CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
330.9 USD
+8.19 (+2.54%)
330.12 USD
-0.78 (-0.24%)
We assign a fundamental rating of 4 out of 10 to CEG. CEG was compared to 48 industry peers in the Electric Utilities industry. Both the profitability and the financial health of CEG get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, CEG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CEG had positive earnings in the past year.
In the past year CEG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CEG reported negative net income in multiple years.
In the past 5 years CEG reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of CEG (5.67%) is better than 89.58% of its industry peers.
With an excellent Return On Equity value of 22.38%, CEG belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Invested Capital of CEG (5.84%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CEG is in line with the industry average of 5.43%.
The last Return On Invested Capital (5.84%) for CEG is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 22.38% | ||
| ROIC | 5.84% |
ROA(3y)3.31%
ROA(5y)2.15%
ROE(3y)13.96%
ROE(5y)8.96%
ROIC(3y)3.44%
ROIC(5y)N/A
1.3 Margins
CEG has a Profit Margin (12.12%) which is comparable to the rest of the industry.
CEG's Profit Margin has improved in the last couple of years.
The Operating Margin of CEG (15.19%) is worse than 77.08% of its industry peers.
CEG's Operating Margin has improved in the last couple of years.
CEG has a Gross Margin of 46.71%. This is comparable to the rest of the industry: CEG outperforms 50.00% of its industry peers.
CEG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 12.12% | ||
| GM | 46.71% |
OM growth 3YN/A
OM growth 5Y22.56%
PM growth 3YN/A
PM growth 5Y21.76%
GM growth 3Y10.6%
GM growth 5Y3.87%
2. Health
2.1 Basic Checks
CEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CEG has less shares outstanding
Compared to 5 years ago, CEG has less shares outstanding
CEG has a better debt/assets ratio than last year.
2.2 Solvency
CEG has an Altman-Z score of 2.42. This is not the best score and indicates that CEG is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.42, CEG belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that CEG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.61, CEG is doing good in the industry, outperforming 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.42 |
ROIC/WACC0.7
WACC8.35%
2.3 Liquidity
CEG has a Current Ratio of 1.48. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
CEG has a better Current ratio (1.48) than 77.08% of its industry peers.
A Quick Ratio of 1.22 indicates that CEG should not have too much problems paying its short term obligations.
CEG has a better Quick ratio (1.22) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.44% over the past year.
The Earnings Per Share has been growing by 28.10% on average over the past years. This is a very strong growth
Looking at the last year, CEG shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
CEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.49% yearly.
EPS 1Y (TTM)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
3.2 Future
CEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.17% yearly.
Based on estimates for the next years, CEG will show a small growth in Revenue. The Revenue will grow by 4.02% on average per year.
EPS Next Y-28.76%
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
EPS Next 5Y5.17%
Revenue Next Year-0.92%
Revenue Next 2Y0.73%
Revenue Next 3Y2.45%
Revenue Next 5Y4.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.52, CEG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CEG is valued more expensive than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CEG is valued a bit more expensive.
The Price/Forward Earnings ratio is 32.63, which means the current valuation is very expensive for CEG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CEG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
83.33% of the companies in the same industry are cheaper than CEG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, CEG is not a good candidate for dividend investing.
With a Dividend Yield of 0.49, CEG pays less dividend than the industry average, which is at 3.47. 85.42% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.38, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
CEG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
15.49% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP15.49%
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
330.9
+8.19 (+2.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change-3.74%
Ins Owners0.25%
Ins Owner Change5.87%
Market Cap103.38B
Analysts79
Price Target337.43 (1.97%)
Short Float %2.21%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1.41
Dividend Growth(5Y)N/A
DP15.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-40.14%
Min EPS beat(2)-83.02%
Max EPS beat(2)2.74%
EPS beat(4)3
Avg EPS beat(4)-2.97%
Min EPS beat(4)-83.02%
Max EPS beat(4)43.37%
EPS beat(8)6
Avg EPS beat(8)11.01%
EPS beat(12)7
Avg EPS beat(12)-0.43%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)24.31%
Min Revenue beat(2)23.53%
Max Revenue beat(2)25.1%
Revenue beat(4)3
Avg Revenue beat(4)11.01%
Min Revenue beat(4)-18.07%
Max Revenue beat(4)25.1%
Revenue beat(8)4
Avg Revenue beat(8)2.4%
Revenue beat(12)8
Avg Revenue beat(12)19.98%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.34%
PT rev (3m)12.26%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)-9.43%
EPS NY rev (3m)-10.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 32.63 | ||
| P/S | 4.16 | ||
| P/FCF | N/A | ||
| P/OCF | 226.7 | ||
| P/B | 7.69 | ||
| P/tB | 7.94 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)8.82
EY2.67%
EPS(NY)10.14
Fwd EY3.06%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.44%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 22.38% | ||
| ROCE | 8.06% | ||
| ROIC | 5.84% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 6.15% | ||
| OM | 15.19% | ||
| PM (TTM) | 12.12% | ||
| GM | 46.71% | ||
| FCFM | N/A |
ROA(3y)3.31%
ROA(5y)2.15%
ROE(3y)13.96%
ROE(5y)8.96%
ROIC(3y)3.44%
ROIC(5y)N/A
ROICexc(3y)3.61%
ROICexc(5y)N/A
ROICexgc(3y)3.64%
ROICexgc(5y)N/A
ROCE(3y)4.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y27.48%
ROICexc growth 3YN/A
ROICexc growth 5Y27.26%
OM growth 3YN/A
OM growth 5Y22.56%
PM growth 3YN/A
PM growth 5Y21.76%
GM growth 3Y10.6%
GM growth 5Y3.87%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 157.33% | ||
| Cap/Sales | 11.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 8.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.42 |
F-Score8
WACC8.35%
ROIC/WACC0.7
Cap/Depr(3y)86.98%
Cap/Depr(5y)67.65%
Cap/Sales(3y)9.17%
Cap/Sales(5y)8.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
EPS Next Y-28.76%
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
EPS Next 5Y5.17%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
Revenue Next Year-0.92%
Revenue Next 2Y0.73%
Revenue Next 3Y2.45%
Revenue Next 5Y4.02%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29%
EBIT Next 3Y22.97%
EBIT Next 5Y14.86%
FCF growth 1Y65.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y109.62%
OCF growth 3YN/A
OCF growth 5YN/A