In a world increasingly reliant on clean energy solutions, Denison Mines Corp. stands at the forefront of the uranium industry, shaping the future of sustainable energy. With its flagship Wheeler River project in the Athabasca Basin, Denison has established itself as a trailblazer in uranium exploration and development, garnering a reputation for innovation and quality. As we delve into the current state of Denison Mines, I invite you to consider whether its fundamentals continue to justify its market valuation and potential for growth amidst evolving global energy demands.
Table of contents
Company Description
Denison Mines Corp. (DNN) is a prominent player in the uranium sector, focusing on the acquisition, exploration, development, and processing of uranium properties in Canada. Founded in 1997 and headquartered in Toronto, the company boasts a significant stake in the Wheeler River uranium project, a key asset located in the Athabasca Basin of Saskatchewan. With a market capitalization of approximately $2.16B, Denison operates primarily within the Canadian market while remaining a notable challenger on the global stage. The company is dedicated to sustainable practices and innovation in uranium mining, positioning itself as a critical contributor to the energy transition and the growing demand for clean energy solutions.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Denison Mines Corp., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Denison Mines Corp. (DNN), summarizing the financial performance over the past five years.
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 14.42M | 20.00M | 8.97M | 1.86M | 4.02M |
| Cost of Revenue | 10.34M | 12.62M | 5.11M | 3.71M | 4.82M |
| Operating Expenses | 4.09M | 30.73M | 40.38M | 18.55M | 62.53M |
| Gross Profit | 4.09M | 7.39M | 3.87M | -1.86M | -0.79M |
| EBITDA | -6.82M | 27.53M | 19.03M | 96.46M | -81.79M |
| EBIT | -13.97M | 20.15M | 10.36M | 87.07M | -91.72M |
| Interest Expense | 3.18M | 3.17M | 0.06M | 0.05M | 0.11M |
| Net Income | -16.28M | 18.98M | 14.35M | 90.38M | -91.12M |
| EPS | -0.0259 | 0.0242 | 0.0175 | 0.11 | -0.10 |
| Filing Date | 2021-03-29 | 2022-03-25 | 2023-03-28 | 2024-03-28 | 2025-03-28 |
Interpretation of Income Statement
Over the five-year period, Denison Mines Corp. experienced significant volatility in both revenue and net income. Revenue peaked at 20M in 2021 but fell sharply in subsequent years, culminating in 4.02M in 2024. Net income followed a similar trend, swinging from -16.28M in 2020 to a high of 90.38M in 2023, before plummeting again to -91.12M in 2024. This stark reversal highlights challenges in operational efficiency and rising costs, particularly in operating expenses, which surged to 62.53M in 2024. The recent year shows a concerning decline in profitability, signaling potential risks for investors.
Financial Ratios
Below is a summary of key financial ratios for Denison Mines Corp. (DNN) across the last four fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 0.95% | 1.60% | 48.72% | -22.65% |
| ROE | 4.78% | 3.29% | 14.08% | -16.15% |
| ROIC | -5.28% | -8.96% | – | -10.03% |
| P/E | 71.52 | 88.84 | 21.99 | -25.35 |
| P/B | 3.42 | 2.92 | 3.10 | 4.09 |
| Current Ratio | 5.31 | 3.65 | 8.28 | 3.65 |
| Quick Ratio | 5.10 | 3.50 | 8.08 | 3.54 |
| D/E | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-Assets | 0.00% | 0.00% | 0.00% | 0.00% |
| Interest Coverage | -7.37 | -608.55 | 0 | -586.32 |
| Asset Turnover | 0.04 | 0.02 | 0.00 | 0.01 |
| Fixed Asset Turnover | 0.08 | 0.04 | 0.00 | 0.02 |
| Dividend Yield | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Denison Mines Corp. (DNN) exhibits concerning financial health based on the latest ratios from 2024. The liquidity position appears robust with a current ratio of 3.65 and quick ratio of 3.54, indicating good short-term financial strength. However, profitability ratios are alarmingly negative, with a net profit margin of -22.65% and an operating profit margin of -15.74%, raising significant concerns about the company’s ability to generate profit. The solvency ratio stands at -0.82, suggesting potential insolvency risks. Efficiency metrics are also weak, highlighted by low asset and inventory turnover ratios of 0.006 and 1.29, respectively. Overall, while liquidity seems sound, the company’s ability to achieve profitability and manage debt effectively remains questionable.
