Cameco (CCO) AI Stock Analysis

• Market Cap: $54.85B
• Dividend Yield: 0.19%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 104.3
• Beta (1Y): 2.11
• Revenue Growth: 23.88%
• EPS Growth: 350.69%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): 0.07
• Shares Outstanding: 435,407,170
• 10 Day Avg. Volume: 1,037,359
• 30 Day Avg. Volume: 1,120,596
• PEG Ratio: -3.61
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 10.25
• P/FCF Ratio: 53.14
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 14.75
• Enterprise Value/Gross Profit: 40.61
• Enterprise Value/Ebitda: 58.36
• 1Y Price Target: $146.09
• Price Target Upside: 15.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$139.00 ▲(10.34% Upside)

Cameco's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's strategic partnerships and robust financial position support a positive outlook, although high valuation metrics and technical indicators suggest caution. The stock is well-positioned for growth in the nuclear sector, but investors should be mindful of valuation and technical signals.

Positive Factors

Strategic Partnership

This partnership positions Cameco to benefit from significant investments in nuclear technology, enhancing its market position and growth prospects in the nuclear energy sector.

Strong Financial Position

A strong financial position with ample liquidity and low leverage provides Cameco with the flexibility to invest in growth opportunities and weather industry fluctuations.

Dividend Increase

The dividend increase reflects confidence in the company's financial health and commitment to returning value to shareholders, which can enhance investor trust and support stock stability.

Negative Factors

Production Delays

Production delays can impact revenue and profitability, posing challenges to meeting demand and potentially affecting long-term customer relationships.

Reduced Production Outlook

A reduced production outlook signals potential supply constraints, which could limit revenue growth and weaken competitive positioning in the uranium market.

Decline in Revenue Growth

A decline in revenue growth indicates challenges in expanding market share or product demand, which could hinder long-term financial performance and strategic objectives.

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 generates revenue primarily through the sale of uranium and fuel services. The company's main revenue stream comes from the production and sale of uranium concentrate, which is sold to nuclear power utilities under long-term contracts and spot market transactions. Additionally, Cameco provides fuel services, including conversion and enrichment, which further contribute to its earnings. The company has established significant partnerships with various nuclear utilities worldwide, ensuring a steady demand for its products. Factors such as global nuclear energy demand, uranium prices, and regulatory environments in the regions where it operates also significantly influence its revenue generation.

Cameco Financial Statement Overview

Summary

Cameco demonstrates strong profitability with solid margins and a robust balance sheet characterized by low leverage. Despite challenges in revenue growth, the company's efficient cash flow management and strong equity position provide a stable financial foundation.

Income Statement

Cameco's income statement shows a strong gross profit margin of 35.58% and a net profit margin of 14.94% for the TTM, indicating solid profitability. The EBIT and EBITDA margins are also healthy at 16.77% and 26.78%, respectively. However, the revenue growth rate has declined by 2.97% in the TTM, which is a concern. Overall, the company demonstrates strong profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.15, suggesting conservative leverage. The return on equity is moderate at 8.27%, indicating efficient use of equity to generate profits. The equity ratio stands at 69.63%, showing a strong equity base relative to total assets. Overall, Cameco's balance sheet is robust with low leverage and a solid equity position.

