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Exelon (EXC)
NASDAQ:EXC
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Exelon
(NASDAQ:EXC)72Outperform
Positive Factors
Capital Expenditure
EXC raised and extended its projected capital expenditure guidance to $38bn by 2028, reaffirmed its EPS and rate base growth guidance, and updated its financing plan.
Earnings
Exelon reported Q4/full year 2024 operating earnings above consensus expectations and at the top end of the annual guidance range.
Negative Factors
Regulatory Challenges
Exelon is nearing the end of a heavy regulatory period which bluntly did not go well, and is working to improve the effective outcomes from the Commonwealth Edison Illinois and Pepco Maryland multi-year rate cases.
Exelon (EXC) vs. S&P 500 (SPY)
Market Cap
$43.91B
Dividend Yield3.46%
Average Volume (3M)8.07M
Price to Earnings (P/E)17.8
Beta (1Y)0.25
Revenue Growth5.98%
EPS Growth4.99%
CountryUS
Employees20,014
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)2.45
Shares Outstanding1,005,217,160
10 Day Avg. Volume9,336,895
30 Day Avg. Volume8,065,525
Financial Highlights & Ratios
PEG Ratio3.57
Price to Book (P/B)N/A
Price to Sales (P/S)1.94
Price to Cash Flow (P/CF)7.90
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.50Price Target Upside1.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Exelon Business Overview & Revenue Model
Company DescriptionExelon Corporation (EXC) is one of the largest competitive energy providers in the United States, primarily engaged in the generation and distribution of electricity and natural gas. The company operates through several subsidiaries, including Exelon Generation, which focuses on power generation, and Exelon Utilities, which encompasses several regional electric and gas utilities, such as Commonwealth Edison, PECO Energy, and Baltimore Gas and Electric. Exelon is committed to delivering clean, reliable, and affordable energy to its customers and is a leader in reducing emissions from power generation.
How the Company Makes MoneyExelon makes money through a combination of regulated utility operations and competitive power generation. Its regulated utilities generate revenue by delivering electricity and natural gas to millions of customers across its service territories, with rates typically set by state public utility commissions. This provides a stable and predictable income stream. In addition to regulated operations, Exelon Generation earns revenue by selling electricity and natural gas in competitive wholesale and retail markets. The company operates a diverse fleet of power plants, including nuclear, natural gas, wind, and solar, allowing it to capitalize on market opportunities and optimize its energy production. Exelon also engages in energy trading and provides energy-related services and products, which contribute additional revenue streams.
Exelon Financial Statement Overview
Summary
Exelon demonstrates solid revenue growth, stable profitability margins, and improved debt management, as shown by the reduced debt levels. However, there are concerns regarding operating efficiency and cash flow stability, highlighted by declining EBITDA margins and reduced operating cash flow. The company has a strong equity base, but needs to address the operational cost efficiencies to maintain its financial health.Income Statement
Exelon shows a consistent growth in revenue, with a notable increase from $19.08 billion in 2022 to $23.03 billion in 2024, translating to a revenue growth rate of 6% from 2023 to 2024. The gross profit margin is strong at 42.9% in 2024, compared to 41.1% in 2023, indicating good cost control. The net profit margin remained stable, improving slightly from 10.7% in 2023 to 10.7% in 2024. However, a drop in EBITDA margin from 36.5% in 2023 to 19.0% in 2024 suggests potential operational cost increases or efficiency losses. Overall, the income statement demonstrates positive revenue growth and stable profitability, with some concern over declining EBITDA margins.75
Positive
Balance Sheet
Exelon's balance sheet highlights a relatively healthy equity position with stockholders' equity increasing from $25.75 billion in 2023 to $26.92 billion in 2024. The debt-to-equity ratio stands at 0.49 in 2024, showing a manageable level of leverage. The equity ratio is strong, reflecting a solid foundation. However, the total assets are not available for 2024, preventing a full assessment. Notably, total debt decreased significantly from $44.01 billion in 2023 to $13.07 billion in 2024, improving the company's financial stability.70
Positive
Cash Flow
Exelon experienced a positive shift in free cash flow from -$2.71 billion in 2023 to $518 million in 2024, indicating improved cash management. Operating cash flow decreased from $4.70 billion in 2023 to $2.71 billion in 2024, which might impact future liquidity if not addressed. The free cash flow to net income ratio improved, reflecting better cash generation relative to net income. The operating cash flow to net income ratio decreased, suggesting a potential risk in cash flow stability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.03B | 21.73B | 19.08B | 17.94B | 33.04B | Gross Profit |
| 9.87B | 8.93B | 8.03B | 7.01B | 9.53B | EBIT |
| 4.32B | 4.02B | 3.31B | 2.68B | 3.94B | EBITDA |
| 8.18B | 7.94B | 7.38B | 10.52B | 9.54B | Net Income Common Stockholders |
| 2.46B | 2.33B | 2.17B | 1.71B | 1.96B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 357.00M | 445.00M | 407.00M | 672.00M | 663.00M | Total Assets |
| 107.78B | 101.55B | 95.35B | 133.01B | 129.32B | Total Debt |
| 13.07B | 44.01B | 40.05B | 34.54B | 39.33B | Net Debt |
| 13.07B | 43.56B | 39.64B | 33.87B | 38.67B | Total Liabilities |
| 80.86B | 75.79B | 70.61B | 98.22B | 94.45B | Stockholders Equity |
| 26.92B | 25.75B | 24.74B | 34.39B | 32.59B |
| Cash Flow | Free Cash Flow | |||
| 518.00M | -2.71B | -2.28B | -4.97B | -3.81B | Operating Cash Flow |
| 2.71B | 4.70B | 4.87B | 3.01B | 4.24B | Investing Cash Flow |
| -2.19B | -7.38B | -6.99B | -3.32B | -4.34B | Financing Cash Flow |
| -579.00M | 2.68B | 1.59B | 758.00M | 145.00M |
Exelon Technical Analysis
Positive
43.68
Price Trends
39.88
Positive
39.12
Positive
37.78
Positive
Market Momentum
1.23
Negative
66.60
Neutral
76.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXC, the sentiment is Positive. The current price of 43.68 is above the 20-day moving average (MA) of 42.57, above the 50-day MA of 39.88, and above the 200-day MA of 37.78, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXC.
