![]() ![]() Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Of course, you might find a fantastic investment by looking elsewhere. Separately, we looked at different risks affecting the company and spotted 5 warning signs for Fission Uranium (of which 2 are potentially serious!) you should know about. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. On this analysis its cash burn reduction was its weakest feature, but we are not concerned about it. For example, we think its cash burn relative to its market cap suggests that the company is on a good path. How Risky Is Fission Uranium's Cash Burn Situation?Īs you can probably tell by now, we're not too worried about Fission Uranium's cash burn. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).įission Uranium has a market capitalisation of CA$570m and burnt through CA$18m last year, which is 3.1% of the company's market value. ![]() Many companies end up issuing new shares to fund future growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. While Fission Uranium is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Can Fission Uranium Raise More Cash Easily? For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. While the past is always worth studying, it is the future that matters most of all. While it hardly paints a picture of imminent growth, the fact that it has reduced its cash burn by 20% over the last year suggests some degree of prudence. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. You can see how its cash balance has changed over time in the image below.ĭebt-equity-history-analysis How Is Fission Uranium's Cash Burn Changing Over Time?īecause Fission Uranium isn't currently generating revenue, we consider it an early-stage business. ![]() That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. So it had a cash runway of approximately 22 months from September 2022. ![]() Looking at the last year, the company burnt through CA$18m. As at September 2022, Fission Uranium had cash of CA$33m and no debt. Let's start with an examination of the business' cash, relative to its cash burn.Ĭheck out our latest analysis for Fission Uranium Does Fission Uranium Have A Long Cash Runway?Ī cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. So should Fission Uranium ( TSE:FCU) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. There's no doubt that money can be made by owning shares of unprofitable businesses. ![]()
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