Group 1 - Centrus Energy Corp. shares increased by 8.6% to close at $45.01, with notable trading volume compared to typical sessions, and a total gain of 10.4% over the past four weeks [1][2] - The stock's rise is attributed to a contingent supply agreement with Korea Hydro & Nuclear Power for a decade of low-enriched uranium deliveries, which supports the company's uranium enrichment capacity at its American Centrifuge Plant in Piketon, OH [2][3] - Centrus aims to re-establish a large-scale, U.S.-owned uranium enrichment facility, focusing on expanding operations for low-enriched uranium and high-assay low-enriched uranium for existing and advanced reactors, contingent on funding and procurement agreements [3] Group 2 - The company is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 65.4%, while revenues are projected to be $56.5 million, an increase of 10.1% from the previous year [4] - The consensus EPS estimate for Centrus has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] - Centrus Energy holds a Zacks Rank of 1 (Strong Buy), indicating strong potential in the stock, while Southern Copper, a peer in the same industry, has a Zacks Rank of 4 (Sell) [5][6]

Group 1: Federal Reserve Actions and Market Impact - The Federal Reserve cut interest rates by 50 basis points in September, indicating further cuts are likely through 2024 and into 2025 [1][3][4] - Historically, lower interest rates benefit bonds, gold, and rate-sensitive sectors like real estate and utilities, while small-cap stocks tend to perform better due to their higher debt loads [3][5] - The Real Estate Select Sector SPDR Fund (XLRE) increased by 17.3%, Utilities Select Sector SPDR ETF (XLU) rose by 12.3%, and SPDR Gold Shares ETF (GLD) climbed by 10.6% over the last 90 days [2] Group 2: Investment Opportunities - Centrus Energy Corp. (LEU) is highlighted as a strong investment due to the increasing demand for processed uranium and its role in the nuclear energy sector, which is a reliable and carbon-free energy source [6][9] - M/I Homes Inc. (MHO) is recommended as a home builder to invest in, with expected earnings per share of $20.76 in 2025, reflecting a more than 15% increase since the last quarterly report [10][12] - Analysts predict significant upside for MHO shares, with a target price of $210, indicating a potential for growth as interest rates decline [11][12]

Industry Overview - The nuclear industry is experiencing a resurgence after a decline post-Fukushima, with countries like Japan restarting reactors and new ones being developed in China, Europe, India, and Korea [2] - Global nuclear electricity generation is projected to reach an all-time high in 2025, with nuclear energy and renewables expected to surpass coal-fired generation by 2026 [3] - The electrification of transport and expansion of data centers are driving the demand for electricity, necessitating a shift away from fossil fuels [3] Nuclear Fuel Supply Challenges - The U.S. nuclear fuel supply chain has deteriorated, leading to reliance on imports from Russia and China, which is now deemed untenable due to geopolitical tensions [4] - Centrus Energy is positioned as a key player, being the only U.S. company licensed to produce 20% enriched uranium (HALEU) for new small modular reactors and 5% enriched fuel (LEU) for existing reactors [1][5] Centrus Energy Operations - Centrus Energy was formed from the privatization of U.S. uranium enrichment operations and has since restructured its debt and improved its financial position [5] - The company operates two segments: LEU supply and Technical Solutions, focusing on developing new enrichment capabilities [5] - Centrus has secured long-term contracts for LEU and is actively working with the U.S. government to rebuild domestic enrichment capabilities [5][8] Recent Developments - In October 2023, Centrus restarted enrichment operations at its Piketon, Ohio site, producing the first domestic HALEU and delivering it to the government in November [9] - The company has received over $180 million in funding from the U.S. government to construct an enrichment facility, with plans to scale production [8][9] Financial Performance - Centrus reported significant year-over-year growth, with revenue in both segments up over 100% and net income up over 70% [11] - The company has a robust order book, including $900 million in new orders for enriched uranium contingent on building a domestic enrichment site [12] - Centrus has made strides in reducing its pension liabilities, improving its balance sheet significantly since its Chapter 11 bankruptcy [13] Competitive Position - Centrus is the only licensed producer of HALEU in the U.S. and has established MOUs with companies developing next-generation reactors, positioning itself as a dominant supplier [12] - The U.S. government's requirement for enriched uranium for national security provides Centrus with a competitive advantage, as foreign companies are excluded from this market [12][8] Future Outlook - The U.S. government has earmarked billions for rebuilding enrichment capabilities, with broad bipartisan support ensuring continuity of funding [8][20] - Centrus is targeting a total addressable market of $10 billion by 2035, with significant government funding available to establish a domestic enrichment supply chain [9][20] - The company is well-positioned to capitalize on the growing demand for nuclear fuel as the industry evolves and expands [20]

