company background image
CEG

Constellation Energy NasdaqGS:CEG Stock Report

Last Price

US$83.19

Market Cap

US$27.2b

7D

-0.8%

1Y

n/a

Updated

01 Oct, 2022

Data

Company Financials +
CEG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends0/6

CEG Stock Overview

Constellation Energy Corporation generates and sells electricity in the United States.

Constellation Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Constellation Energy
Historical stock prices
Current Share PriceUS$83.19
52 Week HighUS$90.18
52 Week LowUS$38.00
Beta0
1 Month Change0.81%
3 Month Change44.43%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO98.07%

Recent News & Updates

Aug 12
Statutory Profit Doesn't Reflect How Good Constellation Energy's (NASDAQ:CEG) Earnings Are

Statutory Profit Doesn't Reflect How Good Constellation Energy's (NASDAQ:CEG) Earnings Are

Constellation Energy Corporation's ( NASDAQ:CEG ) strong earnings report was rewarded with a positive stock price move...

Aug 08
The Constellation Energy Corporation (NASDAQ:CEG) Analysts Have Been Trimming Their Sales Forecasts

The Constellation Energy Corporation (NASDAQ:CEG) Analysts Have Been Trimming Their Sales Forecasts

The latest analyst coverage could presage a bad day for Constellation Energy Corporation ( NASDAQ:CEG ), with the...

Shareholder Returns

CEGUS Electric UtilitiesUS Market
7D-0.8%-8.1%-2.5%
1Yn/a-1.3%-23.2%

Return vs Industry: Insufficient data to determine how CEG performed against the US Electric Utilities industry.

Return vs Market: Insufficient data to determine how CEG performed against the US Market.

Price Volatility

Is CEG's price volatile compared to industry and market?
CEG volatility
CEG Average Weekly Movement6.7%
Electric Utilities Industry Average Movement3.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: CEG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CEG's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
202111,696Joe Dominguezhttps://constellationenergy.com

Constellation Energy Corporation generates and sells electricity in the United States. The company operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. It sells natural gas, renewable energy, and other energy-related products and services.

Constellation Energy Fundamentals Summary

How do Constellation Energy's earnings and revenue compare to its market cap?
CEG fundamental statistics
Market CapUS$27.19b
Earnings (TTM)US$644.00m
Revenue (TTM)US$20.99b

42.2x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEG income statement (TTM)
RevenueUS$20.99b
Cost of RevenueUS$17.86b
Gross ProfitUS$3.13b
Other ExpensesUS$2.49b
EarningsUS$644.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.97
Gross Margin14.92%
Net Profit Margin3.07%
Debt/Equity Ratio42.9%

How did CEG perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CEG?

Other financial metrics that can be useful for relative valuation.

CEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA9.3x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does CEG's PE Ratio compare to its peers?

CEG PE Ratio vs Peers
The above table shows the PE ratio for CEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average44x
ES Eversource Energy
20.4x8.1%US$27.0b
PCG PG&E
123.1x15.7%US$26.1b
FE FirstEnergy
16x9.1%US$21.1b
ETR Entergy
16.7x10.3%US$20.5b
CEG Constellation Energy
42.2x22.5%US$27.2b

Price-To-Earnings vs Peers: CEG is good value based on its Price-To-Earnings Ratio (42.2x) compared to the peer average (44x).


Price to Earnings Ratio vs Industry

How does CEG's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Earnings vs Industry: CEG is expensive based on its Price-To-Earnings Ratio (42.2x) compared to the US Electric Utilities industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is CEG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.2x
Fair PE Ratio34.7x

Price-To-Earnings vs Fair Ratio: CEG is expensive based on its Price-To-Earnings Ratio (42.2x) compared to the estimated Fair Price-To-Earnings Ratio (34.7x).


Share Price vs Fair Value

What is the Fair Price of CEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CEG ($83.19) is trading below our estimate of fair value ($322.11)

Significantly Below Fair Value: CEG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Constellation Energy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEG's forecast earnings growth (22.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CEG's earnings (22.5% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: CEG's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CEG's revenue (3.7% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: CEG's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEG's Return on Equity is forecast to be low in 3 years time (10.9%).


Discover growth companies

Past Performance

How has Constellation Energy performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEG has a large one-off loss of $715.0M impacting its June 30 2022 financial results.

Growing Profit Margin: CEG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CEG's earnings have declined by 36.4% per year over the past 5 years.

