In the evolving uranium energy sector, NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU) stand out as key players with distinct strategic approaches. NexGen focuses on exploration and development in Canada’s Athabasca Basin, while Centrus supplies nuclear fuel and technical services primarily in the U.S. and international markets. This comparison explores their market positions and innovation strategies to identify which company offers the most compelling opportunity for investors today.
Table of contents
Companies Overview
I will begin the comparison between NexGen Energy Ltd. and Centrus Energy Corp. by providing an overview of these two companies and their main differences.
NexGen Energy Ltd. Overview
NexGen Energy Ltd. is an exploration and development stage company focused on uranium properties in Canada. Its principal asset is the Rook I project, a large mineral claim area in Saskatchewan’s Athabasca Basin. The company aims to advance uranium exploration and development within the energy sector, positioning itself as a key player in Canadian uranium mining.
Centrus Energy Corp. Overview
Centrus Energy Corp. supplies nuclear fuel and services to the nuclear power industry in the US and internationally. It operates two segments: Low-Enriched Uranium (LEU) and Technical Solutions, providing nuclear fuel components and technical services. Headquartered in Maryland, Centrus focuses on supporting utilities and public and private sector clients with nuclear fuel and engineering expertise.
Key similarities and differences
Both NexGen and Centrus are active in the uranium industry and listed on the NYSE, with operations in energy. NexGen concentrates on uranium exploration and development in Canada, while Centrus focuses on nuclear fuel supply and technical services primarily in the US and abroad. The companies differ in their business models, with NexGen in resource development and Centrus in fuel production and engineering services.
Income Statement Comparison
This table compares key income statement metrics for NexGen Energy Ltd. and Centrus Energy Corp. based on their most recent fiscal year data from 2024.
| Metric | NexGen Energy Ltd. (NXE) | Centrus Energy Corp. (LEU) |
|---|---|---|
| Market Cap | 7B CAD | 5.4B USD |
| Revenue | 0 CAD | 442M USD |
| EBITDA | -77M CAD | 87M USD |
| EBIT | -78M CAD | 76M USD |
| Net Income | -78M CAD | 73M USD |
| EPS | -0.14 CAD | 4.49 USD |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
NexGen Energy Ltd.
NexGen Energy Ltd. reported zero revenue consistently from 2020 to 2024, reflecting its exploration and development stage. Net income showed volatility with a large loss in 2024 at -77.6M CAD after a positive 80.8M CAD in 2023. Margins remain unfavorable, with no gross margin and negative EBIT margins, indicating ongoing operating losses and limited profitability progress in the latest fiscal year.
Centrus Energy Corp.
Centrus Energy Corp. demonstrated solid revenue growth, reaching 442M USD in 2024, up 38% from the previous year. Despite this, gross profit slightly declined, and EBIT fell by nearly 12%, resulting in compressed net margin and EPS declines in 2024. Margins remain favorable overall, with a 25.2% gross margin and 16.6% net margin, showing strong operational fundamentals despite recent margin pressure.
Which one has the stronger fundamentals?
Centrus Energy presents stronger fundamentals with consistent revenue growth, positive gross and net margins, and a favorable overall income statement evaluation. NexGen Energy’s lack of revenue and persistent losses render its income statement unfavorable, despite some net income improvement over the period. Thus, Centrus displays more robust financial performance and profitability metrics.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU) based on their most recent fiscal year data from 2024.
| Ratios | NexGen Energy Ltd. (NXE) | Centrus Energy Corp. (LEU) |
|---|---|---|
| ROE | -6.58% | 45.35% |
| ROIC | -4.39% | 4.02% |
| P/E | -67.80 | 14.84 |
| P/B | 4.46 | 6.73 |
| Current Ratio | 1.03 | 2.93 |
| Quick Ratio | 1.03 | 2.46 |
| D/E (Debt-to-Equity) | 0.39 | 0.97 |
| Debt-to-Assets | 27.56% | 14.36% |
| Interest Coverage | -2.33 | 17.78 |
| Asset Turnover | 0 | 0.40 |
| Fixed Asset Turnover | 0 | 47.02 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
NexGen Energy Ltd.
NexGen Energy Ltd. shows mostly unfavorable financial ratios with negative returns on equity (-6.58%) and invested capital (-4.39%), and a zero net margin. Its quick ratio (1.03) and debt-to-equity ratio (0.39) are favorable, indicating some liquidity and manageable leverage. The company does not pay dividends, reflecting its exploration stage and focus on development rather than shareholder returns.
Centrus Energy Corp.
