TSX:NXE

Stock Analysis Report

Executive Summary

NexGen Energy Ltd., an exploration stage company, engages in the acquisition, exploration, and evaluation of uranium properties in Canada.

Rewards

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -148.5% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Questionable track record with worrying balance sheet.


Similar Companies

Share Price & News

How has NexGen Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.5%

NXE

1.1%

CA Oil and Gas

0.7%

CA Market


1 Year Return

-36.7%

NXE

0.09%

CA Oil and Gas

5.4%

CA Market

Return vs Industry: NXE underperformed the Canadian Oil and Gas industry which returned 0.1% over the past year.

Return vs Market: NXE underperformed the Canadian Market which returned 5.4% over the past year.


Shareholder returns

NXEIndustryMarket
7 Day-6.5%1.1%0.7%
30 Day-11.0%-1.0%1.1%
90 Day-13.7%4.9%4.4%
1 Year-36.7%-36.7%4.5%0.09%8.7%5.4%
3 Year-62.7%-62.7%-5.1%-15.2%16.8%6.2%
5 Year245.2%245.2%-6.7%-21.5%34.7%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NexGen Energy undervalued compared to its fair value and its price relative to the market?

52.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NXE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NXE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NXE is poor value based on its PE Ratio (52.5x) compared to the Oil and Gas industry average (10.7x).

PE vs Market: NXE is poor value based on its PE Ratio (52.5x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: NXE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NXE is overvalued based on its PB Ratio (3x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is NexGen Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-148.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXE's earnings are forecast to decline over the next 3 years (-148.5% per year).

Earnings vs Market: NXE's earnings are forecast to decline over the next 3 years (-148.5% per year).

High Growth Earnings: NXE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if NXE's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if NXE's revenue 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 NXE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NexGen Energy performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXE has a high level of non-cash earnings.

Growing Profit Margin: NXE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NXE has become profitable over the past 5 years, growing earnings by -12.7% per year.

Accelerating Growth: NXE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NXE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (6%).


Return on Equity

High ROE: NXE's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NexGen Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NXE's short term assets (CA$73.5M) exceed its short term liabilities (CA$10.6M).

Long Term Liabilities: NXE's short term assets (CA$73.5M) do not cover its long term liabilities (CA$121.4M).


Debt to Equity History and Analysis

Debt Level: NXE's debt to equity ratio (62.9%) is considered high.

Reducing Debt: NXE's debt to equity ratio has increased from 2.7% to 62.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NXE's debt is not covered by short term assets (assets are 0.6x 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: NXE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NXE is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is NexGen Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NXE'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 NXE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NXE'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 NXE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Leigh Curyer (47yo)

6.8yrs

Tenure

CA$5,040,741

Compensation

Mr. Leigh Robert Curyer, BA (Acc), ACA, has been the Chief Executive Officer of NexGen Energy Ltd. since April 19, 2013 and its President since April 2013. He is the Co-Founder of NexGen Energy Ltd. Mr. C ...


CEO Compensation Analysis

Compensation vs Market: Leigh's total compensation ($USD3.80M) is above average for companies of similar size in the Canadian market ($USD986.64K).

Compensation vs Earnings: Leigh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leigh Curyer
Founder6.8yrsCA$5.04m0.83% CA$4.3m
Troy Boisjoli
Vice President of Operations & Project Development2.3yrsCA$549.33kno data
Travis McPherson
Senior Vice President of Corporate Development2.7yrsCA$1.27mno data
James Hatley
Senior Vice President of Project Development1.9yrsCA$652.10kno data
Rheal Assie
Financial Controller0yrsno datano data
Harp Gosal
Manager of Investor Relations1.7yrsno datano data
Gillian McCombie
Vice President of Human Resources0.8yrsno datano data
Andrew Browne
Technical Advisor2.7yrsCA$243.31kno data

2.3yrs

Average Tenure

Experienced Management: NXE's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leigh Curyer
Founder6.8yrsCA$5.04m0.83% CA$4.3m
Sybil Veenman
Independent Director1.5yrsCA$383.54k0.017% CA$87.0k
Richard Patricio
Independent Director6.8yrsCA$1.08m0.11% CA$556.0k
Trevor Thiele
Independent Director6.8yrsCA$1.09mno data
Warren Gilman
Independent Director2.6yrsCA$783.84kno data
Christopher McFadden
Independent Chairman of the Board5.8yrsCA$919.15k0.14% CA$725.0k
Karri Howlett
Independent Director1.5yrsCA$383.54kno data
Bradley Wall
Director0.9yrsno data0.0032% CA$16.8k

4.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: NXE's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NXE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

NexGen Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NexGen Energy Ltd.
  • Ticker: NXE
  • Exchange: TSX
  • Founded: 2011
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: CA$522.363m
  • Shares outstanding: 360.25m
  • Website: https://www.nexgenenergy.ca

Number of Employees


Location

  • NexGen Energy Ltd.
  • 1021 West Hastings Street
  • Suite 3150
  • Vancouver
  • British Columbia
  • V6E 0C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXETSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2013
NXEAMEX (NYSE MKT LLC)YesCommon SharesUSUSDApr 2013
6NEDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2013
0V9DLSE (London Stock Exchange)YesCommon SharesGBCADApr 2013

Biography

NexGen Energy Ltd., an exploration stage company, engages in the acquisition, exploration, and evaluation of uranium properties in Canada. Its principal property is the Rook I project that consists of 32 contiguous mineral claims covering 35,065 hectares located in the southwest Athabasca Basin, Saskatchewan. The company was incorporated in 2011 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:39
End of Day Share Price2020/02/19 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.