Cameco Corporation (CCJ, Financial) experienced a notable stock movement today, with its price declining by 4.51% to $44.44. This decline occurs despite initial positive momentum following its 2024 earnings release.
The latest earnings report for Cameco (CCJ, Financial) revealed a 21% year-over-year sales increase for 2024. However, despite the positive sales growth, earnings have significantly decreased by more than 50% to $0.39 per share. This earnings drop reflects ongoing challenges within the uranium market, as uranium prices have fallen approximately 31% from their peaks of around $95 per pound last year, settling at approximately $65 per pound.
Currently, Cameco (CCJ, Financial) maintains a market valuation of approximately $19.24 billion, with a reported net income of $119 million over the past year. This results in a steep price-to-earnings (P/E) ratio of 161.01, which is considerably higher than the industry average. On a positive note, the company has generated a robust free cash flow of $482 million, contributing to a price-to-free-cash-flow ratio of 40, offering some financial stability.
Despite the challenging market conditions, Cameco's management continues to hold a positive outlook on the long-term fundamentals of nuclear power and fuel. The company's financial strength is further highlighted by its strong Altman Z-score of 6.61, which suggests a reduced likelihood of bankruptcy. Cameco's (CCJ, Financial) GF Value is assessed as "Fairly Valued," with a GF Value estimate of $41.79. Investors who are interested in a deeper evaluation can view more details on the GF Value page.
