What Can We Learn From Denison Mines Corp. (DNN)’s Valuation Ratios?


Denison Mines Corp. (AMEX:DNN) finished Thursday with a subtraction of -$0.07 to close at $1.16, a downside of -5.69 percent. An average of 5,519,000 shares of common stock have been traded in the last five days. There was a fall of -$0.1500 in the past week, and it reached a new high 17 times over the past 12 months. The last 20 days have seen an average of 9,481,930 shares traded, while the 50-day average volume stands at 6,846,440.

DNN stock has increased by 5.45% in the last month. The company shares reached their 1-month lowest point of $1.0400 on 08/23/22. With the stock rallying to its 52-week high on 04/08/22, shares of the company touched a low of $0.91 and a high of $2.14 in 52 weeks. It has reached a new high 5 times so far this year and lost -15.33% or -$0.2100 in price. In spite of this, the price is down -45.79% from the 52-week high.

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Valuation Metrics

Denison Mines Corp. (DNN) has a trailing price-to-earnings (P/E) ratio of 22.31. The stock’s beta is 1.86. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 55.01, the price-to-book (PB) ratio at 2.90.

Financial Health

The quick ratio of Denison Mines Corp. for the three months ended March 30 was 3.70, and the current ratio was 3.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending March 30. Its gross profit as reported stood at $5.66 million compared to revenue of $15.96 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Denison Mines Corp.’s return on assets was 10.80%.

Earnings Surprise

The analyst consensus anticipated Denison Mines Corp.’s latest quarter earnings to come in at -$0.01 per share, but it turned out to be $0.04, a 500.00% surprise. For the quarter, EBITDA amounted to -$9.71 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Denison Mines Corp. (DNN) price momentum. RSI 9-day as of the close on 22 September was 29.52%, suggesting the stock is oversold, with historical volatility in this time frame at 27.36%.

As of today, DNN’s price is $1.2300 -11.45% or -$0.1500 from its 5-day moving average. DNN is currently trading -9.38% lower than its 20-day SMA and -11.45% lower than its 100-day SMA. However, the stock’s current price level is +18.36% above the SMA50 and -18.88% below the SMA200.

The stochastic %K and %D were 9.03% and 13.24%, respectively, and the average true range (ATR) was 0.0876. With the 14-day stochastic at 2.70% and the average true range at 0.0884, the RSI (14) stands at 39.20%. The stock has reached -0.0856 on the 9-day MACD Oscillator while the 14-day reading was at -0.1157.

Analyst Ratings

TD Securities upgraded Denison Mines Corp. (AMEX: DNN) to a a Speculative buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Denison Mines Corp. (DNN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DNN, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 4 others rate it as a “buy”.

What is DNN’s price target for the next 12 months?

Analysts predict a range of price targets between $1.07 and $4.58, with a median target of $2.02. Taking a look at these predictions, the average price target given by analysts for Denison Mines Corp. (DNN) stock is $2.51.


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