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EXC

Exelon NasdaqGS:EXC Stock Report

Last Price

US$39.68

Market Cap

US$39.4b

7D

-5.7%

1Y

-18.4%

Updated

28 Sep, 2022

Data

Company Financials +
EXC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health0/6
Dividends2/6

EXC Stock Overview

Exelon Corporation, a utility services holding company, engages in the energy generation, delivery, and marketing businesses in the United States and Canada.

Exelon Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Exelon
Historical stock prices
Current Share PriceUS$39.68
52 Week HighUS$58.21
52 Week LowUS$39.63
Beta0.57
1 Month Change-11.82%
3 Month Change-12.45%
1 Year Change-18.40%
3 Year Change-16.67%
5 Year Change3.90%
Change since IPO171.32%

Recent News & Updates

Sep 26
Estimating The Intrinsic Value Of Exelon Corporation (NASDAQ:EXC)

Estimating The Intrinsic Value Of Exelon Corporation (NASDAQ:EXC)

In this article we are going to estimate the intrinsic value of Exelon Corporation ( NASDAQ:EXC ) by taking the...

Aug 31

Exelon: A Pure Play Transmission Firm Poised To Benefit From Utility Grid Transformation

Summary The U.S. energy grid is in desperate need of an overhaul, creating a major bullish catalyst to Utility stocks operating in the optimal niche and priced right. Exelon recently become a stand-alone transmission and distribution Utility and is positioned well to benefit from grid enhancements over the coming years. With a good valuation and solid dividend in a pricey sector, Exelon stands out as a long-term winner. The energy grid needs serious repair. Decarbonization, decentralization, and electrification are key catalysts for a major investment into domestic transmission lines around the country. Let's take a step back, though. Today's energy market - namely how power is generated, distributed, and consumed - looks much different from just a decade ago. The Old Construct It used to be such a straightforward process. A local power plant, perhaps a coal, nuclear, or natural gas-fired facility, generated enough electricity to power its community. A vertically-integrated construct, the utility would simply purchase enough fuel to run the generators it operated and provide enough power to heat and cool the city and keep the lights on. Then came regulation around and following the late 1990s and early 2000s Enron debacle and major public scandals of that era. There was a desire to bring together various parts of the country after a period of deregulation. Key Electricity Market Changes The Federal Energy Regulatory Commission (FERC) issued Order 2000 to build upon what was known as the "ISO" (independent service operator) concept. ISOs are like regional energy markets where power plants can produce energy, and long transmission lines can distribute that power to where it is needed most - dictated by price. Order 2000 created more structured Regional Transmission Organizations (RTOs). After more than 20 years of RTO growth and development, there's still a major push to integrate more areas of the electricity market. Regional Power Markets FERC Recall the Texas Freezeout of February 2021. Many retail customers were unable to get heat, and some lives were lost. There were massive power bills, too, as a result of the ERCOT RTO's construct of being less connected to other RTOs. Also, many natural gas-fired plants were unable to acquire fuel or simply could not operate due to poor winterization methods at the time in that area. What power was available was constrained by transmission lines that could not handle such high demand. Couple that situation with what's happening in Europe, and I expect major investment, particularly in the U.S., to help bolster the grid in order to save lives and reduce the effects of an ever-growing number of major weather-related disasters. Why RTOs Work: Economies Of Scale & Transmission Getting back to RTOs, the regional and price-led market helps bring down costs for retail customers since all generators can produce energy and send it thousands of miles across the grid to whatever location needs it most. In general, if you send, say, 100 MW of power 1,000 miles, you might lose just 5 or 10 MW, so it is an efficient process versus limiting one city to just one or two local power providers. Moreover, RTOs help spread costs and increase competition. The downside is that plants that are costly to operate - like coal and nuclear - have often been priced out of the market, so we have seen a wave of retirements among those power plant types. Natural gas is generally the marginal energy source. Tax incentives and production credits for wind and solar generation also throw a bit of a wrench in the competitive markets. RTOs Make The Most Sense: Grid Upgrades Needed Clean Energy Buyers Association Facing Today's Challenge: An Aging Transmission Grid That's a great 101 on the background of the domestic power markets. But what's the investment here? I assert that the market continues to shift quickly and in a big way. We need more transmission lines that are capable of efficiently delivering power to where it is needed most. Transmission providers, those owning important lines, and companies that can create ways to get power from low-cost areas (like a wind farm in Iowa) to high-priced areas (a major demand area like Dallas, TX on a cold January morning) could reap major rewards from a grid overhaul. Enter: The New & Improved Exelon According to Bank of America Global Research, Exelon Corp. (EXC) is a predominately transmission & distribution (T&D) electric utility (85%) operating in Illinois, Pennsylvania, Maryland, Washington DC, New Jersey, and Delaware. Primary utilities include Commonwealth Edison (ComEd) in IL, PECO Energy Company ((PECO)) in PA, PEPCO in MD/DC, Baltimore Gas & Electric (BGE) in MD, Atlantic City Electric (ACE) in NJ, and Delmarva Power ((DPL)) in DE/MD. Exelon is the largest public regulated utility by customers. Morningstar notes that EXC is "now a pure-play electric and gas transmission and distribution utility providing investors a more stable earnings profile. We viewed the separation positively for shareholders. A standalone regulated utility strengthens Exelon's narrow moat and lowers the company's cost of capital." I like EXC because its business is focused on T&D. Constellation Energy (CEG) spun off EXC, and now CEG is essentially a generation company and EXC is the T&D company. The $45.5 billion market cap Chicago-based electric utilities industry firm trades at an attractive 16.9 trailing 12-month price-to-earnings ratio and sports a dividend yield of 2.9% - nearly twice that of the S&P 500. EXC Dividend Outlook Seeking Alpha Valuation Exelon trades at a very attractive valuation when using forward estimates. According to YCharts data, EXC's forward price-to-earnings/growth ((PEG)) ratio is cheap at just 0.68. EXC: A Favorable PEG Ratio YCharts Compare that PEG to the Utilities sector valuation multiple of 3.1. Utilities: A High-Priced Segment Of The Market Yardeni Research Another visual I like to use is the PEG heat map. While the numbers differ a bit due to P/E and growth estimate differences, the relative valuation tells the same story: EXC's PEG is cheap versus the sector. Remarkably, it is among the few stocks in the Utilities sector with a PEG ratio under 1.5. EXC: Value In An Expensive Sector Finviz Earnings Growth Outlook Earnings growth is seen as strong for EXC through 2024, according to BofA. Consider too that this Utilities sector stock should feature lower overall risk versus the broader market. Dividends are also expected to increase through 2024, so investors are paid well to hold EXC. The company currently trades at a slight discount to its peers; there's the chance of a bullish relative revaluation as the market discovers that EXC is positioned well for future T&D investment. Earnings, Valuation, And Dividend Yield Forecasts BofA Global Research Risks The major potential downside for a company operating in a regulated environment like the Utilities sector is regulatory change. We saw a big rally following the Inflation Reduction Act (IRA) among many utilities and renewable energy firms. EXC must pounce on the chance to own important transmission lines that could be affected. Regulatory, political, and adverse legislation is something the bulls must monitor. Also consider that high-impact storms can take out big transmission lines and result in costly repairs, so increasing weather-related natural disasters could hurt the company. Change in tax rates and interest rates provides another layer of uncertainty.

