Cameco (CCO) AI Stock Analysis

• Market Cap: $28.25B
• Dividend Yield: 0.24%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 164.2
• Beta (1Y): 1.69
• Revenue Growth: 21.18%
• EPS Growth: -52.58%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 47
• Industry: Uranium
• EPS (TTM): 0.39
• Shares Outstanding: 435,312,070
• 10 Day Avg. Volume: 846,169
• 30 Day Avg. Volume: 1,059,958
• PEG Ratio: N/A
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.15
• Price Target Upside: 26.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

Cameco's overall stock score reflects strong financial performance and a positive industry outlook, supported by robust earnings growth and strategic positioning in the nuclear sector. However, high valuation and potential technical resistance pose risks. The company faces significant geopolitical and operational challenges, which temper the otherwise optimistic earnings guidance.

Positive Factors

Contract Growth

Cameco's long-term U3O8 contract book increased by 7% year-over-year, indicating strong demand for its products.

Financial Performance

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

Nuclear Energy Growth

CCJ is well-placed for nuclear energy growth.

Negative Factors

Market Uncertainty

Long-term contracting has slowed due to macro-economic uncertainty and customers’ focus on securing downstream services.

Uranium Market Challenges

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 (CCO) is a leading player in the global uranium industry, primarily engaged in the mining, refining, and production of uranium fuel for nuclear power plants. The company operates in two main segments: uranium and fuel services. Cameco's core products include uranium concentrate and conversion services, which are integral to the nuclear energy sector. With operations in North America and a strong presence in international markets, Cameco is committed to providing reliable and sustainable energy solutions.

How the Company Makes Money

Cameco makes money primarily through the extraction and sale of uranium, which is used as a fuel in nuclear reactors. The company's revenue streams are largely driven by long-term contracts with utility companies that require a stable supply of uranium for power generation. Additionally, Cameco generates income from its fuel services segment, which involves refining and converting uranium into fuel for nuclear reactors. The company's financial performance is influenced by uranium market prices, production volumes, and its ability to manage operational costs. Partnerships with global utility companies and strategic investments in mining operations also play a significant role in Cameco's earnings.

Cameco Financial Statement Overview

Summary

Cameco's financial performance is strong, marked by significant revenue growth and robust cash flow management. The company's low leverage and solid equity position enhance financial stability. However, a decrease in net income indicates the need for attention to sustain profitability.

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: Positive
• Last Price: 64.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 64.89 is above the 20-day moving average (MA) of 58.05, above the 50-day MA of 60.11, and below the 200-day MA of 66.71, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.25 is Negative, 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	$28.25B	164.20	2.73%	0.24%	21.18%	-52.58%
Sector *	56 Neutral	$6.99B	3.76	-4.38%	5.90%	-0.24%	-48.46%
NXE	53 Neutral	$4.18B	27.25	-7.77%	―	―	-197.27%
URC	50 Neutral	$348.79M	253.40	0.45%	―	-47.81%	-83.25%
DML	49 Neutral	C$1.80B	33.39	-4.64%	―	―	―
SASK	48 Neutral	C$111.33M	―	-7.72%	―	―	48.50%
EU	42 Neutral	C$410.71M	―	-16.36%	―	―	-72.21%

Cameco Corporate Events

Cameco Reports Strong Q1 2025 Results Amid Nuclear Market Momentum

Cameco reported strong financial and operational results for the first quarter of 2025, driven by its long-term contracting strategy and robust performance across its uranium, fuel services, and Westinghouse segments. Despite challenges such as geopolitical shifts and economic instability, the company maintained its positive market momentum, benefiting from the growing support for nuclear energy due to its energy, national, and climate security attributes. Cameco’s strategic focus on long-term contracts has allowed it to capture market upside while mitigating risks, positioning the company well in the transitioning nuclear market.

Spark’s Take on TSE:CCO Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCO is a Neutral.

Cameco demonstrates strong financial stability and operational performance, with significant revenue and cash flow growth, and low leverage. However, the stock appears overvalued based on its high P/E ratio. Technical indicators show potential downward pressure, and challenges such as production issues and tariff risks present uncertainties. The company’s commitment to transparency and positive market outlook are supportive factors.

To see Spark’s full report on TSE:CCO stock, click here.

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.