Accelerating Growth: CEG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CEG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (10.1%).


Return on Equity

High ROE: CEG's Return on Equity (5.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Constellation Energy's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CEG's short term assets ($8.1B) exceed its short term liabilities ($5.9B).

Long Term Liabilities: CEG's short term assets ($8.1B) do not cover its long term liabilities ($28.1B).


Debt to Equity History and Analysis

Debt Level: CEG's net debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: CEG's debt to equity ratio has reduced from 81.5% to 42.9% over the past 5 years.

Debt Coverage: CEG's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: CEG's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Constellation Energy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.68%

Current Dividend Yield

Dividend Yield vs Market

Constellation Energy Dividend Yield vs Market
How does Constellation Energy dividend yield compare to the market?
SegmentDividend Yield
Company (Constellation Energy)0.7%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Electric Utilities)3.3%
Analyst forecast in 3 Years (Constellation Energy)0.9%

Notable Dividend: CEG's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CEG's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: CEG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CEG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: CEG is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: CEG is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Joe Dominguez (58 yo)

no data

Tenure

Mr. Joseph Dominguez, also known as Joe, serves as President of Constellation Energy Corporation since 2022 and serves as its Director. Mr. Dominguez has served as Chief Executive Officer of Constellation...


Leadership Team

Experienced Management: CEG's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CEG's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of CEG?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders127,2540.04%
State or Government138,1850.04%
General Public58,342,61717.9%
Institutions268,237,20282.1%

Dilution of Shares: CEG only recently listed within the past 12 months.


Top Shareholders

Top 25 shareholders own 61.81% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.97%
The Vanguard Group, Inc.
39,136,668$3.3b1.88%0.08%
8.17%
Capital Research and Management Company
26,690,445$2.2b3.19%0.16%
7.38%
BlackRock, Inc.
24,135,665$2.0b12.28%0.05%
6.68%
FMR LLC
21,817,127$1.8b19.71%0.17%
5.67%
State Street Global Advisors, Inc.
18,536,093$1.5b7.42%0.09%
5.15%
Wellington Management Group LLP
16,832,178$1.4b-0.16%0.26%
2.41%
BNY Mellon Asset Management
7,872,946$655.0m18.05%0.15%
2.01%
Geode Capital Management, LLC
6,556,814$545.5m18.32%0.07%
1.32%
Putnam LLC
4,317,388$359.2m-0.66%0.62%
1.03%
Northern Trust Global Investments
3,351,665$278.8m2.31%0.06%
1.02%
ClearBridge Investments Limited
3,338,459$277.7m14.99%6.22%
0.92%
Southpoint Capital Advisors LP
3,000,000$249.6m81.37%6.35%
0.88%
Morgan Stanley, Investment Banking and Brokerage Investments
2,870,729$238.8m-11.13%0.05%
0.83%
Appaloosa Management L.P.
2,700,000$224.6m0%14.18%
0.78%
Electron Capital Partners, LLC
2,535,238$210.9m-8.63%10.05%
0.76%
Strategic Advisers LLC
2,479,311$206.3m14.9%0.18%
0.75%
Legal & General Investment Management Limited
2,465,155$205.1m25.06%0.06%
0.61%
Invesco Capital Management LLC
2,009,824$167.2m-4.5%0.13%
0.56%
Massachusetts Financial Services Company
1,817,391$151.2m-4.12%0.04%
0.54%
Corvex Management LP
1,772,610$147.5m-39.18%7.9%
0.52%
Jennison Associates LLC
1,692,268$140.8m0%0.13%
0.47%
Franklin Resources, Inc.
1,540,006$128.1m-60.95%0.06%
0.47%
Eaton Vance Management
1,539,543$128.1m31.62%0.05%
0.47%
UBS Asset Management
1,525,008$126.9m-25.54%0.03%
0.46%
Charles Schwab Investment Management, Inc.
1,491,012$124.0m2.83%0.03%

Company Information

Constellation Energy Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Constellation Energy Corporation
  • Ticker: CEG
  • Exchange: NasdaqGS
  • Founded: 2021
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: US$27.190b
  • Shares outstanding: 326.85m
  • Website: https://constellationenergy.com

Number of Employees


Location

  • Constellation Energy Corporation
  • 1310 Point Street
  • Baltimore
  • Maryland
  • 21231-3380
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2022
CEG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2022
E7SDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.