Imagine a world where the lights stay on and industries thrive, powered by clean and reliable nuclear energy. Centrus Energy Corp. is at the forefront of this crucial energy revolution, supplying essential nuclear fuel and innovative solutions that keep power plants operational across the globe. With a strong reputation for quality and innovation in the uranium sector, Centrus is not just a supplier but a pivotal player in ensuring energy security. As we delve into an analysis of its current market position, we must ask: do the fundamentals of Centrus Energy justify its valuation amidst the evolving energy landscape?
Table of contents
Company Description
Centrus Energy Corp. is a key player in the uranium industry, primarily supplying nuclear fuel and related services for the nuclear power sector across the United States, Japan, and Belgium. Founded in 1998 and headquartered in Bethesda, Maryland, the company operates through two main segments: Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment focuses on providing separative work units and natural uranium to nuclear utilities, while the Technical Solutions segment delivers engineering and operational services. With a market capitalization of approximately $5.14 billion, Centrus is positioned as a challenger in its field, actively shaping the future of nuclear energy through innovation and sustainable practices.
Fundamental Analysis
In this section, I will analyze Centrus Energy Corp.’s income statement, key financial ratios, and payout policy to provide insight into its financial health and investment potential.
Income Statement
Below is the income statement for Centrus Energy Corp. (LEU) over the past five years, providing insight into the company’s financial performance.
| Year | 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 | 87M |
| EBIT | 51M | 68M | 60M | 52M | 48M |
| Interest Expense | 0.1M | 0.1M | 0.5M | 1.3M | 2.7M |
| Net Income | 54M | 175M | 52M | 84M | 73M |
| EPS | 5.54 | 10.03 | 3.47 | 5.55 | 4.49 |
| Filing Date | Mar 21 | Mar 22 | Feb 23 | Feb 24 | Feb 25 |
Over the five-year period, Centrus Energy Corp. has shown a positive trend in revenue, increasing from $247M in 2020 to $442M in 2024. However, net income has fluctuated, with a peak of $175M in 2021 followed by a decline to $73M in 2024. The gross profit margin has remained relatively stable, hovering around 25%-40%, indicating consistent cost management. In the most recent year, while revenue growth continued, the drop in net income suggests increased expenses, particularly in cost of revenue, which may be impacting profitability. Careful observation of these trends will be crucial for future investment decisions.
Financial Ratios
The following table presents the financial ratios for Centrus Energy Corp. (Ticker: LEU) over the last available years:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 22.0% | 58.7% | 17.8% | 26.4% | 16.6% |
| ROE | -16.9% | -123.3% | -70.4% | 261.3% | 45.4% |
| ROIC | 42.4% | 38.1% | 23.3% | 16.1% | 6.4% |
| 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 | 119.4 | 40.31 | 17.78 |
| Asset Turnover | 0.51 | 0.52 | 0.42 | 0.40 | 0.40 |
| Fixed Asset Turnover | 50.4 | 56.3 | 53.4 | 45.7 | 47.0 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In the most recent year, several ratios indicate strong operational performance, such as the net margin at 16.6% and a robust interest coverage ratio of 17.78. However, the return on equity (ROE) at 45.4% reflects high volatility, and the significant debt-to-equity ratio of 0.97 raises concerns about leverage. The lack of dividend yield suggests a reinvestment strategy rather than immediate returns for shareholders.
Evolution of Financial Ratios
Over the past five years, Centrus Energy has experienced significant fluctuations in its financial ratios. While net margins and return on equity have shown improvement, the debt levels have become more manageable, as evidenced by the recent decline in the debt-to-assets ratio. This evolution suggests a stabilization in the company’s financial health, though ongoing monitoring is essential.
Distribution Policy
Centrus Energy Corp. does not pay dividends, opting instead to reinvest its income for growth and development. This strategy aligns with a high growth phase where funds are prioritized for research and acquisitions. The company also engages in share buybacks, which can indicate confidence in its long-term prospects. However, the lack of dividend payments may concern some investors regarding immediate returns. Overall, this approach appears to support sustainable long-term value creation for shareholders.
