Centrus Energy (LEU) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.44
• Revenue Growth: 12.72%
• EPS Growth: 8.10%
• Country: US
• Employees: 322
• Sector: Energy
• Sector Strength: 46
• Industry: Uranium
• EPS (TTM): 1.59
• Shares Outstanding: 17,488,642
• 10 Day Avg. Volume: 1,925,476
• 30 Day Avg. Volume: 1,404,896
• PEG Ratio: -0.78
• Price to Book (P/B): 6.73
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 33.02
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 6.65
• Enterprise Value/Gross Profit: 18.44
• Enterprise Value/Ebitda: 22.33
• 1Y Price Target: $232.17
• Price Target Upside: 30.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $204.00 ▲(14.88% Upside)

Centrus Energy's overall stock score reflects strong financial performance and strategic corporate events, offset by technical analysis indicators suggesting potential bearish momentum and a high valuation. The company's profitability and cash position are strengths, but challenges in revenue growth and leverage management need attention.

Positive Factors

Financial Performance

Centrus Energy delivered robust 2Q25 revenue and gross profit, exceeding estimates significantly.

Growth Potential

The company's plan to expand its centrifuge capacity could receive funding from hyperscalers, reducing the risk of excessive shareholder dilution.

Market Position

Centrus holds the only NRC license for HALEU production in the United States and is believed to be years ahead of potential competitors.

Negative Factors

Debt Management

Centrus raised $114 million from its ATM, ending the quarter with $833.0 million in cash and $390 million in long-term debt, showcasing a strong balance sheet.

Stock Volatility

The large convertible note offering is expected to create near-term share price volatility.

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 generates revenue primarily through the sale of enriched uranium and uranium enrichment services. The company's key revenue streams include long-term contracts with utility companies for the supply of nuclear fuel, which provides a stable income base. Additionally, Centrus engages in government contracts, particularly with the U.S. Department of Energy, for enrichment services and supply of fuel for national security purposes. The company also benefits from partnerships and collaborations with other entities in the nuclear sector, which can lead to new projects and additional revenue opportunities. Factors such as the global demand for clean energy solutions, regulatory support for nuclear energy, and advancements in enrichment technology play a significant role in driving Centrus's earnings.

Centrus Energy Financial Statement Overview

Summary

Centrus Energy shows strong profitability with a high net profit margin and robust return on equity. However, declining revenue growth and high leverage pose challenges. The company demonstrates efficient operational management and cash generation, but needs to address revenue growth and manage leverage for long-term stability.

Income Statement

Centrus Energy's income statement reflects strong profitability with a high net profit margin of 22.59% in TTM (Trailing-Twelve-Months). However, the revenue growth rate has declined by 7.32% in the same period, indicating a potential challenge in maintaining revenue momentum. The EBIT and EBITDA margins remain healthy, suggesting efficient operational management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.14 in TTM, indicating significant leverage. However, the return on equity is robust at 80.64%, reflecting effective use of equity to generate profits. The equity ratio is not directly provided, but the high leverage poses a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 67.87% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is relatively low, suggesting potential constraints in converting income to cash. However, the free cash flow to net income ratio is high, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	436.90M	442.00M	320.20M	293.80M	298.30M	247.20M
Gross Profit	157.50M	111.50M	112.10M	117.90M	114.50M	97.60M
EBITDA	130.10M	86.50M	92.90M	76.40M	144.70M	60.50M
Net Income	104.80M	73.20M	84.40M	52.20M	135.30M	54.40M
Balance Sheet
Total Assets	1.31B	1.09B	796.20M	705.50M	572.40M	486.30M
Cash, Cash Equivalents and Short-Term Investments	833.00M	671.40M	201.20M	179.90M	193.80M	152.00M
Total Debt	429.80M	544.60M	174.50M	150.50M	107.90M	114.10M
Total Liabilities	955.70M	932.00M	763.90M	779.60M	714.30M	806.90M
Stockholders Equity	359.10M	161.40M	32.30M	-74.10M	-141.90M	-320.60M
Cash Flow
Free Cash Flow	106.60M	32.90M	7.50M	19.90M	48.80M	65.70M
Operating Cash Flow	114.00M	37.00M	9.10M	20.60M	50.00M	67.10M
Investing Cash Flow	-7.40M	-4.10M	-1.60M	-700.00K	-1.20M	-1.40M
Financing Cash Flow	480.70M	437.10M	13.90M	-4.30M	-9.90M	-44.40M

Centrus Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 177.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEU, the sentiment is Neutral. The current price of 177.57 is below the 20-day moving average (MA) of 216.47, below the 50-day MA of 197.54, and above the 200-day MA of 111.70, indicating a neutral trend. The MACD of -2.76 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 5.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LEU.

