Mirion Technologies Up 59.2% in 3 Months: Is the Stock Still a Buy?

Mirion Technologies MIR has delivered a solid 59.2% gain over the past three months. This performance easily beats another nuclear energy stock, BWX Technologies BWXT, which returned 53.4% during the same period. However, nuclear power-centric stock, Cameco Corporation CCJ, has performed even better, gaining 100.2%.

3-Month Price Comparison

Given MIR’s impressive rally, investors might wonder if the opportunity to add this high-flying stock to their portfolio has passed. Let us delve deeper and analyze MIR’s fundamentals and overall business environment.

Factors Favoring Mirion at Present

MIR currently has a Momentum Score of A. Technical indicators suggest continued strong performance for MIR. The stock trades above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in MIR’s prospects.

50-Day Moving Average Data of MIR Stock

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Artificial intelligence-powered data centers are a booming industry now. In December 2024, the US Department of Energy reported that data center energy usage will “double or triple by 2028,” after doubling over the past decade. On May 23, President Donald Trump signed four executive orders to deploy new nuclear reactors and strengthen the supply chain.

These orders aim to increase U.S. nuclear energy capacity from 100 gigawatt (GW) to 400 GW by 2050. In addition to encouraging the construction of reactors close to military installations and AI-based data center hubs, which need enormous amounts of power to run, the executive orders give priority to domestic uranium supply. These developments bode well for Mirion Technologies.

MIR’s nuclear-focused technologies are essential throughout the nuclear energy lifecycle. Many of MIR’s solutions are also mandatory for customers in highly regulated industries such as nuclear energy. Mirion is committed to expanding its reach in the next generation of nuclear energy by working with small modular reactor developers to “solve essential nuclear measurement, safety and security challenges.”

In May, Mirion Technologies joined the Texas Nuclear Alliance as a founding member to strengthen the future of safe nuclear power in Texas. Last month, MIR entered into a strategic partnership with Westinghouse Electric to provide nuclear instrumentation systems, boosting MIR stock further. The collaboration focuses on replacing the legacy analog Nuclear Instrumentation Systems with Mirion's proTK digital system. The digital upgrade aims to bring down operator and maintenance burdens.

Mirion’s proTK technology has already demonstrated its reliability with over 400 drawers implemented globally, representing more than 4,000 operating years across nuclear facilities. 

Nuclear power accounted for roughly 40% of MIR’s revenues in 2024. The Zacks Consensus Estimate for 2025 revenues at MIR hints at a 5.3% increase from 2024’s actuals. The Zacks Consensus Estimate for earnings suggests a 14.6% increase from 2024’s actuals.

MIR’s 2025 guidance is quite impressive. The company expects total revenues to grow in the 5-7% range on a year-over-year basis. Organic revenue growth is projected in the 5.5-7.5% range. Adjusted EBITDA is projected in the $215-$230 million range.

Adjusted free cash flow is projected in the $85-$110 million range. The company expects adjusted earnings per share in the 45-50 cents range. The Zacks Consensus Estimate for earnings is currently pegged at 47 cents, a tad below the midpoint of the guided range.

Headwinds Mirion Can't Ignore

As Mirion operates in many countries worldwide, it is exposed to foreign exchange-related risks. For example, Mirion's revenue growth forecast for the current year includes a foreign exchange rate headwind of roughly 40 basis points.

Supply-chain-related headwinds, too, may disrupt the company’s operations. The impact of Trump tariffs represents a key hurdle for this nuclear energy stock. The current U.S. administration is focused on protectionism, which restricts international trade to benefit domestic industries. With potential retaliatory tariffs and supply chain disruptions, the road ahead remains unpredictable. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors in nuclear energy companies like MIR.

Expensive Valuation

Mirion shares are trading at a premium to the Zacks Technology-Services Market. Its 12-month forward price-to-sales of 5.33 is higher than the industry average of 3.31X. Its Value Score of D suggests that the stock is not so cheap and indicates a stretched valuation at this moment.

Shares of Mirion are also trading higher than those of fellow nuclear energy stock BWX Technologies. Shares of Cameco Corporation are, however, trading even higher than those of Mirion. While BWX Technologies currently has a Value Score of D, Cameco has a Value Score of F.

Not an Opportune Time to Buy MIR Stock

There is no doubt that Mirion has a lot going in its favor. Factors like increasing tech innovation, defense projects and global demand for uranium fuel should continue to support MIR. However, foreign-exchange related headwinds, tariff-induced economic uncertainty and resultant supply chain woes represent challenges that cannot be ignored. MIR’s expensive valuation represents another headwind.

Given the current situation, it is not at all advisable to buy this Zacks Rank #3 (Hold) stock. Investors should monitor the company’s developments closely for an appropriate entry point. For those who already own the stock, it will be prudent to stay invested.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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