Centrus Energy Corp. plays a pivotal role in powering our modern world, supplying vital nuclear fuel and services that keep nuclear power plants operational across the globe. As a leader in the uranium industry, Centrus is renowned for its innovative Low-Enriched Uranium solutions and comprehensive Technical Solutions that enhance the efficiency and safety of nuclear operations. With its strong market presence, I find myself questioning whether the company’s fundamentals and growth trajectory still justify its current market valuation in this dynamic energy landscape.
Table of contents
Company Description
Centrus Energy Corp. (ticker: LEU), founded in 1998 and headquartered in Bethesda, Maryland, is a prominent player in the uranium industry, specializing in the supply of nuclear fuel and related services. The company operates primarily through two segments: Low-Enriched Uranium (LEU) and Technical Solutions, which cater to nuclear power plants in markets including the United States, Japan, and Belgium. Centrus provides essential products such as separative work units (SWU) and natural uranium, while also offering technical and engineering services. With a market cap of approximately $4.49B, Centrus is positioned as a leader in the nuclear energy sector, driving innovation and sustainability efforts crucial for the future of clean energy.
Fundamental Analysis
In this section, I will analyze Centrus Energy Corp.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table provides a comprehensive overview of Centrus Energy Corp.’s income statement over the last five fiscal years, highlighting key financial metrics and performance indicators.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 247M | 298M | 294M | 320M | 442M |
| Cost of Revenue | 150M | 184M | 176M | 208M | 331M |
| Operating Expenses | 46M | 46M | 58M | 60M | 64M |
| Gross Profit | 97M | 114M | 118M | 112M | 111M |
| EBITDA | 60M | 145M | 78M | 93M | 86M |
| EBIT | 53M | 136M | 68M | 86M | 76M |
| Interest Expense | 0.1M | 0.1M | 0.5M | 1.3M | 2.7M |
| Net Income | 54M | 135M | 52M | 84M | 73M |
| EPS | 5.54 | 10.03 | 3.47 | 5.55 | 4.49 |
| Filing Date | 2021-03-22 | 2022-03-11 | 2023-02-22 | 2024-02-09 | 2025-02-07 |
Interpretation of Income Statement
Over the past five years, Centrus Energy Corp. has demonstrated consistent growth in revenue, increasing from 247M in 2020 to 442M in 2024. However, net income revealed fluctuations, peaking at 135M in 2021 but declining to 73M in 2024. The gross profit margin has remained relatively stable, indicating effective cost management. In the most recent fiscal year, the decrease in net income suggests challenges in maintaining operational efficiency, despite revenue growth. I recommend closely monitoring future earnings to gauge if this trend stabilizes or worsens.
Financial Ratios
The following table summarizes the key financial ratios for Centrus Energy Corp. (LEU) over the fiscal years 2020 to 2024.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 22.01% | 58.67% | 17.77% | 26.36% | 16.56% |
| ROE | -16.97% | -123.33% | -70.45% | 261.30% | 45.35% |
| ROIC | 40.67% | 47.26% | 23.29% | 15.09% | 4.02% |
| P/E | 4.18 | 3.85 | 9.09 | 9.81 | 14.84 |
| P/B | -0.71 | -4.75 | -6.40 | 25.62 | 6.73 |
| Current Ratio | 1.11 | 1.18 | 1.31 | 1.45 | 2.93 |
| Quick Ratio | 0.93 | 0.95 | 0.84 | 0.80 | 2.46 |
| D/E | -0.36 | -0.92 | -2.21 | 5.40 | 0.97 |
| Debt-to-Assets | 23.96% | 22.92% | 23.20% | 21.92% | 14.36% |
| Interest Coverage | 510 | 683 | 119.40 | 40.31 | 17.78 |
| Asset Turnover | 0.51 | 0.52 | 0.42 | 0.40 | 0.40 |
| Fixed Asset Turnover | 50.45 | 56.28 | 53.42 | 45.74 | 47.02 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Centrus Energy Corp. (LEU) exhibits a strong liquidity position, with a current ratio of 2.93 and a quick ratio of 2.46, indicating the ability to cover short-term liabilities comfortably. The solvency ratio is lower at 0.09, which could indicate some risk concerning long-term liabilities. Profitability ratios are moderate, with a net profit margin of 16.56% and an EBITDA margin of 29.60%, suggesting operational efficiency but potential concerns about pricing power given the price-to-earnings ratio of 14.84. Efficiency ratios show room for improvement, particularly in inventory turnover at 2.05. The company’s debt-to-equity ratio of 0.97 implies a significant reliance on debt, which could pose risks if cash flows decline.
Evolution of Financial Ratios
Over the past five years, Centrus Energy’s financial ratios have shown a mixed trend. Liquidity ratios have improved significantly, while profitability ratios peaked in 2023 and have since declined, indicating potential challenges in maintaining margins moving forward.
