CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock - Currency: USD
CEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
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.
CEG had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of CEG (5.71%) is better than 89.36% of its industry peers.
Looking at the Return On Equity, with a value of 23.03%, CEG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.33%, CEG is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
CEG had an Average Return On Invested Capital over the past 3 years of 3.44%. This is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.44%) for CEG is below the current ROIC(6.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 23.03% | ||
| ROIC | 6.33% |
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
CEG's Profit Margin of 12.33% is in line compared to the rest of the industry. CEG outperforms 44.68% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
CEG's Operating Margin of 16.20% is on the low side compared to the rest of the industry. CEG is outperformed by 72.34% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
Looking at the Gross Margin, with a value of 48.81%, CEG is in line with its industry, outperforming 51.06% of the companies in the same industry.
In the last couple of years the Gross Margin of CEG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.2% | ||
| PM (TTM) | 12.33% | ||
| GM | 48.81% |
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
CEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CEG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CEG has been reduced compared to 5 years ago.
Compared to 1 year ago, CEG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CEG (2.38) is better than 91.49% of its industry peers.
CEG has a Debt/Equity ratio of 0.57. This is a neutral value indicating CEG is somewhat dependend on debt financing.
The Debt to Equity ratio of CEG (0.57) is better than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.38 |
ROIC/WACC0.74
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CEG should not have too much problems paying its short term obligations.
CEG's Current ratio of 1.47 is fine compared to the rest of the industry. CEG outperforms 76.60% of its industry peers.
CEG has a Quick Ratio of 1.24. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.24, CEG is doing good in the industry, outperforming 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.70% 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 28.10% on average per year.
The Revenue has been growing slightly by 2.90% in the past year.
Measured over the past years, CEG shows a small growth in Revenue. The Revenue has been growing by 4.49% on average per year.
EPS 1Y (TTM)26.7%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-86.33%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%10.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.93% on average over the next years.
CEG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.10% yearly.
EPS Next Y-21.36%
EPS Next 2Y-5.65%
EPS Next 3Y-1.83%
EPS Next 5Y5.93%
Revenue Next Year-3.72%
Revenue Next 2Y-1.32%
Revenue Next 3Y0.85%
Revenue Next 5Y-0.1%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.86, the valuation of CEG can be described as expensive.
85.11% of the companies in the same industry are cheaper than CEG, based on the Price/Earnings ratio.
CEG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.47, the valuation of CEG can be described as expensive.
82.98% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. CEG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.86 | ||
| Fwd PE | 29.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-5.65%
EPS Next 3Y-1.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, CEG is not a good candidate for dividend investing.
With a Dividend Yield of 0.50, CEG pays less dividend than the industry average, which is at 3.64. 87.23% of the companies listed in the same industry pay a better dividend than CEG!
With a Dividend Yield of 0.50, CEG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
5.3 Sustainability
15.21% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP15.21%
EPS Next 2Y-5.65%
EPS Next 3Y-1.83%
311.88
+5.25 (+1.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.52%
Inst Owner Change2.14%
Ins Owners0.25%
Ins Owner Change21.9%
Market Cap97.75B
Analysts79
Price Target316.65 (1.53%)
Short Float %2.38%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.41
Dividend Growth(5Y)N/A
DP15.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.99%
Min EPS beat(2)-83.02%
Max EPS beat(2)25.03%
EPS beat(4)3
Avg EPS beat(4)8.57%
Min EPS beat(4)-83.02%
Max EPS beat(4)48.9%
EPS beat(8)6
Avg EPS beat(8)41.42%
EPS beat(12)6
Avg EPS beat(12)-14.2%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.73%
Min Revenue beat(2)-18.07%
Max Revenue beat(2)23.53%
Revenue beat(4)2
Avg Revenue beat(4)4.16%
Min Revenue beat(4)-18.07%
Max Revenue beat(4)23.53%
Revenue beat(8)4
Avg Revenue beat(8)1.59%
Revenue beat(12)8
Avg Revenue beat(12)20.98%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)8.41%
PT rev (3m)-2.4%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-7.82%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.86 | ||
| Fwd PE | 29.47 | ||
| P/S | 4.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.54 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 15.88 |
EPS(TTM)9.49
EY3.04%
EPS(NY)10.58
Fwd EY3.39%
FCF(TTM)-13.61
FCFYN/A
OCF(TTM)-5.21
OCFYN/A
SpS77.2
BVpS41.34
TBVpS40
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 23.03% | ||
| ROCE | 8.57% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 6.66% | ||
| OM | 16.2% | ||
| PM (TTM) | 12.33% | ||
| GM | 48.81% | ||
| 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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 99.51% | ||
| Cap/Sales | 10.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.38 |
F-Score7
WACC8.55%
ROIC/WACC0.74
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)26.7%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-86.33%
EPS Next Y-21.36%
EPS Next 2Y-5.65%
EPS Next 3Y-1.83%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%10.18%
Revenue Next Year-3.72%
Revenue Next 2Y-1.32%
Revenue Next 3Y0.85%
Revenue Next 5Y-0.1%
EBIT growth 1Y63.77%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year27.62%
EBIT Next 3Y16.61%
EBIT Next 5Y14.86%
FCF growth 1Y35.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.77%
OCF growth 3YN/A
OCF growth 5YN/A