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CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis

NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock - Currency: USD

284.44  -24.98 (-8.07%)

After market: 284.22 -0.22 (-0.08%)

Fundamental Rating

4

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 an average financial health and profitability rating. CEG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

CEG had positive earnings in the past year.
CEG had a negative operating cash flow in the past year.
In multiple years CEG reported negative net income over the last 5 years.
In multiple years CEG reported negative operating cash flow during the last 5 years.
CEG Yearly Net Income VS EBIT VS OCF VS FCFCEG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 2B -2B -4B -6B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.52%, CEG belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
With an excellent Return On Equity value of 22.75%, CEG belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.63%, CEG belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
Industry RankSector Rank
ROA 5.52%
ROE 22.75%
ROIC 4.63%
ROA(3y)0.81%
ROA(5y)1.19%
ROE(3y)3.86%
ROE(5y)4.93%
ROIC(3y)N/A
ROIC(5y)N/A
CEG Yearly ROA, ROE, ROICCEG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 5 10

1.3 Margins

CEG's Profit Margin of 11.93% is in line compared to the rest of the industry. CEG outperforms 43.24% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 13.81%, CEG is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
CEG's Operating Margin has improved in the last couple of years.
CEG has a Gross Margin of 46.43%. This is comparable to the rest of the industry: CEG outperforms 43.24% of its industry peers.
In the last couple of years the Gross Margin of CEG has declined.
Industry RankSector Rank
OM 13.81%
PM (TTM) 11.93%
GM 46.43%
OM growth 3Y64.55%
OM growth 5Y6.25%
PM growth 3Y24.86%
PM growth 5Y29.18%
GM growth 3Y-7.73%
GM growth 5Y-3.51%
CEG Yearly Profit, Operating, Gross MarginsCEG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CEG is destroying value.
CEG has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, CEG has a worse debt to assets ratio.
CEG Yearly Shares OutstandingCEG Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M
CEG Yearly Total Debt VS Total AssetsCEG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 2.33 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CEG (2.33) is better than 91.89% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CEG is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.59, CEG belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF N/A
Altman-Z 2.33
ROIC/WACC0.53
WACC8.68%
CEG Yearly LT Debt VS Equity VS FCFCEG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 5B -5B 10B

2.3 Liquidity

CEG has a Current Ratio of 1.70. 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 (1.70) than 81.08% of its industry peers.
A Quick Ratio of 1.43 indicates that CEG should not have too much problems paying its short term obligations.
CEG has a Quick ratio of 1.43. This is amongst the best in the industry. CEG outperforms 83.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.7
Quick Ratio 1.43
CEG Yearly Current Assets VS Current LiabilitesCEG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2B 4B 6B 8B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 74.09% over the past year.
The Earnings Per Share has been growing by 34.69% on average over the past years. This is a very strong growth
Looking at the last year, CEG shows a decrease in Revenue. The Revenue has decreased by -9.35% in the last year.
The Revenue has been growing slightly by 4.04% on average over the past years.
EPS 1Y (TTM)74.09%
EPS 3Y40.4%
EPS 5Y34.69%
EPS Q2Q%69.03%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.04%
Sales Q2Q%7.18%

3.2 Future

The Earnings Per Share is expected to grow by 22.48% on average over the next years. This is a very strong growth
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
EPS Next Y85.59%
EPS Next 2Y36.13%
EPS Next 3Y27.87%
EPS Next 5Y22.48%
Revenue Next Year17.49%
Revenue Next 2Y8.62%
Revenue Next 3Y6.17%
Revenue Next 5Y1.35%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CEG Yearly Revenue VS EstimatesCEG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
CEG Yearly EPS VS EstimatesCEG Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.36 indicates a quite expensive valuation of CEG.
Compared to the rest of the industry, the Price/Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 86.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (29.63), we can say CEG is valued inline with the index average.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 30.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 81.08% of the companies listed in the same industry.
CEG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.36
Fwd PE 30.7
CEG Price Earnings VS Forward Price EarningsCEG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CEG is valued a bit more expensive than 75.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.13
CEG Per share dataCEG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60

4.3 Compensation for Growth

CEG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CEG's earnings are expected to grow with 27.87% in the coming years.
PEG (NY)0.37
PEG (5Y)0.9
EPS Next 2Y36.13%
EPS Next 3Y27.87%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.45%, CEG is not a good candidate for dividend investing.
CEG's Dividend Yield is slightly below the industry average, which is at 3.53.
Compared to an average S&P500 Dividend Yield of 2.29, CEG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.45%

