CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
358.39 USD
+7.09 (+2.02%)
366 USD
+7.61 (+2.12%)
Taking everything into account, CEG scores 4 out of 10 in our fundamental rating. CEG was compared to 47 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. CEG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CEG was profitable.
In the past year CEG had a positive cash flow from operations.
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 has a Return On Assets of 5.67%. This is amongst the best in the industry. CEG outperforms 87.23% of its industry peers.
CEG has a better Return On Equity (22.38%) than 93.62% of its industry peers.
The Return On Invested Capital of CEG (5.84%) is better than 80.85% 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 4.90%.
The 3 year average ROIC (3.44%) for CEG is below the current ROIC(5.84%), indicating increased profibility in the last year.
| 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 of 12.12%. This is comparable to the rest of the industry: CEG outperforms 44.68% 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 72.34% 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 48.94% of its industry peers.
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.
The number of shares outstanding for CEG has been reduced compared to 5 years ago.
Compared to 1 year ago, CEG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CEG (2.59) is better than 93.62% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CEG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CEG is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC0.7
WACC8.38%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
CEG has a better Current ratio (1.48) than 82.98% 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.
With an excellent Quick ratio value of 1.22, CEG belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for CEG have decreased strongly by -11.36% in the last year.
CEG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.10% yearly.
CEG shows a decrease in Revenue. In the last year, the revenue decreased by -5.42%.
Measured over the past years, CEG shows a small growth in Revenue. The Revenue has been growing by 4.49% on average per year.
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
CEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
The Revenue is expected to grow by 4.68% on average over the next years.
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
Based on the Price/Earnings ratio of 44.58, the valuation of CEG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 89.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (26.06), we can say CEG is valued expensively.
The Price/Forward Earnings ratio is 34.35, 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 82.98% of the companies listed in the same industry.
CEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.58 | ||
| Fwd PE | 34.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 82.98% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.02 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, CEG is not a good candidate for dividend investing.
With a Dividend Yield of 0.43, CEG pays less dividend than the industry average, which is at 3.23. 87.23% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.36, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
CEG pays out 15.49% of its income as dividend. This is a sustainable payout ratio.
DP15.49%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
358.39
+7.09 (+2.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change0.57%
Ins Owners0.25%
Ins Owner Change2.78%
Market Cap111.96B
Revenue(TTM)23.57B
Net Income(TTM)3.01B
Analysts79.09
Price Target370.42 (3.36%)
Short Float %1.76%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)0.1%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.58 | ||
| Fwd PE | 34.35 | ||
| P/S | 4.51 | ||
| P/FCF | N/A | ||
| P/OCF | 245.54 | ||
| P/B | 8.33 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 21.02 |
EPS(TTM)8.04
EY2.24%
EPS(NY)10.43
Fwd EY2.91%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.41%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.59
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 | 2.59 |
F-Score8
WACC8.38%
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 44.58 and the Price/Book (PB) ratio is 8.33.
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.