive Officer
President
Shares65,000
Max PriceCA$1.01
BuyCA$50,50026 Nov 18
William Dengler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$1.01
BuyCA$45,45026 Nov 18
Tim Gabruch
EntityIndividual
Shares45,000
Max PriceCA$1.01
BuyCA$60,60023 Nov 18
Patricia Volker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares60,000
Max PriceCA$1.01
BuyCA$15,15023 Nov 18
Catherine Jean Stefan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceCA$1.01
BuyCA$5,05023 Nov 18
Amanda Willett
EntityIndividual
Role
Chief Legal Officer
Corporate Counsel & Corporate Secretary
Shares5,000
Max PriceCA$1.01
BuyCA$10,10023 Nov 18
Gabriel McDonald
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceCA$1.01

Ownership Breakdown


Management Team

  • Sophia Shane (57yo)

    Investor Relations

    • Tenure: 0yrs
  • Michael Schoonderwoerd

    VP & Controller

    • Tenure: 6.8yrs
    • Compensation: CA$514.20k
  • David Bronkhorst

    Vice President of Operations

    • Tenure: 0yrs
  • David Cates (37yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$1.24m
  • Mac McDonald

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: CA$925.83k
  • Dale Verran

    Vice President of Exploration

    • Tenure: 3.8yrs
    • Compensation: CA$563.54k
  • Amanda Willett

    Corporate Counsel & Corporate Secretary

    • Tenure: 3.3yrs

Board Members

  • Bill Rand (77yo)

    Director

    • Tenure: 22.4yrs
    • Compensation: CA$56.33k
  • Ron Hochstein (57yo)

    Independent Director

    • Tenure: 19.5yrs
    • Compensation: CA$58.95k
  • Bob Dengler (78yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$67.45k
  • Brian Edgar (69yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: CA$62.95k
  • Catherine Jean Stefan (66yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CA$83.05k
  • David Cates (37yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$1.24m
  • Patricia Volker (61yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: CA$12.60k
  • Jack O. Lundin (29yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: CA$13.00k
  • Geun Park (47yo)

    Director

    • Tenure: 0.6yrs

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$365.934m
  • Shares outstanding: 590.22m
  • 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

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:02
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.