Sector Analysis
Centrus Energy Corp. operates in the uranium sector, providing nuclear fuel and services globally, with a focus on low-enriched uranium and technical solutions, facing competition from other energy providers.
Strategic Positioning
Centrus Energy Corp. (ticker: LEU) operates within the uranium industry, where it has established a notable market presence. Currently, the company holds a substantial share in the Low-Enriched Uranium (LEU) segment, catering to utilities that operate nuclear power plants. Competitive pressure remains significant, particularly from both established players and emerging technologies in the nuclear sector. Moreover, ongoing technological disruptions may influence the demand for nuclear fuel and services. As an investor, it’s crucial to monitor these dynamics, as they can affect Centrus’s market positioning and growth potential.
Key Products
Centrus Energy Corp. offers a range of products that are crucial for the nuclear power industry. Below is a summary of their key products:
| Product | Description |
|---|---|
| Low-Enriched Uranium (LEU) | A critical fuel for nuclear reactors, LEU is produced and supplied for utilities operating nuclear power plants. |
| Separative Work Units (SWU) | A measure of enrichment services, SWUs are essential for the production of LEU, allowing for efficient nuclear fuel usage. |
| Natural Uranium | This product is provided as a raw material for the enrichment process, serving as the foundation for nuclear fuel production. |
| Technical Solutions Services | Engineering, manufacturing, and operational services that support both public and private sector customers in nuclear energy projects. |
| American Centrifuge Technology | A proprietary technology used for enriching uranium, enhancing the efficiency and effectiveness of the enrichment process. |
Understanding these products is essential for evaluating Centrus Energy Corp.’s position and potential in the energy sector, particularly within the growing demand for nuclear power.
Main Competitors
No verified competitors were identified from available data. Centrus Energy Corp. operates within the uranium industry, focusing on providing nuclear fuel and services primarily in the United States and internationally. The company holds a significant position in its niche market, catering to utilities that operate nuclear power plants, which contributes to its competitive strength in the sector.
Competitive Advantages
Centrus Energy Corp. (LEU) holds a significant competitive edge in the uranium industry through its dual segment operations: Low-Enriched Uranium (LEU) and Technical Solutions. This diversification allows the company to cater to a broad spectrum of clients in the nuclear power sector. The future outlook appears promising, with potential expansion into new markets and the development of innovative products that enhance nuclear fuel supply chains. Additionally, as global energy demands shift towards cleaner sources, Centrus is well-positioned to leverage its expertise and technology, opening avenues for growth and increased market share.
SWOT Analysis
The purpose of this analysis is to evaluate Centrus Energy Corp.’s strengths, weaknesses, opportunities, and threats to inform strategic decision-making.
Strengths
- Established market presence
- Diverse service offerings
- Strategic partnerships
Weaknesses
- High dependency on nuclear industry
- Limited product diversification
- Volatility in uranium prices
Opportunities
- Growth in nuclear energy demand
- Expansion into international markets
- Technological advancements
Threats
- Regulatory challenges
- Competition from alternative energy sources
- Market price fluctuations
Overall, Centrus Energy Corp. has solid strengths and growth opportunities, but it must navigate industry-specific challenges and market volatility. A focused strategy that leverages its strengths while addressing weaknesses will be essential for sustainable growth and risk management.
Stock Analysis
Centrus Energy Corp. (LEU) has exhibited significant price movements over the past year, marked by a robust bullish trend that underscores strong investor interest and market dynamics.
Trend Analysis
Over the past two years, Centrus Energy’s stock has experienced an impressive price change of approximately 460.95%. The trend remains distinctly bullish, characterized by an acceleration in price momentum. Notably, the stock reached a high of $383.00 and a low of $35.36, indicating substantial volatility with a standard deviation of 88.25. Recent price movements have shown a 57.75% increase since late August 2025, with a trend slope of 17.33, reinforcing the overall bullish outlook.
Volume Analysis
In the last three months, trading volumes have averaged approximately 7.29M shares per day, indicating a buyer-dominant market with 62.2% of the volume driven by buying activity. The overall volume trend remains bullish, suggesting increasing investor participation and confidence. The average buy volume was around 4.54M shares, compared to an average sell volume of 2.76M shares, reflecting a strong sentiment among investors. The acceleration in buying volumes, with a trend slope of 190.64, further supports the positive outlook for Centrus Energy.
