Cameco (CCO) AI Stock Analysis

• Market Cap: C$61.02B
• Dividend Yield: 0.19%
• Average Volume (3M): 983.86K
• Price to Earnings (P/E): 92.8
• Beta (1Y): 1.97
• Revenue Growth: 23.88%
• EPS Growth: 350.69%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): 0.50
• Shares Outstanding: 435,407,170
• 10 Day Avg. Volume: 1,083,428
• 30 Day Avg. Volume: 983,862
• PEG Ratio: 0.39
• Price to Book (P/B): 7.93
• Price to Sales (P/S): 15.71
• P/FCF Ratio: 53.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$166.95
• Price Target Upside: 19.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.8
• Revenue Forecast (FY): C$3.52B

• Rating: 67 Neutral
• Price Target: C$161.00 ▲(14.89% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is primarily supported by improved financial performance (strong 2025 revenue/profit rebound, much higher cash generation, and low leverage). Offsetting this are a weaker near-term technical picture (below key short-term moving averages with negative MACD) and a stretched valuation (high P/E with minimal dividend yield).

Positive Factors

Revenue and profit rebound

Sustained revenue acceleration and a ~17% net margin in 2025 reflect improved commercial execution and pricing leverage. Durable higher profitability supports reinvestment, contract negotiating power and resilience across the next 2–6 months, assuming commodity recovery holds.

Strong free cash flow generation

About $1.0B FCF in 2025 materially improves financial flexibility. Reliable cash generation enables debt reduction, selective capex, and funding of contracts or buybacks, providing a durable buffer against commodity cycles and supporting strategic initiatives over the medium term.

Conservative balance sheet

Low and falling debt-to-equity (~0.15) gives Cameco meaningful financial flexibility in a cyclical commodity business. Reduced leverage lowers refinancing risk, supports capital allocation choices, and strengthens the company’s ability to fund operations through downturns over the coming months.

Negative Factors

Earnings cyclicality and lumpiness

Cameco’s earnings and cash flows have swung materially by year, reflecting the cyclical uranium market and irregular production/delivery schedules. This structural lumpiness makes near-term forecasting and consistent return generation difficult and can force conservative capital policies during down cycles.

Dependence on uranium pricing and utility contracting

A business model tied closely to uranium and conversion markets and utility contracting cycles creates structural revenue and margin exposure. Long contracting cycles and price sensitivity constrain predictability of sales and profits, keeping performance dependent on industry conditions.

Imperfect cash conversion history

Although 2025 FCF was strong, historically FCF has lagged reported earnings and operating cash flow has been uneven. This persistent conversion gap signals that profits aren't always translating to cash reliably, limiting dependable funds for investment or distributions across cycles.

Cameco Business Overview & Revenue Model

Company Description

Cameco Corporation produces and sells uranium. It operates through two segments, Uranium and Fuel Services. The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces fuel bundles or reactor components for CANDU reactors. The company sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.

How the Company Makes Money

Cameco makes money primarily by selling uranium and related nuclear fuel products and services to nuclear utilities under a mix of long-term contracts and spot/market-based sales. Its largest revenue stream is typically uranium sales: the company produces uranium from its owned/operated mines and may also source uranium from third parties, then sells it to customers under supply agreements that can include base prices, market-related pricing components, floors/ceilings, and delivery schedules. A second revenue stream comes from fuel services, where revenue is generated from converting uranium concentrates into uranium hexafluoride (a step in the nuclear fuel cycle) through its ownership interest in a conversion business; earnings from this area are influenced by conversion volumes, pricing, and facility operating performance. Cameco also generates revenue and/or margins from fuel and uranium marketing activities (including optimizing its contract portfolio, procurement, and inventory management), where it may buy and sell uranium to meet customer delivery commitments or to manage market exposure. Key factors affecting earnings include uranium and conversion market prices, the mix of fixed vs. market-related contract pricing, production levels and unit costs at operating sites, the reliability of mining/milling and conversion operations, and demand from the global nuclear power industry (including utility contracting cycles).

Cameco Financial Statement Overview

Summary

Strong recent improvement: revenue accelerated into 2025 with a solid profitability rebound (about 17% net margin) and materially higher operating/free cash flow (about $1.0B FCF in 2025). Balance sheet leverage is conservative and improving (debt-to-equity ~0.15). Key risk is cyclicality and lumpiness: profits and cash flows were negative/weak earlier in the period, and KPIs show volatile uranium volumes/pricing and more concentrated earnings exposure to uranium despite Westinghouse adding diversification.

