Constellation Energy (CEG)

Utilities · $97.8B market cap · SEC CIK 0001868275

Next reports on Feb 22, 2027, after the close, with analysts expecting $3.08 in earnings per share.

52-week range $228.63 to $380.78. 30% below its 52-week high and 17% above its low.

The case for CEG

• Revenue up 26.0% on the year.
• Free-cash-flow yield of 1.3% is higher than 87% of Utilities companies.
• Return on equity of 15% is higher than 89% of Utilities companies.

The case against

• Pricey for its growth: 28.2× earnings, where 8%+ a year of growth plus a 0.9% dividend would justify about 21×.
• Down 28.9% over the past year.
• Free cash flow is only 1.3% of its market value, a thin cash return for the price.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Utilities companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 31 Utilities companies.

The financials

The financials, five years deep

Pulled from Constellation Energy's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Constellation Energy says it does

On February 21, 2021, the Board of Directors of Exelon authorized management to pursue a plan to separate its competitive generation and customer-facing energy businesses, conducted through Constellation and its subsidiaries, into an independent, publicly traded company. CEG Parent, a Pennsylvania corporation and a direct, wholly owned subsidiary of Exelon, was newly formed for the purpose of separation and had not engaged in any activities except in preparation for the distribution. On February 1, 2022, Exelon completed the separation by distributing all the outstanding shares of the Company’s common stock, on a pro rata basis to the holders of Exelon’s common stock, with the Company holding all the interests in Constellation previously held by Exelon (the “Separation”). As of 2002, Constellation has been an individual registrant concurrent with the registration of its public debt under the Securities Act. As an individual registrant,…

Risk factors CEG lists in its 10-K

• We are exposed to price volatility associated with both the wholesale and retail power markets and the procurement of nuclear fuel, natural gas, and oil
• Our risk management policies cannot fully eliminate the risk associated with our commodity trading activities
• Financial performance and load requirements could be negatively affected if we are unable to effectively manage our power portfolio
• We may be affected by emerging technologies that could, over time, affect or transform the energy industry
• Market performance and other factors could decrease the value of our NDT funds and employee benefit plan assets, which then could require significant additional funding
• We could be negatively affected by unstable capital and credit markets and increased volatility in commodity markets
• If we fail to meet project-specific financing agreement requirements, we could experience an impairment or loss of the financed project
• The impacts of significant economic downturns (i.e., recession) could lead to decreased volumes delivered and increased expense for uncollectible customer balances
• We may be adversely affected by the effects of sustained inflation
• Long-lived assets, goodwill, and other assets could become impaired
• We could incur substantial costs in the event of non-performance by third parties under indemnification agreements. We are exposed to other credit risks in the power markets that are beyond our control
• Expiration or termination of our PPAs and other contractual agreements may significantly reduce our revenue and allow the counterparty or customer to seek liquidated damages
• Federal or state legislative or regulatory actions could negatively affect the scope and functioning of the wholesale markets
• Our business is highly regulated and could be negatively affected by legislative and/or regulatory actions
• NRC actions could negatively affect the operations and profitability of our nuclear generating fleet
• We could be subject to higher costs and/or penalties related to mandatory reliability standards
• We could incur substantial costs to fulfill our obligations related to environmental and other matters
• We could be negatively affected by federal and state RPS and/or energy conservation legislation, along with energy conservation by customers
• Our financial performance could be negatively affected by risks arising from our ownership and operation of hydroelectric facilities
• We could be negatively affected by challenges to tax positions taken, tax law changes and the inherent difficulty in quantifying potential tax effects of business decisions
• Legal proceedings could result in a negative outcome, which we cannot predict
• We could be subject to adverse publicity and reputational risks, which make us vulnerable to negative customer perception and could lead to increased regulatory oversight or other consequences
• We are subject to risks associated with weather, including its effect on the supply and demand for electricity, as well as impacts from climate change, including extreme weather events
• We are subject to certain risks associated with the operation and maintenance of generation facilities
• Our financial performance could be negatively affected by matters arising from our ownership and operation of nuclear facilities
• Nuclear major incident risk and insurance
• Decommissioning obligation and funding
• We are subject to evolving physical security, cybersecurity, and third-party reliability risks
• The rapid development and integration of AI technologies into our processes presents several risks to our business
• Our employees, contractors, customers and the general public could be exposed to a risk of injury due to the nature of the energy industry
• Natural disasters, war, acts and threats of terrorism, pandemic and other significant events could negatively impact our results of operations, ability to raise capital, and future growth
• Our business is capital intensive, and our assets could require significant expenditures to maintain and are subject to operational failure, which could result in potential liability
• Our performance could be negatively affected if we fail to attract and retain an appropriately qualified workforce
• We could make acquisitions or investments in new business initiatives and new markets, which may not be successful or achieve the intended financial results
• The demand for our generation may be impacted by changes in industry trends, including the demand associated with the developing data economy
• We cannot assure that we will continue paying dividends at the current rate
• Our shareholders prior to the merger have a reduced ownership and voting power after the merger, and former Calpine stockholders are not obligated to maintain their ownership interest indefinitely
• The merger may not be accretive to earnings and may cause dilution to our earnings per share, which may negatively affect the market price of our common stock
• We have incurred and will incur significant transaction- and merger-related costs, and these costs may be more than anticipated, negatively impacting our operating results
• We may not realize all the expected benefits of the merger because of integration challenges
• Uncertainties associated with the merger may cause a loss of management personnel and other key employees, which could adversely affect the future business and operations of the combined company
• The merger may divert significant attention of our management team, which could detract from efforts to meet business goals

Filings

Other Utilities companies