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Centrus Energy Corp (LEU)
:LEU
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Centrus Energy
(NYSE MKT:LEU)
Rating:79Outperform
Price Target:
$108.00
▲( 15.92% Upside)
Positive Factors
Competitive Advantage
Centrus Energy is the only company licensed by the U.S. Nuclear Regulatory Commission to produce HALEU, providing a significant competitive advantage.
Financial Performance
Centrus Energy reported a 67% increase in total revenue compared to the previous-year quarter.
Market Position
Centrus Energy is the only public pure-play in the world addressing nuclear fuel, making it a unique investment opportunity in the nuclear sector.
Negative Factors
Regulatory Barriers
Centrus’ competitive moat only widens given the high barriers to entry of the enrichment industry and associated time and investment needed to obtain a HALEU license from the NRC.
Supply Chain Challenges
Centrus Energy is uniquely positioned to fill the gap in the supply chain, which it should be able to exploit once task orders are issued by the DOE.
Centrus Energy (LEU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.62B
Dividend YieldN/A
Average Volume (3M)645.33K
Price to Earnings (P/E)14.6
Beta (1Y)1.55
Revenue Growth58.72%
EPS Growth38.27%
CountryUS
Employees322
SectorEnergy
Sector Strength41
IndustryUranium
Share Statistics
EPS (TTM)1.60
Shares Outstanding16,318,066
10 Day Avg. Volume997,632
30 Day Avg. Volume645,330
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$154.40Price Target Upside65.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Centrus Energy Business Overview & Revenue Model
Company DescriptionCentrus Energy Corp. supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) component of LEU; SWU and natural uranium components of LEU; and natural uranium for utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities. The company was formerly known as USEC Inc. and changed its name to Centrus Energy Corp. in September 2014. Centrus Energy Corp. was incorporated in 1998 and is headquartered in Bethesda, Maryland.
How the Company Makes MoneyCentrus Energy generates revenue primarily through the sale of enriched uranium, which is a critical component for fueling nuclear reactors. The company engages in contracts with utility companies and other entities operating nuclear power plants to supply them with enriched uranium. Additionally, Centrus provides engineering and technical services related to nuclear fuel and reactor operations, contributing to its revenue streams. Key partnerships with government agencies and private sector entities in the nuclear energy industry also play a significant role in the company's earnings, as these collaborations can involve long-term contracts and projects focused on advancing nuclear technology and infrastructure.
Centrus Energy Financial Statement Overview
Summary
Centrus Energy's financial statements reflect a company that is growing its revenues and improving its equity position, albeit with some profitability and leverage concerns. The income statement shows solid revenue growth, but margins have slightly declined. The balance sheet indicates a better equity position but high leverage, while the cash flow statement highlights improved cash generation capabilities. Overall, the company is in a positive growth trajectory, although it needs to manage its leverage more effectively.Income Statement
Centrus Energy has demonstrated a positive revenue growth trend, with Total Revenue increasing from $320.2 million in 2023 to $442 million in 2024. The net profit margin has decreased slightly due to a reduction in net income from $84.4 million to $73.2 million, but it remains healthy. The gross profit margin has also decreased marginally from 35% to 25.2%. Despite these fluctuations, the company maintains a strong EBIT margin of 10.9%, indicating effective cost management.75
Positive
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio, which indicates a significant reliance on debt financing. However, stockholders' equity has improved from $32.3 million in 2023 to $161.4 million in 2024, reflecting a strengthened equity position. The equity ratio is relatively low, suggesting a higher proportion of total assets funded by liabilities. Overall, the balance sheet reflects improvement but still poses potential financial risks.65
Positive
Cash Flow
Centrus Energy's free cash flow improved from $7.5 million in 2023 to $32.9 million in 2024, indicating a positive trend in cash generation. The operating cash flow to net income ratio suggests that the company generates adequate cash from operations relative to its net income. However, the high financing cash flow may indicate reliance on external funding sources.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 442.00M | 320.20M | 293.80M | 298.30M | 247.20M | Gross Profit |
| 111.50M | 112.10M | 117.90M | 114.50M | 97.60M | EBIT |
| 48.00M | 52.40M | 59.70M | 135.90M | 51.00M | EBITDA |
| 86.50M | 92.90M | 76.40M | 144.70M | 60.50M | Net Income Common Stockholders |
| 73.20M | 84.40M | 52.20M | 135.30M | 54.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 671.40M | 201.20M | 179.90M | 193.80M | 152.00M | Total Assets |
| 1.09B | 796.20M | 705.50M | 572.40M | 486.30M | Total Debt |
| 544.60M | 174.50M | 150.50M | 107.90M | 114.10M | Net Debt |
| -126.80M | -26.70M | -29.40M | -85.90M | -37.90M | Total Liabilities |
| 932.00M | 763.90M | 779.60M | 714.30M | 806.90M | Stockholders Equity |
| 161.40M | 32.30M | -74.10M | -141.90M | -320.60M |
| Cash Flow | Free Cash Flow | |||
| 32.90M | 7.50M | 19.90M | 48.80M | 65.70M | Operating Cash Flow |
| 37.00M | 9.10M | 20.60M | 50.00M | 67.10M | Investing Cash Flow |
| ― | -1.60M | -700.00K | -1.20M | -1.40M | Financing Cash Flow |
| 437.10M | 13.90M | -4.30M | -9.90M | -44.40M |
Centrus Energy Technical Analysis
Positive
93.17
Price Trends
73.73
Positive
80.08
Positive
72.01
Positive
Market Momentum
6.85
Negative
66.21
Neutral
44.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEU, the sentiment is Positive. The current price of 93.17 is above the 20-day moving average (MA) of 83.92, above the 50-day MA of 73.73, and above the 200-day MA of 72.01, indicating a bullish trend. The MACD of 6.85 indicates Negative momentum. The RSI at 66.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEU.
