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Can Energy Fuels Capitalize on the Recent Gain in Uranium Prices?
ZACKS· 2025-09-29 11:11
Core Insights - Energy Fuels Inc. reported revenues of $21 million in the first half of 2025, a 38% decline from the previous year, primarily due to lower uranium sales and a decision to retain uranium in inventory amid low prices [1][10] - The company sold 50,000 pounds of uranium in the spot market for $3.85 million at an average price of $77 per pound in the first half of 2025, compared to 400,000 pounds sold in the same period of 2024 at an average price of $84.76 per pound [2][10] - As of June 30, 2025, Energy Fuels held 1,875,000 pounds of uranium in inventory, including 725,000 pounds of finished uranium and 1,100,000 pounds in ore and raw materials [3][10] Revenue and Sales Outlook - The company expects to sell 140,000 pounds of uranium in Q3 2025 and 160,000 pounds in Q4 2025, with projections for 620,000 to 880,000 pounds in 2026, contingent on price recovery [4][10] - Uranium prices have recently surged to above $83 per pound, driven by expectations of expanded nuclear power capacity and policy initiatives, which may enhance Energy Fuels' revenue potential [5][6] Industry Context - The U.S. and U.K. governments signed the Technology Prosperity Deal to accelerate reactor approvals and reduce dependence on Russian nuclear fuel, which may positively impact uranium demand [6] - Peer company Ur-Energy reported a 124% increase in revenues to $10.4 million in the first half of 2025, reflecting a similar strategy of withholding sales during low price periods [7] - Cameco's revenues increased by 35% year-over-year to CAD 1,666 million ($1,184 million) in the first half of 2025, indicating a contrasting performance in the uranium market [8] Valuation and Estimates - Energy Fuels shares have increased by 225.8% year-to-date, significantly outperforming the industry average growth of 11.9% [9] - The company is trading at a forward 12-month price/sales multiple of 36.73X, a substantial premium compared to the industry's 2.95X [11] - The Zacks Consensus Estimate for Energy Fuels' 2025 loss is projected at 33 cents per share, with a slight improvement expected in 2026 [11]
CCJ vs. URG: Which Uranium Stock is the Better Buy Today?
ZACKS· 2025-09-24 16:31
Core Viewpoint - The long-term outlook for uranium remains strong, driven by increasing global nuclear power capacity and strategic initiatives from countries like the U.S. and India to expand their nuclear energy capabilities [2][28]. Group 1: Cameco Corporation (CCJ) - Cameco is one of the world's largest uranium suppliers, with operations in mining and fuel services, and accounted for 16% of global uranium production in 2024 [4][6]. - In the first half of 2025, Cameco's total revenues increased by 35% year over year to CAD 1,666 million ($1,184 million), with uranium revenues up 27% to CAD 1,324 million ($941 million) [6][9]. - The company expects its share of adjusted EBITDA from Westinghouse to be between $525-$580 million for 2025, reflecting growth from its involvement in nuclear reactor construction projects [11]. - Cameco's share of production expectation from the McArthur River mine has been revised to 9.8-10.5 million pounds due to development delays, while the expected share from the Cigar Lake mine remains at 9.8 million pounds [8][12]. - The company has signed a long-term agreement to supply natural uranium hexafluoride (UF6) to Slovakia's largest electricity producer, marking its entry into the Slovak market [13]. - Cameco's stock has appreciated by 69% in 2025, reflecting the sharp price rebound in uranium [23]. Group 2: Ur-Energy (URG) - Ur-Energy operates the Lost Creek project in Wyoming, which has produced 3 million pounds of uranium since 2013, and is advancing construction at the Shirley Basin [14][16]. - In the first half of 2025, Ur-Energy's revenues jumped 124% to $10.4 million, but the company reported a net loss of seven cents per share [16][20]. - The company has eight multi-year sales agreements with major nuclear and utility companies, with annual delivery amounts ranging from 440,000 to 1,300,000 pounds of uranium from 2025 through 2033 [18]. - Ur-Energy's total sales in 2025 are projected at 440,000 pounds of uranium, leading to revenues of $27.1 million [17]. - Ur-Energy's stock has risen by 46% in 2025, but its revenues are expected to decline by 7.5% year over year in fiscal 2025 [20][23]. Group 3: Comparative Analysis - The Zacks Consensus Estimate for Cameco's 2025 revenues implies year-over-year growth of 11.3%, while Ur-Energy's estimate indicates a decline of 7.5% [19][20]. - Cameco's forward price-to-sales multiple is 15.00X, significantly above its five-year median of 6.74X, while Ur-Energy's is at 5.72X, below its median of 7.70X [26]. - Both companies are positioned to benefit from a bullish long-term uranium outlook, but Cameco offers stronger earnings visibility and stability due to its diversified operations and fixed-price contracts [28][29].
