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Constellation Energy Corporation (CEG)
NASDAQ:CEG
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Constellation Energy Corporation
(NASDAQ:CEG)
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Rating:65Neutral
Price Target:
$345.00
â–²(5.72% Upside)
Constellation Energy Corporation's overall score is driven by strong earnings call highlights, including strategic acquisitions and clean energy agreements, which are supported by political backing. However, financial performance is hindered by cash flow challenges and declining margins. The technical analysis and valuation suggest caution due to potential bearish momentum and high valuation.
Positive Factors
Strategic Acquisitions
The acquisition of Calpine enhances Constellation's market position and operational capacity, supporting long-term growth and competitive advantage in the energy sector.
Clean Energy Agreements
Long-term agreements with major corporations like Meta provide stable revenue streams and reinforce Constellation's commitment to sustainable energy solutions, bolstering its market reputation.
Political Support for Nuclear
Strong political backing for nuclear energy ensures regulatory support and potential financial incentives, enhancing Constellation's ability to expand its nuclear energy operations.
Negative Factors
Cash Flow Challenges
Persistent cash flow issues may hinder Constellation's ability to invest in growth opportunities and meet financial obligations, impacting long-term financial stability.
Declining Margins
Shrinking margins suggest cost pressures or pricing challenges, which could erode profitability and competitiveness if not addressed.
Regulatory Uncertainties
Regulatory uncertainties can affect market dynamics and pricing, posing risks to Constellation's strategic planning and revenue predictability.
Constellation Energy Corporation (CEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$105.95B
Dividend Yield0.47%
Average Volume (3M)2.16M
Price to Earnings (P/E)35.1
Beta (1Y)1.69
Revenue Growth13.41%
EPS Growth27.49%
CountryUS
Employees14,215
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)1.91
Shares Outstanding312,405,580
10 Day Avg. Volume2,486,634
30 Day Avg. Volume2,157,354
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)5.35
Price to Sales (P/S)2.99
P/FCF Ratio-14.01
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue4.35
Enterprise Value/Gross Profit21.01
Enterprise Value/Ebitda16.90
Forecast
1Y Price Target
$376.67Price Target Upside15.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Constellation Energy Corporation Business Overview & Revenue Model
Company DescriptionConstellation 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 MoneyConstellation 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 Key Performance Indicators (KPIs)
Any
Nuclear Generation by Geography
Maps out nuclear energy production across various locations, reflecting the company's commitment to stable, low-carbon power generation and its strategic positioning in different regulatory environments.
Maps out nuclear energy production across various locations, reflecting the company's commitment to stable, low-carbon power generation and its strategic positioning in different regulatory environments.
Data provided by:
Main Street Data
Main Street DataConstellation Energy Corporation Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Constellation Energy's strong financial performance, strategic acquisitions, and significant clean energy agreements, underpinned by robust political support for nuclear energy. However, challenges remain in regulatory and interconnection processes, affecting transaction timings and market stability.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Constellation Energy Corporation delivered second-quarter GAAP earnings of $2.67 per share and adjusted operating earnings of $1.91 per share, improving on last year's performance.
Share Buybacks Resumed
Following the Meta announcement, Constellation executed $400 million in Accelerated Repurchases, continuing to generate returns from stock repurchases.
Big Beautiful Bill Signed
The bill preserves and strengthens nuclear provisions, showcasing strong bipartisan support for nuclear energy.
Calpine Acquisition Progress
Received New York, Texas, and FERC approvals for the Calpine acquisition, on track to close by year-end.
Significant Clean Energy Agreements
Announced a 20-year power purchase agreement with Meta for the Clinton Clean Energy Center and a significant carbon-free energy transaction with Comcast.
Operational Excellence
Nuclear team posted its second-best fleet production ever with a capacity factor of 94.8%, producing over 41 million-megawatt hours of reliable, emissions-free power.
Support for Nuclear Energy
Political support for nuclear energy continues, with the extension of nuclear credits and executive orders signed to expand nuclear power.
Illinois ZEC Program Benefits
Recognized $201 million from the Illinois ZEC Program for bank credits, similar to the previous year.
