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1. Company Snapshot

1.a. Company Description

Cameco Corporation produces and sells uranium.It operates through two segments, Uranium and Fuel Services.The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrate.


The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services.This segment also produces fuel bundles or reactor components for CANDU reactors.The company sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia.


Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.

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1.b. Last Insights on CCO

Cameco Corporation's recent performance was negatively impacted by escalating global trade tensions between the U.S. and China, leading to a significant market downturn. The company's exposure to the U.S. market, particularly in the context of tariffs, contributed to its decline. Additionally, Cameco's earnings plunged more than 50% in Q4 2024, despite growing sales 21% year-over-year. The company's debt refinancing efforts and positive outlook for nuclear energy were overshadowed by the broader market turmoil.

1.c. Company Highlights

2. Cameco's 2025 Earnings: A Strong Finish to a Year of Disciplined Execution

Cameco Corporation reported a robust financial performance for 2025, with annual revenue reaching $3.5 billion, an 11% increase compared to 2024. Adjusted EBITDA was $1.9 billion, up 26% from the previous year. Earnings per share (EPS) came in at $0.4947, beating analyst estimates of $0.4475. The company's strong financial performance was driven by improved realized pricing and continued value creation from its investment in Westinghouse. The adjusted EBITDA margin was robust, reflecting the company's ability to maintain a strong balance sheet, ending the year with approximately $1.2 billion in cash and short-term investments.

Publication Date: Feb -18

📋 Highlights

Operational Highlights

Cameco produced 21 million pounds of uranium on a consolidated basis in 2025, exceeding its revised annual guidance. The company's uranium production is expected to remain strong in 2026, with guidance between 19.5 million and 21.5 million pounds. The average realized price is expected to be between CAD 85 and CAD 89. The company's disciplined approach to production and marketing is reflected in its guidance, as it seeks to preserve pounds for when more demand comes to the market.

Westinghouse Investment Update

Grant Isaac, President and Chief Operating Officer, discussed the guidance framework for the Westinghouse business, stating that it's a mature investment for Cameco now. The company guides the Westinghouse core on an annual basis, with EBITDA expected to be between $400 million and $600 million per reactor. The Westinghouse core continues to perform as expected, with reactors being saved, restarted, and going through license renewal. As Grant Isaac noted, "the AP1000 new builds represent a significant opportunity for the company and that the leading OEM position for light water reactor technology is a strong basis for Westinghouse's core business."

Valuation and Outlook

Analysts estimate next year's revenue growth at 8.7%. Cameco's current valuation metrics, including a P/E Ratio of 113.79 and EV/EBITDA of 79.49, suggest that the market is pricing in significant growth expectations. The company's Return on Equity (ROE) is 8.76%, and its Return on Invested Capital (ROIC) is 5.0%. With a strong balance sheet and disciplined approach to production and marketing, Cameco is well-positioned to capitalize on the growing demand for nuclear energy.

3. NewsRoom

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Cameco Surges 99% in a Year: How to Play the Stock in 2026?

Jan -07

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Washington Commits $2.7 Billion to Break Russia’s Grip on Nuclear Fuel

Jan -07

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USA Rare Earth Stock Get RS Rating Lift As Metals Shine

Jan -06

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CanAlaska Plans Large 2026 Exploration Program at West McArthur Joint Venture

Jan -06

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Is It Too Late To Consider Cameco (TSX:CCO) After Its 7x Five Year Run

Jan -06

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Assessing Cameco’s Valuation After Strong Share Price Momentum And Elevated Earnings Multiple

Jan -05

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Cameco (CCJ) Outperforms Broader Market: What You Need to Know

Jan -05

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Energy Fuels Trades at Premium Value: Here's How to Play the Stock

Jan -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.57%)

6. Segments

Uranium

Expected Growth: 5%

Cameco's 5% uranium growth driven by increasing nuclear power demand, driven by global decarbonization efforts, and rising uranium prices. Additionally, the company's cost reduction initiatives, operational efficiencies, and strategic partnerships contribute to its growth momentum.

Westinghouse

Expected Growth: 4%

Westinghouse's 4% growth is driven by increasing demand for nuclear energy, driven by global decarbonization efforts and rising electricity demand. Additionally, Cameco's strategic investments in Westinghouse's digitalization and operational efficiency initiatives are expected to improve profitability and drive growth.

Adjustments

Expected Growth: 3%

Cameco Corporation's 3% growth is driven by increasing uranium demand, driven by nuclear power's role in reducing carbon emissions. Strong operational performance, cost savings initiatives, and strategic partnerships also contribute to growth. Additionally, the company's diversified revenue streams, including fuel services and uranium trading, provide a stable foundation for expansion.

Fuel Services

Expected Growth: 5%

Cameco's Fuel Services segment growth is driven by increasing demand for nuclear power, uranium supply constraints, and strategic partnerships. The company's unique position in the nuclear fuel cycle, coupled with its ability to provide a range of services, including fuel manufacturing and consulting, supports its growth. Additionally, the increasing adoption of clean energy sources and government support for nuclear power further fuels growth.

Other

Expected Growth: 4%

Cameco's 4% growth is driven by increasing uranium demand, nuclear reactor restarts in Japan, and growing nuclear energy adoption in China. Additionally, the company's cost reduction initiatives, improved operational efficiency, and strategic partnerships contribute to its growth momentum.

7. Detailed Products

Uranium

Cameco Corporation is one of the largest uranium producers in the world, providing fuel for nuclear reactors that generate clean electricity.

Fuel Services

Cameco's Fuel Services segment provides nuclear fuel cycle products and services, including fuel fabrication, uranium conversion, and nuclear waste management.

Nuclear Electricity Generation

Cameco's nuclear electricity generation segment operates nuclear power plants, generating clean electricity for the grid.

Nuclear Fuel Recycling

Cameco's nuclear fuel recycling segment provides services for the recycling of used nuclear fuel, reducing waste and recovering valuable materials.

Medical Isotopes

Cameco's medical isotopes segment produces and supplies radioisotopes for medical research, diagnostic, and therapeutic applications.

8. Cameco Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Cameco Corporation faces moderate threat from substitutes due to the availability of alternative energy sources such as solar and wind power. However, nuclear energy remains a significant player in the energy market, reducing the threat of substitutes.

Bargaining Power Of Customers

Cameco Corporation's customers, primarily utilities and nuclear power plants, have limited bargaining power due to the company's dominant position in the uranium market and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Cameco Corporation's suppliers, primarily mining companies, have moderate bargaining power due to the availability of alternative suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the uranium mining industry, including significant capital requirements, regulatory hurdles, and environmental concerns.

Intensity Of Rivalry

The intensity of rivalry in the uranium mining industry is high due to the presence of several established players, including Kazatomprom and Areva, which compete fiercely for market share and contracts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.65%
Debt Cost 8.28%
Equity Weight 77.35%
Equity Cost 8.58%
WACC 8.51%
Leverage 29.28%

11. Quality Control: Cameco Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 5.0

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Cameco

A-Score: 4.3/10

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Growth: 6.3

Quality: 6.7

Yield: 0.0

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Uranium Energy

A-Score: 4.1/10

Value: 6.4

Growth: 4.7

Quality: 2.5

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

161.1$

Current Price

161.1$

Potential

-0.00%

Expected Cash-Flows