Aug 02

Exelon Q2 2022 Earnings Preview

Exelon (NASDAQ:EXC) is scheduled to announce Q2 earnings results on Wednesday, August 3rd, before market open. The consensus EPS Estimate is $0.46 (-48.3% Y/Y) and the consensus Revenue Estimate is $3.97B (-49.8% Y/Y). Over the last 2 years, EXC has beaten EPS estimates 75% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 10 downward. Revenue estimates have seen 3 upward revisions and 1 downward. Recent earnings Analysis from our contributors:Exelon Breaks Above Resistance, Eyes Further Upside, Earnings Wednesday

Aug 01
We Think Exelon (NASDAQ:EXC) Is Taking Some Risk With Its Debt

We Think Exelon (NASDAQ:EXC) Is Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

EXCUS Electric UtilitiesUS Market
7D-5.7%-4.2%-2.0%
1Y-18.4%4.3%-20.3%

Return vs Industry: EXC underperformed the US Electric Utilities industry which returned 4.2% over the past year.

Return vs Market: EXC exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is EXC's price volatile compared to industry and market?
EXC volatility
EXC Average Weekly Movement3.6%
Electric Utilities Industry Average Movement3.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: EXC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EXC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199931,518Chris Cranehttps://www.exeloncorp.com

Exelon Corporation, a utility services holding company, engages in the energy generation, delivery, and marketing businesses in the United States and Canada. It owns nuclear, fossil, wind, hydroelectric, biomass, and solar generating facilities. The company also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services.

Exelon Corporation Fundamentals Summary

How do Exelon's earnings and revenue compare to its market cap?
EXC fundamental statistics
Market CapUS$39.42b
Earnings (TTM)US$1.90b
Revenue (TTM)US$37.26b

20.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXC income statement (TTM)
RevenueUS$37.26b
Cost of RevenueUS$26.67b
Gross ProfitUS$10.59b
Other ExpensesUS$8.69b
EarningsUS$1.90b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.91
Gross Margin28.43%
Net Profit Margin5.10%
Debt/Equity Ratio163.5%

How did EXC perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

75%

Payout Ratio