TSX:CCO

Stock Analysis Report

Executive Summary

Cameco Corporation produces and sells uranium worldwide.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Cameco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

CCO

0.3%

CA Oil and Gas

0.1%

CA Market


1 Year Return

-25.9%

CCO

-0.9%

CA Oil and Gas

4.5%

CA Market

Return vs Industry: CCO underperformed the Canadian Oil and Gas industry which returned -0.9% over the past year.

Return vs Market: CCO underperformed the Canadian Market which returned 4.5% over the past year.


Shareholder returns

CCOIndustryMarket
7 Day-2.4%0.3%0.1%
30 Day8.1%-0.4%0.9%
90 Day-4.3%4.0%3.7%
1 Year-25.4%-25.9%3.4%-0.9%7.8%4.5%
3 Year-13.3%-16.9%-4.4%-14.6%18.2%7.5%
5 Year-31.9%-38.1%-7.3%-22.1%33.7%14.2%

Price Volatility Vs. Market

How volatile is Cameco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cameco undervalued compared to its fair value and its price relative to the market?

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCO (CA$11.95) is trading below our estimate of fair value (CA$18.12)

Significantly Below Fair Value: CCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CCO is poor value based on its PE Ratio (63.9x) compared to the Oil and Gas industry average (11.3x).

PE vs Market: CCO is poor value based on its PE Ratio (63.9x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: CCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CCO is overvalued based on its PB Ratio (0.9x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Cameco forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

45.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCO's forecast earnings growth (45.1% per year) is above the savings rate (1.4%).

Earnings vs Market: CCO's earnings (45.1% per year) are forecast to grow faster than the Canadian market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCO's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: CCO's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCO's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Cameco performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCO has a large one-off loss of CA$104.0M impacting its December 31 2019 financial results.

Growing Profit Margin: CCO's current net profit margins (4%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: CCO's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: CCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CCO had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (4.1%).


Return on Equity

High ROE: CCO's Return on Equity (1.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cameco's financial position?


Financial Position Analysis

Short Term Liabilities: CCO's short term assets (CA$1.8B) exceed its short term liabilities (CA$277.4M).

Long Term Liabilities: CCO's short term assets (CA$1.8B) do not cover its long term liabilities (CA$2.2B).


Debt to Equity History and Analysis

Debt Level: CCO's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: CCO's debt to equity ratio has reduced from 27.4% to 20% over the past 5 years.

Debt Coverage: CCO's debt is well covered by operating cash flow (52.9%).

Interest Coverage: CCO's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: CCO has a high level of physical assets or inventory.

Debt Coverage by Assets: CCO's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Cameco's current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.0%markettop25%5.4%industryaverage4.8%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: CCO's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: CCO's dividend (0.67%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: CCO is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: CCO is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CCO is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Tim Gitzel (56yo)

8.6yrs

Tenure

CA$6,765,816

Compensation

Mr. Timothy S. Gitzel, also known as Tim, has been the Chief Executive Officer at Cameco Corporation since July 1, 2011 and has been its President since May 14, 2010. Mr. Gitzel serves as the President of  ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD5.12M) is above average for companies of similar size in the Canadian market ($USD2.82M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Gitzel
President8.6yrsCA$6.77m0.076% CA$3.6m
Grant Isaac
Senior VP & CFO8.6yrsCA$2.71m0.022% CA$1.0m
Brian Reilly
Senior VP & COO2.6yrsCA$2.39m0.00063% CA$29.8k
Sean Quinn
Senior VP5.8yrsCA$1.70m0.011% CA$514.6k
Alice Wong
Senior VP & Chief Corporate Officer8.6yrsCA$1.72m0.019% CA$902.0k
Rachelle Girard
Director of Investor Relations7.6yrsno data0.0022% CA$102.6k
Scott McHardy
Director of North American Exploration & VP of Exploration7.8yrsno data0.0042% CA$196.8k
Heidi Shockey
Vice-President & Controller0yrsno data0.0016% CA$74.3k
Leah Hipperson
Manager of Treasury & Insurance0yrsno datano data

7.8yrs

Average Tenure

Experienced Management: CCO's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Gitzel
President8.6yrsCA$6.77m0.076% CA$3.6m
James Gowans
Independent Director11.1yrsCA$224.22k0.0023% CA$107.4k
Ian Bruce
Independent Chairman of the Board1.8yrsCA$230.00k0.019% CA$896.3k
Daniel Camus
Independent Director9.1yrsCA$221.80kno data
Kathryn Jackson
Independent Director3.1yrsCA$216.59kno data
Donald Kayne
Independent Director4.1yrsCA$229.27kno data
A. McLellan
Independent Director14.1yrsCA$216.00k0.000030% CA$1.4k
Catherine Gignac
Independent Director6.1yrsCA$229.50k0.0038% CA$179.3k
Donald H. Deranger
Independent Director11.1yrsCA$203.12kno data

9.1yrs

Average Tenure

63yo

Average Age

Experienced Board: CCO's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cameco Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cameco Corporation
  • Ticker: CCO
  • Exchange: TSX
  • Founded: 1987
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: CA$4.730b
  • Shares outstanding: 395.80m
  • Website: https://www.cameco.com

Number of Employees


Location

  • Cameco Corporation
  • 2121-11th Street West
  • Saskatoon
  • Saskatchewan
  • S7M 1J3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCJNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1991
CCOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1991
CJ6DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1991
CCOSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1991
0R35LSE (London Stock Exchange)YesCommon SharesGBCADJul 1991

Biography

Cameco Corporation produces and sells uranium worldwide. The company operates in 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. Its operating uranium properties include the Cigar Lake property located in Saskatchewan, Canada; and the Inkai property located in Kazakhstan. 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 and reactor components for CANDU reactors; and provides consulting services to CANDU operators. The company sells its uranium and fuel services to nuclear utilities. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:32
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.