CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
357.48 USD
+18.13 (+5.34%)
365.21 USD
+7.73 (+2.16%)
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 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 had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CEG reported negative net income in multiple years.
CEG had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.67%, CEG belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
CEG's Return On Equity of 22.38% is amongst the best of the industry. CEG outperforms 91.30% of its industry peers.
CEG has a better Return On Invested Capital (5.84%) than 80.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CEG is in line with the industry average of 5.00%.
The 3 year average ROIC (3.44%) for CEG is below the current ROIC(5.84%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 12.12%, CEG is in line with its industry, outperforming 41.30% of the companies in the same industry.
In the last couple of years the Profit Margin of CEG has grown nicely.
CEG's Operating Margin of 15.19% is on the low side compared to the rest of the industry. CEG is outperformed by 73.91% 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 46.71%, CEG is in line with its industry, outperforming 47.83% 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 | 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
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 2.59 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.59, CEG belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that CEG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CEG belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC0.7
WACC8.39%
2.3 Liquidity
CEG has a Current Ratio of 1.48. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
CEG has a better Current ratio (1.48) than 86.96% 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's Quick ratio of 1.22 is amongst the best of the industry. CEG outperforms 86.96% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -11.36%.
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 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)-11.36%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-20.42%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%0.31%
3.2 Future
CEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
Based on estimates for the next years, CEG will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y-27.9%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
EPS Next 5Y8.88%
Revenue Next Year-0.34%
Revenue Next 2Y3.57%
Revenue Next 3Y4.86%
Revenue Next 5Y4.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CEG is valuated quite expensively with a Price/Earnings ratio of 44.46.
89.13% of the companies in the same industry are cheaper than CEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CEG to the average of the S&P500 Index (25.47), we can say CEG is valued expensively.
A Price/Forward Earnings ratio of 34.27 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 82.61% of the companies listed in the same industry.
CEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | 34.27 |
4.2 Price Multiples
CEG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CEG is more expensive than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.97 |
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)1.58
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, CEG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.77, 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 2.44, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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
CEG pays out 15.49% of its income as dividend. This is a sustainable payout ratio.
DP15.49%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
357.48
+18.13 (+5.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change1.44%
Ins Owners0.25%
Ins Owner Change2.78%
Market Cap111.68B
Revenue(TTM)23.57B
Net Income(TTM)3.01B
Analysts79.09
Price Target370.42 (3.62%)
Short Float %1.58%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)8.29%
PT rev (3m)14.54%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | 34.27 | ||
| P/S | 4.5 | ||
| P/FCF | N/A | ||
| P/OCF | 244.91 | ||
| P/B | 8.31 | ||
| P/tB | 8.57 | ||
| EV/EBITDA | 20.97 |
EPS(TTM)8.04
EY2.25%
EPS(NY)10.43
Fwd EY2.92%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.41%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.58
Graham Number88.24
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 | 2.59 |
F-Score8
WACC8.39%
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)-11.36%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-20.42%
EPS Next Y-27.9%
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
EPS Next 5Y8.88%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%0.31%
Revenue Next Year-0.34%
Revenue Next 2Y3.57%
Revenue Next 3Y4.86%
Revenue Next 5Y4.68%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29.16%
EBIT Next 3Y24.34%
EBIT Next 5Y22.37%
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 5 / 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 44.46 and the Price/Book (PB) ratio is 8.31.
Can you provide the expected EPS growth for CEG stock?
The Earnings per Share (EPS) of CONSTELLATION ENERGY (CEG) is expected to decline by -27.9% in the next year.