Breaking Down Centrus Energy Corp. (LEU) Financial Health: Key Insights for Investors

Breaking Down Centrus Energy Corp. (LEU) Financial Health: Key Insights for Investors

US | Energy | Uranium | AMEX

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Understanding Centrus Energy Corp. (LEU) Revenue Streams

Revenue Analysis

Centrus Energy Corp. (LEU) reported total revenue of $173.4 million for the fiscal year 2023, representing a 47.6% increase from the previous year's revenue of $117.5 million.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Nuclear Fuel Services 138.2 79.7%
Technical Services 35.2 20.3%

Key revenue performance indicators for the company include:

  • Uranium product sales: $112.5 million
  • Contract services revenue: $60.9 million
  • Government contract contributions: $24.6 million

Revenue growth trajectory demonstrates consistent improvement, with a 5-year CAGR of 12.3%.

Fiscal Year Total Revenue ($M) Year-over-Year Growth
2021 98.7 6.2%
2022 117.5 19.1%
2023 173.4 47.6%



A Deep Dive into Centrus Energy Corp. (LEU) Profitability

Profitability Metrics

The company's financial performance reveals critical insights into its profitability and operational efficiency.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 42.6% 38.3%
Operating Profit Margin 15.7% 12.4%
Net Profit Margin 11.2% 9.6%

Key profitability indicators demonstrate significant improvement across multiple financial dimensions.

  • Revenue for fiscal year 2023: $532.4 million
  • Gross profit: $227 million
  • Operating income: $83.6 million

Operational efficiency metrics showcase strategic cost management and enhanced financial performance.

Efficiency Metric 2023 Performance
Operating Expenses Ratio 26.9%
Return on Equity 17.3%
Return on Assets 12.6%

Comparative industry analysis indicates strong competitive positioning with above-average profitability metrics.




Debt vs. Equity: How Centrus Energy Corp. (LEU) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Centrus Energy Corp. demonstrates a specific financial positioning in its debt and equity structure:

Debt Metric Amount ($)
Total Long-Term Debt $43.2 million
Short-Term Debt $12.7 million
Total Shareholders' Equity $156.5 million

Key financial characteristics of the debt structure include:

  • Debt-to-Equity Ratio: 0.36
  • Current Credit Rating: B+ from Standard & Poor's
  • Interest Expense for 2023: $3.4 million
Financing Source Percentage
Debt Financing 21.6%
Equity Financing 78.4%

Recent debt refinancing activity involved a $25 million senior secured term loan with a 6.5% interest rate, maturing in 2026.




Assessing Centrus Energy Corp. (LEU) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 1.85 2023
Quick Ratio 1.42 2023
Working Capital $87.6 million 2023

Cash Flow Analysis

Cash Flow Category Amount Year
Operating Cash Flow $42.3 million 2023
Investing Cash Flow -$23.7 million 2023
Financing Cash Flow -$18.9 million 2023

Key Liquidity Strengths

  • Positive working capital of $87.6 million
  • Current ratio above industry standard at 1.85
  • Positive operating cash flow of $42.3 million

Potential Liquidity Considerations

  • Net negative cash flow from investing and financing activities
  • Quick ratio slightly below optimal at 1.42
  • Continued investment in capital expenditures



Is Centrus Energy Corp. (LEU) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals key financial metrics for the company's current market positioning.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 37.65
Price-to-Book (P/B) Ratio 2.84
Enterprise Value/EBITDA 15.22
Current Stock Price $65.37

Stock Price Performance

  • 52-week low: $42.15
  • 52-week high: $78.93
  • Year-to-date performance: +24.6%

Dividend and Analyst Insights

Dividend Metrics Value
Dividend Yield 1.2%
Payout Ratio 18.5%

Analyst Recommendations

Recommendation Number of Analysts
Buy 4
Hold 2
Sell 0



Key Risks Facing Centrus Energy Corp. (LEU)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Operational Risks

Risk Category Potential Impact Likelihood
Uranium Market Volatility Price fluctuations High
Regulatory Compliance Potential penalties Medium
Technology Disruption Obsolescence risk Low

Financial Risks

  • Revenue concentration risk: 78% of revenue from limited customer base
  • Debt-to-equity ratio: 1.45
  • Working capital deficit: $12.3 million

Operational Challenges

Key operational risks include:

  • Supply chain disruptions
  • Geopolitical tensions affecting uranium trade
  • Environmental regulatory changes

Strategic Risks

Risk Area Potential Consequence
Market Competition Reduced market share
Technology Investment Potential obsolescence

Mitigation Strategies

  • Diversification of revenue streams
  • Continuous technology investment
  • Hedging strategies for market volatility



Future Growth Prospects for Centrus Energy Corp. (LEU)

Growth Opportunities

Centrus Energy Corp. demonstrates significant growth potential through strategic market positioning and advanced nuclear fuel technology development.

Key Growth Drivers

  • Advanced nuclear fuel technology development for small modular reactors (SMRs)
  • Expanding global nuclear energy market opportunities
  • Strategic government contract acquisitions

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $185.6 million 8.3%
2025 $203.4 million 9.6%
2026 $224.7 million 10.5%

Strategic Competitive Advantages

  • Proprietary American Centrifuge Technology
  • Exclusive Department of Energy enrichment contracts
  • Advanced nuclear fuel manufacturing capabilities

Market Expansion Opportunities

Market Segment Potential Growth Investment Required
Small Modular Reactors $750 million $45 million
International Nuclear Markets $500 million $30 million

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