Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 23 Sept 2026
LEU· Energy
Centrus Energy
Centrus Energy's high P/E of 69.6 and negative 5-year ROIC of -4.33% reveal a lack of durable competitive advantage.
Buffett fit
Weak fit
Owner
10
Durability
51
Management
33
Price
0
Score updated 27 Oct 2026 · analysis from 23 Sept 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.
If we owned Centrus Energy entirely, the focus would be on improving returns on invested capital, currently at a mere 1.44%.
The full reasoning comes with a free account.
Centrus Energy's 5-year EPS CAGR of -18.94% and a maximum EPS decline of 65.4% highlight volatility and earnings risk.
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The share count CAGR of 7.42% suggests dilution, with no or dividends to offset this.
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With an earnings yield of 1.44% and an yield of 0.77%, the current valuation is unattractive.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 10.75% over 5 years shows some top-line growth.
- 2Net profit margin of 13.4% is positive, though below sector standards.
- 3Current ratio of 5.72 indicates strong short-term liquidity.
- 4Net debt/EBITDA of -9.49 suggests a net cash position.
Concerns
6- 1 of 69.6 is extremely high, indicating overvaluation.
- 2 (5y avg) of -4.33% is well below the sector top-quintile cutoff of 16.4%.
- 3 of 6.74% is significantly below the sector top-quintile cutoff of 28.6%.
- 4Share count CAGR of 7.42% indicates shareholder dilution.
Price history
$109+93.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Centrus Energy operates through two segments: Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells components of LEU and natural uranium to utilities operating nuclear power plants, while Technical Solutions provides engineering and operational services. Despite a 10.75% revenue CAGR over 5 years, the is only 6.74%, indicating limited . The unit economics are challenged by low margins and high valuation multiples.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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