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.
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Measured by what investors pay per dollar of sales or profit, UUUU stock appears very expensive relative to the broader market.
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.
Overall, Energy Fuels' metrics stack up as follows:
* Growth: Strong
* Profitability: Very Weak
* Financial Stability: Very Strong
* Downturn Resilience: Weak
* Overall: Moderate
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.
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