CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
USA - NASDAQ:CEG - US21037T1097 - Common Stock
368.49 USD
-14.74 (-3.85%)
366 USD
-2.49 (-0.68%)
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. Both the profitability and the financial health of CEG get a neutral evaluation. Nothing too spectacular is happening here. 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
With an excellent Return On Assets value of 5.67%, CEG belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
CEG's Return On Equity of 22.38% is amongst the best of the industry. CEG outperforms 93.62% of its industry peers.
With an excellent Return On Invested Capital value of 5.84%, CEG belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
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 4.95%.
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 has a Profit Margin (12.12%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CEG has grown nicely.
CEG has a worse Operating Margin (15.19%) than 76.60% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
The Gross Margin of CEG (46.71%) is comparable to the rest of the 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.
The number of shares outstanding for CEG has been reduced compared to 1 year ago.
The number of shares outstanding for CEG has been reduced compared to 5 years ago.
CEG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.64 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 2.64. 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.
Looking at the Debt to Equity ratio, with a value of 0.61, CEG is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.64 |
ROIC/WACC0.7
WACC8.33%
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 better Current ratio (1.48) than 78.72% 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.
With an excellent Quick ratio value of 1.22, CEG belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.44%, which is quite good.
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 5.43% in the last year.
Measured over the past years, CEG shows a small growth in Revenue. The Revenue has been growing by 4.49% on average per year.
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.
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y-28.16%
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
EPS Next 5Y7.52%
Revenue Next Year-0.55%
Revenue Next 2Y0.92%
Revenue Next 3Y2.72%
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
A Price/Earnings ratio of 41.78 indicates a quite expensive valuation of CEG.
Based on the Price/Earnings ratio, CEG is valued expensively inside the industry as 87.23% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 27.02, CEG is valued quite expensively.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 35.83.
Based on the Price/Forward Earnings ratio, CEG is valued more expensive than 85.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. CEG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.78 | ||
| Fwd PE | 35.83 |
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 | 21.59 |
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)1.49
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 3.40, CEG's dividend is way lower than its industry peers. On top of this 87.23% of the companies listed in the same industry pay a better dividend than CEG!
With a Dividend Yield of 0.40, CEG pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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-6.99%
EPS Next 3Y-0.76%
368.49
-14.74 (-3.85%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change2.66%
Market Cap115.12B
Analysts78
Price Target342.07 (-7.17%)
Short Float %2.3%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)2.77%
PT rev (3m)8.03%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.84%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.78 | ||
| Fwd PE | 35.83 | ||
| P/S | 4.64 | ||
| P/FCF | N/A | ||
| P/OCF | 252.46 | ||
| P/B | 8.56 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 21.59 |
EPS(TTM)8.82
EY2.39%
EPS(NY)10.29
Fwd EY2.79%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.4%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.49
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
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-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 | 2.64 |
F-Score8
WACC8.33%
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-28.16%
EPS Next 2Y-6.99%
EPS Next 3Y-0.76%
EPS Next 5Y7.52%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
Revenue Next Year-0.55%
Revenue Next 2Y0.92%
Revenue Next 3Y2.72%
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