LEU - Centrus Energy: Investors Already Realize Nuclear's Significance

2024-07-13 02:34:51 ET

Summary

• Centrus Energy's stock gained 1,338% in five years, slowing to 66% over three. Prior gains have matured; future growth is speculative due to valuation and market saturation concerns.
• Centrus, the sole U.S.-owned uranium enricher, plans to scale HALEU production but faces high debt and unearned revenue, impacting short-to-medium-term growth and funding capacity.
• The $2.72 billion for domestic uranium and shifting away from Russian imports present opportunities. Long-term alpha hinges on policy shifts favoring nuclear, which remains speculative.

Centrus Energy ( LEU ) is arguably one of the most important nuclear energy companies in the Western world at the moment, as it began operations at its HALEU (High-Assy Low-Enriched Uranium) facility in Piketon , Ohio, in October 2023, making it the first and only NRC-licensed HALEU production facility in the United States. This is the first U.S.-owned, U.S.-technology uranium enrichment plant to begin production since 1954....

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