289.06 USD
+1.71 (+0.6%)
288.51 USD
-0.55 (-0.19%)
Taking everything into account, CEG scores 5 out of 10 in our fundamental rating. CEG was compared to 46 industry peers in the Electric Utilities industry. CEG has an average financial health and profitability rating. 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.
- 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 has a better Return On Assets (4.88%) than 82.61% of its industry peers.
- The Return On Equity of CEG (19.09%) is better than 91.30% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.98%, CEG belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CEG is in line with the industry average of 4.58%.
- The 3 year average ROIC (3.44%) for CEG is below the current ROIC(4.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 19.09% | ||
| ROIC | 4.98% |
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 11.03%. This is in the lower half of the industry: CEG underperforms 67.39% of its industry peers.
- CEG's Profit Margin has improved in the last couple of years.
- The Operating Margin of CEG (13.65%) is worse than 80.43% of its industry peers.
- In the last couple of years the Operating Margin of CEG has grown nicely.
- CEG's Gross Margin of 44.95% is in line compared to the rest of the industry. CEG outperforms 43.48% of its industry peers.
- CEG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.65% | ||
| PM (TTM) | 11.03% | ||
| GM | 44.95% |
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.
- CEG has less shares outstanding than it did 1 year ago.
- CEG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CEG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.17, CEG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- A Debt/Equity ratio of 0.62 indicates that CEG is somewhat dependend on debt financing.
- The Debt to Equity ratio of CEG (0.62) is better than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC0.59
WACC8.42%
2.3 Liquidity
- CEG has a Current Ratio of 1.56. 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 Current ratio of 1.56. This is amongst the best in the industry. CEG outperforms 86.96% of its industry peers.
- A Quick Ratio of 1.34 indicates that CEG should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.34, CEG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.34 |
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 small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
- 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)3.58%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%0.31%
3.2 Future
- The Earnings Per Share is expected to grow by 8.78% 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 4.76% yearly.
EPS Next Y-21.17%
EPS Next 2Y-2.26%
EPS Next 3Y3.29%
EPS Next 5Y8.78%
Revenue Next Year0.67%
Revenue Next 2Y6.14%
Revenue Next 3Y6.66%
Revenue Next 5Y4.76%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 35.95, CEG can be considered very expensive at the moment.
- CEG's Price/Earnings ratio is rather expensive when compared to the industry. CEG is more expensive than 84.78% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CEG is valued slightly more expensive when compared to this.
- CEG is valuated quite expensively with a Price/Forward Earnings ratio of 25.45.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 84.78% of the companies listed in the same industry.
- CEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.95 | ||
| Fwd PE | 25.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 82.61% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.58 |
4.3 Compensation for Growth
- The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y-2.26%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.54%, CEG is not a good candidate for dividend investing.
- In the last 3 months the price of CEG has falen by -25.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.90, CEG's dividend is way lower than its industry peers. On top of this 84.78% of the companies listed in the same industry pay a better dividend than CEG!
- With a Dividend Yield of 0.54, CEG pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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 17.38% of its income as dividend. This is a sustainable payout ratio.
DP17.38%
EPS Next 2Y-2.26%
EPS Next 3Y3.29%
CONSTELLATION ENERGY / CEG FAQ
What is the fundamental rating for CEG stock?
ChartMill assigns a fundamental rating of 5 / 10 to CEG.
Can you provide the valuation status for CONSTELLATION ENERGY?
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.
How financially healthy is CONSTELLATION ENERGY?
The financial health rating of CONSTELLATION ENERGY (CEG) is 6 / 10.
How sustainable is the dividend of CONSTELLATION ENERGY (CEG) stock?
The dividend rating of CONSTELLATION ENERGY (CEG) is 2 / 10 and the dividend payout ratio is 17.38%.