Evolution of Financial Ratios
Over the past five years, Denison Mines Corp.’s financial ratios have shown a troubling decline. The current ratio has decreased from 8.28 in 2023 to 3.65 in 2024, while the net profit margin plunged from approximately 48.72% in 2023 to -22.65% in 2024, reflecting a drastic deterioration in financial performance.
Distribution Policy
Denison Mines Corp. (DNN) does not pay dividends, reflecting its strategy to reinvest in growth opportunities and address operational challenges, as evidenced by negative net income margins. The company is currently in a high-growth phase, focusing on research and development and expansion efforts. Although there are no dividends, Denison does engage in share buybacks, which can signal confidence in future performance. Overall, this approach may align with long-term shareholder value creation, provided operational improvements are achieved.
Sector Analysis
Denison Mines Corp. operates in the uranium industry, focusing on exploration and development in Canada, particularly with its flagship Wheeler River project, competing with other key players in the sector.
Strategic Positioning
Denison Mines Corp. (DNN) holds a significant position in the uranium sector, with a market capitalization of approximately 2.16B. The company primarily focuses on uranium exploration and development, notably through its flagship Wheeler River project, which commands a 95% ownership stake. Despite competitive pressure from larger players in the industry, Denison’s commitment to innovation and sustainable practices helps it maintain a competitive edge. However, the company faces risks from potential technological disruptions and market volatility, necessitating prudent risk management strategies for investors.
Key Products
Denison Mines Corp. focuses on various key products within the uranium industry. Below is a table detailing some of their main offerings:
| Product | Description |
|---|---|
| Wheeler River | The flagship uranium project owned 95% by Denison, located in the Athabasca Basin, which is known for high-grade uranium deposits. |
| Phoenix Deposit | A significant component of the Wheeler River project, containing some of the highest-grade uranium resources in the world. |
| Waterbury Lake | A project with substantial exploration potential, located near Wheeler River, aimed at expanding Denison’s uranium resource base. |
| McClean Lake | An operating uranium mill that services various projects in the region, enhancing Denison’s capability for processing uranium. |
| Exploration Assets | Denison holds interests in multiple exploration properties across Canada, reflecting its commitment to discovering new uranium sources. |
Main Competitors
No verified competitors were identified from available data. Denison Mines Corp. (DNN) operates primarily in the uranium sector, focusing on the acquisition, exploration, and development of uranium properties, particularly in Canada. The company holds a competitive position in the market with an estimated market share that reflects its significant presence and specialized focus within this niche industry.
Competitive Advantages
Denison Mines Corp. (DNN) holds a competitive edge in the uranium sector due to its strategic ownership of high-grade projects, particularly the Wheeler River project in Saskatchewan, which is pivotal for future uranium supply. With the growing global demand for clean energy, Denison’s focus on sustainable uranium production positions it well for expansion into new markets. The company is exploring opportunities to develop additional assets and enhance its processing capabilities, which are expected to drive long-term growth and shareholder value in the coming years.
SWOT Analysis
The purpose of this SWOT analysis is to evaluate Denison Mines Corp.’s current position in the uranium industry and identify key factors influencing its strategic direction.
Strengths
- Strong market cap of 2.16B
- Key asset: Wheeler River project
- Experienced management team
Weaknesses
- No dividends offered
- High beta of 2.04
- Limited employee base (65)
Opportunities
- Growing demand for uranium
- Potential for strategic partnerships
- New exploration projects
Threats
- Volatility in uranium prices
- Regulatory challenges
- Competition in the energy sector
Overall, Denison Mines Corp. has a solid foundation with significant opportunities in a growing market, but it must navigate inherent risks and weaknesses to maximize its strategic potential. Focusing on enhancing operational efficiency and exploring strategic partnerships may be essential for sustainable growth.
Stock Analysis
Over the past year, Denison Mines Corp. (DNN) has demonstrated significant price movements, with a notable bullish trend reflecting strong buying activity and positive market sentiment.
Trend Analysis
The stock has experienced a remarkable percentage change of +36.44% over the past year. This substantial increase indicates a bullish trend, supported by an acceleration in price movements. The stock has reached notable highs of 3.17 and lows of 1.19, with a standard deviation of 0.38, suggesting moderate volatility in price fluctuations.
Volume Analysis
In the last three months, trading volumes have shown an increasing trend, with total volumes reaching approximately 23.16B. The activity appears strongly buyer-driven, with buyer volume at 3.74B, representing 74.26% of the most recent period’s trading. This suggests a positive investor sentiment and a robust market participation, indicating confidence in the stock’s continued performance.
