CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
356.55 USD
+17.2 (+5.07%)
CEG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. CEG has an average financial health and profitability rating. 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.
In multiple years CEG reported negative net income over the last 5 years.
In the past 5 years CEG reported 4 times negative operating cash flow.
1.2 Ratios
CEG's Return On Assets of 5.67% is amongst the best of the industry. CEG outperforms 84.78% of its industry peers.
The Return On Equity of CEG (22.38%) is better than 91.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.84%, CEG belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
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
CEG's Profit Margin of 12.12% is in line compared to the rest of the industry. CEG outperforms 41.30% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
The Operating Margin of CEG (15.19%) is worse than 73.91% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
CEG has a Gross Margin (46.71%) which is comparable to the rest of the industry.
CEG's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for CEG has been reduced compared to a year ago.
2.2 Solvency
CEG has an Altman-Z score of 2.50. 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.
With an excellent Altman-Z score value of 2.50, 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 | 2.5 |
ROIC/WACC0.7
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
CEG has a Current ratio of 1.48. This is amongst the best in the industry. CEG outperforms 86.96% 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.
The Quick ratio of CEG (1.22) is better than 86.96% of its industry peers.
| 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.
The Earnings Per Share has been growing by 28.10% on average over the past years. This is a very strong growth
Looking at the last year, CEG shows a decrease in Revenue. The Revenue has decreased by -5.42% in the last year.
The Revenue has been growing slightly by 4.49% on average over the past years.
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.
The Revenue is expected to grow by 4.68% on average over the next years.
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.
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
The Price/Earnings ratio is 44.35, which means the current valuation is very expensive for CEG.
CEG's Price/Earnings ratio is rather expensive when compared to the industry. CEG is more expensive than 89.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. CEG is valued rather expensively when compared to this.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 34.18.
Based on the Price/Forward Earnings ratio, CEG is valued more expensive than 82.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, CEG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.35 | ||
| Fwd PE | 34.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 84.78% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.96 |
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%
NASDAQ:CEG (11/19/2025, 2:58:07 PM)
356.55
+17.2 (+5.07%)
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 Cap111.39B
Revenue(TTM)23.57B
Net Income(TTM)3.01B
Analysts79.09
Price Target370.42 (3.89%)
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 | 44.35 | ||
| Fwd PE | 34.18 | ||
| P/S | 4.49 | ||
| P/FCF | N/A | ||
| P/OCF | 244.28 | ||
| P/B | 8.28 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 19.96 |
EPS(TTM)8.04
EY2.25%
EPS(NY)10.43
Fwd EY2.93%
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 | 2.5 |
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 44.35 and the Price/Book (PB) ratio is 8.28.
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.