CONSTELLATION ENERGY (CEG) Stock Fundamental Analysis
NASDAQ:CEG - Nasdaq - US21037T1097 - Common Stock - Currency: USD
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. 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.
In the past year CEG has reported a negative cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.71%, CEG belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.03%, CEG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.33%, CEG is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CEG is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.44%) for CEG is below the current ROIC(6.33%), indicating increased profibility in the last year.
| 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
CEG's Profit Margin of 12.33% is in line compared to the rest of the industry. CEG outperforms 44.68% of its industry peers.
In the last couple of years the Profit Margin of CEG has grown nicely.
Looking at the Operating Margin, with a value of 16.20%, CEG is doing worse than 72.34% of the companies in the same industry.
In the last couple of years the Operating Margin of CEG has grown nicely.
CEG has a Gross Margin (48.81%) which is in line with its industry peers.
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
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 2.32 indicates that CEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, CEG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that CEG is somewhat dependend on debt financing.
CEG's Debt to Equity ratio of 0.57 is amongst the best of the industry. CEG outperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.32 |
ROIC/WACC0.73
WACC8.68%
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.
A Quick Ratio of 1.24 indicates that CEG should not have too much problems paying its short term obligations.
The Quick ratio of CEG (1.24) is better than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
CEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.70%, which is quite impressive.
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
The Earnings Per Share is expected to grow by 5.43% on average over the next years.
CEG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.85% yearly.
EPS Next Y-20.62%
EPS Next 2Y-6.45%
EPS Next 3Y-1.91%
EPS Next 5Y5.43%
Revenue Next Year-3.43%
Revenue Next 2Y-1.68%
Revenue Next 3Y0.47%
Revenue Next 5Y-1.85%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CEG is valuated quite expensively with a Price/Earnings ratio of 31.58.
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 similar valuation than the S&P500 average which is at 26.53.
CEG is valuated quite expensively with a Price/Forward Earnings ratio of 28.80.
Based on the Price/Forward Earnings ratio, CEG is valued more expensive than 82.98% of the companies in the same industry.
CEG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.58 | ||
| Fwd PE | 28.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CEG indicates a rather expensive valuation: CEG more expensive than 80.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-6.45%
EPS Next 3Y-1.91%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 3.54, 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 2.39, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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 15.21% of its income as dividend. This is a sustainable payout ratio.
DP15.21%
EPS Next 2Y-6.45%
EPS Next 3Y-1.91%
299.66
+0.86 (+0.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.34%
Inst Owner Change2.14%
Ins Owners0.26%
Ins Owner Change21.9%
Market Cap93.92B
Analysts81.9
Price Target300.57 (0.3%)
Short Float %2.6%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)2.9%
PT rev (3m)-7.36%
EPS NQ rev (1m)-8.6%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-7.77%
Revenue NQ rev (3m)-7.82%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.58 | ||
| Fwd PE | 28.8 | ||
| P/S | 3.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.25 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 15.3 |
EPS(TTM)9.49
EY3.17%
EPS(NY)10.4
Fwd EY3.47%
FCF(TTM)-13.61
FCFYN/A
OCF(TTM)-5.21
OCFYN/A
SpS77.2
BVpS41.34
TBVpS40
PEG (NY)N/A
PEG (5Y)1.12
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 | 2.32 |
F-Score7
WACC8.68%
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-20.62%
EPS Next 2Y-6.45%
EPS Next 3Y-1.91%
EPS Next 5Y5.43%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.25%
Revenue growth 5Y4.49%
Sales Q2Q%10.18%
Revenue Next Year-3.43%
Revenue Next 2Y-1.68%
Revenue Next 3Y0.47%
Revenue Next 5Y-1.85%
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