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
CEG had positive earnings in the past year.
CEG had a negative 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
CEG has a Return On Assets of 5.71%. This is amongst the best in the industry. CEG outperforms 89.36% of its industry peers.
CEG has a better Return On Equity (23.03%) than 91.49% of its industry peers.
CEG has a better Return On Invested Capital (6.33%) than 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 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 has a Profit Margin of 12.33%. 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.
The Operating Margin of CEG (16.20%) is worse than 72.34% of its industry peers.
In the last couple of years the Operating Margin of CEG has grown nicely.
With a Gross Margin value of 48.81%, CEG perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
In the last couple of years the Gross Margin of CEG has grown nicely.
| 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
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.
The debt/assets ratio for CEG has been reduced compared to a year ago.
2.2 Solvency
CEG has an Altman-Z score of 2.51. 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's Altman-Z score of 2.51 is amongst the best of the industry. CEG outperforms 93.62% 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.
CEG has a better Debt to Equity ratio (0.57) than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACC0.75
WACC8.46%
2.3 Liquidity
CEG has a Current Ratio of 1.47. This is a normal value and indicates that CEG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, CEG is doing good in the industry, outperforming 78.72% 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.
Looking at the Quick ratio, with a value of 1.24, CEG is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
| 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.
CEG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.10% yearly.
The Revenue has been growing slightly by 2.90% 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)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
Based on estimates for the next years, CEG will show a small growth in Earnings Per Share. The EPS will grow by 5.93% on average per year.
Based on estimates for the next years, CEG will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-21.34%
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
EPS Next 5Y5.93%
Revenue Next Year-2.9%
Revenue Next 2Y0.27%
Revenue Next 3Y1.68%
Revenue Next 5Y-0.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.66 indicates a quite expensive valuation of CEG.
87.23% of the companies in the same industry are cheaper than CEG, based on the Price/Earnings ratio.
CEG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.99.
With a Price/Forward Earnings ratio of 31.64, CEG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CEG is valued 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 (36.36), we can say CEG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 31.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEG is valued expensively inside the industry as 82.98% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
CEG has a yearly dividend return of 0.45%, which is pretty low.
With a Dividend Yield of 0.45, CEG pays less dividend than the industry average, which is at 3.59. 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 2.40, CEG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 15.21% of its income as dividend. This is a sustainable payout ratio.
DP15.21%
EPS Next 2Y-5.15%
EPS Next 3Y-1.42%
338.46
-5.11 (-1.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.52%
Inst Owner Change0.38%
Ins Owners0.25%
Ins Owner Change21.48%
Market Cap106.08B
Analysts79
Price Target317.28 (-6.26%)
Short Float %2.19%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)0.2%
PT rev (3m)7.16%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-9.18%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-8.65%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 31.64 | ||
| P/S | 4.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 8.19 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 17.15 |
EPS(TTM)9.49
EY2.8%
EPS(NY)10.7
Fwd EY3.16%
FCF(TTM)-13.61
FCFYN/A
OCF(TTM)-5.21
OCFYN/A
SpS77.2
BVpS41.34
TBVpS40
PEG (NY)N/A
PEG (5Y)1.27
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 | 2.51 |
F-Score7
WACC8.46%
ROIC/WACC0.75
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-2.9%
Revenue Next 2Y0.27%
Revenue Next 3Y1.68%
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