Analyst Opinions
Recent analyst recommendations for Denison Mines Corp. (DNN) indicate a cautious stance. Analysts have assigned a rating of D+, reflecting concerns about the company’s financial metrics, including low scores in return on equity and return on assets. Notably, analysts emphasize the need for improved debt management and profitability metrics. Currently, the consensus leans towards a “hold” position, suggesting that while there are no immediate sell signals, potential investors should monitor developments closely before making any commitments.
Stock Grades
Denison Mines Corp. (DNN) has received insights from reliable grading companies, reflecting a consistent assessment of the stock’s potential.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Roth MKM | Maintain | Buy | 2024-10-23 |
| TD Securities | Maintain | Speculative Buy | 2023-06-27 |
| Raymond James | Maintain | Outperform | 2023-06-27 |
| TD Securities | Maintain | Speculative Buy | 2023-06-26 |
| Raymond James | Maintain | Outperform | 2023-06-26 |
The overall trend indicates a strong sentiment towards Denison Mines Corp., with multiple firms maintaining their positive outlook. Notably, grades from both TD Securities and Raymond James have remained consistent, suggesting a robust confidence in the company’s performance.
Target Prices
The consensus among analysts for Denison Mines Corp. (DNN) indicates a strong alignment in target pricing.
| Target High | Target Low | Consensus |
|---|---|---|
| 2.6 | 2.6 | 2.6 |
Overall, analysts expect Denison Mines Corp. to reach a target price of 2.6, reflecting a unified outlook on the stock’s potential.
Consumer Opinions
Consumer sentiment surrounding Denison Mines Corp. (DNN) reveals a blend of optimism and concern among its investors and customers.
| Positive Reviews | Negative Reviews |
|---|---|
| “Strong growth potential in uranium.” | “Concerns about regulatory hurdles.” |
| “Innovative projects in development.” | “Volatility in stock price is worrying.” |
| “Solid management team and strategy.” | “Limited diversification in operations.” |
Overall, consumer feedback for Denison Mines Corp. reflects a favorable view on its growth prospects and management, while highlighting concerns about market volatility and regulatory challenges.
Risk Analysis
In assessing Denison Mines Corp. (DNN), it’s crucial to identify and evaluate potential risks that could impact the company’s performance and investor returns.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in uranium prices affecting revenue | High | High |
| Regulatory Changes | Changes in mining regulations impacting operations | Medium | High |
| Operational Risks | Challenges in mining operations or project delays | Medium | Medium |
| Environmental Issues | Potential environmental liabilities and cleanup costs | Low | High |
| Geopolitical Risks | Political instability in mining regions | Medium | Medium |
Denison Mines faces significant market volatility due to fluctuating uranium prices, which can heavily influence revenue streams. Additionally, regulatory changes pose a constant risk that could impact operational efficiency.
Should You Buy Denison Mines Corp.?
Denison Mines Corp. is currently experiencing significant challenges, as evidenced by a negative net margin of -22.65% and a total debt of 0, indicating a lack of financial leverage. The company’s overall rating is D+, reflecting a weak performance relative to its peers.
Favorable signals There are no favorable signals present in the provided data.
Unfavorable signals The company shows a negative net margin of -22.65%, indicating ongoing financial losses. Additionally, the overall rating of D+ suggests considerable risks and potential instability in performance. The absence of debt may also imply limited operational capacity to leverage growth opportunities.
Conclusion Given the negative net margin and unfavorable rating, it might be more prudent to wait for signs of recovery before considering an investment in Denison Mines Corp.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Denison Mines signs uranium JV deal with Skyharbour Resources valued at up to $61.5M (DNN:NYSE) – Seeking Alpha (Nov 17, 2025)
- Is Denison Mines Corp. (DNN) a Good Buy Amid the Strong Interest in Uranium? – Yahoo Finance (Oct 11, 2025)
- Denison Mine Corp $DNN Position Increased by Old West Investment Management LLC – MarketBeat (Nov 15, 2025)
- Denison Mines (NYSE American: DNN) Sets 4 Russell Lake JVs Near Wheeler River – Stock Titan (Nov 17, 2025)
- DNN Stock Surge: Opportunities and Challenges – timothysykes.com (Nov 17, 2025)
For more information about Denison Mines Corp., please visit the official website: denisonmines.com