Centrus Energy Corp. exhibits a generally favorable ratio profile, with a strong net margin of 16.56% and a high return on equity of 45.35%. Its current and quick ratios (2.93 and 2.46) indicate solid liquidity, though the price-to-book ratio (6.73) is unfavorable. Like NexGen, Centrus does not pay dividends, likely prioritizing reinvestment and growth over distributions.
Which one has the best ratios?
Centrus Energy Corp. demonstrates a more favorable overall ratio assessment, with 57.14% favorable metrics compared to NexGen’s 28.57%. Despite some concerns like a high price-to-book ratio, Centrus’s profitability and liquidity ratios are stronger. NexGen’s ratios are mostly unfavorable, reflecting its developmental phase and financial challenges.
Strategic Positioning
This section compares the strategic positioning of NexGen Energy Ltd. and Centrus Energy Corp., including Market position, Key segments, and exposure to technological disruption:
NexGen Energy Ltd.
- Exploration and development stage uranium company with competitive pressure in Canadian market.
- Focused on uranium property acquisition and development, primarily Rook I project in Athabasca Basin.
- No explicit data on exposure to technological disruption provided.
Centrus Energy Corp.
- Nuclear fuel supplier with established presence in US, Japan, Belgium, and international markets.
- Operates two segments: Low-Enriched Uranium sales and Technical Solutions services.
- No explicit data on exposure to technological disruption provided.
NexGen Energy Ltd. vs Centrus Energy Corp. Positioning
NexGen is concentrated on uranium exploration and development in Canada, while Centrus has a diversified business model including uranium supply and technical services internationally. NexGen’s focus limits diversification but targets growth in exploration, whereas Centrus’ segments provide multiple revenue streams but face broader market challenges.
Which has the best competitive advantage?
Both companies are currently shedding value with ROIC below WACC. NexGen shows a growing ROIC trend, indicating improving profitability, while Centrus faces declining ROIC, reflecting decreasing profitability and a less favorable competitive position.
Stock Comparison
The past year showed pronounced bullish trends for both NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU), with LEU exhibiting a significantly higher price surge but recent divergence in momentum.
Trend Analysis
NexGen Energy Ltd. (NXE) recorded a 44.55% price increase over the past 12 months, confirming a bullish trend with accelerating momentum and moderate volatility (1.3 std deviation). The stock’s highest price reached 10.74, with a low of 4.18.
Centrus Energy Corp. (LEU) showed a remarkable 595.57% price increase over the same period, also bullish but with decelerating momentum and high volatility (97.12 std deviation). The highest price was 383.0, and the lowest was 35.36.
Comparing both stocks, LEU delivered the highest market performance over the past year despite recent price declines, while NXE maintained a steadier upward trajectory with recent buyer dominance.
Target Prices
The consensus target price for Centrus Energy Corp. indicates a broadly positive outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Centrus Energy Corp. | 390 | 125 | 288.4 |
Analysts expect Centrus Energy’s price to remain well above its current 306.19 USD, suggesting potential upside despite some downside risk. No verified target price data is available for NexGen Energy Ltd.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU):
Rating Comparison
NXE Rating
- Rating: D+ indicating a very favorable status despite low scores
- Discounted Cash Flow Score: 2, showing a moderate valuation assessment
- ROE Score: 1, very unfavorable, suggesting low efficiency in generating profits
- ROA Score: 1, very unfavorable, implying poor asset utilization
- Debt To Equity Score: 1, very unfavorable, pointing to high financial risk
- Overall Score: 1, very unfavorable, reflecting weak overall financial standing
LEU Rating
- Rating: B reflecting a very favorable status with higher scores
- Discounted Cash Flow Score: 4, indicating a favorable valuation outlook
- ROE Score: 5, very favorable, showing strong profit generation from shareholders’ equity
- ROA Score: 4, favorable, indicating effective use of assets
- Debt To Equity Score: 1, very unfavorable, also indicating significant financial risk
- Overall Score: 3, moderate, showing a better but not strong overall financial health
Which one is the best rated?
Based strictly on the provided data, LEU is better rated overall with a B rating and higher scores in discounted cash flow, ROE, ROA, and overall score. Both companies share a very unfavorable debt to equity score.
Scores Comparison
The comparison of the company scores based on Altman Z-Score and Piotroski Score is as follows:
NexGen Energy Ltd. Scores
- Altman Z-Score: 6.89, indicating a safe zone and low bankruptcy risk.
- Piotroski Score: 1, categorized as very weak financial strength.
Centrus Energy Corp. Scores
- Altman Z-Score: 2.70, placing the company in the grey zone with moderate bankruptcy risk.
- Piotroski Score: 5, indicating average financial strength.
Which company has the best scores?
NexGen Energy has a significantly stronger Altman Z-Score, indicating better bankruptcy safety, but a much weaker Piotroski Score. Centrus Energy shows a moderate Altman Z-Score and a stronger Piotroski Score, reflecting more balanced financial health.
