Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 17 Aug 2026
CCJ· Energy
Cameco
Cameco's P/E of 99.1 and low ROIC of 4.9% highlight valuation and return concerns in the uranium sector.
Buffett fit
Weak fit
Owner
21
Durability
27
Management
83
Price
0
Score updated 27 Oct 2026 · analysis from 17 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Cameco would involve navigating a volatile industry with significant regulatory and geopolitical risks.
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Cameco faces challenges in achieving long-term durability due to the cyclical nature of the uranium market and potential regulatory changes.
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Cameco's management has maintained a conservative balance sheet with a debt/equity ratio of 0.14 and net debt/EBITDA of -0.10, indicating strong financial health.
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The current valuation metrics, including a of 99.1 and an EV/ of 110.9, suggest that Cameco is significantly overvalued.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Debt/Equity ratio of 0.14 indicates conservative .
- 2Net debt/EBITDA of -0.10 shows a net cash position.
- 3Interest coverage of 9.6 suggests strong ability to meet interest obligations.
- 4 of $742.83M provides financial flexibility.
Concerns
6- 1 of 99.1 indicates high market expectations not supported by fundamentals.
- 2 of 4.9% is well below the sector's top quintile and Buffett's 15% threshold.
- 3 yield of 1.59% is far below the desired 8-10%.
- 4 of 31.9% is below the sector's top quintile of 50.7%.
Price history
$79.07+225.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Cameco Corporation operates in the uranium sector, producing and selling uranium and related fuel services. The company has two segments: Uranium, which involves exploration, mining, and milling, and Fuel Services, which includes refining and conversion. Revenue is primarily generated from nuclear utilities across the Americas, Europe, and Asia. The unit economics are challenged by a 31.9% , below the sector's top quintile.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 26, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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