Cameco Corporation Common Stock (CCJ)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Cameco as a commodity processor with a nuclear-fuel twist. It mines uranium and provides conversion and fuel services, and Westinghouse adds a reactor-technology piece. Nuclear utilities need reliable fuel, so there can be a durable franchise, but the current numbers show cyclicality and poor profitability. In its latest reported quarter, fiscal Q2 2026, revenue was $813.8 million and net income only $25.2 million, a 3.10% margin. The supplied revenue growth and profit growth figures are -7.21% and -92.14%, respectively, so earnings are not merely soft. FairStock's returns on equity and capital are modest—5.11% ROE and 2.98% ROCE—not what I want in a high-quality compounder. On the plus side, debt to equity is low at 0.17 and the Altman Z-Score is 11.27, suggesting financial staying power. Trailing free cash flow is $555.9 million, but that is only a 1.0% FCF yield against a $55.1 billion market cap. At the 2026-10-13 close of $86.15, FairStock calculates a P/E of 148.53 and P/B of 7.36. The Graham Number is $14.62, leaving a -489.26% margin of safety—not a Graham bargain. EV/EBITDA is 64.08, and the dividend yield is 0.19%. The market is pricing a major future recovery in uranium and nuclear demand while current earnings are tiny. I prefer to buy a dollar of earnings for well under a dollar. Here I see a low-leverage cyclical with strategic assets, but the price already assumes a lot. Without a clear earnings inflection, the main risk is overpaying rather than insolvency.

In plain English: Cameco supplies uranium and nuclear fuel services that help make electricity. The business has low debt and some positive cash flow, but profits have fallen sharply and the latest reported quarter showed only a small profit. At the recent stock price, the shares look expensive compared with the company's current earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer