Cameco (CCO) AI Stock Analysis

• Market Cap: C$70.11B
• Dividend Yield: 0.19%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 92.8
• Beta (1Y): 1.99
• Revenue Growth: 23.88%
• EPS Growth: 350.69%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): 0.50
• Shares Outstanding: 435,407,170
• 10 Day Avg. Volume: 938,246
• 30 Day Avg. Volume: 1,086,751
• PEG Ratio: 0.39
• Price to Book (P/B): 7.93
• Price to Sales (P/S): 15.71
• P/FCF Ratio: 53.50
• 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$167.07
• Price Target Upside: 3.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.81
• Revenue Forecast (FY): C$3.53B

• Rating: 70 Outperform
• Price Target: C$169.00 ▲(4.96% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by materially improving financial performance (revenue, margins, cash flow, and low leverage) and a constructive earnings-call outlook with strategic growth optionality. Offsetting these positives are a very expensive valuation and a mixed near-term technical picture, alongside ongoing commodity/production volatility risk.

Positive Factors

Low and improving leverage

Cameco's debt-to-equity near ~0.15 in 2025 gives the company durable financial flexibility to fund working capital, opportunistic purchases, and strategic investments without urgent refinancing. This balance-sheet strength supports dividend continuity and resilience across uranium cycles, enabling long-term optionality.

Strong free cash flow generation

Roughly $1.0B of 2025 free cash flow signals persistent operational cash conversion capacity. Over the medium term this underpins capital allocation to sustain production, meet contractual deliveries via market purchases or loans when needed, fund fuel-services operations, and return capital without over-reliance on debt markets.

Transformative Westinghouse partnership

The $80B-plus Westinghouse initiative is a structural demand catalyst for nuclear reactors and the fuel cycle. That scale of planned investment should drive multi-year demand for uranium and conversion services, expanding market opportunities where Cameco's supply, fuel-services and marketing capabilities can capture sustained growth and higher contract activity.

Negative Factors

Production delays at McArthur River/Key Lake

A 3–4 million pound cut at key owned mines is a lasting operational setback that reduces owned supply capacity. Structurally, this forces greater reliance on market purchases or product loans to meet contracts, raises unit cost exposure, and increases execution risk that can erode margins over multiple quarters.

Lower consolidated production outlook

A company-wide production ceiling of ~20 million pounds constrains revenue and cash-flow upside during a multi-year demand cycle. Persistently lower output limits Cameco's ability to fully monetize rising reactor buildout and Westinghouse demand, increasing reliance on trading and third-party volumes to capture growth.

Cyclicality and earnings volatility

Historical negative profits and shifting margins show Cameco's earnings are materially cyclical. Structural commodity-price and production swings mean that even with improved 2025 metrics, future profitability and cash flow can reverse, complicating long-term planning, capital allocation and shareholder return predictability.

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

Strong recent improvement: sharp revenue acceleration into 2025, a solid profitability rebound (about 17% net margin), rising operating/free cash flow (about $1.0B FCF in 2025), and improving/low leverage (debt-to-equity ~0.15). Main offset is cyclicality and volatility across the cycle (loss years earlier, uneven margins and cash-flow coverage), which reduces confidence in durability.

Income Statement

Revenue has accelerated sharply, rising from 2023 to 2025 with strong 2025 growth (~51%). Profitability has also improved meaningfully versus earlier years, with 2025 showing solid operating and net margins (about 17% net). The main weakness is volatility: profits were negative in 2020–2021 and margins have moved around year-to-year (notably a much lower net margin in 2024 before rebounding in 2025), which suggests earnings can be cyclical.

Balance Sheet

Leverage appears conservative and improving, with debt-to-equity declining to ~0.15 in 2025 (down from ~0.29 in 2023), supported by a growing equity base. This points to good balance-sheet flexibility for a cyclical commodity-linked business. The trade-off is that returns on equity have been inconsistent (low in 2022–2024 and negative in 2020–2021), indicating profitability has not been steady across the cycle.

Cash Flow

Cash generation strengthened substantially: operating cash flow and free cash flow increased materially from 2022 through 2025, with 2025 free cash flow of roughly $1.0B. Cash conversion is reasonable but not perfect, as free cash flow has generally been below reported earnings (about 75% of net income in 2025), and operating cash flow coverage has been uneven across years (very weak/negative in 2020, then stronger more recently).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.48B	3.14B	2.59B	1.87B	1.47B
Gross Profit	930.61M	1.06B	781.99M	410.67M	232.71M
EBITDA	886.02M	789.34M	502.89M	196.32M	96.50M
Net Income	589.58M	171.85M	360.85M	89.38M	-102.58M
Balance Sheet
Total Assets	10.30B	9.91B	9.93B	8.63B	7.52B
Cash, Cash Equivalents and Short-Term Investments	1.21B	600.46M	566.81M	2.28B	1.33B
Total Debt	1.02B	1.30B	1.79B	1.08B	1.02B
Total Liabilities	3.40B	3.54B	3.84B	2.80B	2.67B
Stockholders Equity	6.90B	6.36B	6.09B	5.84B	4.85B
Cash Flow
Free Cash Flow	1.02B	604.84M	493.71M	122.30M	320.53M
Operating Cash Flow	1.36B	816.47M	647.34M	265.75M	419.31M
Investing Cash Flow	-433.52M	-206.44M	-2.04B	-1.29B	-80.30M
Financing Cash Flow	-390.28M	-599.60M	789.61M	908.11M	-7.79M

Cameco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 161.02
• 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 Neutral. The current price of 161.02 is below the 20-day moving average (MA) of 161.11, above the 50-day MA of 154.39, and above the 200-day MA of 120.55, indicating a neutral trend. The MACD of 2.21 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CCO.

Cameco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCO	70 Outperform	C$70.11B	92.81	8.94%	0.19%	23.88%	350.69%
URC	66 Neutral	C$754.02M	111.95	0.20%	―	-0.90%	-93.94%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NXE	62 Neutral	C$11.04B	-13.54	-30.71%	―	―	-308.46%
SASK	54 Neutral	C$281.73M	-35.27	-4.96%	―	―	52.63%
EU	53 Neutral	C$541.15M	-44.16	-19.80%	―	2.06%	13.58%
DML	49 Neutral	$4.90B	-6.36	-38.86%	―	―	―

Cameco Corporate Events

Cameco Posts Strong 2025 Results as Nuclear Momentum and Disciplined Supply Bolster Outlook

Cameco reported solid fourth-quarter and full-year 2025 results, highlighting disciplined execution across its uranium, fuel services and Westinghouse segments, and improved financial performance under its long-term supply strategy. Management stressed a deliberate approach to matching production with contracted volumes and avoiding uncommitted supply, supported by a strong balance sheet and about 230 million pounds of uranium under long-term contracts.

The company said accelerating global momentum for nuclear energy in 2025, marked by rising long-term contracting and a greater focus on security of supply, is reinforcing a constructive uranium market outlook. Westinghouse delivered a 30% increase in adjusted EBITDA over 2024 and a sizeable cash distribution related to the Dukovany project, underscoring the value of that investment as Cameco positions itself to benefit from growing nuclear demand and broader energy security and decarbonization trends.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$180.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.