Centrus Energy (LEU) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 593.77K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.67
• Revenue Growth: 38.04%
• EPS Growth: -19.69%
• Country: US
• Employees: 322
• Sector: Energy
• Sector Strength: 47
• Industry: Uranium
• EPS (TTM): 4.40
• Shares Outstanding: 16,318,066
• 10 Day Avg. Volume: 346,984
• 30 Day Avg. Volume: 593,770
• PEG Ratio: 0.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.64
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $147.00
• Price Target Upside: 100.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Centrus Energy demonstrates strong revenue growth and strategic positioning in the uranium industry, supported by significant DOE contracts and a growing backlog. While financial performance shows improvement, concerns about high leverage and declining margins persist. Technical indicators suggest cautious sentiment with potential downward pressure. Valuation remains reasonable, though the absence of a dividend might limit appeal to some investors. The earnings call reinforced a positive long-term outlook despite immediate challenges.

Positive Factors

Market Growth Potential

Centrus Energy is targeting a total addressable market of roughly $15-17 billion, expected to grow significantly in the next 10-15 years.

Regulatory Advantage

The company is well-positioned within the U.S. and global nuclear supply chain, benefiting from a regulatory moat that competitively shields it.

Unique Investment Opportunity

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

Competitive Challenges

Centrus is in a strong position to also be selected as a vendor on the LEU RFP effort.

Stock Valuation Concerns

The stock is considered undervalued despite its recent performance compared to the S&P 500, suggesting potential for future appreciation.

Centrus Energy Business Overview & Revenue Model

Company Description

Centrus 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 Money

Centrus Energy makes money through the sale of nuclear fuel and related services to commercial and governmental customers around the world. The company's primary revenue stream is derived from the enrichment of uranium, which is a critical process in the production of nuclear fuel for power generation. Centrus Energy also generates income through various contracts and partnerships, including those with the U.S. government, for the development and deployment of advanced nuclear fuel technologies. Additionally, the company may engage in research and development activities to innovate within the nuclear energy sector, potentially leading to new revenue opportunities.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 73.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 73.42 is above the 20-day moving average (MA) of 65.35, above the 50-day MA of 72.42, and above the 200-day MA of 68.69, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEU.

Centrus Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	74 Outperform	$1.35B	9.03	32.48%	2.94%	-16.56%	-24.95%
RES	74 Outperform	$1.11B	14.26	7.06%	3.29%	-9.78%	-49.45%
LEU	73 Outperform	$1.25B	16.69	75.58%	―	38.04%	-19.69%
MRC	65 Neutral	$1.01B	39.43	10.01%	―	-9.17%	-71.36%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%
UEC	50 Neutral	$2.26B	―	-7.92%	―	12.54%	-1083.58%
NBR	43 Neutral	$451.12M	―	-44.38%	―	-0.94%	-19.18%