Grades Comparison
Here is the comparison of recent grades and rating consensus for NexGen Energy Ltd. and Centrus Energy Corp.:
NexGen Energy Ltd. Grades
The following table summarizes recent grades and actions for NexGen Energy Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| No reliable grading data available | – | – | – |
NexGen Energy Ltd. currently lacks verifiable grade updates from recognized grading firms; consensus rating remains a Buy based on four Buy recommendations.
Centrus Energy Corp. Grades
The table below shows recent grades and rating actions for Centrus Energy Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Roth Capital | Maintain | Neutral | 2026-01-08 |
| B. Riley Securities | Maintain | Buy | 2025-12-22 |
| Needham | Maintain | Buy | 2025-12-22 |
| UBS | Maintain | Neutral | 2025-11-25 |
| 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 |
The overall trend for Centrus Energy Corp. is a mix of Neutral and Buy ratings, with a consensus Hold reflecting some caution despite multiple Buy calls.
Which company has the best grades?
NexGen Energy Ltd. holds a Buy consensus without recent individual grades, while Centrus Energy Corp. shows a more mixed profile with a Hold consensus and several Neutral grades. This suggests NexGen’s ratings lean more positively, which may influence investor sentiment toward a stronger outlook relative to Centrus.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU) based on the most recent data from 2024 and their financial and operational profiles.
| Criterion | NexGen Energy Ltd. (NXE) | Centrus Energy Corp. (LEU) |
|---|---|---|
| Diversification | Limited product diversification; mainly focused on uranium mining | Diversified revenue streams: Separative Work Units, Uranium, and Services |
| Profitability | Unfavorable profitability metrics; negative ROIC and ROE | Favorable profitability; positive net margin (16.56%) and high ROE (45.35%) |
| Innovation | Moderate innovation but profitability challenges limit reinvestment | Strong fixed asset turnover (47.02) indicating efficient asset use and innovation |
| Global presence | Primarily focused in Canada with limited global footprint | Broader global operations supported by diversified service offerings |
| Market Share | Smaller market share with value destruction but improving ROIC trend | Larger market share with stable revenue growth and favorable financial ratios |
Key takeaways: NexGen Energy struggles with profitability and value creation despite improving returns, reflecting operational risks. Centrus Energy demonstrates stronger financial health, diversified offerings, and efficient asset use, making it a more resilient choice for investors seeking exposure in the nuclear energy sector.
Risk Analysis
Below is a comparative risk overview of NexGen Energy Ltd. (NXE) and Centrus Energy Corp. (LEU) based on the most recent data from 2024:
| Metric | NexGen Energy Ltd. (NXE) | Centrus Energy Corp. (LEU) |
|---|---|---|
| Market Risk | High beta 1.856, volatile price range (3.91-11.33 USD) | Moderate beta 1.252, wider price range (49.4-464.25 USD) |
| Debt Level | Low debt-to-equity 0.39, favorable leverage | Moderate debt-to-equity 0.97, neutral leverage |
| Regulatory Risk | Moderate, uranium exploration subject to Canadian regulations | Elevated, US and international nuclear fuel regulations |
| Operational Risk | High, exploration stage with no revenue and negative profitability | Moderate, established operations with positive margins |
| Environmental Risk | Significant, mining and uranium development impact | Moderate, nuclear fuel supply with technical services |
| Geopolitical Risk | Moderate, Canadian base but uranium market influenced globally | High, US-based with exposure to international nuclear markets |
The most impactful risks are NXE’s operational and market volatility risks due to its early-stage development and high beta, while LEU faces higher geopolitical and regulatory risks given its US operations and international exposure. NXE’s financial distress signals caution despite a strong Altman Z-score, whereas LEU shows more stable financial health but higher debt concerns.
Which Stock to Choose?
NexGen Energy Ltd. (NXE) shows stagnant income evolution with unfavorable profitability and most financial ratios, despite low debt levels and a slightly unfavorable moat due to value destruction. Its overall rating is very unfavorable despite a safe Altman Z-score.
Centrus Energy Corp. (LEU) presents favorable income growth and profitability with mostly favorable financial ratios, though it has moderate debt concerns and a very unfavorable moat due to declining profitability. Its rating is very favorable overall, supported by a grey zone Altman Z-score.
Investors prioritizing growth and financial strength might find Centrus Energy’s favorable income and rating appealing, while those cautious about profitability trends and economic moat could view NexGen’s improving ROIC and strong solvency as factors to consider. The choice may appear dependent on risk tolerance and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of NexGen Energy Ltd. and Centrus Energy Corp. to enhance your investment decisions:
