| Is Cameco Corporation (TSE:CCO) A Good Oil & Gas Bet? | |
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The energy sector’s PE is currently hovering around 15x, in-line with the Canadian stock market PE of 17x. This means the industry, on average, is fairly valued compared to the wider market – minimal expected gains and losses from mispricing here. However, the industry returned a lower 6.78% compared to the market’s 9.08%, illustrative of the recent sector upheaval. Since Cameco’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Cameco’s value is to assume the stock should be relatively in-line with its industry. What this means for you:Are you a shareholder? Cameco has been an oil and gas industry laggard in the past year. If your initial investment thesis is around the growth prospects of Cameco, there are other oil and gas companies that have delivered higher growth, and perhaps trading at a discount to the industry average. Consider how Cameco fits into your wider portfolio and the opportunity cost of holding onto the stock. Are you a potential investor? If Cameco has been on your watchlist for a while, now may be a good time to dig deeper into the stock. Although its growth has delivered lower growth relative to its oil and gas peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation. Before you make a decision on the stock, I suggest you look at Cameco’s future cash flows in order to assess whether the stock is trading at a reasonable price. For a deeper dive into Cameco’s stock, take a look at the company’s latest free analysis report to find out more on its financial health and other fundamentals. Interested in other energy stocks instead? Use our free playform to see my list of over 300 other oil and gas companies trading on the market. To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
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Cameco Corporation
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PRODUCER |
CODE : CCO.TO |
ISIN : CA13321L1085 |
CUSIP : 13321L108 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cameco is a uranium producing company based in Canada. Cameco produces uranium, cobalt, copper, nickel and zinc in Canada, in Finland and in Kazakhstan, develops uranium in Australia and in Canada, and holds various exploration projects in Canada. Its main assets in production are RABBIT LAKE, KEY LAKE, SMITH RANCH, CROW BUTTE, MCARTHUR RIVER (SASKATCHEWAN), MC ARTHUR RIVER and MCARTHUR RIVER MINE in Canada, INKAI and HIGHLAND in Kazakhstan and TALVIVAARA in Finland, its main assets in development are CIGAR LAKE and MILLENNIUM in Canada and KINTYRE in Australia and its main exploration properties are EAGLE POINT, DAWN LAKE, SMART LAKE, BOOMERANG and DAWSON in Canada. Cameco is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 26.4 billions as of today (US$ 19.3 billions, € 18.0 billions). Its stock quote reached its lowest recent point on December 26, 2003 at CA$ 10.02, and its highest recent level on April 24, 2024 at CA$ 66.81. Cameco has 395 792 522 shares outstanding. |