CENTRUS ENERGY CORP (LEU) - Comprehensive Stock Analysis & Investment Research
Deep dive into CENTRUS ENERGY CORP's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
CENTRUS ENERGY CORP Investment Summary
When evaluating whether CENTRUS ENERGY CORP (LEU) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
CENTRUS ENERGY CORP (LEU) operates within the Energy & Transportation sector, specifically in the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company employs approximately 623 people. With a market capitalization of $5 billion, the company is a mid-cap stock that typically offers a balance between growth potential and established business operations.
Financial Performance Analysis
CENTRUS ENERGY CORP generates annual revenues of approximately $454 million. The company demonstrates exceptional profitability with a net margin of 71.0%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company has a Return on Equity (ROE) of -859.1%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at 26.9%, indicating efficient asset utilization. The gross margin of 118.7% reflects strong pricing power and cost control.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.20x indicates the company can meet its short-term obligations, though with limited buffer. The debt-to-equity ratio of 11.13x indicates significant leverage, which investors should evaluate carefully in the context of the company's cash flow generation.
Cash Flow Generation
CENTRUS ENERGY CORP generates $45 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $45 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 493.8%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 43.4x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 13.59x, reflecting significant intangible value and market expectations of future growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether CENTRUS ENERGY CORP is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a mid-cap stock, CENTRUS ENERGY CORP may offer a balance of growth potential and established business fundamentals.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
CENTRUS ENERGY CORP (Stock Symbol: LEU) is a prominent company operating within the Energy & Transportation sector, with a specific focus on the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 623 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $5 billion, CENTRUS ENERGY CORP is classified as a mid-cap stock. Mid-cap companies often represent businesses in a growth phase, having moved beyond the early startup stage but still possessing significant expansion potential. These stocks can offer an attractive balance between the growth potential of smaller companies and the stability of larger corporations.
Sector & Industry Context
Operating within the Energy & Transportation sector, CENTRUS ENERGY CORP is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
CENTRUS ENERGY CORP generates annual revenues of $454 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 71.0% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Gross profit margin stands at 118.7%, a premium margin typical of software, pharmaceuticals, or luxury goods companies with exceptional pricing power and low marginal costs of production.
Operating margin is 42.4%, demonstrating excellent core business efficiency with well-controlled operating expenses relative to revenue generation.
Market Valuation
Current market capitalization stands at $5 billion . This mid-cap classification represents companies that have proven their business models but still have significant growth runway. Mid-caps often offer an attractive blend of growth potential and established operations.
Return on Investment Metrics
Return on Equity (ROE) measures -859.1%, indicating negative shareholder returns, typically resulting from operating losses or exceptional write-downs.
Return on Assets (ROA) stands at 26.9%, representing exceptional asset efficiency typically seen in asset-light business models like software or consulting companies.
Return on Invested Capital (ROIC) measures -152.8%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow generation of $45 million annually indicates positive cash generation, though at a modest level that may limit flexibility for major investments or returns to shareholders.
Operating cash flow reaches $45 million , with year-over-year growth of 493.8%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
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Strategic Market Position
CENTRUS ENERGY CORP strategically competes in the highly dynamic Mining & Quarrying of Nonmetallic Minerals (No Fuels) marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.
Industry Competitive Landscape
CENTRUS ENERGY CORP competes within the Energy & Transportation sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $45 million annually , with year-over-year cash flow growth of 493.8%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 118.7% gross margin which reflects exceptional pricing power and/or an asset-light business model. Gross margins at this level are typically seen in software, pharmaceuticals, or luxury goods companies where the cost of incremental production is minimal relative to selling prices. Such margins indicate significant competitive advantages protecting the company from price-based competition.
Operating margin of 42.4% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.54x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 1.20 indicates adequate liquidity to meet short-term obligations with reasonable cushion. This level balances working capital efficiency with financial safety.