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
CEG Yearly Dividends per shareCEG Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

14.76% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP14.76%
EPS Next 2Y36.13%
EPS Next 3Y27.87%
CEG Yearly Income VS Free CF VS DividendCEG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 0 -2B -4B -6B
CEG Dividend Payout.CEG Dividend Payout, showing the Payout Ratio.CEG Dividend Payout.PayoutRetained Earnings

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CONSTELLATION ENERGY

NASDAQ:CEG (2/21/2025, 8:07:02 PM)

After market: 284.22 -0.22 (-0.08%)

284.44

-24.98 (-8.07%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)02-21 2025-02-21/amc
Inst Owners84.97%
Inst Owner Change-3.89%
Ins Owners0.23%
Ins Owner Change18.68%
Market Cap88.96B
Analysts80
Price Target319.51 (12.33%)
Short Float %2.02%
Short Ratio1.6
Dividend
Industry RankSector Rank
Dividend Yield 0.45%
Yearly Dividend1.14
Dividend Growth(5Y)N/A
DP14.76%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.13%
Min EPS beat(2)43.37%
Max EPS beat(2)48.9%
EPS beat(4)3
Avg EPS beat(4)21.51%
Min EPS beat(4)-105.67%
Max EPS beat(4)99.45%
EPS beat(8)5
Avg EPS beat(8)28.73%
EPS beat(12)5
Avg EPS beat(12)-21.35%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)5.58%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)13.5%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-10.05%
Max Revenue beat(4)13.5%
Revenue beat(8)5
Avg Revenue beat(8)19.55%
Revenue beat(12)8
Avg Revenue beat(12)40.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)10.8%
PT rev (3m)15.66%
EPS NQ rev (1m)9.68%
EPS NQ rev (3m)6.68%
EPS NY rev (1m)4.64%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)19.31%
Revenue NQ rev (3m)19.31%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)2.8%
Valuation
Industry RankSector Rank
PE 31.36
Fwd PE 30.7
P/S 3.71
P/FCF N/A
P/OCF N/A
P/B 7.08
P/tB 7.32
EV/EBITDA 17.13
EPS(TTM)9.07
EY3.19%
EPS(NY)9.27
Fwd EY3.26%
FCF(TTM)-22.87
FCFYN/A
OCF(TTM)-14.8
OCFYN/A
SpS76.68
BVpS40.19
TBVpS38.85
PEG (NY)0.37
PEG (5Y)0.9
Profitability
Industry RankSector Rank
ROA 5.52%
ROE 22.75%
ROCE 7.14%
ROIC 4.63%
ROICexc 4.82%
ROICexgc 4.87%
OM 13.81%
PM (TTM) 11.93%
GM 46.43%
FCFM N/A
ROA(3y)0.81%
ROA(5y)1.19%
ROE(3y)3.86%
ROE(5y)4.93%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y82.61%
ROICexcg growth 5YN/A
ROICexc growth 3Y82.1%
ROICexc growth 5YN/A
OM growth 3Y64.55%
OM growth 5Y6.25%
PM growth 3Y24.86%
PM growth 5Y29.18%
GM growth 3Y-7.73%
GM growth 5Y-3.51%
F-Score5
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF N/A
Debt/EBITDA 1.22
Cap/Depr 92.66%
Cap/Sales 10.52%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.7
Quick Ratio 1.43
Altman-Z 2.33
F-Score5
WACC8.68%
ROIC/WACC0.53
Cap/Depr(3y)65.07%
Cap/Depr(5y)60.7%
Cap/Sales(3y)7.8%
Cap/Sales(5y)8.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)74.09%
EPS 3Y40.4%
EPS 5Y34.69%
EPS Q2Q%69.03%
EPS Next Y85.59%
EPS Next 2Y36.13%
EPS Next 3Y27.87%
EPS Next 5Y22.48%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.04%
Sales Q2Q%7.18%
Revenue Next Year17.49%
Revenue Next 2Y8.62%
Revenue Next 3Y6.17%
Revenue Next 5Y1.35%
EBIT growth 1Y122.13%
EBIT growth 3Y84.76%
EBIT growth 5Y10.54%
EBIT Next Year77.6%
EBIT Next 3Y27.99%
EBIT Next 5Y18.65%
FCF growth 1Y-100.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-106.42%
OCF growth 3YN/A
OCF growth 5YN/A