Cash Flow

Cameco's cash flow statement shows a positive free cash flow growth rate of 9.91% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 1.79, and the free cash flow to net income ratio is 0.77, reflecting efficient cash conversion. The company demonstrates strong cash flow management, although there is room for improvement in free cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.46B	3.14B	2.59B	1.87B	1.47B	1.80B
Gross Profit	1.26B	1.06B	781.99M	410.67M	232.71M	370.09M
EBITDA	875.23M	789.34M	502.89M	196.32M	96.50M	184.21M
Net Income	525.98M	171.85M	360.85M	89.38M	-102.58M	-53.17M
Balance Sheet
Total Assets	9.74B	9.91B	9.93B	8.63B	7.52B	7.58B
Cash, Cash Equivalents and Short-Term Investments	778.65M	600.46M	566.81M	2.28B	1.33B	943.37M
Total Debt	1.01B	1.30B	1.79B	1.08B	1.02B	1.01B
Total Liabilities	2.96B	3.54B	3.84B	2.80B	2.67B	2.62B
Stockholders Equity	6.78B	6.36B	6.09B	5.84B	4.85B	4.96B
Cash Flow
Free Cash Flow	915.11M	604.84M	493.71M	122.30M	320.53M	-86.12M
Operating Cash Flow	1.20B	816.47M	647.34M	265.75M	419.31M	-8.66M
Investing Cash Flow	-291.26M	-206.44M	-2.04B	-1.29B	-80.30M	-101.03M
Financing Cash Flow	-354.42M	-599.60M	789.61M	908.11M	-7.79M	-32.44M

Cameco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 125.97 is above the 20-day moving average (MA) of 123.23, above the 50-day MA of 125.93, and above the 200-day MA of 96.36, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CCO.

Cameco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCO	71 Outperform	$54.85B	104.25	7.97%	0.19%	23.88%	350.69%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DML	53 Neutral	$3.23B	―	-38.86%	―	―	―
NXE	53 Neutral	$7.58B	-35.87	-30.71%	―	―	-308.46%
EU	52 Neutral	C$707.26M	-7.89	-19.80%	―	2.06%	13.58%
SASK	48 Neutral	C$194.11M	-19.15	-4.96%	―	―	52.63%
URC	47 Neutral	$737.68M	-358.44	0.20%	―	-0.90%	-93.94%

Cameco Corporate Events

Cameco’s Strong Q3 Results and Strategic Partnership Propel Nuclear Expansion

Cameco reported strong third-quarter financial results, highlighting its robust performance across various segments despite a small net loss. The company is well-positioned to meet its delivery commitments through flexible supply sourcing strategies, despite production delays at key sites. A significant development is Cameco’s transformative partnership with Brookfield Asset Management and the US Government to accelerate the deployment of Westinghouse reactors in the US, with an investment value of at least $80 billion. This partnership is expected to enhance energy security and create significant growth opportunities, reinforcing Cameco’s role in the nuclear energy expansion and the clean energy transition.

Cameco and Brookfield Partner with US Government to Boost Nuclear Reactor Deployment

Cameco Corporation, in partnership with Brookfield Asset Management, has entered into a strategic agreement with the United States Government to accelerate the deployment of Westinghouse nuclear reactors. This collaboration aims to enhance the nuclear power industrial base in the US and globally, with an investment value of at least US$80 billion. The partnership is expected to boost demand for Cameco’s products and services, reinforcing its position in the nuclear energy market. The initiative will also support the growth of Westinghouse’s energy systems segment and leverage existing nuclear industry supply chains, potentially benefiting stakeholders through enhanced energy security and climate initiatives.

Cameco Joins U.S. Government and Partners in $80 Billion Nuclear Power Initiative

Cameco, in partnership with Westinghouse and Brookfield Asset Management, has announced a strategic collaboration with the U.S. Government to accelerate nuclear power deployment in the United States. This initiative, backed by at least $80 billion in investment, aims to construct new nuclear reactors using Westinghouse technology, enhancing America’s energy infrastructure and supporting the growth of artificial intelligence. The partnership is expected to create significant job opportunities, bolster national security, and establish the U.S. as a leader in nuclear energy and AI development. The collaboration promises long-term value for stakeholders and reinforces the global presence of Westinghouse and Cameco’s nuclear products and services.

Cameco Secures Long-Term Uranium Supply Deal with Slovenské elektrárne

Cameco has entered into a long-term agreement to supply natural uranium hexafluoride (UF6) to Slovenské elektrárne for its nuclear power plants in Slovakia, expected to last until 2036. This agreement marks a strategic move for Cameco, expanding its market reach and enhancing energy security in Slovakia by providing a stable and reliable supply of uranium fuel, which is crucial for the country’s nuclear power operations.