Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $96.55B
• Dividend Yield: 0.49%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.67
• Revenue Growth: 13.41%
• EPS Growth: 27.49%
• Country: US
• Employees: 14,215
• Sector: Utilities
• Sector Strength: 63
• Industry: Renewable Utilities
• EPS (TTM): 1.91
• Shares Outstanding: 312,405,580
• 10 Day Avg. Volume: 1,842,743
• 30 Day Avg. Volume: 2,280,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 21.01
• Enterprise Value/Ebitda: 16.90
• 1Y Price Target: $367.91
• Price Target Upside: 19.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 63 Neutral
• Price Target: $328.00 ▲(6.13% Upside)

Constellation Energy Corporation's overall score reflects strong earnings call performance and strategic initiatives in clean energy, offset by financial challenges in cash flow and bearish technical indicators. The stock's high valuation and low dividend yield further moderate the score.

Positive Factors

Growth Potential

CEG's base business holds impressive growth potential, even without new deals, with guidance for double-digit EPS growth through 2030.

Market Leadership

Constellation Energy stands out as the nation’s largest producer of clean energy, the largest nuclear fleet operator, and the largest commercial-industrial retail book holder, cementing an entrenched market leadership story.

Negative Factors

Compensation Costs

Earnings will be partially offset by compensation cost increases and losses on PTC earnings.

Cost Risks

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

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 generates revenue through multiple key streams. The primary source is the sale of electricity generated from its power plants, which include nuclear, solar, wind, and natural gas facilities. The company also earns money by providing energy supply services to residential and commercial customers, offering fixed and variable pricing plans. Additionally, Constellation engages in wholesale energy trading, buying and selling power in competitive markets to optimize its energy portfolio. The company's revenue is further supported by long-term contracts with various customers and utilities, as well as partnerships with businesses and governmental entities focused on sustainability initiatives. These diverse revenue streams, combined with strategic investments in renewable energy, enable Constellation Energy to maintain a stable financial foundation.

Constellation Energy Corporation Financial Statement Overview

Summary

Constellation Energy Corporation shows strong revenue growth and operational efficiency with improved EBIT and EBITDA margins. However, the negative free cash flow and declining net profit margins highlight financial challenges. The moderate leverage is manageable, but reliance on debt could pose risks if interest rates rise.

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	24.82B	23.57B	24.92B	24.44B	19.65B	17.60B
Gross Profit	5.14B	5.99B	3.30B	2.14B	2.75B	3.27B
EBITDA	6.39B	6.97B	4.22B	2.92B	3.81B	4.31B
Net Income	3.01B	3.75B	1.62B	-160.00M	-205.00M	589.00M
Balance Sheet
Total Assets	53.04B	52.93B	50.76B	46.91B	48.09B	48.09B
Cash, Cash Equivalents and Short-Term Investments	2.06B	3.02B	368.00M	422.00M	504.00M	226.00M
Total Debt	8.31B	8.41B	9.26B	5.77B	8.20B	7.21B
Total Liabilities	39.23B	39.39B	39.47B	35.54B	36.47B	33.42B
Stockholders Equity	13.45B	13.17B	10.93B	11.02B	11.22B	12.40B
Cash Flow
Free Cash Flow	-2.40B	-5.03B	-7.72B	-4.04B	-2.67B	-1.16B
Operating Cash Flow	456.00M	-2.46B	-5.30B	-2.35B	-1.34B	584.00M
Investing Cash Flow	3.02B	7.43B	3.03B	3.10B	3.28B	1.96B
Financing Cash Flow	-1.80B	-2.29B	2.20B	-799.00M	-1.70B	-2.66B

Constellation Energy Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 309.06
• 50DMA: Negative
• 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 Negative. The current price of 309.06 is below the 20-day moving average (MA) of 319.39, below the 50-day MA of 321.73, and above the 200-day MA of 274.04, indicating a neutral trend. The MACD of -4.37 indicates Positive momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEG.

Constellation Energy Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	73 Outperform	$94.78B	19.93	9.60%	3.47%	4.07%	9.94%
VST	73 Outperform	$62.96B	29.48	45.85%	0.47%	46.90%	388.66%
NEE	72 Outperform	$149.61B	25.31	11.84%	3.12%	18.80%	-6.73%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
CEG	63 Neutral	$96.55B	32.19	24.20%	0.49%	13.41%	27.49%
CWEN.A	61 Neutral	$5.74B	42.15	3.80%	6.42%	-0.27%	-16.25%
BEPC	48 Neutral	$6.04B	32.67	-63.28%	4.38%	12.46%	-388.89%

Constellation Energy Corporation Corporate Events

Constellation Energy Reports Strong Q2 2025 Earnings

On August 7, 2025, Constellation Energy Corporation reported its second-quarter 2025 financial results, highlighting a GAAP net income of $2.67 per share and adjusted operating earnings of $1.91 per share. The company announced a 20-year agreement with Meta for the Clinton Clean Energy Center, received regulatory approval for its acquisition of Calpine, and plans to restart the Crane Clean Energy Center by 2027. These developments, along with legislative support for nuclear energy, position Constellation to enhance its operations and market presence, benefiting stakeholders through increased grid reliability and cost-effective energy solutions.

Constellation Energy Clears PJM Capacity Auction

On July 22, 2025, Constellation Energy Corporation announced that all of its power plants in the PJM market successfully cleared the capacity auction for the 2026-2027 planning year. This outcome, effective June 1, 2026, includes approximately 6,200 megawatts of ComEd nuclear capacity participating in the Illinois Carbon Mitigation Credit Procurement Plan, potentially impacting the company’s revenue streams and positioning within the energy market.