One-glance verdict
Overvalued
$43.98 our estimate vs market $79.07
Wall Street consensus: $125.52 (185.4% higher than our fair-value estimate)
80% above our estimate, beyond the bull case
Fundamentals snapshot
Cameco Corporation
CCJ · NYQ · Energy · Uranium
Current price
$79.07
52-week range
$76.92 - $135.24
Market cap
$34.44B
Balance sheet
Watch
6.49x Adequate
Net debt $78.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 11.0% last year.
- Reward Returns 5.1% on equity, ahead of 80% of its peers.
- Risk Stock trades 51.2% above its 5-year average P/E.
- Risk Insider ownership is only 0.1% (peer median: 1.5%).
What this company does
Cameco Corporation
Cameco Corporation (CCJ) sells uranium and related services that power nuclear reactors, primarily earning its money from selling uranium concentrate. This matters because they are a key supplier of fuel for electricity generation worldwide. They also offer services like refining uranium and parts for nuclear reactors, which adds to their revenue streams.
How the company got here
Cameco Corporation was formed in 1988 through the merger of two Canadian government-owned companies: Eldorado Nuclear Limited and Saskatchewan Mining Development Corporation. This merger brought together significant uranium assets and expertise, laying the foundation for Cameco to become a major player in the global uranium market. The company was privatized in 1991, allowing it to access capital markets and expand its operations through strategic acquisitions, including becoming the largest uranium producer in the United States in 1996. Cameco has navigated the cyclical nature of the uranium market, including periods of low prices and a significant tax dispute with Canadian tax authorities, while continuing to invest in its core assets and explore new opportunities within the nuclear fuel cycle.
What it actually does
Cameco Corporation is a leading global supplier of the fuel needed to generate electricity from nuclear power. They are involved in mining uranium ore, which is then processed into a form suitable for use in nuclear reactors. Beyond mining, Cameco also provides essential services further down the nuclear fuel chain, such as refining and converting uranium, and even manufacturing fuel assemblies. Their products and services are crucial for nuclear utilities worldwide that operate reactors to produce clean, reliable electricity.
Uranium
This is Cameco's largest business segment, focused on the exploration, mining, and milling of uranium ore. They operate some of the world's largest and highest-grade uranium mines, primarily located in Canada and Kazakhstan. The uranium concentrate produced here is the raw material that is then sold to customers or further processed by Cameco's other segments. This segment is the bedrock of the company, providing the essential commodity that powers nuclear reactors.
Fuel Services
The Fuel Services segment takes the raw uranium concentrate and processes it into the forms needed for nuclear reactors. This includes refining uranium into a high-purity compound, converting it into uranium hexafluoride (UF6) – a gas used in the enrichment process – and fabricating it into fuel assemblies. Cameco operates the world's largest commercial uranium refinery and has significant conversion and fabrication capabilities, making it a key provider of essential nuclear fuel components.
Westinghouse
Cameco holds a significant ownership interest in Westinghouse Electric Company, a major player in the nuclear industry. Westinghouse is known for its nuclear reactor technology and provides a wide range of products and services to commercial nuclear power plants and government agencies. This includes services like plant maintenance, engineering support, and the supply of critical components. Cameco's investment in Westinghouse broadens its reach across the nuclear fuel cycle, offering exposure to reactor technology and related services.
What management is betting on now
Cameco's management is focused on being a reliable, long-term supplier to the global nuclear power industry, emphasizing stable, long-term contracts over short-term market fluctuations. They are investing in their tier-one uranium assets to ensure a consistent supply of high-quality ore. Furthermore, their strategic investment in Westinghouse Electric Company signals a bet on the continued importance of nuclear power for clean energy generation and an expansion into broader nuclear fuel cycle services. This diversified approach aims to provide comprehensive nuclear fuel solutions to utilities worldwide.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $43.98 vs current price $79.07
Wall Street consensus is the average analyst price target: $125.52 (185.4% higher than our fair-value estimate).
Our most-likely fair value is $43.98 a share — about 44.4% below today's price of $79.07, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $78.1M. Interest coverage 6.5x.
Net debt
$78.07M
Interest coverage
6.49x
Cameco Corporation's profit covers its interest bill about 6.5 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
CCJ
BASELINE
Cameco Corporation
Total debt $872.08M Interest coverage 6.49x This is the baseline the peer rows are being compared against.
Total debt $441.77M Interest coverage -1.92x -100% vs CCJ This peer has almost no interest-payment cushion compared with CCJ.
Total debt $2.95M Interest coverage -64.30x -100% vs CCJ This peer has almost no interest-payment cushion compared with CCJ.
Total debt $678.34M Interest coverage -609.37x -100% vs CCJ This peer has almost no interest-payment cushion compared with CCJ.
Total debt $490.42M Interest coverage -5.64x -100% vs CCJ This peer has almost no interest-payment cushion compared with CCJ.
What you should know
The case for and against CCJ
3 Rewards
2 Risks
Rewards
-
Revenue grew 11.0% last year.
-
Returns 5.1% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 51.2% above its 5-year average P/E.
-
Insider ownership is only 0.1% (peer median: 1.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
134.02x
Forward P/E
41.80x
P/B
6.78x
P/S
9.91x
EV/EBITDA
43.27x
PEG ratio
1.92x
Profitability
How much profit each dollar creates
Gross margin
35.1%
Operating margin
9.1%
Net margin
10.2%
ROE
5.1%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.17x
Current ratio
3.06x
Quick ratio
1.88x
Total debt
$872.08M
Total cash
$794.00M
Growth
How the business has been compounding
Revenue TTM
$2.48B
Revenue 5Y CAGR
23.1%
EPS TTM
0.59
EPS 5Y CAGR
83.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.01B
Free CF TTM
$767.38M
FCF margin
31.0%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
29.6%
Last ex-div date
2025-12-01