CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
377.71 USD
+0.71 (+0.19%)
380 USD
+2.29 (+0.61%)
We assign a fundamental rating of 4 out of 10 to CEG. 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 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.
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.
CEG had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of CEG (5.67%) is better than 87.23% of its industry peers.
CEG has a better Return On Equity (22.38%) than 93.62% of its industry peers.
CEG's Return On Invested Capital of 5.84% is amongst the best of the industry. CEG outperforms 80.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CEG is in line with the industry average of 4.91%.
The last Return On Invested Capital (5.84%) for CEG is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 12.12%. This is comparable to the rest of the industry: CEG outperforms 44.68% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 15.19%, CEG is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
CEG's Operating Margin has improved in the last couple of years.
CEG's Gross Margin of 46.71% is in line compared to the rest of the industry. CEG outperforms 48.94% of its industry peers.
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.
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 2.68 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CEG has a Altman-Z score of 2.68. 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.
The Debt to Equity ratio of CEG (0.61) is better than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACC0.7
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, CEG belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
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.
CEG has a Quick ratio of 1.22. This is amongst the best in the industry. CEG outperforms 85.11% 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 has grown by an nice 17.44% over the past year.
CEG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.10% yearly.
Looking at the last year, CEG shows a small growth in Revenue. The Revenue has grown by 5.43% 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)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
3.2 Future
CEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.52% yearly.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y-27.83%
EPS Next 2Y-6.4%
EPS Next 3Y1.17%
EPS Next 5Y7.52%
Revenue Next Year-0.01%
Revenue Next 2Y2.64%
Revenue Next 3Y4.28%
Revenue Next 5Y3.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 42.82, the valuation of CEG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 87.23% of the companies listed in the same industry.
CEG is valuated expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 36.26.
85.11% of the companies in the same industry are cheaper than CEG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CEG to the average of the S&P500 Index (22.53), we can say CEG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.82 | ||
| Fwd PE | 36.26 |
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 | 22.07 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y-6.4%
EPS Next 3Y1.17%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.41%, which is pretty low.
With a Dividend Yield of 0.41, CEG pays less dividend than the industry average, which is at 3.33. 87.23% of the companies listed in the same industry pay a better dividend than CEG!
Compared to an average S&P500 Dividend Yield of 2.38, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 15.49% of its income as dividend. This is a sustainable payout ratio.
DP15.49%
EPS Next 2Y-6.4%
EPS Next 3Y1.17%
377.71
+0.71 (+0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change-0.08%
Ins Owners0.25%
Ins Owner Change2.78%
Market Cap118.00B
Revenue(TTM)24.82B
Net Income(TTM)3.01B
Analysts78
Price Target370.42 (-1.93%)
Short Float %1.76%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)9.78%
PT rev (3m)16.75%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-8.26%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.82 | ||
| Fwd PE | 36.26 | ||
| P/S | 4.75 | ||
| P/FCF | N/A | ||
| P/OCF | 258.77 | ||
| P/B | 8.78 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | 22.07 |
EPS(TTM)8.82
EY2.34%
EPS(NY)10.42
Fwd EY2.76%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.39%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.52
Graham Number92.42
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 | 2.68 |
F-Score8
WACC8.4%
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)17.44%
EPS 3YN/A
EPS 5Y28.1%
EPS Q2Q%-25.97%
EPS Next Y-27.83%
EPS Next 2Y-6.4%
EPS Next 3Y1.17%
EPS Next 5Y7.52%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
Revenue Next Year-0.01%
Revenue Next 2Y2.64%
Revenue Next 3Y4.28%
Revenue Next 5Y3.67%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29.16%
EBIT Next 3Y24.34%
EBIT Next 5Y21.03%
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 42.82 and the Price/Book (PB) ratio is 8.78.
Can you provide the expected EPS growth for CEG stock?
The Earnings per Share (EPS) of CONSTELLATION ENERGY (CEG) is expected to decline by -27.83% in the next year.