Cameco (CCO) AI Stock Analysis

• Market Cap: $24.94B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 145.0
• Beta (1Y): 1.67
• Revenue Growth: 21.18%
• EPS Growth: -52.58%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 46
• Industry: Uranium
• EPS (TTM): 0.39
• Shares Outstanding: 435,312,070
• 10 Day Avg. Volume: 1,346,352
• 30 Day Avg. Volume: 1,221,221
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.87
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 10.30
• 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$82.60
• Price Target Upside: 44.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Cameco demonstrates strong financial performance and positive future growth prospects, contributing to a high overall score. The company's strategic focus and robust market positioning are key strengths. However, the stock's high valuation and technical analysis suggest caution, balancing the positive outlook with potential risks.

Positive Factors

Earnings

Cameco recently reported better than expected 4Q24 results, with adjusted EPS beating consensus estimates.

Financial Performance

Q4’24 free cash flow was higher than expected, driving lower-than-expected net debt.

Market Position

Cameco is positioned as a low-cost producer, which provides an advantage during supply shortages and supports the company's fundamentals.

Negative Factors

Industry Challenges

Weak spot prices and uncertainty around policies for the nuclear industry have contributed to the recent sell-off in uranium stocks.

Market Conditions

Uranium equities have experienced significant sell-offs due to weak spot prices and uncertainty around government policies affecting the nuclear industry.

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 through the mining and sale of uranium concentrate, which is used as fuel for nuclear power plants. The company operates several uranium mines, including McArthur River/Key Lake and Cigar Lake in Canada, which are among the highest-grade uranium mines in the world. Revenue is primarily generated from long-term contracts with nuclear utilities that secure stable and predictable cash flows. Additionally, Cameco has joint ventures and strategic partnerships that help expand its market reach and operational capabilities, contributing to its earnings.

Cameco Financial Statement Overview

Summary

Cameco's financial statements reflect strong revenue and cash flow growth, with a robust equity position and low leverage enhancing financial stability. However, a decrease in net income indicates some volatility that needs attention.

Income Statement

Cameco's income statement shows strong revenue growth, with a Revenue Growth Rate of 21.18% from 2023 to 2024. The Gross Profit Margin has improved significantly, and the Net Profit Margin stands at 5.48% for 2024, indicating profitability. However, the Net Income decreased compared to 2023, indicating some volatility. The EBIT and EBITDA Margins of 16.27% and 25.17% respectively highlight operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an Equity Ratio of 64.23%, indicating financial stability. The Debt-to-Equity Ratio of 0.20 suggests low leverage, reducing financial risk. Return on Equity (ROE) is moderate at 2.70%, showing room for improvement in generating returns for shareholders.

Cash Flow

Cameco's cash flow statement reveals robust Free Cash Flow growth of 29.78% from 2023 to 2024, highlighting strong cash management. The Operating Cash Flow to Net Income Ratio is impressive, indicating effective cash conversion from earnings. The Free Cash Flow to Net Income Ratio also supports the company's ability to generate cash relative to net earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.14B	2.59B	1.87B	1.47B	1.80B
	Gross Profit
1.06B	561.67M	233.29M	1.93M	106.45M
	EBIT
510.11M	282.86M	130.36M	-52.32M	-6.75M
	EBITDA
789.34M	660.85M	276.56M	138.10M	252.67M
	Net Income Common Stockholders
171.85M	360.85M	89.38M	-102.65M	-53.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
600.46M	566.81M	2.04B	1.10B	753.23M
	Total Assets
9.91B	9.93B	8.63B	7.52B	7.58B
	Total Debt
1.30B	1.79B	997.00M	996.25M	995.54M
	Net Debt
695.55M	1.23B	92.33M	-17.94M	267.30M
	Total Liabilities
3.54B	3.84B	2.80B	2.67B	2.62B
	Stockholders Equity
6.36B	6.09B	5.84B	4.85B	4.96B
Cash Flow		Free Cash Flow
693.65M	534.50M	161.16M	359.50M	-20.57M
	Operating Cash Flow
905.29M	688.14M	304.61M	458.29M	56.89M
	Investing Cash Flow
-206.44M	-2.04B	-1.29B	-80.30M	-101.03M
	Financing Cash Flow
-688.42M	748.81M	869.26M	-46.77M	-97.99M

Cameco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 57.25 is below the 20-day moving average (MA) of 58.77, below the 50-day MA of 62.13, and below the 200-day MA of 67.23, indicating a bearish trend. The MACD of -1.87 indicates Negative momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 78.55 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	72 Outperform	$24.94B	144.99	2.73%	0.28%	21.18%	-52.58%
UUUU	57 Neutral	$864.09M	―	-10.58%	―	105.95%	-143.66%
Sector *	55 Neutral	$7.08B	3.69	-5.71%	6.15%	-1.38%	-53.90%

Cameco Corporate Events

Cameco Files Annual Report and Announces Upcoming Releases

Cameco has announced the filing of its annual report on Form 40-F with the US Securities and Exchange Commission, which includes audited financial statements for 2024, management’s discussion and analysis, and its Canadian annual information form. These documents have also been filed with Canadian securities regulatory authorities. Additionally, Cameco plans to release its management proxy circular and Modern Slavery Report in compliance with Canadian legislation. This announcement reflects Cameco’s commitment to transparency and regulatory compliance, potentially reinforcing its market position and stakeholder trust.

Cameco Reports Strong 2024 Results and Positive Outlook for Nuclear Energy

Cameco has reported strong financial and operational results for 2024, despite a decrease in net earnings compared to 2023 due to the Westinghouse acquisition. The company expects continued strong performance in 2025, driven by supportive market conditions and strategic investments. Cameco’s strategic focus on long-term contracting and market-related pricing, along with a growing pipeline of uranium business, positions it well to meet future demand in the nuclear sector. The company’s strategy aims to capitalize on the favorable outlook for nuclear energy amidst global geopolitical uncertainties, ensuring long-term availability of nuclear fuel supplies.

Cameco Resumes Production at Inkai Joint Venture

Cameco announced that production at the Inkai joint venture in Kazakhstan has resumed after a suspension. Along with its partner Kazatomprom, Cameco will assess how the disruption affects their 2025 production plans. This development may impact Cameco’s operational strategy and market positioning, considering the various geopolitical and regulatory risks involved in Kazakhstan.

Cameco Supports Westinghouse’s Dispute Resolution, Boosts Nuclear Industry Prospects

Cameco has announced a supportive stance regarding Westinghouse Electric Company’s resolution of an intellectual property dispute with Korea Electric Power Corporation and Korea Hydro & Nuclear Power Co., Ltd. This settlement is poised to enhance the deployment of nuclear technology globally, aligning with the industry’s goals to expand nuclear capacity in response to the growing demand for carbon-free, reliable electricity. The agreement establishes a framework beneficial to all involved parties, potentially strengthening the industry’s ability to meet climate, energy, and security objectives.