Centrus Energy Corp. (LEU) announced that it inked a contingent supply agreement with Korea Hydro & Nuclear Power for a decade of low-enriched uranium deliveries to feed Korea's reactors. This deal has made a significant step forward in the company's efforts to deploy uranium enrichment capacity at its American Centrifuge Plant in Piketon, OH. Centrus' Contingent Supply Commitment This latest commitment brings the total contingent sales commitments to $1.8 billion, demonstrating strong private sector suppor ...

Core Points - Centrus Energy Corp. has secured a total of $1.8 billion in contingent sales commitments, including a significant commitment from Korea Hydro & Nuclear Power (KHNP), to support the construction of new uranium enrichment capacity in the U.S. [1][2][3] - The commitments are contingent upon entering definitive agreements and securing necessary public and private investments for the new capacity [2][5]. - The partnership with KHNP aims to enhance the stability and diversity of the global nuclear fuel market, supporting the growth of carbon-free nuclear energy [3][4]. Company Developments - Centrus has deployed a cascade of 16 advanced centrifuges at its American Centrifuge Plant in Piketon, Ohio, which began producing High-Assay, Low-Enriched Uranium (HALEU) in late 2023, marking a significant milestone as the first U.S.-owned uranium enrichment plant to start production in 70 years [4][5]. - The company plans to scale up production with additional centrifuges for both Low-Enriched Uranium (LEU) and HALEU, contingent on securing sufficient funding and purchase agreements [5][6]. - Centrus is actively competing for federal funding to boost U.S. production of LEU and HALEU, with Congress having allocated over $3.4 billion for this initiative [6]. Industry Impact - The collaboration with KHNP is expected to bring greater stability and price competition to the global nuclear fuel market, which is crucial for the long-term growth of nuclear energy [3][4]. - The establishment of a U.S.-owned uranium enrichment capability is seen as a strategic move to enhance energy security and reduce reliance on foreign sources [3][5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Centrus Energy (LEU) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7] Company Summary - Centrus Energy (LEU) has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 13.07, significantly lower than the industry average of 21.19, suggesting it may be undervalued [4] - LEU's Forward P/E has fluctuated between 12.19 and 25.32 over the past 52 weeks, with a median of 18.24, indicating variability in market perception [4] - The P/S ratio for LEU is 1.6, compared to the industry's average of 2.55, further supporting the notion of undervaluation [5] - LEU's P/CF ratio stands at 6.53, well below the industry average of 17.81, highlighting its attractive cash flow outlook [6] - Over the past 12 months, LEU's P/CF has ranged from 5.95 to 21.70, with a median of 8.95, indicating strong cash flow performance [6] - Overall, the combination of these metrics suggests that Centrus Energy is likely undervalued and presents an impressive investment opportunity for value investors [7]

BETHESDA, Md., Aug. 19, 2024 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) today announced that management will participate in the following upcoming investor conferences. On Thursday, September 5, Kevin Harrill, CFO, is scheduled to host one-on-one investor meetings at the Jefferies 2024 Industrials Conference in New York City, NY. On Wednesday, September 11, Amir Vexler, President and CEO, and Kevin Harrill, CFO, are scheduled to host one-on-one investor meetings at the 26th Annual H.C. Wainwr ...

Centrus Energy Corp. (LEU) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power o ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. On top of the ...

