Cameco logged a 2.5% change during today's afternoon session, and is now trading at a price of $52.99 per share.
Cameco returned gains of 98.7% last year, with its stock price reaching a high of $54.93 and a low of $26.15. Over the same period, the stock outperformed the S&P 500 index by 72.6%. More recently, the company's 50-day average price was $48.11. Cameco Corporation provides uranium for the generation of electricity. The Large-Cap Basic Materials company is headquartered in Saskatoon, Canada. Cameco has offered a 0.2% dividend yield over the last 12 months.
An Excellent Current Ratio but Positive Cash Flows:
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,157 | $2,092 | $1,863 | $1,800 | $1,475 | $1,868 |
| Gross Margins | 20% | 14% | 13% | 6% | 0% | 12% |
| Net Margins | -9% | 8% | 4% | -3% | -7% | 5% |
| Net Income (M) | -$205 | $166 | $74 | -$53 | -$103 | $89 |
| Net Interest Expense (M) | $72 | $72 | $62 | $66 | $39 | $39 |
| Depreciation & Amort. (M) | $330 | $328 | $276 | $209 | $190 | $177 |
| Earnings Per Share | -$0.52 | $0.42 | $0.19 | -$0.13 | -$0.26 | $0.22 |
| EPS Growth | n/a | 180.77% | -54.76% | -168.42% | -100.0% | 184.62% |
| Avg. Price | $9.29 | $10.33 | $10.15 | $9.82 | $19.27 | $24.15 |
| P/E Ratio | -17.87 | 24.6 | 53.42 | -75.54 | -74.12 | 109.77 |
| Free Cash Flow (M) | $596 | $668 | $527 | $57 | $458 | $305 |
| Total Debt (M) | $1,494 | $996 | $997 | $996 | $996 | $997 |
| Net Debt / EBITDA | 4.46 | 0.71 | -0.18 | 0.59 | -4.63 | -0.76 |
| Current Ratio | 5.2 | 2.38 | 6.51 | 6.4 | 5.18 | 5.92 |
Cameco has an excellent current ratio of 5.92, positive EPS growth, and healthy leverage levels. However, the firm suffers from slimmer gross margins than its peers and positive cash flows.
Cameco's Valuation Is in Line With Its Sector Averages:
Cameco has a trailing twelve month P/E ratio of 123.4, compared to an average of 16.53 for the Basic Materials sector. Based on its EPS guidance of $1.31, the company has a forward P/E ratio of 36.7. Cameco's PEG ratio is 9.1 on the basis of the 13.6% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Cameco is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.76 is higher than the sector average of 2.07. Ultimately, Cameco's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Cameco Has an Analyst Consensus of Some Upside Potential:
The 8 analysts following Cameco have set target prices ranging from $40.78 to $58.83 per share, for an average of $53.48 with a buy rating. The company is trading -0.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
The largest shareholder is FMR, LLC, whose 9% stake in the company is worth $2,155,876,439.