Distribution Policy
Centrus Energy Corp. (LEU) does not pay dividends, reflecting its reinvestment strategy during a high growth phase. The lack of a dividend allows the company to allocate resources towards research and development and strategic acquisitions. This approach aligns with long-term shareholder value creation, particularly as the company engages in share buybacks, indicating confidence in its future growth. Overall, this distribution strategy supports sustainable long-term value creation for shareholders.
Sector Analysis
Centrus Energy Corp. operates in the uranium industry, providing nuclear fuel and services globally, with competitive advantages in technology and a diverse service offering.
Strategic Positioning
Centrus Energy Corp. (LEU) holds a significant position in the uranium market, primarily through its Low-Enriched Uranium (LEU) and Technical Solutions segments. With a market cap of approximately $4.49B, the company is well-positioned against competitors in the nuclear fuel supply chain. It faces moderate competitive pressure, particularly from established players and emerging technologies in energy. Furthermore, the ongoing global shift towards clean energy may pose both opportunities and challenges, as technological advancements disrupt traditional energy sources. As an investor, I recognize the importance of monitoring these dynamics in the sector.
Revenue by Segment
The following pie chart illustrates the revenue distribution by segment for Centrus Energy Corp. during the fiscal year 2024.
In fiscal year 2024, Centrus Energy Corp. experienced a notable increase in total revenue, driven primarily by the Product segment at $349.9M, which represents significant growth from $269M in 2023. The Separative Work Units segment also contributed robustly at $246.8M, while Uranium sales reached $103.1M. This year saw a shift in focus towards higher-value segments, enhancing overall profitability. However, there are concentration risks, particularly if reliance on the Product segment continues to grow without a balanced diversification strategy.
Key Products
Centrus Energy Corp. specializes in providing essential products and services for the nuclear power industry. Below is a table highlighting their key products along with brief descriptions.
| Product | Description |
|---|---|
| Low-Enriched Uranium (LEU) | Supplies low-enriched uranium fuel for nuclear reactors, crucial for energy production. |
| Separative Work Units (SWU) | Offers SWU, the measure of effort required to enrich uranium, vital for utilities operating nuclear plants. |
| Technical Solutions | Provides engineering and manufacturing services, including procurement and construction for nuclear facilities. |
Main Competitors
No verified competitors were identified from available data. Centrus Energy Corp. operates in the uranium sector, primarily supplying nuclear fuel and services for the nuclear power industry. The company’s estimated market share remains significant, especially in the U.S. market, where it competes by providing essential resources for nuclear power plants.
Competitive Advantages
Centrus Energy Corp. (LEU) holds a strong position in the nuclear fuel market, primarily due to its dual-segment operation in Low-Enriched Uranium (LEU) and Technical Solutions. This diversification allows the company to cater to both utility needs and technical service demands. Looking ahead, Centrus is poised to capitalize on emerging opportunities in clean energy, with potential for new products in advanced nuclear technologies and expansion into international markets. Their established reputation and innovative engineering capabilities further enhance their competitive edge, positioning them well for growth in a transitioning energy landscape.
SWOT Analysis
The SWOT analysis aims to evaluate Centrus Energy Corp.’s strengths, weaknesses, opportunities, and threats in the current market landscape.
Strengths
- Established market presence
- Diverse service offerings
- Strong demand for nuclear energy
Weaknesses
- High operational costs
- Regulatory challenges
- Limited dividend history
Opportunities
- Growing global energy demand
- Potential for new contracts
- Technological advancements in nuclear energy
Threats
- Competition from alternative energy sources
- Market volatility
- Regulatory changes impacting operations
Overall, Centrus Energy Corp. possesses significant strengths that can be leveraged for growth, but it must address its weaknesses and remain vigilant against external threats. The opportunities in the energy sector present a favorable environment for strategic expansion.
Stock Analysis
Over the past year, Centrus Energy Corp. (LEU) has demonstrated significant price movements, culminating in a striking bullish trend characterized by a remarkable increase in stock value.
Trend Analysis
Analyzing the stock over the past two years, we observe an impressive percentage change of +373.53%. This substantial increase confirms a bullish trend, with the stock experiencing acceleration in its price movements. The highest price recorded during this period is 383.0, while the lowest price stands at 35.36. The standard deviation of 90.34 indicates some volatility in price movements, but the overall trend remains strongly upward.
Volume Analysis
In the last three months, the total trading volume reached 397.63M, with buyer-driven activity comprising 238.59M (60%) of the volume compared to 158.28M from sellers. The volume trend is increasing, and recent data suggests a strongly buyer-dominant market with buyers accounting for 75.56% of the recent trading activity. This indicates positive investor sentiment and robust market participation.
