Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (NYSE: CCJ ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Cameco's business and see what CAPS investors are saying about the stock right now.
Cameco facts
| Headquarters (Founded) | Saskatoon, Canada (1987) |
| Market Cap | $7.9 billion |
| Industry | Coal and consumable fuels |
| Trailing-12-Month Revenue | $1.9 billion |
| Management | CEO Timothy Gitzel (since July 2011) CFO Grant Isaac (since July 2011) |
| Return on Equity (Average, Past 3 Years) | 10% |
| Cash/Debt | $1.2 billion / $987.5 million |
| Dividend Yield | 1.9% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 1,776 members who have rated Cameco believe the stock will outperform the S&P 500 going forward. These bulls include macheu02 and seekingyield.
This past summer, macheu02 tapped Cameco as an atomic bargain opportunity:
[T]he hazards of nuclear power is not stopping China or India from building power plants. This will continue to push the price of uranium higher over the next couple of years.
The current price of Cameco is based on fear not facts. CCJ has enough cash, receivables and inventory to survive the current downturn and wait for the return of sanity.
In fact, Cameco currently sports a total debt-to-equity of 21%. That's lower than mining giants like BHP Billiton (NYSE: BHP ) (28%), Rio Tinto (NYSE: RIO ) (26%), and Vale (NYSE: VALE ) (32%).
CAPS member seekingyield expanded on the outperform call back on March 27:
Cameco is a leading producer of uranium and its share price has been hammered on the question marks that have risen over the nuclear industry as a result of the situation in Japan. Though it could be that the Japanese nuclear issue scars the industry and throws it off the promising path that it had been on, in my opinion, nuclear power just makes too much sense, especially stacked against more traditional sources of power like coal. Cameco shares may remain depressed for some time, but over the long term, their product will be in demand and they are a global leader. It's worth a shot.
What do you think about Cameco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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