Where Will Nuclear Fuel Supplier Centrus Energy [LEU] Be in 5 Years?

Core Insights - The demand for nuclear energy is increasing due to the growth of the AI-driven economy, highlighting a renewed interest in nuclear energy sources [1] - Centrus Energy has experienced significant stock volatility but remains a strong performer in the uranium sector, with a year-to-date increase of over 340% [2][8] Company Performance - Centrus reported Q3 sales of $74.9 million, a 30% increase year-over-year, but fell short of analyst expectations by approximately $5 million [6] - The company achieved a GAAP EPS of $0.19, exceeding expectations but down nearly 90% from Q2 [7] - Centrus has a market cap of around $5 billion and is currently facing a 23% short interest, indicating skepticism in the market [8] Market Demand - There is a strong demand for U.S.-owned enrichment capacity, with traditional utilities expanding nuclear capacity and technology companies investing in nuclear energy for data centers [5] - Analysts project Centrus will generate $451 million in revenue for FY 2025, with a P/S ratio of 11, placing it in the 98th percentile for the past decade [10] Future Projections - Analysts expect Centrus's sales to rise to $855 million by 2030, which would lower the P/S ratio to 6x [11] - EPS is projected to reach $4.96 for FY 2025, with a long-term estimate of $16.80 for 2030, indicating a potential P/E of 17x [11] - If Centrus can achieve a CAGR of 30% in EPS growth, the stock could reach around $500 per share, representing a 75% upside from current levels [13] Strategic Developments - Centrus has appointed a new CFO, completed an $800 million convertible debt offering, and ended Q3 with $1.6 billion in unrestricted cash, positioning itself for future growth [12]