Centrus Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.62B | 14.64 | 85.99% | ― | 58.72% | 38.27% | |
76 Outperform | $1.03B | 13.23 | 7.06% | 3.52% | -9.78% | -49.45% | |
68 Neutral | $1.24B | 9.08 | 31.98% | 3.14% | -19.21% | -30.92% | |
65 Neutral | $1.06B | 41.18 | 8.29% | ― | -9.84% | -111.71% | |
57 Neutral | $7.04B | 3.12 | -3.45% | 5.79% | 0.62% | -50.55% | |
51 Neutral | $2.21B | ― | -7.92% | ― | 12.54% | -1083.58% | |
41 Neutral | $400.50M | ― | -44.00% | ― | -0.94% | -19.18% |
* Energy Sector Average
Performance Comparison
LEU
Centrus Energy
93.17
45.20
94.23%
MRC
MRC Global
12.33
-0.80
-6.09%
NBR
Nabors Industries
25.51
-47.46
-65.04%
NRP
Natural Resource PRN
94.50
8.70
10.14%
RES
RPC
4.53
-2.06
-31.26%
UEC
Uranium Energy
5.16
-2.10
-28.93%
Centrus Energy Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 28.51%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Centrus Energy's earnings call depicted strong financial performance with significant revenue and income growth, a robust cash position, and successful HALEU production. However, challenges remain in the Technical Solutions segment and the dependence on Russian shipments poses risks. The overall sentiment is balanced with a positive outlook due to financial and operational achievements, but cautious due to existing challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Centrus Energy reported $73.1 million in revenue, a $29.4 million increase compared to the same quarter last year, and $27.2 million in net income compared to a net loss of $6.1 million in the same quarter last year.
LEU Segment Success
The LEU business generated $51.3 million in SWU revenue, marking an increase of $27.7 million compared to the same quarter last year, with a significant decrease in SWU costs resulting in a gross profit of $31.2 million.
Strong Cash Position
Centrus ended the first quarter with a cash balance of $685.7 million, which includes $32.7 million of restricted cash, allowing for strategic investments and weathering market fluctuations.
HALEU Production Milestone
Successfully delivered approximately 670 kilograms of HALEU to the Department of Energy, demonstrating continuous and safe centrifuge operations over the past 19 months.
Negative Updates
Technical Solutions Segment Challenges
Reported $20.1 million in cost of sales, an increase of $3.8 million compared to the prior year, with lower margins driven by a delay in obtaining sufficient storage cylinders for the HALEU Operation Contract.
Dependence on Russian Shipments
Ongoing reliance on Russian shipments for enriched uranium, with specific shipment authorizations required from Russian authorities, although no impediments have been reported so far.
Company Guidance
During the Centrus Energy Q1 2025 earnings call, the company reported a robust financial performance with $73.1 million in revenue, a gross profit of $32.9 million, and an operating income of $20.5 million. These figures marked an improvement over the first quarter of 2024, attributed to the resolution of a supply interruption from TENEX and the impact of a nonrecurring lower-margin contract in the previous year. The company ended the quarter with a strong cash balance of $653 million and highlighted significant progress in strengthening its balance sheet, including the redemption of higher-yield 8.25% notes and securing $402.5 million from convertible senior notes. Centrus also emphasized its strategic initiatives, such as a $60 million investment to expand centrifuge manufacturing capacity and its ongoing HALEU enrichment operations, which have achieved cumulative deliveries of approximately 670 kilograms to the Department of Energy. The company maintains a $3.8 billion backlog and is actively seeking public and private funding to enhance its enrichment capacity, aligning with national security needs and energy independence goals amidst a dynamic global trade environment.Centrus Energy Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Centrus Energy Expands ‘At the Market’ Offering Program
Neutral
May 9, 2025
Centrus Energy Corp. announced the establishment of an ‘at the market’ offering program on February 9, 2024, allowing the company to sell shares of its Class A Common Stock. Initially set at $100 million, the program’s maximum amount was increased to $200 million on May 9, 2025, with approximately $117 million still available for sale. This move is part of Centrus Energy’s strategy to leverage market conditions and optimize its capital structure, potentially impacting its financial flexibility and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.