Analyst Opinions
Recent recommendations for Centrus Energy Corp. (LEU) show a mixed outlook. As of November 7, 2025, analysts have given a neutral rating (B) overall, indicating a cautious stance. Specifically, the ROE and ROA metrics suggest a strong buy, reflecting solid operational efficiency. However, concerns about high debt levels and valuation ratios have led to strong sell recommendations for those metrics. Therefore, the consensus appears to lean towards a hold for the current year, balancing potential rewards against significant risks.
Stock Grades
No verified stock grades were available from recognized analysts for Centrus Energy Corp. (LEU). This limitation makes it challenging to assess the stock’s current standing in the market. However, it’s important to stay informed about the general market sentiment and any recent developments related to the company that might influence its performance.
Target Prices
No verified target price data is available from recognized analysts for Centrus Energy Corp. (LEU). Market sentiment around the stock appears mixed, reflecting uncertainty in the energy sector.
Consumer Opinions
Consumer sentiment surrounding Centrus Energy Corp. (LEU) is quite mixed, reflecting both enthusiasm and skepticism among stakeholders.
| Positive Reviews | Negative Reviews |
|---|---|
| “Centrus has a strong commitment to innovation in nuclear technology.” | “Customer service experiences have been inconsistent.” |
| “The company’s growth potential is impressive given recent contracts.” | “Volatility in stock price makes me hesitant to invest.” |
| “Their focus on sustainability aligns with future energy needs.” | “Limited transparency in financial reporting is concerning.” |
Overall, consumer feedback highlights Centrus Energy’s innovative approach and growth prospects as key strengths, while concerns about customer service and stock volatility are recurring weaknesses.
Risk Analysis
In evaluating Centrus Energy Corp. (LEU), it’s crucial to consider various risks that could impact its performance. The following table outlines key risks associated with the company:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in uranium prices affecting revenue. | High | High |
| Regulatory Risk | Changes in government policies on nuclear energy. | Medium | High |
| Operational Risk | Challenges in supply chain or production delays. | Medium | Medium |
| Financial Risk | High levels of debt affecting financial stability. | Low | High |
| Technological Risk | Risks related to advancements in energy technology. | Medium | Medium |
The most significant risks for Centrus Energy Corp. are market and regulatory risks, given the volatility in uranium prices and potential shifts in energy policy, which can greatly affect the company’s revenue and operational framework.
Should You Buy Centrus Energy Corp.
Centrus Energy Corp. has showcased a robust financial performance recently, with a net profit margin of 16.56% and a return on invested capital (ROIC) of 6.43%. Notably, its weighted average cost of capital (WACC) is 4.27%, indicating that the company generates returns exceeding its cost of capital. The company’s competitive advantages include its unique position in the nuclear fuel market and steady demand for its products. However, recent risks involve market volatility and increasing competition in the energy sector.
Based on the current financial metrics, Centrus Energy appears favorable for long-term investors. The positive net margin and a ROIC exceeding the WACC suggest that the company is effectively generating value for its shareholders. Additionally, the long-term trend is bullish, supported by strong buyer volumes, indicating investor confidence. Therefore, I would recommend considering Centrus Energy as a long-term addition to your portfolio.
Nevertheless, it is essential to remain cautious of the competitive landscape and potential market fluctuations that could impact performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Centrus Reports Third Quarter 2025 Results – PR Newswire (Nov 05, 2025)
- Centrus Energy Corp. (LEU) Misses Q3 Earnings and Revenue Estimates – Yahoo Finance (Nov 05, 2025)
- Princeton Capital Management LLC Purchases New Shares in Centrus Energy Corp. $LEU – MarketBeat (Nov 08, 2025)
- Why Shares of Centrus Energy Are Powering Down Today – The Motley Fool (Nov 06, 2025)
- Earnings call transcript: Centrus Energy Q3 2025 earnings beat EPS, stock drops – Investing.com (Nov 06, 2025)
For more information about Centrus Energy Corp., please visit the official website: centrusenergy.com