One-glance verdict
Overvalued
$80.27 our estimate vs market $152.31
Wall Street consensus: $247.40 (208.2% higher than our fair-value estimate)
90% above our estimate, beyond the bull case
Fundamentals snapshot
Centrus Energy Corp.
LEU · NYQ · Energy · Uranium
Current price
$152.31
52-week range
$142.13 - $464.25
Market cap
$3.12B
Balance sheet
Healthy
3.59x Stretched
Net cash $691.00M. 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 5.6% last year.
- Reward Returns 8.1% on equity, ahead of 66% of its peers.
- Risk Stock trades 233.1% above its 5-year average P/E.
- Risk Operating margin compressed from 20.5% to 5.3% over 3 years.
What this company does
Centrus Energy Corp.
Centrus Energy is a key supplier of enriched uranium, which is the special fuel needed to power nuclear reactors. The company makes most of its money selling this fuel to the utility companies that operate power plants in the U.S. and around the world. As one of the few domestic producers, Centrus is an important part of the energy supply chain (the entire process of creating and distributing a product), which is vital for national energy security.
How the company got here
Centrus Energy began as a government-owned entity called the United States Enrichment Corporation (USEC), created in 1992 to take over the U.S. government's uranium enrichment program, which had been running since the 1940s. In 1998, the government sold it to the public, and it became a private company. A major turning point was its role in the "Megatons to Megawatts" program, which converted uranium from old Soviet nuclear warheads into fuel for power plants. After facing financial difficulties, the company restructured and re-emerged in 2014 with its current name, Centrus Energy Corp.
What it actually does
Think of Centrus Energy as a specialized fuel supplier for the nuclear power industry. Just as a car needs gasoline, nuclear power plants need uranium to generate electricity. Centrus doesn't mine the uranium from the ground, but it takes a form of uranium and enriches it, a process that makes it usable as fuel. It then sells this enriched uranium to utility companies that operate nuclear power plants in the U.S. and around the world.
Low-Enriched Uranium (LEU)
This is the company's main business, making up the majority of its sales. This segment is like a fuel brokerage; it sells low-enriched uranium (LEU), the standard fuel for most existing nuclear power plants, to utility companies. Centrus secures this fuel through long-term supply contracts with various producers and then sells it to the power plant operators. The revenue (money the company makes from sales) from this segment comes from these fuel sales to utilities.
Technical Solutions
This is a smaller but growing part of the company that focuses on advanced technology and services. Think of it as the research and development arm that also provides expert consulting. This segment works on contracts, often with the U.S. government, to develop new types of nuclear fuel and provide engineering and manufacturing services. A key product here is High-Assay, Low-Enriched Uranium (HALEU), a more advanced fuel needed for many next-generation nuclear reactors.
What management is betting on now
The company is heavily focused on becoming a key American producer of nuclear fuel to ensure the country isn't dependent on other nations. A major part of this strategy is expanding its production of High-Assay, Low-Enriched Uranium (HALEU), the fuel required for many new, advanced nuclear reactor designs. By building up its enrichment plant in Ohio, Centrus aims to supply both the next generation of commercial power plants and meet U.S. national security needs. This positions them to capitalize on the growing interest in nuclear power as a source of clean energy.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-34.20M
FY2024 Q4
$57.20M
FY2025 Q1
$34.40M
FY2025 Q2
$49.20M
FY2025 Q3
$5.70M
FY2025 Q4
$-58.00M
FY2026 Q1
$-58.30M
FY2026 Q2
$-53.20M
Revenue
$176.10M
Net income
$16.80M
Diluted EPS
0.77
Operating cash flow
$18.40M
Free cash flow
$-53.20M
Fetching…
Sources
Revenue
$76.70M
Net income
$10.00M
Diluted EPS
0.45
Operating cash flow
$-35.10M
Free cash flow
$-58.30M
Fetching…
Sources
Revenue
$146.20M
Net income
$17.80M
Diluted EPS
0.52
Operating cash flow
$-48.40M
Free cash flow
$-58.00M
Fetching…
Sources
Revenue
$74.90M
Net income
$3.90M
Diluted EPS
0.19
Operating cash flow
$10.10M
Free cash flow
$5.70M
Fetching…
Sources
Revenue
$154.50M
Net income
$28.90M
Diluted EPS
1.59
Operating cash flow
$52.80M
Free cash flow
$49.20M
Fetching…
Sources
Revenue
$73.10M
Net income
$27.20M
Diluted EPS
1.60
Operating cash flow
$36.50M
Free cash flow
$34.40M
Fetching…
Sources
Revenue
$151.60M
Net income
$53.70M
Diluted EPS
3.26
Operating cash flow
$57.90M
Free cash flow
$57.20M
Fetching…
Sources
Revenue
$57.70M
Net income
$-5.00M
Diluted EPS
-0.30
Operating cash flow
$-33.20M
Free cash flow
$-34.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $80.27 vs current price $152.31
Wall Street consensus is the average analyst price target: $247.40 (208.2% higher than our fair-value estimate).
Our most-likely fair value is $80.27 a share — about 47.3% below today's price of $152.31, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $691.0M - more cash than debt. Interest coverage 3.6x.
Net debt
$-691.00M
Interest coverage
3.59x
Centrus Energy Corp.'s profit covers its interest bill about 3.6 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
LEU
BASELINE
Centrus Energy Corp.
Total debt $1.18B Interest coverage 3.59x This is the baseline the peer rows are being compared against.
Total debt $880.64M Interest coverage 6.49x +81% vs LEU Carries about 1.8x more debt cushion than LEU.
Total debt $1.91M Interest coverage -50.78x -100% vs LEU This peer has almost no interest-payment cushion compared with LEU.
Total debt $678.34M Interest coverage -609.37x -100% vs LEU This peer has almost no interest-payment cushion compared with LEU.
Total debt $446.23M Interest coverage -1.92x -100% vs LEU This peer has almost no interest-payment cushion compared with LEU.
Total debt $2.02B Interest coverage 7.34x +105% vs LEU Carries about 2.0x more debt cushion than LEU.
What you should know
The case for and against LEU
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.6% last year.
-
Returns 8.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 233.1% above its 5-year average P/E.
-
Operating margin compressed from 20.5% to 5.3% over 3 years.
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)
80.59x
Forward P/E
40.51x
P/B
3.59x
P/S
6.57x
EV/EBITDA
232.48x
PEG ratio
2.87x
Profitability
How much profit each dollar creates
Gross margin
23.7%
Operating margin
5.3%
Net margin
10.2%
ROE
8.1%
ROA
0.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.39x
Current ratio
5.39x
Quick ratio
4.41x
Total debt
$1.18B
Total cash
$1.87B
Growth
How the business has been compounding
Revenue TTM
$473.90M
Revenue 5Y CAGR
10.7%
EPS TTM
1.89
EPS 5Y CAGR
4.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$-55.00M
Free CF TTM
$31.30M
FCF margin
6.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2005-11-22