Negative Updates
Interconnection Challenges
Delays and complexities in interconnection processes with utilities affecting the timing of new transactions.
Regulatory and Market Uncertainties
Uncertainties in the regulatory framework, including PJM market design changes and their impact on capacity auction pricing.
Capacity Auction Limitations
Demand response participation limited by low electric load carrying capacity (ELCC), affecting auction results.
Data Center Cost Concerns
Data center customers finding utility requirements for interconnection contracts onerous, impacting their operations.
Company Guidance
During the Constellation Energy Corporation's second-quarter earnings call, several key metrics and forward-looking statements were highlighted. The company reported GAAP earnings of $2.67 per share and adjusted operating earnings of $1.91 per share, marking an improvement over the previous year's second quarter. Constellation executed $400 million in accelerated stock repurchases following the Meta announcement, which was part of their strategy of securing long-term contracts. Additionally, they announced a 20-year power purchase agreement with Meta for over 1,100 megawatts of emissions-free nuclear energy, and they are advancing the restart of the Crane Clean Energy Center to the second half of 2027. The company also secured New York, Texas, and FERC approvals for the Calpine acquisition, expected to close by year-end. Furthermore, Constellation is actively pursuing additional agreements to sell clean, reliable megawatts from its nuclear plants, with one deal in late stages and others in earlier phases. The company noted strong bipartisan support for nuclear energy, bolstered by recent legislative developments, and emphasized the strategic advantage of combining gas and nuclear for competitive energy solutions.Constellation Energy Corporation Financial Statement Overview
Summary
Constellation Energy Corporation shows solid revenue growth and profitability with a strong ROE and improved leverage. However, declining margins and cash flow challenges pose risks, necessitating improvements in cash flow generation for sustained growth.Income Statement
Constellation Energy Corporation has shown consistent revenue growth with a TTM growth rate of 2.59%. The company maintains a healthy gross profit margin of 19.43% and a net profit margin of 11.88% in the TTM period. However, there is a noticeable decline in margins compared to the previous year, indicating potential cost pressures or pricing challenges.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.62 in the TTM, reflecting better leverage management. Return on equity is strong at 23.08%, indicating effective use of equity to generate profits. However, the equity ratio of 25.36% suggests a moderate reliance on debt financing.70
Positive
Cash Flow
The cash flow situation is concerning, with negative free cash flow and a significant decline in free cash flow growth by 43.80% in the TTM. The operating cash flow to net income ratio is low at 0.07, indicating potential cash generation issues relative to reported earnings.55
Neutral
| 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
Positive
326.33
Price Trends
323.80
Positive
312.28
Positive
279.90
Positive
Market Momentum
4.37
Negative
51.73
Neutral
55.94
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 326.33 is above the 20-day moving average (MA) of 319.62, above the 50-day MA of 323.80, and above the 200-day MA of 279.90, indicating a bullish trend. The MACD of 4.37 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 55.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CEG.
Constellation Energy Corporation Risk Analysis
Constellation Energy Corporation disclosed 1 risk factors in its most recent earnings report. Constellation Energy Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Constellation Energy Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 152.04B | 25.73 | 11.65% | 2.97% | 18.80% | -6.73% | |
71 Outperform | 68.46B | 32.06 | 49.51% | 0.44% | 46.90% | 388.66% | |
71 Outperform | 96.15B | 20.21 | 9.50% | 3.43% | 4.07% | 9.94% | |
65 Neutral | $105.95B | 35.13 | 24.20% | 0.47% | 13.41% | 27.49% | |
63 Neutral | 5.73B | 42.22 | 4.11% | 6.45% | -0.27% | -16.25% | |
48 Neutral | 6.18B | -4.62 | -1174.68% | 4.34% | 12.46% | -388.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
CEG
Constellation Energy Corporation
326.33
70.87
27.74%
DUK
Duke Energy
122.32
10.49
9.38%
NEE
NextEra Energy
74.65
-7.34
-8.95%
VST
Vistra Energy
201.62
84.57
72.25%
CWEN.A
Clearway Energy
26.97
0.39
1.47%
BEPC
Brookfield Renewable
34.00
2.66
8.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.