Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $109.92B
• Dividend Yield: 0.44%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.81
• 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: 2,128,314
• 30 Day Avg. Volume: 2,500,893
• 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: 0.99
• Enterprise Value/Revenue: 4.25
• Enterprise Value/Gross Profit: 21.89
• Enterprise Value/Ebitda: 17.96
• 1Y Price Target: $403.60
• Price Target Upside: 14.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 9.44
• Revenue Forecast (FY): $23.79B

• Rating: 72 Outperform
• Price Target: $399.00 ▲(13.36% Upside)

Constellation Energy Corporation's overall stock score is driven by strong earnings call performance and positive technical indicators, despite valuation concerns and financial performance challenges. The company's strategic focus on nuclear energy and public support enhances its long-term prospects, although short-term profitability and liquidity issues need addressing.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for Constellation's energy solutions, supporting long-term business expansion and market presence.

Nuclear Fleet Reliability

High reliability of the nuclear fleet enhances Constellation's competitive edge in energy generation, ensuring stable and efficient operations.

Calpine Acquisition

The acquisition of Calpine will expand Constellation's scale and capabilities, strengthening its market position and operational synergies.

Negative Factors

Declining Net Profit Margins

Decreasing net profit margins could pressure profitability, affecting Constellation's ability to reinvest in growth and maintain competitive pricing.

Negative Free Cash Flow

Negative free cash flow may limit Constellation's capacity to fund new projects and manage debt, posing long-term liquidity risks.

Increasing Debt Levels

Rising debt levels can strain financial flexibility and increase vulnerability to interest rate changes, impacting 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: Neutral
• Last Price: 351.98
• 50DMA: Negative
• 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 Neutral. The current price of 351.98 is below the 20-day moving average (MA) of 355.45, below the 50-day MA of 365.16, and above the 200-day MA of 303.83, indicating a neutral trend. The MACD of 1.23 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CEG.

Constellation Energy Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEG	72 Outperform	$109.92B	40.31	20.35%	0.44%	21.35%	-3.93%
NEE	71 Outperform	$170.05B	25.93	12.48%	2.77%	26.96%	-6.80%
CWEN.A	70 Neutral	$6.59B	13.12	13.20%	5.81%	2.54%	124.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$9.85B	8.42	23.02%	5.06%	-1.55%	12.83%
VST	63 Neutral	$57.63B	60.76	21.63%	0.53%	42.77%	-47.64%
BEPC	51 Neutral	$7.02B	―	-38.17%	3.85%	5.93%	-39.88%

Constellation Energy Corporation Corporate Events

Constellation Energy Announces Exchange Offers for Calpine

On December 9, 2025, Constellation Energy Generation, LLC announced the commencement of private exchange offers and consent solicitations for Calpine Corporation’s outstanding notes, as part of its planned acquisition of Calpine. The exchange offers involve issuing new notes in exchange for Calpine’s existing notes, while the consent solicitations aim to amend the terms of the Calpine notes to remove restrictive covenants and provisions. This strategic move is expected to streamline Constellation’s operations and strengthen its position in the energy market.

Constellation Energy Announces Calpine Acquisition Merger

On January 10, 2025, Constellation Energy Corporation announced a merger agreement to acquire Calpine Corporation, making it an indirect, wholly owned subsidiary. This strategic move, outlined in the merger agreement, is expected to enhance Constellation’s market position and operational capabilities in the energy sector.

Constellation Energy Announces Leadership Changes Amid Acquisition

On November 21, 2025, Constellation Energy Corporation announced significant senior leadership changes in anticipation of its acquisition of Calpine Corporation, expected to close in the fourth quarter of 2025. Daniel Eggers will be promoted to Senior Executive Vice President, Finance and Data Economy, while Shane Smith will become the new Chief Financial Officer. Kathleen Barrón will transition to a Senior Advisor role before retiring in mid-2026. The acquisition will also see Andrew Novotny and other Calpine executives join Constellation’s leadership team, enhancing the company’s strategic and operational capabilities. These changes are aimed at strengthening Constellation’s industry position and supporting its growth strategy in a rapidly evolving energy market.

Constellation Energy Secures $1 Billion Loan Guarantee

On November 17, 2025, Constellation Energy Generation, LLC secured a $1 billion loan guarantee from the U.S. Department of Energy to support the restart and repowering of the Christopher M. Crane Clean Energy Center, an 835 MW nuclear generating station in Pennsylvania. This initiative is expected to create approximately 3,400 jobs, contribute significantly to Pennsylvania’s GDP, and provide a stable, carbon-free electricity supply to support the growing digital economy and AI race. The project is part of Constellation’s broader investment strategy to enhance America’s nuclear energy capacity and ensure grid reliability.

Constellation Energy Announces Board Member Retirement

Peter Oppenheimer announced his intention to retire from the Board of Directors of Constellation Energy Corporation, effective December 31, 2025. This decision marks a significant change in the company’s leadership structure, potentially impacting its strategic direction and governance.

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.

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.