Geopolitical and Supply Chain Risks - Risks related to the war in Ukraine and geopolitical conflicts, including potential sanctions or bans impacting the company's ability to obtain, deliver, or sell LEU and natural uranium hexafluoride components under the TENEX Supply Contract[11] - Risks related to laws banning imports of Russian LEU into the United States, including the Import Ban Act, and transactions with Rosatom or its subsidiaries[11] - Risks related to the company's dependence on suppliers like TENEX and Orano, and potential negative impacts on liquidity due to supply chain disruptions[13] - Risks related to increasing quantities of LEU being imported into the U.S. from China, potentially affecting future sales and financing for enrichment capacity buildout[13] HALEU and Government Contracts - Risks related to government funding or demand for HALEU (High-Assay Low-Enriched Uranium) for government or commercial uses, and uncertainty regarding its materialization[13] - Risks related to the company's ability to perform under the HALEU Operation Contract and secure new contracts and funding for continued operations[13] - The HALEU Operation Contract has a base value of approximately $150 million, with Phase 1 completed and Phase 2 expected to be worth approximately $90 million[41] - The company has delivered approximately 179 kilograms of HALEU UF6 to the DOE, with a target of 900 kilograms per year under Phase 2 of the HALEU Operation Contract[41] Cybersecurity and Operational Risks - Risks related to cybersecurity incidents that may impact business operations and the ability to perform under government contracts[15] Financial Liabilities and Pension Obligations - Risks related to the company's long-term liabilities, including unfunded pension plan obligations and postretirement health and life benefit obligations[16] - The company recorded a remeasurement gain of $16.6 million for both the three and six months ended June 30, 2024, due to lump sum payouts and the transfer of pension plan obligations to an insurer[66][67] - The company transferred approximately $234 million of pension plan obligations to an insurer, funded by $224 million of pension plan assets[66] Competitive and Industry Risks - Risks related to the competitive environment for the company's products and services, including potential changes in the nuclear energy industry[18] Legal and Regulatory Risks - Risks related to legal proceedings, government investigations, and potential claims or litigation arising from past activities at operational sites[19] - The company is assessing a potential liability of approximately $9.6 million related to the Joppa Power Plant D&D costs under the Power MOU with DOE[87] - The company is involved in a class action lawsuit related to alleged off-site contamination from activities at the Portsmouth GDP site, with claims proceeding to the discovery stage[89] - The company is named as a defendant in a lawsuit alleging radiation release in violation of the Price-Anderson Act, with the company seeking indemnification under the Act[90] - The company and Enrichment Corp. are involved in legal proceedings related to alleged radiation release, but believe their operations were in compliance with NRC regulations and expect indemnification under the Price-Anderson Act[91][93] - The company does not believe that the outcome of any legal matters will have a material adverse effect on its cash flows, results of operations, or consolidated financial condition[94] Financial Performance and Revenue Growth - Total revenue for Q2 2024 increased to $189.0 million, up from $98.4 million in Q2 2023, driven by growth in separative work units and technical solutions[24] - Net income for Q2 2024 rose to $30.6 million, compared to $12.7 million in Q2 2023, reflecting improved profitability[24] - Gross profit for Q2 2024 was $36.5 million, up from $28.0 million in Q2 2023, driven by higher revenue and cost management[24] - Basic net income per share for Q2 2024 was $1.89, compared to $0.84 in Q2 2023, indicating strong earnings growth[24] - Revenue from separative work units surged to $139.7 million in Q2 2024, up from $48.1 million in Q2 2023, reflecting strong demand[24] - Technical solutions revenue grew to $19.4 million in Q2 2024, up from $10.8 million in Q2 2023, indicating expansion in this segment[24] - Net income for the six months ended June 30, 2024, increased to $24.5 million from $19.9 million in 2023, reflecting a 23.1% growth[26] - Revenue from SWU and uranium sales for the six months ended June 30, 2024, was $193.2 million, up from $146.4 million in 2023, a 32.0% increase[35] - Revenue from foreign markets for the six months ended June 30, 2024, was $107.1 million, up from $14.9 million in 2023, a 618.8% increase[35] - Revenue for the LEU segment in June 2024 was $169.6 million, compared to $87.6 million in June 2023, representing a significant increase[95] - Revenue for the Technical Solutions segment in June 2024 was $19.4 million, compared to $10.8 million in June 2023, showing growth[95] - Gross profit for the LEU segment in June 2024 was $33.0 million, compared to $26.8 million in June 2023[95] - Gross profit for the Technical Solutions segment in June 2024 was $3.5 million, compared to $1.2 million in June 2023[95] - Total revenue for the company in June 2024 was $189.0 million, compared