CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock - Currency: USD
Taking everything into account, CEG scores 4 out of 10 in our fundamental rating. CEG was compared to 47 industry peers in the Electric Utilities industry. CEG has only an average score on both its financial health and profitability. CEG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CEG was profitable.
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
CEG's Return On Assets of 5.71% is amongst the best of the industry. CEG outperforms 89.36% of its industry peers.
CEG has a Return On Equity of 23.03%. This is amongst the best in the industry. CEG outperforms 91.49% of its industry peers.
CEG has a Return On Invested Capital of 6.33%. This is in the better half of the industry: CEG outperforms 78.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CEG is significantly below the industry average of 38.54%.
The last Return On Invested Capital (6.33%) for CEG is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.33%, CEG is in line with its industry, outperforming 44.68% of the companies in the same industry.
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.
CEG's Operating Margin has improved in the last couple of years.
CEG has a Gross Margin (48.81%) 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 | 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.
Compared to 1 year ago, CEG has less shares outstanding
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
CEG has an Altman-Z score of 2.43. 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 2.43. This is amongst the best in the industry. CEG outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.57, CEG belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC0.73
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CEG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.47, CEG is doing good in the industry, outperforming 76.60% of the companies in the same industry.
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.
CEG's Quick ratio of 1.24 is fine compared to the rest of the industry. CEG outperforms 74.47% of its industry peers.
| 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.
Looking at the last year, CEG shows a small growth in Revenue. The Revenue has grown by 2.90% in the last 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)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
CEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.93% yearly.
The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y-21.34%
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
EPS Next 5Y5.93%
Revenue Next Year-3.99%
Revenue Next 2Y-0.1%
Revenue Next 3Y1.54%
Revenue Next 5Y-0.1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.88, the valuation of CEG can be described as expensive.
Based on the Price/Earnings ratio, CEG is valued expensively inside the industry as 85.11% of the companies are valued cheaper.
CEG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 30.06 indicates a quite expensive valuation of CEG.
CEG's Price/Forward Earnings ratio is rather expensive when compared to the industry. CEG is more expensive than 82.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CEG to the average of the S&P500 Index (35.19), we can say CEG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.88 | ||
| Fwd PE | 30.06 |
4.2 Price Multiples
CEG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CEG is more expensive than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, CEG is not a good candidate for dividend investing.
With a Dividend Yield of 0.49, 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 0.49, CEG pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
15.21% of the earnings are spent on dividend by CEG. This is a low number and sustainable payout ratio.
DP15.21%
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
321.54
+7.92 (+2.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.52%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change21.48%
Market Cap100.78B
Analysts79
Price Target316.65 (-1.52%)
Short Float %2.38%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)5.35%
PT rev (3m)-3.11%
EPS NQ rev (1m)-1.74%
EPS NQ rev (3m)-10.19%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.77%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.88 | ||
| Fwd PE | 30.06 | ||
| P/S | 4.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.78 | ||
| P/tB | 8.04 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)9.49
EY2.95%
EPS(NY)10.7
Fwd EY3.33%
FCF(TTM)-13.61
FCFYN/A
OCF(TTM)-5.21
OCFYN/A
SpS77.2
BVpS41.34
TBVpS40
PEG (NY)N/A
PEG (5Y)1.21
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 | 2.43 |
F-Score7
WACC8.64%
ROIC/WACC0.73
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-21.34%
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
EPS Next 5Y5.93%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%10.18%
Revenue Next Year-3.99%
Revenue Next 2Y-0.1%
Revenue Next 3Y1.54%
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