Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $112.13B
• Dividend Yield: 0.43%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.80
• Revenue Growth: 21.35%
• EPS Growth: -3.93%
• Country: US
• Employees: 14,215
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 3.04
• Shares Outstanding: 312,290,070
• 10 Day Avg. Volume: 2,253,366
• 30 Day Avg. Volume: 2,702,750
• PEG Ratio: 0.14
• Price to Book (P/B): 5.35
• Price to Sales (P/S): 2.99
• P/FCF Ratio: -14.01
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.25
• Enterprise Value/Gross Profit: 21.89
• Enterprise Value/Ebitda: 17.96
• 1Y Price Target: $398.45
• Price Target Upside: 9.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 9.44
• Revenue Forecast (FY): $23.82B

• Rating: 68 Neutral
• Price Target: $392.00 ▲(7.79% Upside)

Constellation Energy Corporation's overall stock score reflects strong earnings performance and positive market sentiment, particularly in the nuclear sector. However, challenges in profitability, cash flow, and valuation metrics temper the outlook. The company's strategic positioning and public support for nuclear energy provide long-term growth potential, but operational and financial efficiency improvements are necessary to enhance investor confidence.

Positive Factors

Nuclear Fleet Reliability

High nuclear fleet reliability enhances Constellation's competitive advantage in the energy sector, ensuring stable and efficient power generation.

Public Support for Nuclear Energy

Strong public support for nuclear energy provides a favorable regulatory environment, aiding long-term growth and expansion opportunities.

DOE Loan for Clean Energy Center

The DOE loan supports financial stability and growth, enabling Constellation to expand its clean energy initiatives and enhance grid reliability.

Negative Factors

Negative Free Cash Flow

Negative free cash flow limits Constellation's ability to invest in growth opportunities and may strain financial resources if not addressed.

Operational Efficiency Challenges

Declining operational efficiency could hinder profitability and competitiveness, necessitating strategic improvements to sustain growth.

Increasing Debt Levels

Rising debt levels can strain financial flexibility and increase risk, potentially affecting Constellation's long-term financial health.

Constellation Energy Corporation Business Overview & Revenue Model

Company Description

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. The company has 32,400 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. It serves distribution utilities; municipalities; cooperatives; and commercial, industrial, governmental, and residential customers. The company was incorporated in 2021 and is headquartered in Baltimore, Maryland. Constellation Energy Corporation was formerly a subsidiary of Exelon Corporation.

How the Company Makes Money

Constellation Energy Corporation generates revenue through several key streams. The primary source of income comes from the sale of electricity and natural gas to customers across different sectors. The company operates a diversified portfolio of power generation facilities, including nuclear, solar, and natural gas plants, which allow it to produce and sell energy competitively. Additionally, Constellation earns revenue from energy marketing and trading services, where it engages in buying and selling electricity on the wholesale market. The company also benefits from long-term contracts with commercial and industrial clients, which provide stable cash flows. Strategic partnerships with technology firms and investments in renewable energy projects further contribute to its earnings, as the demand for cleaner energy continues to grow. Overall, Constellation's focus on sustainability and efficiency positions it well in the evolving energy landscape.

Constellation Energy Corporation Financial Statement Overview

Summary

Constellation Energy Corporation demonstrates strong revenue growth and profitability with efficient cost management, reflected in high gross profit margins. However, operational efficiency has declined, as seen in reduced EBIT and EBITDA margins. The balance sheet shows moderate leverage but a low equity ratio, indicating potential financial risk. Cash flow challenges persist, with negative free cash flow growth and insufficient cash generation from operations.