Income Statement

Revenue has accelerated sharply, rising from 2023 to 2025 with strong 2025 growth (~51%). Profitability has also improved meaningfully versus earlier years, with 2025 showing solid operating and net margins (about 17% net). The main weakness is volatility: profits were negative in 2020–2021 and margins have moved around year-to-year (notably a much lower net margin in 2024 before rebounding in 2025), which suggests earnings can be cyclical.

Balance Sheet

Leverage appears conservative and improving, with debt-to-equity declining to ~0.15 in 2025 (down from ~0.29 in 2023), supported by a growing equity base. This points to good balance-sheet flexibility for a cyclical commodity-linked business. The trade-off is that returns on equity have been inconsistent (low in 2022–2024 and negative in 2020–2021), indicating profitability has not been steady across the cycle.

Cash Flow

Cash generation strengthened substantially: operating cash flow and free cash flow increased materially from 2022 through 2025, with 2025 free cash flow of roughly $1.0B. Cash conversion is reasonable but not perfect, as free cash flow has generally been below reported earnings (about 75% of net income in 2025), and operating cash flow coverage has been uneven across years (very weak/negative in 2020, then stronger more recently).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.48B	3.14B	2.59B	1.87B	1.47B
Gross Profit	930.61M	1.06B	781.99M	410.67M	232.71M
EBITDA	886.02M	789.34M	502.89M	196.32M	96.50M
Net Income	589.58M	171.85M	360.85M	89.38M	-102.58M
Balance Sheet
Total Assets	10.30B	9.91B	9.93B	8.63B	7.52B
Cash, Cash Equivalents and Short-Term Investments	1.21B	600.46M	566.81M	2.28B	1.33B
Total Debt	1.02B	1.30B	1.79B	1.08B	1.02B
Total Liabilities	3.40B	3.54B	3.84B	2.80B	2.67B
Stockholders Equity	6.90B	6.36B	6.09B	5.84B	4.85B
Cash Flow
Free Cash Flow	1.02B	604.84M	493.71M	122.30M	320.53M
Operating Cash Flow	1.36B	816.47M	647.34M	265.75M	419.31M
Investing Cash Flow	-433.52M	-206.44M	-2.04B	-1.29B	-80.30M
Financing Cash Flow	-390.28M	-599.60M	789.61M	908.11M	-7.79M

Cameco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCO, the sentiment is Negative. The current price of 140.14 is below the 20-day moving average (MA) of 157.04, below the 50-day MA of 160.06, and above the 200-day MA of 125.44, indicating a neutral trend. The MACD of -3.50 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCO.

Cameco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCO	67 Neutral	C$61.02B	92.81	8.76%	0.19%	23.88%	350.69%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NXE	64 Neutral	C$10.34B	―	-25.38%	―	―	-308.46%
URC	56 Neutral	$666.47M	113.31	0.20%	―	-0.90%	-93.94%
SASK	54 Neutral	C$246.91M	-35.27	-5.03%	―	―	52.63%
EU	53 Neutral	C$451.27M	-44.16	-25.17%	―	2.06%	13.58%
DML	48 Neutral	$4.14B	-15.02	-38.86%	―	―	―

Cameco Corporate Events

Cameco Secures $2.6 Billion Uranium Supply Deal with India

Cameco has signed a long-term agreement to supply nearly 22 million pounds of uranium ore concentrate to India’s Department of Atomic Energy for use in its nuclear reactor fleet over nine years, starting in 2027. The contract, estimated at about $2.6 billion on market-related terms, reinforces bilateral trade ties as leaders from India and Canada marked the deal at an event in Delhi.

The agreement aligns with India’s aggressive nuclear expansion plans to reach 100 GW of capacity by 2047 and reflects a broader trend of sovereign buyers securing large uranium volumes amid tightening global supply. For Cameco, the deal fits its long-term contracting strategy and strengthens its position as a reliable nuclear fuel supplier of choice, with volumes already factored into its medium-term sales outlook and pricing sensitivity assumptions.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$169.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.

Cameco Posts Strong 2025 Results as Nuclear Momentum and Disciplined Supply Bolster Outlook

Cameco reported solid fourth-quarter and full-year 2025 results, highlighting disciplined execution across its uranium, fuel services and Westinghouse segments, and improved financial performance under its long-term supply strategy. Management stressed a deliberate approach to matching production with contracted volumes and avoiding uncommitted supply, supported by a strong balance sheet and about 230 million pounds of uranium under long-term contracts.

The company said accelerating global momentum for nuclear energy in 2025, marked by rising long-term contracting and a greater focus on security of supply, is reinforcing a constructive uranium market outlook. Westinghouse delivered a 30% increase in adjusted EBITDA over 2024 and a sizeable cash distribution related to the Dukovany project, underscoring the value of that investment as Cameco positions itself to benefit from growing nuclear demand and broader energy security and decarbonization trends.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$180.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.