Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $96.51B
• Dividend Yield: 0.5%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.66
• Revenue Growth: 11.36%
• EPS Growth: 26.54%
• Country: US
• Employees: 14,215
• Sector: Utilities
• Sector Strength: 68
• Industry: Renewable Utilities
• EPS (TTM): 2.14
• Shares Outstanding: 313,417,360
• 10 Day Avg. Volume: 2,614,724
• 30 Day Avg. Volume: 3,047,486
• PEG Ratio: -1.62
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.00
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $324.75
• Price Target Upside: 5.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $347.00 ▲(12.69%Upside)

Constellation Energy Corporation's overall score is driven by its strong operational improvements and bullish technical indicators. Earnings call insights highlight strategic growth and demand from data centers. However, high valuation and negative cash flow present risks. Regulatory challenges and market overestimation further weigh on the score.

Positive Factors

Corporate Strategy

Constellation Energy Corporation is seen as a differentiated story due to its position as the largest producer of carbon-free generation and its burgeoning clean product strategy.

Financial Performance

The transaction is expected to be approximately 5.0% accretive to earnings per share, EBITDA, and adjusted free cash flow to equity on an average annualized basis.

Project Progress

Crane’s nuclear power plant restart is trending ahead of schedule.

Negative Factors

Financial Risk

Shareholders are bearing the risk of any cost overrun or delays in the nuclear plant restart.

Market Risks

The virtual PPA with Meta has the potential to reduce reliability and increase power prices for the general public depending on when and where the new hyperscaler load is added.

Market Valuation

CEG is downgraded to Neutral/High Risk from Buy/High Risk due to revised assumptions on future hyperscaler PPAs and scarcity value of existing power plants.

Constellation Energy Corporation Business Overview & Revenue Model

Company Description

Constellation Energy Corporation (CEG) is a leading energy company in the United States that focuses on providing power, natural gas, and energy management services. The company operates across multiple sectors, including electricity generation, supply, and trading. It is committed to delivering clean, reliable, and affordable energy solutions to residential, commercial, and industrial customers. As a key player in the energy industry, Constellation Energy leverages its diverse portfolio of energy assets to meet the growing demand for sustainable energy solutions.

How the Company Makes Money

Constellation Energy Corporation generates revenue primarily through the sale of electricity and natural gas to a wide range of customers, including residential, commercial, and industrial sectors. The company operates power plants that produce electricity, which it then sells in wholesale and retail markets. Additionally, Constellation Energy engages in energy trading and risk management services, which contribute to its earnings. The company also offers energy efficiency solutions and services that help customers manage their energy consumption and costs. Strategic partnerships and investments in clean energy technologies further bolster its revenue streams, allowing the company to capitalize on the growing demand for renewable energy solutions.

Constellation Energy Corporation Financial Statement Overview

Summary

Constellation Energy Corporation shows promising revenue growth and operational improvements, with strong EBIT and EBITDA margins. However, the company faces challenges with negative free cash flow and decreasing net profit margins, indicating areas that require caution and effective management.

Income Statement

Constellation Energy Corporation demonstrates strong revenue growth with a TTM revenue of $24.23 billion, a 2.82% increase from the previous annual report. The gross profit margin improved significantly to 25.05% TTM, indicating robust profitability. However, the net profit margin decreased to 12.31% TTM from 15.90% in the previous year, suggesting rising costs or other financial pressures impacting net income. Both EBIT and EBITDA margins show resilience, with EBIT margin at 18.09% and EBITDA margin at 26.64% TTM, reflecting operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 0.65, indicating moderate leverage, which can be advantageous for growth if managed well. The return on equity stands at 23.03% TTM, showcasing efficient use of equity to generate profits. However, the equity ratio has slightly decreased to 24.79%, suggesting a higher reliance on debt financing over equity, which could pose risks if interest rates rise or earnings fluctuate.

Cash Flow

Constellation Energy faces challenges with negative free cash flow of $-4.27 billion TTM, though it showed a slight improvement from the previous year. The operating cash flow to net income ratio is negative, suggesting a mismatch between earnings and cash generation. However, the significant investing cash inflow of $5.71 billion indicates strategic investments that may bolster future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.23B	23.57B	24.92B	24.44B	19.65B	17.60B
Gross Profit	6.07B	5.99B	3.23B	2.14B	2.93B	2.85B
EBITDA	6.46B	7.72B	4.25B	2.14B	4.99B	4.83B
Net Income	2.98B	3.75B	1.62B	-154.00M	-73.00M	589.00M
Balance Sheet
Total Assets	52.25B	52.93B	50.76B	46.91B	48.09B	48.09B
Cash, Cash Equivalents and Short-Term Investments	1.85B	3.02B	368.00M	422.00M	504.00M	226.00M
Total Debt	8.36B	8.41B	9.26B	5.77B	8.20B	7.21B
Total Liabilities	38.92B	39.39B	39.47B	35.54B	36.47B	33.42B
Stockholders Equity	12.96B	13.17B	10.93B	11.02B	11.22B	12.40B
Cash Flow
Free Cash Flow	-4.27B	-5.03B	-7.72B	-4.04B	-2.67B	-1.16B
Operating Cash Flow	-1.63B	-2.46B	-5.30B	-2.35B	-1.34B	584.00M
Investing Cash Flow	5.71B	7.43B	3.03B	3.10B	3.28B	1.96B
Financing Cash Flow	-2.78B	-2.29B	2.20B	-799.00M	-1.70B	-2.66B

Constellation Energy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 307.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 307.92 is above the 20-day moving average (MA) of 306.22, above the 50-day MA of 284.42, and above the 200-day MA of 258.68, indicating a bullish trend. The MACD of 8.17 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.77 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
CWEN	77 Outperform	$6.32B	39.43	4.70%	5.56%	-1.34%	21.62%
CWEN.A	75 Outperform	$6.32B	37.27	4.70%	5.88%	-1.34%	21.62%
GEV	75 Outperform	$138.10B	72.21	22.02%	0.20%	5.99%	―
CEG	70 Outperform	$96.51B	32.46	24.71%	0.50%	11.36%	26.54%
Sector *	67 Neutral	$16.54B	17.06	4.47%	3.55%	4.77%	6.10%
ORA	65 Neutral	$5.14B	41.05	5.21%	0.57%	1.95%	-6.57%
BEPC	60 Neutral	$5.91B	32.67	-4.65%	4.54%	1.01%	-110.78%

Constellation Energy Corporation Corporate Events

Constellation Energy Reports Q1 2025 Financial Results

On May 6, 2025, Constellation Energy Corporation announced its first-quarter financial results for 2025, reporting a GAAP net income of $0.38 per share and adjusted operating earnings of $2.14 per share. The company reaffirmed its full-year earnings guidance and highlighted the progress on its acquisition of Calpine, expected to close by the end of the year. The Crane Clean Energy Center was selected for fast-track interconnection, enhancing Constellation’s capacity to provide clean energy. These developments underscore Constellation’s strategic positioning in the energy market, emphasizing its role in meeting the growing demand for clean energy and supporting technological advancements in AI.