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Cameco Corp (TSE:CCO)
TSX:CCO
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Cameco
(TSX:CCO)
66Neutral
Positive Factors
Financial Performance
Q4'24 free cash flow was higher than expected, driving lower-than-expected net debt and signaling strong financial health.
Sales Outlook
The 2025 sales outlook is better than expected, indicating potential strong future performance.
Negative Factors
EBITDA Guidance
Westinghouse EBITDA guidance was softer compared to Bank of America expectations, which might cause concerns about profitability.
Cameco (CCO) vs. S&P 500 (SPY)
Market Cap
$25.56B
Dividend Yield0.27%
Average Volume (3M)1.37M
Price to Earnings (P/E)152.3
Beta (1Y)1.67
Revenue Growth21.18%
EPS Growth-52.58%
CountryCA
Employees2,638
SectorEnergy
Sector Strength73
IndustryOther Energy Sources
Share Statistics
EPS (TTM)0.39
Shares Outstanding435,312,070
10 Day Avg. Volume1,423,171
30 Day Avg. Volume1,374,608
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.15
Price to Cash Flow (P/CF)8.90
P/FCF Ratio9.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$86.90Price Target Upside44.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Cameco Business Overview & Revenue Model
Company DescriptionCameco Corp. engages in the provision of uranium. The company operates through the following segments: Uranium and Fuel Services. The Uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The Fuel Services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. Cameco was founded in 1988 and is headquartered in Saskatoon, Canada.
How the Company Makes MoneyCameco makes money through the mining and sale of uranium concentrate, which is used as fuel for nuclear power plants. The company operates several uranium mines, including McArthur River/Key Lake and Cigar Lake in Canada, which are among the highest-grade uranium mines in the world. Revenue is primarily generated from long-term contracts with nuclear utilities that secure stable and predictable cash flows. Additionally, Cameco has joint ventures and strategic partnerships that help expand its market reach and operational capabilities, contributing to its earnings.
Cameco Financial Statement Overview
Summary
Cameco's financial statements reflect strong operational performance with impressive revenue and cash flow growth. The low leverage and solid equity position ensure financial stability, while profitability metrics underscore efficiency. However, the decline in net income highlights potential volatility.Income Statement
Cameco's income statement shows strong revenue growth, with a Revenue Growth Rate of 21.18% from 2023 to 2024. The Gross Profit Margin has improved significantly, and the Net Profit Margin stands at 5.48% for 2024, indicating profitability. However, the Net Income decreased compared to 2023, indicating some volatility. The EBIT and EBITDA Margins of 16.27% and 25.17% respectively highlight operational efficiency.78
Positive
Balance Sheet
The balance sheet reflects a solid equity position with an Equity Ratio of 64.23%, indicating financial stability. The Debt-to-Equity Ratio of 0.20 suggests low leverage, reducing financial risk. Return on Equity (ROE) is moderate at 2.70%, showing room for improvement in generating returns for shareholders.82
Very Positive
Cash Flow
Cameco's cash flow statement reveals robust Free Cash Flow growth of 29.78% from 2023 to 2024, highlighting strong cash management. The Operating Cash Flow to Net Income Ratio is impressive, indicating effective cash conversion from earnings. The Free Cash Flow to Net Income Ratio also supports the company's ability to generate cash relative to net earnings.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.14B | 2.59B | 1.87B | 1.47B | 1.80B | Gross Profit |
| 1.06B | 561.67M | 233.29M | 1.93M | 106.45M | EBIT |
| 510.11M | 282.86M | 130.36M | -52.32M | -6.75M | EBITDA |
| 789.34M | 660.85M | 276.56M | 138.10M | 252.67M | Net Income Common Stockholders |
| 171.85M | 360.85M | 89.38M | -102.65M | -53.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 600.46M | 566.81M | 2.04B | 1.10B | 753.23M | Total Assets |
| 9.91B | 9.93B | 8.63B | 7.52B | 7.58B | Total Debt |
| 1.30B | 1.79B | 997.00M | 996.25M | 995.54M | Net Debt |
| 695.55M | 1.23B | 92.33M | -17.94M | 267.30M | Total Liabilities |
| 3.54B | 3.84B | 2.80B | 2.67B | 2.62B | Stockholders Equity |
| 6.36B | 6.09B | 5.84B | 4.85B | 4.96B |
| Cash Flow | Free Cash Flow | |||
| 693.65M | 534.50M | 161.16M | 359.50M | -20.57M | Operating Cash Flow |
| 905.29M | 688.14M | 304.61M | 458.29M | 56.89M | Investing Cash Flow |
| -206.44M | -2.04B | -1.29B | -80.30M | -101.03M | Financing Cash Flow |
| -688.42M | 748.81M | 869.26M | -46.77M | -97.99M |
Cameco Technical Analysis
Negative
60.15
Price Trends
69.60
Negative
73.78
Negative
68.88
Negative
Market Momentum
-3.09
Positive
37.61
Neutral
27.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCO, the sentiment is Negative. The current price of 60.15 is below the 20-day moving average (MA) of 63.83, below the 50-day MA of 69.60, and below the 200-day MA of 68.88, indicating a bearish trend. The MACD of -3.09 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCO.
