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CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis

NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock

323.64  +7.28 (+2.3%)

After market: 325.5 +1.86 (+0.57%)

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. 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.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

CEG had positive earnings in the past year.
In the past year CEG has reported a negative cash flow from operations.
In multiple years CEG reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CEG reported negative operating cash flow in multiple 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.
The Return On Equity of CEG (22.75%) is better than 94.59% of its industry peers.
CEG has a better Return On Invested Capital (4.63%) than 89.19% of its industry peers.
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.
The Operating Margin of CEG (13.81%) is worse than 78.38% of its industry peers.
CEG's Operating Margin has improved in the last couple of years.
The Gross Margin of CEG (46.43%) is comparable to the rest of the industry.
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

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.
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

CEG has an Altman-Z score of 2.36. 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 has a better Altman-Z score (2.36) than 91.89% of its industry peers.
CEG has a Debt/Equity ratio of 0.59. This is a neutral value indicating CEG is somewhat dependend on debt financing.
CEG has a Debt to Equity ratio of 0.59. This is amongst the best in the industry. CEG outperforms 86.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF N/A
Altman-Z 2.36
ROIC/WACC0.52
WACC8.84%
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.
Looking at the Current ratio, with a value of 1.70, CEG belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
CEG has a Quick Ratio of 1.43. 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 Quick ratio (1.43) than 86.49% 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.
CEG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.69% yearly.
The Revenue has decreased by -9.35% in the past year.
Measured over the past years, CEG shows a small growth in Revenue. The Revenue has been growing by 4.04% on average per year.
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

CEG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.21% yearly.
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y77.36%
EPS Next 2Y34.93%
EPS Next 3Y25.99%
EPS Next 5Y21.21%
Revenue Next Year18.85%
Revenue Next 2Y9.3%
Revenue Next 3Y7.02%
Revenue Next 5Y1.18%

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.
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 35.68 indicates a quite expensive valuation of CEG.
CEG's Price/Earnings ratio is rather expensive when compared to the industry. CEG is more expensive than 86.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (28.29), we can say CEG is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 35.55, 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 81.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. CEG is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 35.68
Fwd PE 35.55
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 more expensive than 83.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.49
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CEG's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)1.03
EPS Next 2Y34.93%
EPS Next 3Y25.99%

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2

5. Dividend

5.1 Amount

CEG has a yearly dividend return of 0.45%, which is pretty low.
CEG's Dividend Yield is slightly below the industry average, which is at 3.61.
With a Dividend Yield of 0.45, CEG pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.45%

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
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

CEG pays out 14.76% of its income as dividend. This is a sustainable payout ratio.
DP14.76%
EPS Next 2Y34.93%
EPS Next 3Y25.99%
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 (1/21/2025, 8:00:00 PM)

After market: 325.5 +1.86 (+0.57%)

323.64

+7.28 (+2.3%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)N/A N/A
Inst Owners84.97%
Inst Owner Change-0.5%
Ins Owners0.23%
Ins Owner Change1.29%
Market Cap101.22B
Analysts79.17
Price Target288.37 (-10.9%)
Short Float %1.86%
Short Ratio1.67
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)2.33%
PT rev (3m)7.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.37%
EPS NY rev (1m)0%
EPS NY rev (3m)9.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.24%
Valuation
Industry RankSector Rank
PE 35.68
Fwd PE 35.55
P/S 4.22
P/FCF N/A
P/OCF N/A
P/B 8.05
P/tB 8.33
EV/EBITDA 17.49
EPS(TTM)9.07
EY2.8%
EPS(NY)9.1
Fwd EY2.81%
FCF(TTM)-22.87
FCFYN/A
OCF(TTM)-14.8
OCFYN/A
SpS76.68
BVpS40.19
TBVpS38.85
PEG (NY)0.46
PEG (5Y)1.03
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 2.36
F-Score5
WACC8.84%
ROIC/WACC0.52
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 Y77.36%
EPS Next 2Y34.93%
EPS Next 3Y25.99%
EPS Next 5Y21.21%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.04%
Sales Q2Q%7.18%
Revenue Next Year18.85%
Revenue Next 2Y9.3%
Revenue Next 3Y7.02%
Revenue Next 5Y1.18%
EBIT growth 1Y122.13%
EBIT growth 3Y84.76%
EBIT growth 5Y10.54%
EBIT Next Year74.27%
EBIT Next 3Y27.62%
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