Denison Story

DNN -  USA Stock  

USD 1.14  0.10  9.62%

Denison Mines is generating negative expected returns assuming volatility of 4.542% on return distribution over 90 days investment horizon. As many investors are getting excited about energy space, it is fair to outline Denison Mines Corp. We will inspect why some institutional investors are closely monitoring Denison Mines' volatility. The latest above-average Denison Mines' volatility may impact the value of the stock as we project Denison Mines as currently undervalued. The real value, according to our calculations, is approaching 0.43 per share.
Published over six months ago
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Is Denison Mines (NYSEMKT:DNN) positioned to overcome the latest market swings?
Denison Mines Corp has 7.63 M in debt with debt to equity (D/E) ratio of 0.0, which may show that Denison Mines is not taking advantage of profits from borrowing. The entity has a current ratio of 2.67, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Volatility is a rate at which the price of Denison Mines or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Denison Mines may increase or decrease. In other words, similar to Denison's beta indicator, it measures the risk of Denison Mines and helps estimate the fluctuations that may happen in a short period of time. So if prices of Denison Mines fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Denison Mines on a daily basis if you are holding a position in it. Denison Mines is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Denison Mines stock to be traded above the $1 level to remain listed. If Denison Mines stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Denison Mines's Liquidity

Denison Mines financial leverage refers to using borrowed capital as a funding source to finance Denison Mines Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Denison Mines financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Denison Mines's total debt and its cash.

How Denison utilizes its cash?

To perform a cash flow analysis of Denison Mines, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Denison Mines is receiving and how much cash it distributes out in a given period. The Denison Mines cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Denison Mines Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (14.55 Million)

Denison Mines Volatility Drivers

Denison Mines unsystematic risk is unique to Denison Mines Corp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Denison Mines you can also buy Cameco Corp. You can also mitigate this risk by investing in the uranium sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Denison Mines important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Denison Mines income statement and balance sheet. Here are more details about Denison volatility.