Why Curtiss-Wright Stock Deserves a Spot in Your Portfolio Right Now
ZACKS· 2025-07-02 14:56
Core Viewpoint - Curtiss-Wright Corp. (CW) is positioned as a strong investment opportunity within the Zacks Aerospace Defense Equipment industry, driven by growth in commercial nuclear aftermarket sales and shareholder-friendly initiatives [1] Group 1: Growth Forecast & Financial Performance - The Zacks Consensus Estimate for CW's 2025 earnings per share (EPS) has risen by 3.7% to $12.61 [2] - CW's projected revenues for 2025 are $3.38 billion, reflecting an 8.5% growth [2] - The company's long-term earnings growth rate is estimated at 12% [2] - CW has consistently surpassed earnings expectations, achieving an average earnings surprise of 13.34% over the last four quarters [2] Group 2: Shareholder Returns - CW has been enhancing shareholder value through regular dividend payments, with a current quarterly dividend of 24 cents per share, leading to an annualized dividend of 96 cents [3] - The current dividend yield stands at 0.20%, which is above the industry average of 0.16% [3] Group 3: Financial Health - As of the end of Q1 2025, CW's current ratio is 1.89, surpassing the industry average of 1.76, indicating strong short-term liability management [4] - CW's return on equity (ROE) is 18.02%, significantly higher than the industry average of 8.44%, showcasing effective fund utilization [5] - The total debt to capital ratio for CW is 27.25%, well below the industry average of 51.94%, indicating a strong debt management position [6] - CW's times interest earned ratio (TIE) is 13.3, reflecting the company's capability to meet interest obligations comfortably [6] Group 4: Market Position & Operations - The U.S. market is crucial for CW's nuclear power expansion, with significant growth in commercial nuclear aftermarket sales driven by demand for small modular reactors [9] - The acquisition of Ultra Energy in December 2024 has bolstered CW's capabilities in neutron and radiation monitoring, sensors, and reactor protection systems [9] - CW is actively collaborating with leading 300-megawatt reactor designers to develop critical systems and equipment, positioning itself for growth in both U.S. and global nuclear markets [10] Group 5: Stock Performance - Over the past three months, CW's stock has increased by 57.4%, outperforming the industry's growth of 29% [11]
This uranium company wants to break the grip that foreign state corporations have on U.S. nuclear fuel
CNBC· 2025-06-06 15:46
Core Viewpoint - The U.S. nuclear power sector is heavily reliant on foreign state-owned companies for uranium supplies, which poses challenges as the country aims to significantly increase its nuclear capacity by 2050 [1][2][4]. Industry Overview - President Trump's initiative aims to quadruple the U.S. nuclear power capacity to 400 gigawatts by 2050, building on previous goals set by former President Biden [2]. - The U.S. depended on foreign countries for approximately 70% of its nuclear fuel in 2023, with 27% of fuel purchases coming from Russia [3][4]. Supply Chain Challenges - The U.S. is set to eliminate Russian uranium from its supply chain by 2028 due to legislative actions following geopolitical tensions, creating a potential supply gap [4]. - The current Western enrichment capacity is primarily controlled by non-American entities, specifically France's Orano and the Urenco consortium [5][6]. Domestic Capacity Issues - There is a significant lack of domestic fuel cycle capacity in the U.S., with no American-owned companies involved in mining, converting, or enriching uranium [6]. - The only commercial enrichment facility in the U.S. is owned by Urenco, highlighting the dominance of state-owned enterprises in the nuclear fuel supply chain [6]. Market Dynamics - The CEO of Centrus Energy emphasizes the need for additional enrichment capacity and competition in the market to address the current supply challenges [7].
Amazon, Google and Meta support tripling nuclear power by 2050
CNBC· 2025-03-12 10:13
Core Viewpoint - Major tech companies, including Amazon, Google, and Meta, are advocating for a significant increase in nuclear energy production globally, aiming to at least triple its capacity by 2050 [1][2]. Group 1: Industry Support and Pledge - The pledge to expand nuclear energy was initially adopted in December 2023 by over 20 countries, including the U.S., during the U.N. Climate Change Conference [2]. - Financial institutions such as Bank of America, Goldman Sachs, and Morgan Stanley have also supported this pledge, indicating a broadening consensus across industries and governments [2]. - Although the pledge is nonbinding, it underscores the increasing backing for nuclear power from leading sectors [2]. Group 2: Energy Demand and Nuclear Adoption - The tech sector, particularly companies like Amazon, Google, and Meta, is becoming a significant driver of energy demand in the U.S. due to the expansion of artificial intelligence centers [3]. - These companies are turning to nuclear energy as they recognize that renewable sources alone may not meet their reliability and energy needs [3]. Group 3: Investments in Nuclear Technology - Amazon and Google announced investments aimed at developing small nuclear reactors, a technology that is still in development and is expected to address cost and timeline issues associated with new reactor constructions in the U.S. [4]. - Meta has called for nuclear developers to submit proposals to potentially add up to four gigawatts of new nuclear capacity in the U.S. [4]. Group 4: Event Context - The pledge was signed during the CERAWeek by S&P Global energy conference in Houston, led by the World Nuclear Association [5].