CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock - Currency: USD
Taking everything into account, CEG scores 5 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CEG had positive earnings in the past year.
CEG had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CEG reported negative net income in multiple years.
In the past 5 years CEG reported 4 times negative operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.08%, CEG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.47%, CEG belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
CEG's Return On Invested Capital of 6.86% is amongst the best of the industry. CEG outperforms 93.48% of its industry peers.
CEG had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 4.92%.
The last Return On Invested Capital (6.86%) for CEG is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 28.47% | ||
| ROIC | 6.86% |
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 has a Profit Margin of 15.91%. This is in the better half of the industry: CEG outperforms 78.26% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
CEG has a Operating Margin (18.16%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CEG has grown nicely.
Looking at the Gross Margin, with a value of 51.55%, CEG is in line with its industry, outperforming 52.17% 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 | 18.16% | ||
| PM (TTM) | 15.91% | ||
| GM | 51.55% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CEG is destroying value.
The number of shares outstanding for CEG has been reduced compared to 1 year ago.
Compared to 5 years ago, CEG has less shares outstanding
Compared to 1 year ago, CEG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CEG (1.89) is better than 86.96% of its industry peers.
CEG has a Debt/Equity ratio of 0.56. This is a neutral value indicating CEG is somewhat dependend on debt financing.
CEG has a Debt to Equity ratio of 0.56. This is amongst the best in the industry. CEG outperforms 89.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.82
WACC8.35%
2.3 Liquidity
CEG has a Current Ratio of 1.57. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.57, CEG belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that CEG should not have too much problems paying its short term obligations.
CEG's Quick ratio of 1.34 is amongst the best of the industry. CEG outperforms 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
CEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 137.80%, which is quite impressive.
CEG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.10% yearly.
The Revenue has decreased by -5.42% in the past year.
CEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.49% yearly.
EPS 1Y (TTM)137.8%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%2563.64%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%-7.14%
3.2 Future
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
Based on estimates for the next years, CEG will show a decrease in Revenue. The Revenue will decrease by -8.75% on average per year.
EPS Next Y-19.6%
EPS Next 2Y-4.03%
EPS Next 3Y-0.01%
EPS Next 5Y5.78%
Revenue Next Year-0.53%
Revenue Next 2Y1.02%
Revenue Next 3Y1.64%
Revenue Next 5Y-8.75%
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
The Price/Earnings ratio is 17.38, which indicates a rather expensive current valuation of CEG.
Based on the Price/Earnings ratio, CEG is valued a bit cheaper than the industry average as 67.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CEG is valued a bit cheaper.
A Price/Forward Earnings ratio of 21.62 indicates a rather expensive valuation of CEG.
65.22% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
CEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
CEG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-4.03%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, CEG is not a good candidate for dividend investing.
In the last 3 months the price of CEG has falen by -34.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.49, CEG's dividend is way lower than its industry peers. On top of this 84.78% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.52, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
CEG pays out 11.84% of its income as dividend. This is a sustainable payout ratio.
DP11.84%
EPS Next 2Y-4.03%
EPS Next 3Y-0.01%
206.68
+2.49 (+1.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.34%
Inst Owner Change0.32%
Ins Owners0.26%
Ins Owner Change19.61%
Market Cap64.75B
Analysts80.95
Price Target326.82 (58.13%)
Short Float %2.23%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.41
Dividend Growth(5Y)N/A
DP11.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.2%
Min EPS beat(2)25.03%
Max EPS beat(2)43.37%
EPS beat(4)4
Avg EPS beat(4)54.19%
Min EPS beat(4)25.03%
Max EPS beat(4)99.45%
EPS beat(8)6
Avg EPS beat(8)43.35%
EPS beat(12)6
Avg EPS beat(12)-11.84%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-18.07%
Max Revenue beat(2)13.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.24%
Min Revenue beat(4)-18.07%
Max Revenue beat(4)13.5%
Revenue beat(8)4
Avg Revenue beat(8)2.11%
Revenue beat(12)7
Avg Revenue beat(12)18.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.73%
PT rev (3m)13.33%
EPS NQ rev (1m)2.85%
EPS NQ rev (3m)8.46%
EPS NY rev (1m)3.21%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)-3.76%
Revenue NQ rev (3m)-8.59%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 21.62 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.92 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)11.89
EY5.75%
EPS(NY)9.56
Fwd EY4.63%
FCF(TTM)-16.05
FCFYN/A
OCF(TTM)-7.86
OCFYN/A
SpS75.22
BVpS42.02
TBVpS40.68
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 28.47% | ||
| ROCE | 9.29% | ||
| ROIC | 6.86% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 7.42% | ||
| OM | 18.16% | ||
| PM (TTM) | 15.91% | ||
| GM | 51.55% | ||
| 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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 95% | ||
| Cap/Sales | 10.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 1.89 |
F-Score6
WACC8.35%
ROIC/WACC0.82
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)137.8%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%2563.64%
EPS Next Y-19.6%
EPS Next 2Y-4.03%
EPS Next 3Y-0.01%
EPS Next 5Y5.78%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%-7.14%
Revenue Next Year-0.53%
Revenue Next 2Y1.02%
Revenue Next 3Y1.64%
Revenue Next 5Y-8.75%
EBIT growth 1Y170.1%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year44.72%
EBIT Next 3Y15.19%
EBIT Next 5Y14.97%
FCF growth 1Y34.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.52%
OCF growth 3YN/A
OCF growth 5YN/A