Centrus Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	73 Outperform	$1.36B	9.71	28.59%	4.09%	-20.92%	-26.59%
RES	68 Neutral	$966.30M	17.60	4.92%	3.65%	-2.74%	-54.52%
LEU	68 Neutral	$3.34B	30.13	48.11%	―	12.72%	8.10%
UEC	67 Neutral	$4.77B	―	-9.06%	―	70.62%	-447.72%
MRC	64 Neutral	$1.17B	41.18	5.66%	―	-9.81%	-124.43%
NBR	50 Neutral	$510.66M	―	-49.08%	―	3.49%	18.16%
Sector *	45 Neutral	AU$1.35B	-11.89	-2.14%	8.43%	2.17%	-33.54%

Centrus Energy Corporate Events

Centrus Energy Issues $805M Convertible Senior Notes

On August 18, 2025, Centrus Energy Corp. announced the issuance of $805 million in 0% convertible senior notes due 2032 to qualified institutional buyers in a private placement. The notes, which are senior unsecured obligations, will mature on August 15, 2032, and the company plans to use the net proceeds of approximately $782.1 million for general corporate purposes. The issuance of these notes is expected to impact the company’s financial strategy by providing significant capital for future operations, while the terms of the notes offer flexibility for conversion and redemption under specific conditions.

Centrus Energy Announces $700M Convertible Notes Offering

On August 13, 2025, Centrus Energy Corp. announced the pricing of its upsized private offering of $700 million in zero-coupon convertible senior notes due 2032, aimed at qualified institutional buyers. This strategic financial move, which increased from an initial $650 million, is anticipated to raise approximately $680 million in net proceeds, intended for general corporate purposes, potentially strengthening Centrus’ market position and financial flexibility.

Centrus Energy Announces $650M Convertible Notes Offering

On August 12, 2025, Centrus Energy Corp. announced its intention to offer $650 million in convertible senior notes due 2032 in a private placement to qualified institutional buyers. This move is expected to provide Centrus with additional capital for general corporate purposes, potentially enhancing its operational capabilities and market positioning in the nuclear fuel industry. The notes will bear interest semiannually and have specific conditions for conversion, reflecting a strategic financial maneuver to bolster the company’s resources.

Centrus Energy Appoints New CFO Amid Leadership Changes

On August 7, 2025, Kevin J. Harrill resigned as the Senior Vice President, Chief Financial Officer, and Treasurer of Centrus Energy Corp. to pursue other opportunities. His departure was amicable, and he will remain in an advisory role until August 29, 2025, to ensure a smooth transition. Todd K. Tinelli has been appointed as his successor, effective August 11, 2025. Tinelli, who has over 20 years of experience in the energy industry, will oversee Centrus’ financial operations and contribute to the company’s long-term growth strategy. His appointment underscores Centrus’ commitment to maintaining a strong leadership team as it aims to expand its uranium enrichment capacity in Ohio.

Centrus Energy Delivers HALEU to U.S. Department of Energy

On June 25, 2025, Centrus Energy announced that its subsidiary, American Centrifuge Operating, LLC, successfully produced and delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy, achieving a significant milestone in Phase II of its contract. This accomplishment positions Centrus as the only HALEU enrichment source in the Western world, critical for powering next-generation reactors, and marks the beginning of Phase III of the contract, with a potential extension for up to eight additional years, highlighting the company’s strategic role in advancing national energy priorities.

Centrus Energy Stockholders Meeting and Elections 2025

Centrus Energy held its 2025 annual meeting of stockholders on June 20, 2025, where approximately 69% of the company’s Class A common stock was represented. During the meeting, stockholders elected seven directors, approved the company’s executive compensation on an advisory basis, and ratified the appointment of Deloitte & Touche LLP as the company’s independent auditors for 2025.

Centrus Energy Extends HALEU Contract with DOE

On June 17, 2025, Centrus Energy announced an amendment to its contract with the U.S. Department of Energy, which extends the production of High-Assay, Low-Enriched Uranium (HALEU) through June 30, 2026, with an option for further extensions. This extension, valued at approximately $110 million, allows Centrus to continue its partnership with the Department, enhancing America’s uranium enrichment capabilities and supporting the development of HALEU-fueled advanced reactors, which are crucial for national energy and security priorities.

Centrus Energy Announces Leadership Changes Amid Resignation

On June 5, 2025, Centrus Energy Corp. announced that Mr. Shahram Ghasemian, the Senior Vice President, General Counsel, Chief Compliance Officer, and Corporate Secretary, will resign from his positions effective June 29, 2025, to pursue another opportunity. Following his departure, Mr. Richard Emery, currently the Deputy General Counsel and Director of Corporate Compliance, will be appointed as Acting General Counsel, Chief Compliance Officer, and Corporate Secretary, ensuring continuity in leadership and compliance functions.