Cameco Corp (NYSE: CCJ)

Sector: Energy Industry: Uranium CIK: 0001009001
Market Cap 49.32 Bn
P/B 9.79
P/E 114.61
P/S 19.41
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 727.26 Mn
Debt/Equity (Qtr) 0.14
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About

Investment thesis

Bull case

  • Strong operating cash flow of 1.03B provides robust 1.41x coverage of total debt 727.26M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.03B provides exceptional 40240.91x coverage of minority interest expenses 25547.45, showing strong core operations.
  • Strong tangible asset base of 7.49B provides 10.30x coverage of total debt 727.26M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.03B provides exceptional 12.23x coverage of interest expenses 84.07M, showing strong debt service capability.
  • Operating cash flow of 1.03B provides strong 145.86x coverage of stock compensation 7.05M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 1.03B barely covers its investment activities of (316.44M), with a coverage ratio of -3.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (316.44M) provide weak support for R&D spending of 48.25M, which is -6.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.03B provides thin coverage of dividend payments of (76.26M) with a -13.48 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 785.15M represents just -3.74x of debt issuance (210.20M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 1.03B barely covers operating expenses of (18.41M) with a -55.85 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Uranium
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CCJ Cameco Corp 49.32 Bn 114.61 19.41 0.73 Bn
2 UEC Uranium Energy Corp 6.96 Bn -89.41 139.89 0.00 Bn
3 NXE NexGen Energy Ltd. 6.68 Bn -27.65 0.00 0.43 Bn
4 UUUU Energy Fuels Inc 4.10 Bn -41.98 52.11 0.00 Bn
5 LEU Centrus Energy Corp 3.58 Bn 46.04 7.98 1.21 Bn
6 DNN Denison Mines Corp. 3.39 Bn -23.90 960.20 0.43 Bn
7 URG Ur-Energy Inc 0.48 Bn -7.00 12.17 0.00 Bn
8 EU enCore Energy Corp. 0.46 Bn -6.92 10.52 0.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.18 3.07
EV to Cash from Ops. EV/CFO 37.86 -35.53
EV to Debt EV to Debt 53.51 -44.61
EV to EBIT EV/EBIT 59.74 -42.94
EV to EBITDA EV/EBITDA 58.51 -16.75
EV to Free Cash Flow [EV/FCF] EV/FCF 49.57 -5.26
EV to Market Cap EV to Market Cap 0.79 0.69
EV to Revenue EV/Rev 15.31 109.48
Price to Book Value [P/B] P/B 9.79 6.09
Price to Earnings [P/E] P/E 114.61 27.71
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 4.12 0.46
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 0.00
Interest Coverage Interest Coverage 7.75 -4.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -65.57 -100.48
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 95.15 137.12
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.00
EBIAT Growth (1y) % EBIAT Growth (1y) % 163.17 -82.97
EBITDA Growth (1y) % EBITDA Growth (1y) % 21.11 -53.14
EBIT Growth (1y) % EBIT Growth (1y) % 132.25 -84.03
EBT Growth (1y) % EBT Growth (1y) % 218.24 -137.30
EPS Growth (1y) % EPS Growth (1y) % 254.74 -106.13
FCF Growth (1y) % FCF Growth (1y) % 62.91 -23.04
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 30.32 -19.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.25 0.11
Cash Payout Ratio Cash Payout Ratio 0.06 0.01
Cash Ratio Cash Ratio (Qtr) 1.04 13.47
Current Ratio Curr Ratio (Qtr) 2.47 37.30
Debt to Equity Ratio Debt/Equity (Qtr) 0.14 0.48
Interest Cover Ratio Interest Cover Ratio 7.75 -4.27
Times Interest Earned Times Interest Earned 7.75 -4.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 34.00 -178.16
EBIT Margin % EBIT Margin % 35.12 -270.80
EBT Margin % EBT Margin % 22.32 -512.43
Gross Margin % Gross Margin % 27.90 9.66
Net Profit Margin % Net Profit Margin % 16.90 -509.86