CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
338.52 USD
+2.78 (+0.83%)
340.06 USD
+1.54 (+0.45%)
We assign a fundamental rating of 4 out of 10 to CEG. CEG was compared to 46 industry peers in the Electric Utilities industry. CEG has only an average score on both its financial health and profitability. 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.
CEG had a positive operating cash flow in the past year.
In multiple years CEG reported negative net income over the last 5 years.
In the past 5 years CEG reported 4 times negative operating cash flow.
1.2 Ratios
CEG's Return On Assets of 5.67% is amongst the best of the industry. CEG outperforms 85.42% of its industry peers.
CEG has a Return On Equity of 22.38%. This is amongst the best in the industry. CEG outperforms 91.67% of its industry peers.
CEG has a better Return On Invested Capital (5.84%) than 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CEG is in line with the industry average of 5.00%.
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 worse Profit Margin (12.12%) than 60.42% of its industry peers.
In the last couple of years the Profit Margin of CEG has grown nicely.
CEG's Operating Margin of 15.19% is on the low side compared to the rest of the industry. CEG is outperformed by 75.00% of its industry peers.
CEG's Operating Margin has improved in the last couple of years.
The Gross Margin of CEG (46.71%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CEG has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CEG is destroying value.
The number of shares outstanding for CEG has been reduced compared to 1 year ago.
Compared to 5 years ago, CEG has less shares outstanding
Compared to 1 year ago, CEG has an improved debt to assets ratio.
2.2 Solvency
CEG has an Altman-Z score of 2.50. 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.
CEG's Altman-Z score of 2.50 is amongst the best of the industry. CEG outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CEG is somewhat dependend on debt financing.
CEG's Debt to Equity ratio of 0.61 is fine compared to the rest of the industry. CEG outperforms 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.7
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
CEG's Current ratio of 1.48 is amongst the best of the industry. CEG outperforms 83.33% of its industry peers.
CEG has a Quick Ratio of 1.22. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
CEG's Quick ratio of 1.22 is amongst the best of the industry. CEG outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.36%.
Measured over the past years, CEG shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.10% on average per year.
CEG shows a decrease in Revenue. In the last year, the revenue decreased by -5.42%.
The Revenue has been growing slightly by 4.49% on average over the past years.
EPS 1Y (TTM)-11.36%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-20.42%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%0.31%
3.2 Future
The Earnings Per Share is expected to grow by 8.88% on average over the next years. This is quite good.
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y-27.9%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
EPS Next 5Y8.88%
Revenue Next Year-0.34%
Revenue Next 2Y3.57%
Revenue Next 3Y4.86%
Revenue Next 5Y4.68%
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 42.10, CEG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CEG is valued more expensive than 89.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (25.89), we can say CEG is valued expensively.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 32.45.
Based on the Price/Forward Earnings ratio, CEG is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 34.59. CEG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.1 | ||
| Fwd PE | 32.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CEG indicates a rather expensive valuation: CEG more expensive than 85.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.91 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.46%, which is pretty low.
With a Dividend Yield of 0.46, CEG pays less dividend than the industry average, which is at 3.77. 85.42% of the companies listed in the same industry pay a better dividend than CEG!
With a Dividend Yield of 0.46, CEG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
CEG has paid a dividend for less than 5 years, so there is no long track record yet.
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-6.33%
EPS Next 3Y1.3%
338.52
+2.78 (+0.83%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change1.44%
Ins Owners0.25%
Ins Owner Change2.78%
Market Cap105.76B
Revenue(TTM)23.57B
Net Income(TTM)3.01B
Analysts79.09
Price Target370.42 (9.42%)
Short Float %1.76%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)8.29%
PT rev (3m)14.54%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.1 | ||
| Fwd PE | 32.45 | ||
| P/S | 4.26 | ||
| P/FCF | N/A | ||
| P/OCF | 231.92 | ||
| P/B | 7.87 | ||
| P/tB | 8.12 | ||
| EV/EBITDA | 19.91 |
EPS(TTM)8.04
EY2.38%
EPS(NY)10.43
Fwd EY3.08%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.43%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.5
Graham Number88.24
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
ROICexgc growth 3YN/A
ROICexgc 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 | 2.5 |
F-Score8
WACC8.39%
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)-11.36%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-20.42%
EPS Next Y-27.9%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
EPS Next 5Y8.88%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%0.31%
Revenue Next Year-0.34%
Revenue Next 2Y3.57%
Revenue Next 3Y4.86%
Revenue Next 5Y4.68%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29.16%
EBIT Next 3Y24.34%
EBIT Next 5Y22.37%
FCF growth 1Y65.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y109.62%
OCF growth 3YN/A
OCF growth 5YN/A
CONSTELLATION ENERGY / CEG FAQ
What is the fundamental rating for CEG stock?
ChartMill assigns a fundamental rating of 4 / 10 to CEG.
What is the valuation status for CEG stock?
ChartMill assigns a valuation rating of 1 / 10 to CONSTELLATION ENERGY (CEG). This can be considered as Overvalued.
What is the profitability of CEG stock?
CONSTELLATION ENERGY (CEG) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CEG stock?
The Price/Earnings (PE) ratio for CONSTELLATION ENERGY (CEG) is 42.1 and the Price/Book (PB) ratio is 7.87.
Can you provide the expected EPS growth for CEG stock?
The Earnings per Share (EPS) of CONSTELLATION ENERGY (CEG) is expected to decline by -27.9% in the next year.