Cameco Corporation produces and sells uranium worldwide. The company operates through Uranium, Fuel Services, and NUKEM segments. The company was founded in 1987 and is based in Saskatoon, Canada.
CCJ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cameco Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cameco Corp ranked in the 99th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 47233.5% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. The most interesting components of our discounted cash flow analysis for Cameco Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.06 years, is 2.52% -- higher than 96.65% of stocks in our DCF forecasting set.
Cameco Corp's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 81.86% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Basic Materials), Cameco Corp has a reliance on debt greater than merely 22.57% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CCJ, try ZKIN, TMST, PQG, VEDL, and NTR.
Cameco (CCJ) says it is pleased with the news Canada's Federal Court of Appeal upheld a favorable 2018 ruling from the Tax Court of Canada concerning reassessments for the 2003, 2005 and 2006 tax years.The 2018 Tax Court ruling found that Cameco's marketing and trading structure involving foreign subsidiaries and...
Cameco Corp's (TSX:CCO)(NYSE:CCJ) latest rally appears overdone with plenty of headwinds ahead for nuclear energy stocks. The post The Rise of Renewables and Demise of Cameco (TSX:CCO) appeared first on The Motley Fool Canada .
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