CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
389.19 USD
+23.39 (+6.39%)
389.02 USD
-0.17 (-0.04%)
We assign a fundamental rating of 4 out of 10 to CEG. 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
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.
CEG had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
CEG has a better Return On Assets (5.67%) than 87.23% of its industry peers.
Looking at the Return On Equity, with a value of 22.38%, CEG belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
CEG has a Return On Invested Capital of 5.84%. This is amongst the best in the industry. CEG outperforms 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 last Return On Invested Capital (5.84%) for CEG is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 12.12%, CEG perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
CEG's Profit Margin has improved in the last couple of years.
The Operating Margin of CEG (15.19%) is worse than 72.34% of its industry peers.
CEG's Operating Margin has improved in the last couple of years.
CEG has a Gross Margin (46.71%) which is in line with its industry peers.
CEG's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CEG is destroying value.
The number of shares outstanding for CEG has been reduced compared to 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 2.63 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CEG has a better Altman-Z score (2.63) than 93.62% of its industry peers.
CEG has a Debt/Equity ratio of 0.61. This is a neutral value indicating CEG is somewhat dependend on debt financing.
CEG has a better Debt to Equity ratio (0.61) than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.63 |
ROIC/WACC0.7
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
The Current ratio of CEG (1.48) is better than 82.98% of its industry peers.
A Quick Ratio of 1.22 indicates that CEG should not have too much problems paying its short term obligations.
CEG has a Quick ratio of 1.22. This is amongst the best in the industry. CEG outperforms 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.44%, which is quite good.
The Earnings Per Share has been growing by 28.10% on average over the past years. This is a very strong growth
Looking at the last year, CEG shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
The Revenue has been growing slightly by 4.49% on average over the past years.
EPS 1Y (TTM)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
3.2 Future
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
Based on estimates for the next years, CEG will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y-28.16%
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
EPS Next 5Y7.52%
Revenue Next Year-0.55%
Revenue Next 2Y0.92%
Revenue Next 3Y2.72%
Revenue Next 5Y3.67%
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
With a Price/Earnings ratio of 44.13, CEG can be considered very expensive at the moment.
87.23% of the companies in the same industry are cheaper than CEG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.91, CEG is valued quite expensively.
A Price/Forward Earnings ratio of 37.84 indicates a quite expensive valuation of CEG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 85.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, CEG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 37.84 |
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 | 21.44 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, CEG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.23, CEG's dividend is way lower than its industry peers. On top of this 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 2.32, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
15.49% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP15.49%
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
389.19
+23.39 (+6.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change-0.04%
Ins Owners0.25%
Ins Owner Change2.66%
Market Cap121.59B
Revenue(TTM)24.82B
Net Income(TTM)3.01B
Analysts78
Price Target342.07 (-12.11%)
Short Float %2.19%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)1.37%
PT rev (3m)7.81%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-2.83%
EPS NY rev (1m)0.84%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 37.84 | ||
| P/S | 4.9 | ||
| P/FCF | N/A | ||
| P/OCF | 266.64 | ||
| P/B | 9.04 | ||
| P/tB | 9.33 | ||
| EV/EBITDA | 21.44 |
EPS(TTM)8.82
EY2.27%
EPS(NY)10.29
Fwd EY2.64%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.38%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.57
Graham Number92.42
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 | 2.63 |
F-Score8
WACC8.32%
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)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
EPS Next Y-28.16%
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
EPS Next 5Y7.52%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
Revenue Next Year-0.55%
Revenue Next 2Y0.92%
Revenue Next 3Y2.72%
Revenue Next 5Y3.67%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29.16%
EBIT Next 3Y24.34%
EBIT Next 5Y21.03%
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 44.13 and the Price/Book (PB) ratio is 9.04.
Can you provide the expected EPS growth for CEG stock?
The Earnings per Share (EPS) of CONSTELLATION ENERGY (CEG) is expected to decline by -28.16% in the next year.