CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
354.02 USD
+2.35 (+0.67%)
351.014 USD
-3.01 (-0.85%)
Overall CEG gets a fundamental rating of 4 out of 10. We evaluated CEG against 47 industry peers in the Electric Utilities industry. CEG has only an average score on both its financial health and profitability. While showing a medium growth rate, CEG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CEG was profitable.
CEG had a positive 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
The Return On Assets of CEG (5.67%) is better than 85.11% of its industry peers.
CEG has a Return On Equity of 22.38%. This is amongst the best in the industry. CEG outperforms 91.49% of its industry peers.
CEG has a better Return On Invested Capital (5.84%) than 78.72% 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 5.02%.
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
With a Profit Margin value of 12.12%, CEG perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
CEG's Profit Margin has improved in the last couple of years.
CEG has a worse Operating Margin (15.19%) than 72.34% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
With a Gross Margin value of 46.71%, CEG perfoms like the industry average, outperforming 48.94% 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
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.
Compared to 5 years ago, CEG has less shares outstanding
The debt/assets ratio for CEG has been reduced compared to a year ago.
2.2 Solvency
CEG has an Altman-Z score of 2.56. 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.
CEG has a Altman-Z score of 2.56. This is amongst the best in the industry. CEG outperforms 93.62% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CEG is somewhat dependend on debt financing.
CEG has a better Debt to Equity ratio (0.61) than 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.56 |
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.
The Current ratio of CEG (1.48) is better than 85.11% of its industry peers.
CEG has a Quick Ratio of 1.22. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.22, CEG belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for CEG have decreased strongly by -11.36% in the last year.
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)-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
Based on estimates for the next years, CEG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
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
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
Based on the Price/Earnings ratio of 44.03, the valuation of CEG can be described as expensive.
89.36% of the companies in the same industry are cheaper than CEG, based on the Price/Earnings ratio.
CEG is valuated expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 33.93.
82.98% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
CEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.03 | ||
| Fwd PE | 33.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued more expensive than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.65 |
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)1.57
EPS Next 2Y-6.33%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 3.23, CEG's dividend is way lower than its industry peers. On top of this 85.11% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.36, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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-6.33%
EPS Next 3Y1.3%
354.02
+2.35 (+0.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change0.57%
Ins Owners0.25%
Ins Owner Change2.78%
Market Cap110.60B
Revenue(TTM)23.57B
Net Income(TTM)3.01B
Analysts79.09
Price Target370.42 (4.63%)
Short Float %1.76%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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)0.1%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.03 | ||
| Fwd PE | 33.93 | ||
| P/S | 4.46 | ||
| P/FCF | N/A | ||
| P/OCF | 242.54 | ||
| P/B | 8.23 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 20.65 |
EPS(TTM)8.04
EY2.27%
EPS(NY)10.43
Fwd EY2.95%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.41%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.57
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 | 2.56 |
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 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 44.03 and the Price/Book (PB) ratio is 8.23.
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.