It's been a great afternoon session for Cameco investors, who saw their shares rise 2.4% to a price of $79.23 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Cameco's Valuation Is in Line With Its Sector Averages:
Cameco Corporation provides uranium for the generation of electricity. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 20.25 and an average price to book (P/B) ratio of 2.31. In contrast, Cameco has a trailing 12 month P/E ratio of 90.0 and a P/B ratio of 5.12.
Cameco has moved 93.6% over the last year compared to 17.3% for the S&P 500 — a difference of 76.3%. Cameco has a 52 week high of $83.02 and a 52 week low of $35.0.
Wider Gross Margins Than the Industry Average of 21.0%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,863 | $1,800 | $1,475 | $1,868 | $2,588 | $3,136 |
| Gross Margins | 13% | 6% | 0% | 12% | 22% | 25% |
| Net Margins | 4% | -3% | -7% | 5% | 14% | 5% |
| Net Income (M) | $74 | -$53 | -$103 | $89 | $361 | $172 |
| Net Interest Expense (M) | $62 | $66 | $39 | $39 | $51 | $85 |
| Depreciation & Amort. (M) | $276 | $209 | $190 | $177 | $220 | $281 |
| Earnings Per Share | $0.19 | -$0.13 | -$0.26 | $0.22 | $0.83 | $0.39 |
| EPS Growth | n/a | -168.42% | -100.0% | 184.62% | 277.27% | -53.01% |
| Avg. Price | $10.15 | $9.82 | $19.27 | $24.15 | $43.1 | $79.75 |
| P/E Ratio | 53.42 | -75.54 | -74.12 | 109.77 | 51.93 | 199.38 |
| Free Cash Flow (M) | $527 | $57 | $458 | $305 | $688 | $905 |
| Total Debt (M) | $997 | $996 | $996 | $997 | $1,284 | $996 |
| Net Debt / EBITDA | -0.18 | 0.59 | -4.63 | -0.76 | 1.43 | 0.5 |
| Current Ratio | 6.51 | 6.4 | 5.18 | 5.92 | 1.55 | 1.62 |
Cameco benefits from generally positive cash flows, wider gross margins than its peer group, and a strong EPS growth trend. The company's financial statements show a decent current ratio of 1.62 and healthy leverage levels.
