Where Could Cameco Stock Be in 5 Years?

Cameco has the potential to sustain double-digit earnings growth if uranium prices comply, but beware the stock’s valuation multiples…

| More on:
Yellow caution tape attached to traffic cone

Source: Getty Images

Uranium mining giant Cameco (TSX:CCO) has been a standout performer in the nuclear industry, rewarding investors with a staggering 625% rally over the past five years. But with the stock trading near recently set all-time highs, long-term-oriented investors are right to ask: Can the nuclear powerhouse’s momentum continue? Let’s explore where Cameco stock could be by 2030.

Revenue Growth: Still more room for Cameco’s sales to run?

Cameco’s revenue surged 35% year-over-year during the first half of 2025 (H1 2025), reaching $1.7 billion. With annual deliveries of 28 million pounds of uranium locked in through 2029, and stronger commitments in the near term, the company has clear visibility into future revenue.

However, revenue growth rates will, most likely, moderate from the explosive pace of recent years. Projections suggest mid-to-high single-digit annual revenue growth through 2030, driven by higher realized uranium prices and incremental volume increases.

If uranium demand continues to climb globally, supported by growing nuclear energy commitments from 31 countries, Cameco’s top line could exceed current market expectations.

Margin expansion and restarting mines

As previously mothballed assets like McArthur River and Cigar Lake ramp up production, economies of scale should improve operating margins over the next five years. Management has highlighted cost containment as a priority, and with uranium prices likely to remain elevated, operating margins could stabilize around 15% or higher. A potential restart of U.S. operations, along with advances in Australian and Canadian projects moving into production, further supports efficiency gains.

Cameco has development projects, including Millennium, Yeelirrie, and Kintyre. One or two may have graduated into production by 2030, increasing Cameco’s uranium supply and contracting capacity.

Acquisition appetite and diversification

Cameco isn’t just a uranium miner. It has established interests deep into the nuclear energy value chain. Its 49% stake in Westinghouse, a global nuclear services leader, which was acquired in 2023, added diversification and high-margin revenue. Westinghouse’s recent wins concerning profit shares in projects by South Korean competitors and interests in the Dukovany project in the Czech Republic contribute significantly to its earnings before interest, taxes, depreciation, and amortization (EBITDA), which Cameco expects to grow at 6–10% annually over the next five years.

Cameco historically had a good appetite for acquisitions during uranium’s good times, and the next five years could see a handful of transactions. New acquisitions may potentially add new revenue streams in enrichment, conversion, or even next-generation nuclear technology.

By 2030, Global Laser Enrichment (GLE), jointly owned by Cameco and Silex Systems, could be entering the production stage, further transforming the business within the next five years.

Geopolitical risks and opportunities

Trade tensions and protectionism pose risks, but also opportunities. As Europe and the U.S. diversify away from Russian nuclear fuel, Cameco’s Canadian and U.S. assets become increasingly strategic. However, potential tariffs or trade barriers under a Trump administration could create headwinds if natural uranium and nuclear products get removed from the current tariff-exempt schedule. The company’s geographically diversified operations mitigate some of this risk.

Valuation: The elephant in the room

Cameco stock trades at a lofty price-earnings (P/E) multiple of 84, far above global uranium supply leader Kazatomprom’s 10. This premium reflects Cameco’s exposure to North American stock markets, its integrated business model, and high growth expectations. But if revenue growth slows to single digits, the multiple could compress.

Bay Street analysts project earnings per share (EPS) growth of 10.8% annually over the next five years. If EPS reaches $2 by 2030 and the P/E multiple halves to 40, the stock could trade around $80, far below today’s $105.

For Cameco stock to appreciate, Cameco must outperform EPS growth expectations or maintain a rich valuation.

The Foolish bottom line

Cameco’s revenue and earnings future is bright, but it’s not without challenges. The company has secured contracts, diversified into services, and positioned itself as a low-risk uranium supplier in a world economy that’s re-embracing nuclear energy. However, its stock valuation already prices in near-perfect execution.

For investors buying today, the key question is whether Cameco can grow EPS fast enough to justify its premium. If uranium prices surge or acquisitions accelerate growth, the stock could defy skeptics. But if growth slows or multiples contract, investment gains may be limited during the next five years.

Perhaps buying on pullbacks could be a rewarding strategy for new money. Personally, I keep holding my Cameco stock position.

Fool contributor Brian Paradza has positions in Cameco. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

More on Energy Stocks

Oil industry worker works in oilfield
Energy Stocks

Should You Buy Suncor or Canadian Natural Resources Now?

Suncor and Canadian Natural Resources are up in recent months. Are more gains on the way for one of these…

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Energy Stocks

Buy 928 Shares of This Stock for $300 in Monthly Dividend Income

Enbridge (TSX:ENB) has a 5.8% dividend yield.

Read more »

woman checks off all the boxes
Energy Stocks

5 Reasons to Buy and Hold This Canadian Stock for Life

Altagas offers investors exposure to the stable and growing utilities business as well as the lucrative LNG business.

Read more »

trends graph charts data over time
Energy Stocks

The Resurgence Plays: 2 Energy Stocks Poised for Massive Turnaround Gains in 2026

Two surging TSX energy stocks could sustain their strong momentum to deliver massive gains in 2026.

Read more »

Nuclear power station cooling tower
Energy Stocks

2 Top TFSA Stocks to Buy and Hold for the Long Term

Cameco (TSX:CCO) is a great top pick for a long-term TFSA that aims to compound wealth.

Read more »

canadian energy oil
Energy Stocks

Dividend Investors: Top Canadian Energy Stocks to Buy in December

Suncor Energy Inc (TSX:SU) is a great energy stock to own in December.

Read more »

engineer at wind farm
Energy Stocks

5.5% Dividend Yield: I’m Buying This Passive Income Stock In Bulk

Enbridge (TSX:ENB) has had its ups and downs in recent years, but here's why the future may be pointing in…

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Energy Stocks

Dividend Investors: Premier Canadian Energy Stocks to Buy in December

These three Canadian energy stocks with yields of up to 5% are solid dividend buys in preparation for the new…

Read more »