Constellation Energy Corporation
Constellation Energy Corporation Fundamental Analysis
Constellation Energy Corporation (CEG) shows moderate financial fundamentals with a PE ratio of 33.70, profit margin of 10.76%, and ROE of 20.32%. The company generates $25.4B in annual revenue with weak year-over-year growth of -5.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CEG's fundamental strength across five key dimensions:
Efficiency Score
WeakCEG struggles to generate sufficient returns from assets.
Valuation Score
ModerateCEG shows balanced valuation metrics.
Growth Score
WeakCEG faces weak or negative growth trends.
Financial Health Score
ExcellentCEG maintains a strong and stable balance sheet.
Profitability Score
WeakCEG struggles to sustain strong margins.
Key Financial Metrics
Is CEG Expensive or Cheap?
P/E Ratio
CEG trades at 33.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CEG's PEG of -3.76 indicates potential undervaluation.
Price to Book
The market values Constellation Energy Corporation at 6.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.45 times EBITDA. This signals the market has high growth expectations.
How Well Does CEG Make Money?
Net Profit Margin
For every $100 in sales, Constellation Energy Corporation keeps $10.76 as profit after all expenses.
Operating Margin
Core operations generate 15.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.32 in profit for every $100 of shareholder equity.
ROA
Constellation Energy Corporation generates $4.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Constellation Energy Corporation generates limited operating cash flow of $2.41B, signaling weaker underlying cash strength.
Free Cash Flow
Constellation Energy Corporation generates weak or negative free cash flow of $-275.37M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.88 in free cash annually.
FCF Yield
CEG converts -0.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CEG Stacks Against Its Sector Peers
| Metric | CEG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.70 | 19.14 | Worse (Expensive) |
| ROE | 20.32% | 1002.00% | Weak |
| Net Margin | 10.76% | 9090.00% | Weak |
| Debt/Equity | 0.63 | 1.75 | Strong (Low Leverage) |
| Current Ratio | 1.56 | 1.28 | Neutral |
| ROA | 4.88% | -252.00% (disorted) | Weak |
CEG outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Constellation Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.15%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
245.58%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-188.94%
Industry Style: Defensive, Dividend, Income
Declining