CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
NASDAQ:CEG - US21037T1097 - Common Stock
315.94 USD
-0.64 (-0.2%)
317.882 USD
+1.94 (+0.61%)
CEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. CEG is valied quite expensively at the moment, while 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.
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
Looking at the Return On Assets, with a value of 5.67%, CEG belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
CEG has a better Return On Equity (22.38%) than 93.62% of its industry peers.
With a decent Return On Invested Capital value of 5.84%, CEG is doing good in the industry, outperforming 76.60% 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 5.03%.
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 of 12.12%. This is comparable to the rest of the industry: CEG outperforms 42.55% of its industry peers.
CEG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.19%, CEG is doing worse than 76.60% of the companies in the same industry.
In the last couple of years the Operating Margin of CEG has grown nicely.
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.
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.
The debt/assets ratio for CEG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.39 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.39, CEG belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
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 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.39 |
ROIC/WACC0.69
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.48 indicates that CEG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.48, CEG is doing good in the industry, outperforming 78.72% 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.
The Quick ratio of CEG (1.22) is better than 80.85% 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.
The Earnings Per Share has been growing by 28.10% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.43% 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)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
Based on estimates for the next years, CEG will show a small growth in Earnings Per Share. The EPS will grow by 5.17% on average per year.
CEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y-28.76%
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
EPS Next 5Y5.17%
Revenue Next Year-0.93%
Revenue Next 2Y0.76%
Revenue Next 3Y2.36%
Revenue Next 5Y4.02%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.82, CEG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CEG indicates a rather expensive valuation: CEG more expensive than 85.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, CEG is valued a bit more expensive.
A Price/Forward Earnings ratio of 31.16 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.
The average S&P500 Price/Forward Earnings ratio is at 22.80. CEG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 31.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 85.11% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
The decent profitability rating of CEG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, CEG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, 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!
Compared to an average S&P500 Dividend Yield of 2.34, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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-7.65%
EPS Next 3Y-0.35%
315.94
-0.64 (-0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change-3.91%
Ins Owners0.25%
Ins Owner Change5.87%
Market Cap98.70B
Analysts79
Price Target332.84 (5.35%)
Short Float %2.04%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)-40.3%
Min EPS beat(2)-83.02%
Max EPS beat(2)2.42%
EPS beat(4)3
Avg EPS beat(4)-3.05%
Min EPS beat(4)-83.02%
Max EPS beat(4)43.37%
EPS beat(8)6
Avg EPS beat(8)10.97%
EPS beat(12)7
Avg EPS beat(12)-0.46%
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)4.9%
PT rev (3m)13.95%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)5.82%
EPS NY rev (1m)-9.43%
EPS NY rev (3m)-10.25%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)5.18%
Revenue NY rev (1m)3.19%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 31.16 | ||
| P/S | 3.98 | ||
| P/FCF | N/A | ||
| P/OCF | 216.45 | ||
| P/B | 7.34 | ||
| P/tB | 7.58 | ||
| EV/EBITDA | 18.69 |
EPS(TTM)8.82
EY2.79%
EPS(NY)10.14
Fwd EY3.21%
FCF(TTM)-7.68
FCFYN/A
OCF(TTM)1.46
OCFY0.46%
SpS79.45
BVpS43.04
TBVpS41.7
PEG (NY)N/A
PEG (5Y)1.27
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 | 2.39 |
F-Score8
WACC8.47%
ROIC/WACC0.69
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-28.76%
EPS Next 2Y-7.65%
EPS Next 3Y-0.35%
EPS Next 5Y5.17%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%11.43%
Revenue Next Year-0.93%
Revenue Next 2Y0.76%
Revenue Next 3Y2.36%
Revenue Next 5Y4.02%
EBIT growth 1Y33.5%
EBIT growth 3YN/A
EBIT growth 5Y28.06%
EBIT Next Year29%
EBIT Next 3Y22.97%
EBIT Next 5Y14.86%
FCF growth 1Y65.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y109.62%
OCF growth 3YN/A
OCF growth 5YN/A