Cameco (CCO) AI Stock Analysis

• Market Cap: C$36.02B
• Dividend Yield: 0.19%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 144.8
• Beta (1Y): 1.69
• Revenue Growth: 29.88%
• EPS Growth: 5.54%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 44
• Industry: Uranium
• EPS (TTM): 0.16
• Shares Outstanding: 435,316,930
• 10 Day Avg. Volume: 1,248,179
• 30 Day Avg. Volume: 1,132,879
• PEG Ratio: 2.68
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.54
• 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$84.04
• Price Target Upside: 1.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: C$94.00 ▲(13.61%Upside)

Cameco's stock score of 78 reflects robust financial performance and a strong industry outlook, supported by strategic partnerships. However, high valuation metrics and overbought technical indicators suggest potential caution. Geopolitical risks and production challenges also pose threats.

Positive Factors

Contracts

Cameco added 220 million pounds to its contract book despite generally muted contracting by utilities.

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.

Negative Factors

Market Sentiment

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

Market Uncertainty

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

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 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 robust, with strong revenue and profit growth, improved gross profit margins, and effective cash flow management. Key strengths include operational efficiency and profitability. However, increasing debt levels and financing cash flow trends warrant monitoring.

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
	EBIT
559.52M	510.11M	282.86M	130.36M	-52.32M	-6.75M
	EBITDA
775.17M	789.34M	660.85M	276.56M	138.10M	252.67M
	Net Income Common Stockholders
248.67M	171.85M	360.85M	89.38M	-102.65M	-53.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
323.22M	600.46M	566.81M	2.04B	1.10B	753.23M
	Total Assets
9.50B	9.91B	9.93B	8.63B	7.52B	7.58B
	Total Debt
1.54B	1.30B	1.79B	997.00M	996.25M	995.54M
	Net Debt
1.22B	695.55M	1.23B	92.33M	-17.94M	267.30M
	Total Liabilities
3.39B	3.54B	3.84B	2.80B	2.67B	2.62B
	Stockholders Equity
6.11B	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: 82.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 82.74 is above the 20-day moving average (MA) of 77.63, above the 50-day MA of 66.79, and above the 200-day MA of 68.78, indicating a bullish trend. The MACD of 4.53 indicates Positive momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 52.60 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	78 Outperform	C$36.02B	144.80	3.93%	0.19%	29.88%	5.54%
Sector *	57 Neutral	$7.23B	3.16	-4.49%	5.63%	0.82%	-49.15%
DNN		$1.49B	31.01	-20.00%	―	―	―
EU	53 Neutral	C$547.61M	―	-25.71%	―	58.00%	-256.97%
NXE		$3.64B	23.27	-9.06%	―	―	―
UROY		$312.57M	285.37	0.45%	―	―	―
SASK	48 Neutral	C$151.29M	―	-4.92%	―	―	48.50%

Cameco Corporate Events

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.

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.