CONSTELLATION ENERGY (CEG)
US21037T1097 - Common Stock
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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
With an excellent Return On Assets value of 5.52%, CEG belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Equity of CEG (22.75%) is better than 97.78% of its industry peers.
CEG has a Return On Invested Capital of 4.63%. This is amongst the best in the industry. CEG outperforms 82.22% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 11.93%, CEG is in line with its industry, outperforming 48.89% of the companies in the same industry.
In the last couple of years the Profit Margin of CEG has grown nicely.
Looking at the Operating Margin, with a value of 13.81%, CEG is doing worse than 77.78% of the companies in the same industry.
CEG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 46.43%, CEG is in line with its industry, outperforming 42.22% of the companies in the same industry.
CEG's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
2.2 Solvency
CEG has an Altman-Z score of 2.06. 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.
With an excellent Altman-Z score value of 2.06, CEG belongs to the best of the industry, outperforming 86.67% 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 better Debt to Equity ratio (0.59) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC0.54
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.70 indicates that CEG should not have too much problems paying its short term obligations.
The Current ratio of CEG (1.70) is better than 82.22% of its industry peers.
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.
The Quick ratio of CEG (1.43) is better than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
CEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.09%, which is quite impressive.
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.
CEG shows a decrease in Revenue. In the last year, the revenue decreased by -9.35%.
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
The Earnings Per Share is expected to grow by 20.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.31% on average over the next years.
EPS Next Y71.47%
EPS Next 2Y34.79%
EPS Next 3Y25.17%
EPS Next 5Y20.87%
Revenue Next Year14.29%
Revenue Next 2Y7.19%
Revenue Next 3Y6.05%
Revenue Next 5Y1.31%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 27.77, the valuation of CEG can be described as expensive.
Based on the Price/Earnings ratio, CEG is valued 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/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 27.72.
82.22% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CEG to the average of the S&P500 Index (23.82), we can say CEG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.77 | ||
| Fwd PE | 27.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CEG indicates a slightly more expensive valuation: CEG is more expensive than 75.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.15 |
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 25.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)0.8
EPS Next 2Y34.79%
EPS Next 3Y25.17%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 3.44, 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!
With a Dividend Yield of 0.63, CEG pays less dividend than the S&P500 average, which is at 2.23.
| 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 Years1
Div Non Decr Years1
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 2Y34.79%
EPS Next 3Y25.17%
CONSTELLATION ENERGY
NASDAQ:CEG (11/21/2024, 8:18:56 PM)
Premarket: 251.99 +0.15 (+0.06%)251.84
+16.42 (+6.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap78.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.77 | ||
| Fwd PE | 27.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.52% | ||
| ROE | 22.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.81% | ||
| PM (TTM) | 11.93% | ||
| GM | 46.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)74.09%
EPS 3Y40.4%
EPS 5Y
EPS Q2Q%
EPS Next Y71.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y12.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y