Cameco (CCO) AI Stock Analysis

• Market Cap: C$46.20B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 86.6
• Beta (1Y): 1.73
• Revenue Growth: 34.68%
• EPS Growth: 106.82%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 45
• Industry: Uranium
• EPS (TTM): 0.71
• Shares Outstanding: 435,387,450
• 10 Day Avg. Volume: 1,244,461
• 30 Day Avg. Volume: 1,294,454
• PEG Ratio: -3.61
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 10.25
• P/FCF Ratio: 46.34
• 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$111.27
• Price Target Upside: 4.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: C$120.00 ▲(13.09% Upside)

Cameco's overall stock score is driven by its strong financial performance and strategic positioning in the nuclear market. The technical analysis supports a positive trend, although valuation concerns due to a high P/E ratio and low dividend yield slightly offset the score. The earnings call provides a balanced outlook, with optimism for future growth despite some operational challenges.

Positive Factors

Earnings

Cameco reported significant earnings that surpassed Wall Street estimates.

Market Position

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

Strategic Investments

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.

Negative Factors

Contracted Volumes

The company's contracted volumes fell year-over-year in the first half, leading to concerns about negative growth in its core market.

Market Concerns

There is concern that Cameco's stock might decouple from GEV Vernova as the fundamentals of the uranium space are not as strong as those in the gas turbine market.

Uranium Market Challenges

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

Cameco Business Overview & Revenue Model

Company Description

Cameco Corporation (CCO) is one of the world's largest publicly traded uranium companies, primarily engaged in the exploration, mining, and production of uranium. The company operates in the nuclear energy sector, providing fuel for nuclear power plants worldwide. Cameco's core products include uranium concentrates, which are produced at its facilities in Canada and the U.S., as well as services related to uranium conversion and fuel fabrication.

How the Company Makes Money

Cameco generates revenue primarily through the sale of uranium and conversion services. Its key revenue streams include long-term contracts with utilities, spot market sales of uranium, and revenues from its joint ventures and partnerships in uranium mining. The company benefits from long-term supply agreements, which provide stable cash flow and mitigate market volatility. Additionally, Cameco engages in strategic partnerships and joint ventures to enhance its production capabilities and reduce operational risks. Factors contributing to its earnings include global demand for nuclear energy, regulatory frameworks supporting nuclear power, and fluctuations in uranium prices.

Cameco Financial Statement Overview

Summary

Cameco's financial statements show a strong financial performance with revenue growth, improved profit margins, and strong cash flows. The balance sheet is stable, though debt levels have increased slightly, and there are potential risks 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	3.57B	3.14B	2.59B	1.87B	1.47B	1.80B
Gross Profit	1.05B	1.06B	561.67M	233.29M	1.93M	106.45M
EBITDA	1.12B	789.34M	660.85M	276.56M	138.10M	252.67M
Net Income	533.55M	171.85M	360.85M	89.38M	-102.65M	-53.20M
Balance Sheet
Total Assets	9.58B	9.91B	9.93B	8.63B	7.52B	7.58B
Cash, Cash Equivalents and Short-Term Investments	716.29M	600.46M	566.81M	2.04B	1.10B	753.23M
Total Debt	995.97M	1.30B	1.79B	997.00M	996.25M	995.54M
Total Liabilities	2.84B	3.54B	3.84B	2.80B	2.67B	2.62B
Stockholders Equity	6.74B	6.36B	6.09B	5.84B	4.85B	4.96B
Cash Flow
Free Cash Flow	901.33M	693.65M	534.50M	161.16M	359.50M	-20.57M
Operating Cash Flow	1.16B	905.29M	688.14M	304.61M	458.29M	56.89M
Investing Cash Flow	-257.92M	-206.44M	-2.04B	-1.29B	-80.30M	-101.03M
Financing Cash Flow	-556.89M	-688.42M	748.81M	869.26M	-46.77M	-97.99M

Cameco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.11
• 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 106.11 is above the 20-day moving average (MA) of 105.99, above the 50-day MA of 100.78, and above the 200-day MA of 77.97, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 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	76 Outperform	C$46.20B	86.58	8.09%	0.15%	34.68%	106.82%
EU	58 Neutral	C$712.83M	―	-22.78%	―	29.59%	-86.53%
Sector *	56 Neutral	C$4.17B	1.07	16.25%	5.21%	10.31%	-56.29%
URC	53 Neutral	$491.78M	339.81	-1.95%	―	-63.48%	-144.11%
NXE	53 Neutral	C$5.36B	27.25	-17.01%	―	―	-318.29%
DML	49 Neutral	$2.52B	33.39	-14.63%	―	―	―
SASK	48 Neutral	C$174.13M	―	-4.92%	―	―	75.24%

Cameco Corporate Events

Cameco Reports Strong Q2 2025 Results, Boosted by Westinghouse Investment

Cameco reported strong financial results for Q2 2025, with significant earnings growth driven by its uranium, fuel services, and Westinghouse segments. The company’s long-term contracting strategy and investment in Westinghouse, particularly in the Czech Republic’s Dukovany power plant project, have improved its 2025 outlook. Cameco’s integrated strategy and market positioning are expected to capitalize on the growing global support for nuclear energy, enhancing its operational plans and future growth opportunities.

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 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.