Cameco Corporation Fundamental Analysis (TSX: CCO.TO)
Cameco Corporation (TSX: CCO.TO) shows moderate financial fundamentals with a PE ratio of 171.07, profit margin of 10.21%, and ROE of 5.09%. The company generates $3.5B in annual revenue with strong year-over-year growth of 11.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CCO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCCO.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCCO.TO shows balanced valuation metrics.
Growth Score
ModerateCCO.TO shows steady but slowing expansion.
Financial Health Score
ExcellentCCO.TO maintains a strong and stable balance sheet.
Profitability Score
WeakCCO.TO struggles to sustain strong margins.
Key Financial Metrics
Is CCO.TO Expensive or Cheap?
P/E Ratio
CCO.TO trades at 171.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CCO.TO's PEG of -5.13 indicates potential undervaluation.
Price to Book
The market values Cameco Corporation at 8.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 70.76 times EBITDA. This signals the market has high growth expectations.
How Well Does CCO.TO Make Money?
Net Profit Margin
For every $100 in sales, Cameco Corporation keeps $10.21 as profit after all expenses.
Operating Margin
Core operations generate 14.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.09 in profit for every $100 of shareholder equity.
ROA
Cameco Corporation generates $3.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cameco Corporation generates strong operating cash flow of $890.08M, reflecting robust business health.
Free Cash Flow
Cameco Corporation generates strong free cash flow of $504.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
CCO.TO converts 0.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
171.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CCO.TO Stacks Against Its Sector Peers
| Metric | CCO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 171.07 | 21.23 | Worse (Expensive) |
| ROE | 5.09% | 1266.00% | Weak |
| Net Margin | 10.21% | 1278.00% | Weak |
| Debt/Equity | 0.14 | -1.82 (disorted) | Distorted |
| Current Ratio | 3.06 | 2.24 | Strong Liquidity |
| ROA | 3.45% | 4418.00% | Weak |
CCO.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cameco Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.87%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1108.18%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
14337.44%
Industry Style: Cyclical, Value, Commodity
High Growth