Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $111.96B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.79
• Revenue Growth: 18.57%
• EPS Growth: -3.93%
• Country: US
• Employees: 14,215
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 3.04
• Shares Outstanding: 312,405,580
• 10 Day Avg. Volume: 3,124,223
• 30 Day Avg. Volume: 2,941,370
• 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: $407.70
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $390.00 ▲(8.05% Upside)

Constellation Energy Corporation's overall stock score is driven by strong earnings call performance and robust financial metrics, despite operational and cash flow challenges. The technical analysis shows mixed signals, and the valuation suggests potential overvaluation. The company's strategic focus on nuclear energy and public support enhances its long-term prospects, but current financial and operational challenges need to be addressed.

Positive Factors

Nuclear Fleet Reliability

High nuclear fleet reliability indicates operational efficiency and a strong competitive position in the energy sector, supporting long-term energy supply stability.

Public Support for Nuclear Energy

Growing public support for nuclear energy enhances Constellation's market position and regulatory environment, facilitating future growth and investment in nuclear projects.

Maryland Agreement for Conowingo Dam

The long-term agreement for Conowingo Dam ensures a stable revenue stream and aligns with clean energy goals, reinforcing Constellation's commitment to sustainable energy solutions.

Negative Factors

Declining Margins

Declining margins suggest cost management issues or competitive pricing pressures, which could affect profitability and require strategic adjustments to maintain financial health.

Cash Flow Challenges

Negative free cash flow and declining growth indicate potential liquidity issues, which could limit investment capacity and necessitate improved cash management strategies.

Interconnection Challenges

Interconnection delays can hinder growth in the data economy sector, affecting Constellation's ability to capitalize on emerging market opportunities and expand its customer base.

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 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: 360.93
• 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 360.93 is below the 20-day moving average (MA) of 376.09, above the 50-day MA of 351.51, and above the 200-day MA of 297.29, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 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	$174.79B	26.65	12.48%	2.66%	26.96%	-6.80%
CWEN.A	70 Neutral	$7.07B	14.12	13.20%	5.69%	2.54%	124.89%
DUK	69 Neutral	$96.16B	19.44	9.92%	3.42%	4.80%	14.44%
VST	68 Neutral	$64.71B	68.23	21.63%	0.47%	42.77%	-47.64%
CEG	68 Neutral	$111.96B	41.05	20.35%	0.40%	18.57%	-3.93%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BEPC	56 Neutral	$7.98B	―	-38.17%	3.32%	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.