Centrus Energy (US:LEU) The Motley Fool·2025-11-23 01:05Core Viewpoint - The recent decline in Centrus Energy's stock price, down 47% from its 52-week high, may present a buying opportunity as nuclear power gains renewed interest due to increasing electricity demand and advancements in technology [1][3]. Industry Overview - U.S. electricity demand is projected to grow at a compounded annual rate of 2.5%, significantly faster than the previous decade, with nuclear power currently accounting for 18% of U.S. electricity [2]. - The electrification of the grid and advancements in artificial intelligence are driving a resurgence in nuclear energy interest [1]. Company Overview - Centrus Energy is positioned as a key player in the nuclear fuel supply chain, providing low-enriched uranium (LEU) and advanced uranium enrichment services [4][5]. - The company has experienced stock volatility, trading between $50 and $464 this year, with a current price of $241.25 [3][4]. Market Position - Centrus is the only U.S. producer of high-assay, low-enriched uranium (HALEU) licensed by the Nuclear Regulatory Commission, crucial for next-generation nuclear reactors [7][8]. - The company currently relies on external sources for LEU, including a commercial agreement with a Russian entity, which it needs to diversify away from due to upcoming import bans [9]. Growth Potential - Centrus aims to produce LEU and HALEU in-house, contingent on expanding its enrichment capacity at the Piketon, Ohio plant, which requires significant investment and customer commitments [10]. - The stock is currently valued at 48.6 times projected earnings per share (EPS), down from a high of 88 times, indicating potential for growth if the company successfully transitions to a primary domestic supplier [11][12]. Investment Consideration - Despite its high valuation, investor optimism about Centrus's future role in nuclear energy remains strong, making the current dip an attractive entry point for investors [12][13].