to $98.4 million in June 2023[95] - Total gross profit for the company in June 2024 was $36.5 million, compared to $28.0 million in June 2023[95] - Four major customers in the LEU segment contributed $42.3 million, $35.4 million, $34.5 million, and $30.2 million respectively in the three months ended June 30, 2024[97] - One major customer in the Technical Solutions segment contributed $18.9 million in the three months ended June 30, 2024[97] Cash Flow and Liquidity - Cash and cash equivalents increased to $227.0 million as of June 30, 2024, up from $201.2 million at the end of 2023[22] - Total current assets decreased to $592.5 million as of June 30, 2024, down from $685.4 million at the end of 2023, primarily due to lower inventories[22] - Total liabilities decreased to $591.6 million as of June 30, 2024, down from $763.9 million at the end of 2023, reflecting reduced long-term debt and other liabilities[22] - Total stockholders' equity increased to $76.6 million as of June 30, 2024, up from $32.3 million at the end of 2023, driven by improved retained earnings[22] - Cash provided by operating activities for the six months ended June 30, 2024, was $12.3 million, compared to $15.2 million in 2023, a decrease of 19.1%[26] - Accounts receivable as of June 30, 2024, decreased to $34.5 million from $49.4 million at December 31, 2023, a 30.2% reduction[36] - Unbilled revenue as of June 30, 2024, was $8.7 million, down from $9.2 million at December 31, 2023, a 5.4% decrease[36] - The company's cash, cash equivalents, and restricted cash increased to $259.6 million as of June 30, 2024, from $233.8 million at the beginning of the period, a 11.0% increase[26] - Deferred revenue decreased by $27.8 million from $252.4 million on December 31, 2023, to $224.6 million on June 30, 2024[37] - Advances from customers (current) increased by $2.6 million from $30.2 million on December 31, 2023, to $32.8 million on June 30, 2024[37] - Previously deferred sales and advances from customers recognized in revenue totaled $64.7 million for the six months ended June 30, 2024[37] - Cash and cash equivalents increased by $25.8 million from $201.2 million on December 31, 2023, to $227.0 million on June 30, 2024[50] - Cash and cash equivalents classified as Level 1 assets increased from $201.2 million in December 2023 to $227.0 million in June 2024[60] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, were $2.4 million, compared to $0.7 million in 2023, a 242.9% increase[26] - The company issued $12.1 million in common stock during the three months ended June 30, 2024, contributing to the increase in stockholders' equity[28] - The company sold 275,202 shares of Class A Common Stock for $12.5 million in the three months ended June 30, 2024, and 451,830 shares for $19.9 million in the six months ended June 30, 2024, with net proceeds of $12.2 million and $19.3 million respectively after expenses[71] - In the six months ended June 30, 2023, the company sold 722,568 shares of Class A Common Stock for $24.4 million, with net proceeds of $23.4 million after expenses[72] - The company plans to use the net proceeds from the sale of securities for working capital, capital expenditures, repayment of indebtedness, potential acquisitions, and other business opportunities[73] - The Fifth Amendment to the Rights Agreement increased the purchase price for each one one-thousandth of a share of Series A Participating Cumulative Preferred Stock from $18.00 to $160.38 and extended the Final Expiration Date to June 30, 2026[76] Inventory and Asset Management - Inventories, net decreased by $27.9 million from $222.1 million on December 31, 2023, to $194.2 million on June 30, 2024[54] - Intangible assets related to the LEU segment backlog decreased from $13.0 million in December 2023 to $10.5 million in June 2024, reflecting amortization as deliveries to customers reduced the backlog[56] - The total intangible assets decreased from $39.4 million in December 2023 to $34.6 million in June 2024, primarily due to amortization of customer relationships and backlog[56] - The carrying value of the 8.25% Notes increased from $95.7 million in December 2023 to $92.6 million in June 2024, with an estimated fair value of $74.0 million as of June 2024[62][63] Legal and Contractual Obligations - The company has purchase commitments under the TENEX Supply Contract that could extend to 2028, with the obligation to pay for all SWU in its minimum purchase obligation each year[81] - The Orano Supply Agreement, amended in 2018, provides for the supply of SWU through 2030, with pricing determined by a formula using market-related price points and other factors[83] - The company's total remaining performance obligations were $0.9 billion as of June 30, 2024, extending to 2030[46] - Remaining performance obligations in the LEU segment were approximately $0.8 billion as of June 30, 2024[47] - Remaining performance obligations in the Technical Solutions segment were approximately $38.9 million as of June 30, 2024[49] Shareholder and Equity Information - The weighted average number of common shares outstanding for diluted net income per share increased from 15,306 thousand in June 2023 to 16,125 thousand in June 2024[68] - The company filed a shelf registration statement in June 2023, allowing it to offer and sell up to $200 million in securities[70]