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. While showing a medium growth rate, CEG is valued expensive at the moment.
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.
In multiple years CEG reported negative operating cash flow during the last 5 years.
1.2 Ratios
CEG has a Return On Assets of 4.66%. This is amongst the best in the industry. CEG outperforms 84.44% of its industry peers.
CEG has a better Return On Equity (20.93%) than 97.78% of its industry peers.
CEG has a Return On Invested Capital of 3.97%. This is comparable to the rest of the industry: CEG outperforms 57.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 20.93% | ||
| ROIC | 3.97% |
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 worse Profit Margin (10.16%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of CEG has grown nicely.
CEG has a worse Operating Margin (12.00%) than 77.78% of its industry peers.
CEG's Operating Margin has improved in the last couple of years.
The Gross Margin of CEG (44.38%) is comparable to the rest of the industry.
CEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 10.16% | ||
| GM | 44.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CEG is destroying value.
CEG has less shares outstanding than it did 1 year ago.
The debt/assets ratio for CEG is higher compared to a year ago.
2.2 Solvency
CEG has an Altman-Z score of 1.96. 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.
The Altman-Z score of CEG (1.96) is better than 84.44% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that CEG is somewhat dependend on debt financing.
CEG's Debt to Equity ratio of 0.71 is fine compared to the rest of the industry. CEG outperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.47
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CEG should not have too much problems paying its short term obligations.
CEG's Current ratio of 1.35 is fine compared to the rest of the industry. CEG outperforms 80.00% of its industry peers.
CEG has a Quick Ratio of 1.10. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
CEG's Quick ratio of 1.10 is fine compared to the rest of the industry. CEG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 215.55% 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.
CEG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.81%.
CEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
EPS 1Y (TTM)215.55%
EPS 3Y40.4%
EPS 5Y34.69%
EPS Q2Q%0.78%
Revenue 1Y (TTM)-10.81%
Revenue growth 3Y12.28%
Revenue growth 5Y4.04%
Sales Q2Q%0.53%
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 20.87% on average per year.
The Revenue is expected to grow by 1.31% on average over the next years.
EPS Next Y70.3%
EPS Next 2Y34.68%
EPS Next 3Y25.37%
EPS Next 5Y20.87%
Revenue Next Year13.45%
Revenue Next 2Y7.18%
Revenue Next 3Y6.04%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.09, which means the current valuation is very expensive for CEG.
Based on the Price/Earnings ratio, CEG is valued more expensive than 86.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.20, CEG is valued at the same level.
With a Price/Forward Earnings ratio of 24.91, CEG is valued on the expensive side.
82.22% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, CEG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 24.91 |
4.2 Price Multiples
84.44% of the companies in the same industry are cheaper than CEG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.13 |
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 25.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.87
EPS Next 2Y34.68%
EPS Next 3Y25.37%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.54%, which is pretty low.
With a Dividend Yield of 0.54, CEG pays less dividend than the industry average, which is at 3.45. 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 2.26, CEG's dividend is way lower than the S&P500 average.
| 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 Years1
Div Non Decr Years1
5.3 Sustainability
16.85% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP16.85%
EPS Next 2Y34.68%
EPS Next 3Y25.37%
CONSTELLATION ENERGY
NASDAQ:CEG (11/4/2024, 9:00:58 PM)
After market: 229.32 +3.37 (+1.49%)225.95
-32.15 (-12.46%)
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 Cap70.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Dividend Growth(5Y)
DP
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Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 24.91 | ||
| 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)0.43
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 20.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12% | ||
| PM (TTM) | 10.16% | ||
| GM | 44.38% | ||
| 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 | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 | ||
| 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)215.55%
EPS 3Y40.4%
EPS 5Y
EPS Q2Q%
EPS Next Y70.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.81%
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
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y