Income Statement

Constellation Energy Corporation shows a strong gross profit margin of 64.70% in TTM, indicating efficient cost management. The net profit margin of 11.03% is healthy, though it has decreased from the previous year. Revenue growth rate is positive at 8.10% in TTM, showing a recovery from the previous annual decline. However, EBIT and EBITDA margins have decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio is 0.63 in TTM, reflecting moderate leverage. Return on equity stands at 20.32%, indicating effective use of equity to generate profits. However, the equity ratio is low, suggesting a high reliance on debt financing. Overall, the balance sheet shows stability but with potential risks due to leverage.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate of -88.49% in TTM. The operating cash flow to net income ratio is 0.32, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.45B	23.57B	24.92B	24.44B	19.65B	17.60B
Gross Profit	4.95B	5.99B	3.30B	2.14B	2.75B	3.27B
EBITDA	6.03B	6.97B	4.22B	2.92B	3.81B	4.31B
Net Income	2.74B	3.75B	1.62B	-160.00M	-205.00M	589.00M
Balance Sheet
Total Assets	56.16B	52.93B	50.76B	46.91B	48.09B	48.09B
Cash, Cash Equivalents and Short-Term Investments	4.09B	3.02B	368.00M	422.00M	504.00M	226.00M
Total Debt	9.04B	8.41B	9.26B	5.77B	8.20B	7.21B
Total Liabilities	41.47B	39.39B	39.47B	35.54B	36.47B	33.42B
Stockholders Equity	14.35B	13.17B	10.93B	11.02B	11.22B	12.40B
Cash Flow
Free Cash Flow	-276.00M	-5.03B	-7.72B	-4.04B	-2.67B	-1.16B
Operating Cash Flow	2.42B	-2.46B	-5.30B	-2.35B	-1.34B	584.00M
Investing Cash Flow	151.00M	7.43B	3.03B	3.10B	3.28B	1.96B
Financing Cash Flow	-358.00M	-2.29B	2.20B	-799.00M	-1.70B	-2.66B

Constellation Energy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 363.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEG, the sentiment is Positive. The current price of 363.67 is above the 20-day moving average (MA) of 352.40, above the 50-day MA of 361.28, and above the 200-day MA of 300.75, indicating a bullish trend. The MACD of -0.98 indicates Negative momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 65.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CEG.

Constellation Energy Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEE	73 Outperform	$176.29B	26.88	12.48%	2.68%	26.96%	-6.80%
CWEN.A	70 Neutral	$7.06B	13.98	13.20%	5.41%	2.54%	124.89%
CEG	68 Neutral	$112.13B	41.12	20.35%	0.43%	21.35%	-3.93%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
VST	63 Neutral	$58.83B	62.03	21.63%	0.47%	42.77%	-47.64%
AES	59 Neutral	$9.96B	8.52	23.02%	5.04%	-1.55%	12.83%
BEPC	51 Neutral	$7.26B	―	-38.17%	3.69%	5.93%	-39.88%

Constellation Energy Corporation Corporate Events

Constellation Energy Reports Strong Q3 2025 Results

Constellation Energy Corporation, a leading Fortune 200 company based in Baltimore, specializes in producing reliable, emissions-free energy and is a major supplier to various sectors across the United States, with a significant focus on nuclear power generation.

Constellation Energy Reports Strong Q3 2025 Earnings

On November 7, 2025, Constellation Energy Corporation announced its third-quarter 2025 financial results, reporting a GAAP net income of $2.97 per share and adjusted operating earnings of $3.04 per share. The company highlighted significant operational achievements, including a settlement for the Conowingo Dam’s re-licensing and strong performance from its nuclear fleet. The narrowing of the full-year adjusted earnings guidance and the upcoming Calpine transaction position Constellation to meet growing demand for clean energy, enhancing its market positioning and stakeholder value.

The most recent analyst rating on (CEG) stock is a Buy with a $478.00 price target. To see the full list of analyst forecasts on Constellation Energy Corporation stock, see the CEG Stock Forecast page.

Constellation Energy Elects Alan Armstrong to Board

Constellation Energy Corporation, a company listed on Nasdaq as CEG, announced the election of Alan S. Armstrong to its board of directors, effective January 1, 2026. Armstrong, who has extensive experience in the energy sector, most notably with Williams, is expected to bring valuable insights as Constellation integrates a large natural gas portfolio into its operations. This strategic move is aimed at enhancing Constellation’s mission to provide reliable, clean energy and strengthen America’s energy security.

The most recent analyst rating on (CEG) stock is a Buy with a $391.00 price target. To see the full list of analyst forecasts on Constellation Energy Corporation stock, see the CEG Stock Forecast page.

Constellation Energy’s Earnings Call Highlights Robust Performance

Constellation Energy Corporation’s recent earnings call highlighted a robust financial and operational performance, marked by significant achievements in regulatory support and new transactions. The sentiment was generally positive, although challenges in capacity auctions and interconnection processes were noted as ongoing hurdles.

Constellation Energy Reports Strong Q2 2025 Results

Constellation Energy Corporation, headquartered in Baltimore, is a leading producer of reliable, emissions-free energy, primarily operating in the nuclear energy sector. The company is recognized for its commitment to sustainable energy solutions and its significant contribution to the nation’s clean energy supply.