Cameco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Performance Comparison
TSE:CCO
Cameco
60.15
3.55
6.27%
DNN
Denison Mines
1.36
-0.46
-25.27%
URG
UR-Energy
0.83
-0.68
-45.03%
LUNMF
Lundin Mining
8.72
0.30
3.56%
UUUU
Energy Fuels
4.16
-1.98
-32.25%
NXE
NexGen Energy
4.74
-2.71
-36.38%
Cameco Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -9.13% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Cameco reported strong financial and operational performance with record production and a positive market outlook. However, challenges such as production issues at Inkai and potential tariff risks present notable concerns. The company remains optimistic about future growth opportunities and has taken steps to mitigate risks.Highlights
Strong Financial Performance
Cameco reported strong fourth quarter and annual net earnings, driven by a return to Tier-1 production, higher sales volumes, and improved average realized prices.
Record Production at McArthur River/Key Lake
The operation set a new annual production record with 20.3 million packaged pounds, marking a world record for annual production from any uranium mill.
Positive Market Outlook
Cameco sees supportive market conditions for nuclear fuel, with a positive outlook for existing and new nuclear reactors, benefiting both Cameco and its investment in Westinghouse.
Successful Contracting
Cameco's long-term uranium contract book totals approximately 220 million pounds, with strong pricing terms providing downside protection and exposure to improving demand.
First Distribution from Westinghouse
Cameco received its first distribution from Westinghouse, with a share of $49 million paid out to partners.
Lowlights
Inkai Production Challenges
Production at Inkai was impacted by supply chain issues in Kazakhstan, resulting in 2024 production being 600,000 pounds lower than in 2023.
Uncertainty in Kazakhstani Operations
Inkai production was temporarily halted in January 2025 due to regulatory document delays, contributing to uncertainty in production plans for the year.
Potential Tariff Risks
The threat of U.S. tariffs on Canadian energy products poses a potential risk, though Cameco expects it to have no material impact due to proactive measures.
Company Guidance
During the conference call, Cameco Corporation provided guidance for their 2025 performance, emphasizing their strong market positioning and strategic focus. They highlighted their expected production of 18 million pounds each at McArthur River/Key Lake and Cigar Lake, with uncertainties remaining around Inkai due to supply chain issues. The company’s long-term contract portfolio is set to deliver approximately 28 million pounds of uranium annually over the next five years, with stronger commitments in 2025 through 2027. Cameco's 2024 production was reported at about 23.4 million pounds, with sales volumes just under 34 million pounds. They also discussed the strategic positioning of their assets amidst geopolitical uncertainties, such as potential U.S. tariffs on Canadian energy products, and indicated that they are well-prepared to manage such risks. The financial outlook for Westinghouse, in which Cameco has a significant investment, is projected to grow between 6% to 10% annually over the next five years, reflecting strong underlying performance and future growth opportunities in the nuclear sector.Cameco Corporate Events
Business Operations and StrategyFinancial Disclosures
Cameco Reports Strong 2024 Results and Positive Outlook for Nuclear Energy
Positive
Feb 20, 2025
Cameco has reported strong financial and operational results for 2024, despite a decrease in net earnings compared to 2023 due to the Westinghouse acquisition. The company expects continued strong performance in 2025, driven by supportive market conditions and strategic investments. Cameco’s strategic focus on long-term contracting and market-related pricing, along with a growing pipeline of uranium business, positions it well to meet future demand in the nuclear sector. The company’s strategy aims to capitalize on the favorable outlook for nuclear energy amidst global geopolitical uncertainties, ensuring long-term availability of nuclear fuel supplies.
Business Operations and Strategy
Cameco Resumes Production at Inkai Joint Venture
Neutral
Jan 27, 2025
Cameco announced that production at the Inkai joint venture in Kazakhstan has resumed after a suspension. Along with its partner Kazatomprom, Cameco will assess how the disruption affects their 2025 production plans. This development may impact Cameco’s operational strategy and market positioning, considering the various geopolitical and regulatory risks involved in Kazakhstan.
Cameco Supports Westinghouse’s Dispute Resolution, Boosts Nuclear Industry Prospects
Jan 16, 2025
Cameco has announced a supportive stance regarding Westinghouse Electric Company’s resolution of an intellectual property dispute with Korea Electric Power Corporation and Korea Hydro & Nuclear Power Co., Ltd. This settlement is poised to enhance the deployment of nuclear technology globally, aligning with the industry’s goals to expand nuclear capacity in response to the growing demand for carbon-free, reliable electricity. The agreement establishes a framework beneficial to all involved parties, potentially strengthening the industry’s ability to meet climate, energy, and security objectives.
Cameco Announces Leadership Change at Westinghouse
Jan 9, 2025
Cameco has announced the resignation of Patrick Fragman as the President and CEO of Westinghouse Electric Company, effective March 31, 2025, as he plans to spend more time with his family in Europe. Dan Sumner, former President of Operating Plant Services, has been appointed deputy CEO and will serve as interim president starting April 1, 2025, while a new president and CEO are recruited. As joint owners of Westinghouse, Cameco and Brookfield play a significant role in the appointment process, which may impact the operational and strategic direction of Westinghouse, a leader in nuclear innovation and plant services.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.