CONSTELLATION ENERGY (CEG)
US21037T1097 - Common Stock
Overall CEG gets a fundamental rating of 4 out of 10. We evaluated CEG against 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.
CEG had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CEG reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: CEG reported negative operating cash flow in multiple years.
1.2 Ratios
CEG has a Return On Assets of 5.52%. This is amongst the best in the industry. CEG outperforms 86.67% of its industry peers.
The Return On Equity of CEG (22.75%) is better than 95.56% of its industry peers.
With an excellent Return On Invested Capital value of 4.63%, CEG belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
CEG has a Profit Margin (11.93%) which is in line with its industry peers.
CEG's Profit Margin has improved in the last couple of years.
CEG's Operating Margin of 13.81% is on the low side compared to the rest of the industry. CEG is outperformed by 77.78% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
CEG has a Gross Margin (46.43%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CEG has declined.
| Industry Rank | Sector 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%
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
CEG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, CEG belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that CEG is somewhat dependend on debt financing.
CEG has a Debt to Equity ratio of 0.59. This is in the better half of the industry: CEG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.54
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.70 indicates that CEG should not have too much problems paying its short term obligations.
CEG's Current ratio of 1.70 is amongst the best of the industry. CEG outperforms 82.22% 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 better Quick ratio (1.43) than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.09% over the past year.
Measured over the past years, CEG shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.69% on average per year.
The Revenue has decreased by -9.35% in the past year.
CEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
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
Based on estimates for the next years, CEG will show a very strong growth in Earnings Per Share. The EPS will grow by 20.59% on average per year.
CEG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.69% yearly.
EPS Next Y75.5%
EPS Next 2Y34.45%
EPS Next 3Y25.55%
EPS Next 5Y20.59%
Revenue Next Year14.94%
Revenue Next 2Y7.13%
Revenue Next 3Y5.96%
Revenue Next 5Y-1.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CEG is valuated quite expensively with a Price/Earnings ratio of 25.03.
Based on the Price/Earnings ratio, CEG is valued expensively inside the industry as 84.44% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (27.73), we can say CEG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.12, the valuation of CEG can be described as expensive.
CEG's Price/Forward Earnings ratio is rather expensive when compared to the industry. CEG is more expensive than 82.22% of the companies in the same industry.
CEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 25.12 |
4.2 Price Multiples
CEG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CEG is more expensive than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.77 |
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 25.55% in the coming years.
PEG (NY)0.33
PEG (5Y)0.72
EPS Next 2Y34.45%
EPS Next 3Y25.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, CEG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.66, CEG's dividend is way lower than its industry peers. On top of this 82.22% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.34, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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
CEG pays out 14.76% of its income as dividend. This is a sustainable payout ratio.
DP14.76%
EPS Next 2Y34.45%
EPS Next 3Y25.55%
CONSTELLATION ENERGY
NASDAQ:CEG (12/20/2024, 8:01:11 PM)
After market: 226.86 -0.16 (-0.07%)227.02
+1.85 (+0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner Change1.75%
Ins Owners0.23%
Ins Owner Change1.37%
Market Cap71.01B
Analysts77.5
Price Target281.8 (24.13%)
Short Float %2.08%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)N/A
DP14.76%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)2.01%
PT rev (3m)22.73%
EPS NQ rev (1m)-2.73%
EPS NQ rev (3m)23.37%
EPS NY rev (1m)2.35%
EPS NY rev (3m)8.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.93%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 25.12 | ||
| P/S | 2.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.65 | ||
| P/tB | 5.84 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)9.07
EY4%
EPS(NY)9.04
Fwd EY3.98%
FCF(TTM)-22.87
FCFYN/A
OCF(TTM)-14.8
OCFYN/A
SpS76.68
BVpS40.19
TBVpS38.85
PEG (NY)0.33
PEG (5Y)0.72
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.93 |
F-Score5
WACC8.64%
ROIC/WACC0.54
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 Y75.5%
EPS Next 2Y34.45%
EPS Next 3Y25.55%
EPS Next 5Y20.59%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.04%
Sales Q2Q%7.18%
Revenue Next Year14.94%
Revenue Next 2Y7.13%
Revenue Next 3Y5.96%
Revenue Next 5Y-1.69%
EBIT growth 1Y122.13%
EBIT growth 3Y84.76%
EBIT growth 5Y10.54%
EBIT Next Year70.83%
EBIT Next 3Y24.63%
EBIT Next 5Y18.2%
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