Sure, here’s a rewritten version:
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So, not too long ago, everyone kinda freaked out about nuclear energy. Remember the Cold War jitters? Yeah, nobody wanted more fallout scares. Chernobyl? That didn’t help the image at all. But wow, how times have changed.
Nuclear’s getting a whole new look these days. It’s got fans everywhere, from die-hard advocates to the “green energy” folks. Why? It seems like it’s safer, way more efficient, and doesn’t mess up the planet like it used to.
Apparently, tech’s keeping up too. And with climate change breathing down our necks, we need energy that’s not gonna toast us. Solar and wind — awesome, but not enough on their own. Nuclear’s on the table now, like everyone’s finally on the same page.
And uranium? Talk about the hot new thing! Cameco, out in Saskatchewan, Canada, is swimming in the stuff. They’ve been mining uranium since, well, forever it seems.
Man, their stock? It’s been riding a rocket! Went from $16 in early 2022 to a whopping near $78. That’s almost five times as much! Why? Nuclear energy’s back in business, baby!
But, wait a sec. Did it just shoot past the basics? Cameco just spilled the beans on their latest numbers — the nuclear future’s real, they say.
Their revenue hit $877 mil, a jump of 47% compared to last year. Net earnings? Up from $36 mil to $321 mil.
Now, here’s the kicker — uranium prices. They got $57.35 per pound, a smidge up from $56.43. Sounds tiny, but in uranium world, that’s a big deal.
In the latest quarter, they produced 4.6 million pounds but sold 8.7 million pounds, dipping into their inventory. Utilities are loading up — nuclear’s hot, remember?
They also pulled in $465 mil in operating cash flow this quarter — that’s a 79% bump from last year. Real cash rolling in!
But wait, costs? They ain’t sitting still. Cash cost per pound jumped to $35.55 from $34.76. Prices are up, costs are up, too — a tug-of-war right there.
Still, overall it’s looking rosy. They doubled their adjusted EBITDA to hit $673 million compared to the same quarter in 2024.
Oh, the Value Meter’s throwing numbers at us. Cameco’s enterprise value-to-net asset value ratio is sitting at 7.14. For every dollar of assets after debt, you’re shelling out 7 bucks. That’s kinda cheap against the average of 12.32.
But here’s the snag: Their free cash flow-to-net asset value is only 1.46%. So for every hundred bucks in net assets, they’re making less than $1.50 in free cash. Compare that to a -26.98% average and Cameco looks decent… barely.
Their free cash flow growth’s been hit-or-miss, with a 45.5% growth quarter over quarter over 12 quarters, close to the 47.58% average. Not outstanding, just holding steady.
The classic commodity jam. Uranium’s going up, and costs too. Nuclear’s making a comeback, but the stock’s already partying with price gains.
Right now, buying at these levels? You’re banking on uranium prices hiking more and fresh nuclear plants popping up everywhere. Both could happen but nothing’s for sure.
The Value Meter’s cautioning. Investors are paying a premium for a profitable company that’s not making the expected cash flow at these high prices.
Speculative investors who love a good gamble might dig Cameco. But value hunters? Maybe wait for a sale.
In a nutshell? Sometimes the smart move’s just knowing when to hold out for a better deal.
The Value Meter dubs Cameco “Slightly Overvalued.”
Got another stock you’re curious about? Drop the ticker in the comments!
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