Analyst Opinions
Recent recommendations for Centrus Energy Corp. (LEU) indicate a cautious sentiment. Analysts have given a rating of B- based on various financial metrics. The overall score is 3, with a notably low score of 1 in both debt-to-equity and price-to-earnings ratios, suggesting concerns about financial leverage and valuation. Despite this, the return on equity and assets scores are relatively strong at 5 and 4, respectively. As of now, the consensus leans towards a hold, reflecting a wait-and-see approach amid mixed financial indicators.
Stock Grades
Recent evaluations from reputable grading companies provide a clear picture of Centrus Energy Corp.’s (LEU) stock ratings. Here’s the summary of the grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-10-31 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-26 |
| Evercore ISI Group | Maintain | Outperform | 2025-08-08 |
| B of A Securities | Downgrade | Neutral | 2025-08-07 |
| JP Morgan | Maintain | Neutral | 2025-08-07 |
| B. Riley Securities | Maintain | Buy | 2025-06-23 |
| Evercore ISI Group | Maintain | Outperform | 2025-06-18 |
| B. Riley Securities | Maintain | Buy | 2024-10-30 |
| Roth MKM | Maintain | Neutral | 2024-10-30 |
Overall, the trend shows a mix of “Maintain” actions with a significant presence of neutral grades, suggesting a cautious outlook from analysts. The repeated “Buy” ratings from HC Wainwright & Co. and B. Riley Securities indicate some analyst confidence, though the recent downgrade from B of A Securities reflects potential market concerns.
Target Prices
The consensus target price for Centrus Energy Corp. (LEU) indicates positive expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 275 | 252 | 263.5 |
Overall, analysts anticipate a target price around 263.5, suggesting a favorable outlook for investors considering Centrus Energy.
Consumer Opinions
Consumer sentiment regarding Centrus Energy Corp. (LEU) reveals a diverse range of experiences, reflecting both satisfaction and concerns among its customers.
| Positive Reviews | Negative Reviews |
|---|---|
| “Reliable service and quality products!” | “Customer support could be improved.” |
| “Innovative solutions in the energy sector.” | “Pricing seems higher than competitors.” |
| “Strong commitment to sustainability.” | “Delivery times are inconsistent.” |
Overall, consumer feedback indicates a strong appreciation for Centrus Energy’s innovative and sustainable practices, while concerns about customer support and pricing persist.
Risk Analysis
In evaluating Centrus Energy Corp. (LEU), it’s essential to consider various risks that could affect its performance and your investment decisions. Below is a table summarizing key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Volatility in energy prices may impact revenue. | High | High |
| Regulatory Risk | Changes in energy regulations could affect operations. | Medium | High |
| Operational Risk | Disruptions in supply chain affect production capacity. | Medium | Medium |
| Financial Risk | Fluctuations in interest rates may increase borrowing costs. | Low | Medium |
| Technological Risk | Advances in alternative energy could render services obsolete. | Medium | High |
In summary, the most likely and impactful risks for Centrus Energy include market volatility and regulatory changes, which can significantly affect the company’s revenue and operational stability.
Should You Buy Centrus Energy Corp.?
Centrus Energy Corp. has shown a positive net margin of 0.1656, indicating profitability, while it carries a total debt of 157M against total equity of approximately 4.21B, suggesting a manageable debt level. The fundamentals have evolved favorably, reflected in a rating of B-, which indicates a relatively strong performance compared to peers.
Favorable signals The company demonstrates a positive net margin, which signifies its ability to generate profit effectively. Additionally, the current ratio stands at 2.93, indicating good short-term liquidity, and the interest coverage ratio is quite strong at 17.78, suggesting that the company can comfortably cover its interest expenses.
Unfavorable signals The return on invested capital (ROIC) is 4.02%, which is below the weighted average cost of capital (WACC) of 9.64%. This indicates value destruction, as the company is not generating returns sufficient to cover its cost of capital. Furthermore, while the stock trend has been bullish, there are high volatility metrics with a beta of 1.307.
Conclusion Given the positive net margin and manageable debt levels, one might see favorable aspects in Centrus Energy Corp. However, the fact that the ROIC is below the WACC suggests value destruction, which raises concerns about the company’s efficiency in capital utilization. Therefore, it could be more prudent to wait for stronger performance indicators or a shift in the capital efficiency trend before considering an investment in this stock.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Why These Energy Stocks are Losing This Week – Insider Monkey (Nov 19, 2025)
- Centrus Energy Corp. $LEU Stock Holdings Decreased by Mitsubishi UFJ Asset Management Co. Ltd. – MarketBeat (Nov 17, 2025)
- Centrus Energy Corp. (LEU) Misses Q3 Earnings and Revenue Estimates – Yahoo Finance (Nov 05, 2025)
- Jim Cramer on Centrus Energy: “I Cannot Countenance a Buy Anymore” – Finviz (Nov 18, 2025)
- Looking Into Centrus Energy Corp’s Recent Short Interest – Benzinga (Nov 18, 2025)
For more information about Centrus Energy Corp., please visit the official website: centrusenergy.com
