Cameco (CCO) AI Stock Analysis

• Market Cap: C$73.33B
• Dividend Yield: 0.19%
• Average Volume (3M): 999.25K
• Price to Earnings (P/E): 139.4
• Beta (1Y): 2.08
• Revenue Growth: 23.88%
• EPS Growth: 350.69%
• Country: CA
• Employees: 730
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): 0.07
• Shares Outstanding: 435,407,170
• 10 Day Avg. Volume: 1,228,001
• 30 Day Avg. Volume: 999,249
• PEG Ratio: -3.61
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 10.25
• P/FCF Ratio: 53.14
• 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$150.97
• Price Target Upside: -10.35% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$184.00 ▲(9.26% Upside)

The score is primarily supported by strong underlying financials (healthy margins, low leverage, solid cash generation) and a constructive earnings-call outlook driven by Westinghouse opportunities. It is meaningfully constrained by expensive valuation (P/E 132.69, low yield) and technically overbought conditions (RSI ~80; Stoch ~95) despite a strong uptrend.

Positive Factors

Conservative Balance Sheet

Cameco's very low leverage and strong equity base provide durable financial flexibility to fund capital projects, absorb commodity cycles, and support long-term contracts. A conservative balance sheet reduces refinancing risk and underpins resilience through multi-year nuclear cycles.

Strong Cash Generation

Sustained free cash flow growth and high operating cash-to-net-income conversion indicate durable cash generation. This supports reinvestment, dividend policy, and the ability to opportunistically buy product or fund strategic initiatives without materially increasing leverage.

Transformative Strategic Partnership

The Brookfield/U.S. government-backed Westinghouse initiative is a structural demand catalyst for nuclear capacity deployment. As a major uranium supplier and fuel services provider, Cameco stands to benefit from multi-year, structural growth in reactor builds and long-term fuel requirements.

Negative Factors

Production Disruptions at Key Mines

Operational setbacks at McArthur River and Key Lake reduce controllable supply and expose Cameco to higher procurement costs and margin pressure over multiple quarters. Persistent mine development risk can constrain long-term production reliability and increase reliance on market purchases.

Reduced Production Outlook

A lower consolidated output outlook is a structural supply constraint that can limit revenue scalability and operational leverage. Lower owned volumes reduce internal fulfillment of long-term contracts, pressuring margins if Cameco must source product externally to meet commitments.

Revenue Growth Weakness

A declining revenue trend signals challenges in expanding top-line sales and may reflect spot-market volatility or contract timing. Persistently weak revenue growth can limit profit expansion, reduce cash generation upside, and constrain funding for capital programs and strategic initiatives.

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 profitability (TTM gross margin 35.58%, net margin 14.94%) and healthy EBIT/EBITDA margins support the score. Balance sheet is conservative (debt-to-equity 0.15; equity ratio 69.63%) and cash generation is solid (FCF growth 9.91%; operating cash flow to net income 1.79). The main offset is slightly negative TTM revenue growth (-2.97%).

Income Statement

Cameco's income statement shows a strong gross profit margin of 35.58% and a net profit margin of 14.94% for the TTM, indicating solid profitability. The EBIT and EBITDA margins are also healthy at 16.77% and 26.78%, respectively. However, the revenue growth rate has declined by 2.97% in the TTM, which is a concern. Overall, the company demonstrates strong profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.15, suggesting conservative leverage. The return on equity is moderate at 8.27%, indicating efficient use of equity to generate profits. The equity ratio stands at 69.63%, showing a strong equity base relative to total assets. Overall, Cameco's balance sheet is robust with low leverage and a solid equity position.

Cash Flow

Cameco's cash flow statement shows a positive free cash flow growth rate of 9.91% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 1.79, and the free cash flow to net income ratio is 0.77, reflecting efficient cash conversion. The company demonstrates strong cash flow management, although there is room for improvement in free cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.46B	3.14B	2.59B	1.87B	1.47B	1.80B
Gross Profit	1.26B	1.06B	781.99M	410.67M	232.71M	370.09M
EBITDA	875.23M	789.34M	502.89M	196.32M	96.50M	184.21M
Net Income	525.98M	171.85M	360.85M	89.38M	-102.58M	-53.17M
Balance Sheet
Total Assets	9.74B	9.91B	9.93B	8.63B	7.52B	7.58B
Cash, Cash Equivalents and Short-Term Investments	778.65M	600.46M	566.81M	2.28B	1.33B	943.37M
Total Debt	1.01B	1.30B	1.79B	1.08B	1.02B	1.01B
Total Liabilities	2.96B	3.54B	3.84B	2.80B	2.67B	2.62B
Stockholders Equity	6.78B	6.36B	6.09B	5.84B	4.85B	4.96B
Cash Flow
Free Cash Flow	915.11M	604.84M	493.71M	122.30M	320.53M	-86.12M
Operating Cash Flow	1.20B	816.47M	647.34M	265.75M	419.31M	-8.66M
Investing Cash Flow	-291.26M	-206.44M	-2.04B	-1.29B	-80.30M	-101.03M
Financing Cash Flow	-354.42M	-599.60M	789.61M	908.11M	-7.79M	-32.44M

Cameco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 168.41 is above the 20-day moving average (MA) of 159.66, above the 50-day MA of 138.51, and above the 200-day MA of 110.27, indicating a bullish trend. The MACD of 11.01 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.62 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	68 Neutral	C$73.33B	139.38	7.96%	0.19%	23.88%	350.69%
URC	66 Neutral	C$870.24M	1,850.00	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$11.19B	-29.30	-30.71%	―	―	-308.46%
SASK	54 Neutral	C$334.26M	-28.42	-4.96%	―	―	52.63%
EU	53 Neutral	C$810.79M	-10.90	-19.80%	―	2.06%	13.58%
DML	49 Neutral	$4.83B	-24.67	-38.86%	―	―	―

Cameco Corporate Events

Cameco’s Strong Q3 Results and Strategic Partnership Propel Nuclear Expansion

Cameco reported strong third-quarter financial results, highlighting its robust performance across various segments despite a small net loss. The company is well-positioned to meet its delivery commitments through flexible supply sourcing strategies, despite production delays at key sites. A significant development is Cameco’s transformative partnership with Brookfield Asset Management and the US Government to accelerate the deployment of Westinghouse reactors in the US, with an investment value of at least $80 billion. This partnership is expected to enhance energy security and create significant growth opportunities, reinforcing Cameco’s role in the nuclear energy expansion and the clean energy transition.

The most recent analyst rating on (TSE:CCO) stock is a Buy with a C$160.00 price target. To see the full list of analyst forecasts on Cameco stock, see the TSE:CCO Stock Forecast page.