USA Rare Earth, Inc. (USAR) Stock Analysis
USA Rare Earth, Inc. (USAR) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
USA Rare Earth, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -29.4% | Below expectations |
| FCF Margin | 0.0% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore USA Rare Earth, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: USA Rare Earth, Inc. earns -29.4% ROIC, Top 5% in Materials
USA Rare Earth, Inc.'s trailing-twelve-month ROIC of -29.4% ranks Top 5% in Materials companies (sector median: 4.3%). Source: 10-Q filed 2025-11-06.
| Metric | USAR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -29.4% | Red flag | Below sector median of 4.3% |
Cash Flow: USA Rare Earth, Inc. generates $-82.9M FCF at 0.0% margin, positive NaN/8 quarters
USA Rare Earth, Inc. generated $-82.9M in free cash flow (TTM), a 0.0% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | USAR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 0.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-82.9M | Red flag | Cash burn |
| OCF/Net Income | 0.2x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for USA Rare Earth, Inc.
Source: 10-Q filed 2025-11-06.
Valuation: USA Rare Earth, Inc. trades at -4.1x earnings
USA Rare Earth, Inc. trades at a P/E of -4.1x. Free cash flow yield of -7.6% reflects market expectations for growth.
| Metric | USAR | Rating | Context |
|---|---|---|---|
| P/E Ratio | -4.1x | Red flag | Reasonable valuation |
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
| FCF Yield | -7.6% | Warning | Lower cash yield |
Capital Allocation: USA Rare Earth, Inc. returns 0.0% shareholder yield
USA Rare Earth, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | USAR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -29.4% | Top 5% | -6.8x below |
| Free Cash Flow Margin | 0.0% | Bottom 10% | 0.0x below |
Financial Scorecard
| Metric | USAR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -29.4% | Red flag | Top 5% of sector (median: 4.3%) |
| Free Cash Flow Margin | 0.0% | Red flag | Thin cash margins |
| Free Cash Flow Yield | -7.6% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is USA Rare Earth, Inc.'s Return on Invested Capital (ROIC)?
USA Rare Earth, Inc. (USAR) has a trailing twelve-month Return on Invested Capital (ROIC) of -29.4%. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is USA Rare Earth, Inc.'s Free Cash Flow Margin?
USA Rare Earth, Inc. (USAR) has a free cash flow margin of 0.0%, generating $-82.9 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is USA Rare Earth, Inc. stock overvalued or undervalued?
USA Rare Earth, Inc. (USAR) trades at a P/E ratio of -4.1x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.
Q: What is USA Rare Earth, Inc.'s revenue and earnings growth?
USA Rare Earth, Inc. (USAR) Earnings per share decreased by 616.3% compared to the prior year.
Q: How does USA Rare Earth, Inc. compare to competitors in Materials?
Compared to other companies in Materials, USA Rare Earth, Inc. (USAR) shows: ROIC of -29.4% is below the sector median of 4.3% (Top -71%). FCF margin of 0.0% trails the sector median of 0.4%. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with USA Rare Earth, Inc.?
Investors in USA Rare Earth, Inc. (USAR) should monitor these potential warning signs: 1) FCF margin is thin at 0.0%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.