RHJ Investment Thesis
Cameco (NYSE: CCJ ) reported 12.9% of adjusted net earnings margins. Not only is this a massive improvement from Q1, but it’s a truly impressive improvement from the same period a year ago, which was marked by negative double digits in adjusted earnings margin.
That’s not to say that the sky is rosy and the outlook is sizzling strong. However, we are talking about a business that is now in a markedly different position from last year and there are reasons to conclude that Cameco’s prospects could substantially improve going forward.
I believe that paying 6x this year’s revenues is a very fair multiple for this investment. Here’s why: Revenue Growth Rates Likely to Remain Elevated, But Cameco Fails to Revise Its Outlook Upwards Cameco revenue growth rates Cameco reported Q2 2022 revenue growth rates of 55%. This was a mightily impressive result, which saw its revenue growth […]
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