Cameco (CCO) AI Stock Analysis

• Market Cap: $43.19B
• Dividend Yield: 0.16%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 173.6
• Beta (1Y): 1.70
• Revenue Growth: 29.88%
• EPS Growth: 5.54%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 54
• Industry: Uranium
• EPS (TTM): 0.16
• Shares Outstanding: 435,316,930
• 10 Day Avg. Volume: 1,179,436
• 30 Day Avg. Volume: 1,334,692
• PEG Ratio: 3.56
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.45
• 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: $100.08
• Price Target Upside: 0.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: C$114.00 ▲(14.49%Upside)

Cameco's strong financial performance and bullish technical indicators are the most significant strengths, despite the high valuation and risks highlighted in the earnings call. The company's strategic positioning in the nuclear energy sector and positive future outlook are offset by potential geopolitical and production challenges.

Positive Factors

Financial Performance

Cameco's 49% share in Westinghouse is expected to boost its Q2 results due to Westinghouse's participation in the construction of two new nuclear reactors at the KHNP Dukovany power plant in the Czech Republic.

Growth Potential

Cameco is positioned in the top quintile of the S&P500 for growth, indicating strong growth potential compared to its peers.

Market Position

Cameco is better positioned than its equally growing peers due to its market position and strong business moats.

Negative Factors

Market Caution

U3O8 spot prices have been in a descending trend channel, creating caution for investors.

Market Conditions

U3O8 spot seasonality is considered the worst in June and July, and spot prices have been in a descending trend since February.

Profit Taking

Now is seen as a great opportunity to take profits in Cameco's shares, as the price objective points to only a 13.5% upside from the recent closing price.

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 shows strong financial performance with robust revenue and profit growth, improved gross and net profit margins, and efficient cash flow management. However, attention is needed on rising debt levels and negative trends in financing cash flows.

Income Statement

Cameco's income statement shows strong revenue growth, with a significant increase from 2020 to TTM (Trailing-Twelve-Months). The gross profit margin improved, indicating better cost management. Net profit margin has also been positive and improving, reflecting enhanced profitability. Additionally, the EBIT and EBITDA margins have shown upward trends, further indicating operational efficiency.

Balance Sheet

The balance sheet reflects a robust equity position, with a stable equity ratio, implying financial stability. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. Return on Equity (ROE) has improved, highlighting effective utilization of equity to generate profits. However, the total debt has increased slightly, which needs monitoring.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio, indicating quality earnings. Free cash flow has grown, providing flexibility for investments and debt repayment. The free cash flow to net income ratio is healthy, suggesting efficient cash generation relative to reported profits. However, there is a need to watch financing cash flows which indicate potential risk if negative trends continue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.14B	2.59B	1.87B	1.47B	1.80B
Gross Profit	961.04M	1.06B	561.67M	233.29M	1.93M	106.45M
EBITDA	775.17M	789.34M	660.85M	276.56M	138.10M	252.67M
Net Income	248.67M	171.85M	360.85M	89.38M	-102.65M	-53.20M
Balance Sheet
Total Assets	9.38B	9.91B	9.93B	8.63B	7.52B	7.58B
Cash, Cash Equivalents and Short-Term Investments	361.47M	600.46M	566.81M	2.04B	1.10B	753.23M
Total Debt	995.74M	1.30B	1.79B	997.00M	996.25M	995.54M
Total Liabilities	2.89B	3.54B	3.84B	2.80B	2.67B	2.62B
Stockholders Equity	6.49B	6.36B	6.09B	5.84B	4.85B	4.96B
Cash Flow
Free Cash Flow	675.89M	693.65M	534.50M	161.16M	359.50M	-20.57M
Operating Cash Flow	903.96M	905.29M	688.14M	304.61M	458.29M	56.89M
Investing Cash Flow	-223.81M	-206.44M	-2.04B	-1.29B	-80.30M	-101.03M
Financing Cash Flow	-709.32M	-688.42M	748.81M	869.26M	-46.77M	-97.99M

Cameco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.57
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 99.57 is above the 20-day moving average (MA) of 94.87, above the 50-day MA of 81.45, and above the 200-day MA of 72.72, indicating a bullish trend. The MACD of 5.39 indicates Positive momentum. The RSI at 67.02 is Neutral, neither overbought nor oversold. The STOCH value of 56.72 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	74 Outperform	$43.19B	173.63	3.93%	0.16%	29.88%	5.54%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
URC	60 Neutral	C$450.35M	320.39	0.45%	―	-47.81%	-83.25%
EU	56 Neutral	C$728.28M	―	-25.71%	―	58.00%	-256.97%
NXE	53 Neutral	$5.26B	27.25	-9.06%	―	―	-197.27%
DML	49 Neutral	$2.20B	33.39	-20.00%	―	―	―
SASK	48 Neutral	C$165.57M	―	-4.92%	―	―	48.50%

Cameco Corporate Events

Cameco Unveils 2024 Sustainability Report, Showcasing Key Achievements

Cameco has released its 2024 Sustainability Report, highlighting its commitment to sustainability through various initiatives and metrics. Key achievements include completing climate risk assessments at U.S. operations, launching a training program for northern Saskatchewan residents, and publishing Scope 3 emissions data. The report underscores Cameco’s dedication to transparency and accountability, integrating SASB and TCFD standards, and achieving third-party assurance on selected performance indicators. These efforts aim to enhance Cameco’s sustainability strategy and strengthen its industry positioning by addressing environmental and community impacts.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.

Cameco Projects $170 Million Boost in 2025 EBITDA from Westinghouse Partnership

Cameco anticipates a significant increase in its share of Westinghouse Electric Company’s 2025 adjusted EBITDA, amounting to approximately $170 million (US). This increase is attributed to Westinghouse’s involvement in constructing two nuclear reactors at the Dukovany power plant in the Czech Republic. The expected financial benefits from this project, including the provision of fuel fabrication services, are poised to enhance Westinghouse’s financial performance and growth outlook. This development underscores Cameco’s strategic positioning in the nuclear energy sector and its potential positive impact on stakeholders.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.

Cameco Perseveres Amid Saskatchewan Wildfires, Maintains Production Targets

Cameco continues operations at its northern Saskatchewan sites despite wildfires affecting parts of the province. Although there are no fires near its operations, the company faces temporary disruptions in power and communication services, along with road closures impacting deliveries. Cameco prioritizes employee safety, accommodating requests from staff needing to assist families in affected communities. Despite these challenges, the company maintains its annual production target, underscoring its resilience and commitment to operational stability.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.

Cameco Elects New Board Members, Reinforcing Leadership in Uranium Sector

Cameco announced the election of ten board members during its annual meeting on May 9, 2025. The elected members include Daniel Camus, Tammy Cook-Searson, Catherine Gignac, Tim Gitzel, Marie Inkster, Kathryn Jackson, Don Kayne, Peter Kukielski, Dominique Minière, and Leontine van Leeuwen-Atkins. This election reflects the company’s commitment to maintaining strong governance and leadership, which is crucial for its continued success in the global uranium market. The high percentage of votes in favor of the nominees indicates strong shareholder support, which may positively impact Cameco’s strategic direction and stakeholder confidence.

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.