Exelon Risk Analysis
Exelon disclosed 30 risk factors in its most recent earnings report. Exelon 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
Exelon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
72 Outperform | $43.91B | 17.81 | 9.14% | 3.46% | 5.98% | 4.99% | |
68 Neutral | $25.63B | 28.99 | 27.15% | 2.89% | 1.80% | 19.78% | |
67 Neutral | $145.74B | 21.00 | 9.07% | 2.95% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
EXC
Exelon
43.68
8.81
25.27%
AEP
American Electric Power
105.24
24.31
30.04%
DUK
Duke Energy
116.41
27.17
30.45%
NEE
NextEra Energy
70.85
16.97
31.50%
PPL
PPL
34.72
8.87
34.31%
SO
Southern Co
89.89
24.19
36.82%
Exelon Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 4.07% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Exelon's earnings call presents a positive outlook for the company's future, with strong financial performance, significant planned capital investments, and improvements in credit rating and operational reliability. However, challenges remain in the form of regulatory hurdles and affordability concerns.Highlights
Strong Financial Performance
Exelon reported GAAP earnings of $2.45 per share and adjusted operating earnings of $2.50 per share for 2024, marking the third consecutive year of meeting or exceeding the midpoint of guidance.
Improved Credit Rating
Exelon Corporation received a credit rating upgrade from S&P to BBB+ from BBB, reflecting the company's strong balance sheet and financial strategy.
Significant Capital Investment
Exelon plans to invest $38 billion from 2025 to 2028, focusing on transmission, which accounts for over 80% of the $3.5 billion increase in their capital plan.
Operational Excellence
All four Exelon utilities achieved top quartile reliability, with some ranking in the top five among peers. The company also maintained a strong focus on safety, ending the year with top quartile performance on serious injury incident rate.
Job Creation and Economic Development
Exelon's investments are expected to create over 70,000 jobs and have already brought in an estimated $17 billion of projected capital investments from other companies, creating over 1,000 jobs in Northern Illinois.
Dividend Increase
Exelon announced an increase in its dividend to $1.60 per share, representing a 5.2% growth over the previous year.
Lowlights
Regulatory Challenges
Ongoing regulatory processes and reconciliations in Maryland and other jurisdictions present challenges, with certain investment recoveries pending approval.
Weather and Storm Impacts
Exelon faced higher storm activity and mild winter weather, which affected financial performance and operational challenges.
Unapproved Capital Expenditures
Approximately $400 million in distribution capital was not approved in the Illinois grid plan, which could impact future infrastructure investments.
Affordability Concerns
With higher energy supply costs and colder than normal winter conditions, affordability remains a critical aspect of the customer experience, leading to measures such as waiving late payment fees.
Company Guidance
During the Exelon Corporation's fourth-quarter earnings call for fiscal year 2024, the company reported notable achievements in both operational and financial performance. The CEO, Calvin Butler, highlighted that all four Exelon Utilities attained top quartile reliability, with three ranking in the top five among peers and all four in the top eight. Financially, the company reported GAAP earnings of $2.45 per share and adjusted operating earnings of $2.50 per share, marking the third consecutive year of meeting or exceeding guidance. Exelon plans to invest $38 billion from 2025 to 2028 to support customer needs, with over 80% of the $3.5 billion capital growth attributed to transmission. The company forecasts annualized earnings growth of 5% to 7% through 2028, with a 2025 operating earnings guidance of $2.64 to $2.74 per share. Additionally, Exelon announced a dividend increase to $1.60 per share, maintaining a payout ratio in line with its 60% capital allocation policy.Exelon Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Exelon Reports 2024 Financial Results and Future Plans
Positive
Feb 12, 2025
Exelon reported its fourth quarter and full year 2024 financial results, noting a GAAP net income of $0.64 per share and adjusted earnings of $2.50 per share for the year. The company plans to invest $38 billion over the next four years to enhance customer service and grid reliability, aiming for a 7.4% growth in rate base and a 5-7% annual earnings increase through 2028. Exelon also initiated a 2025 earnings guidance of $2.64-$2.74 per share and declared a quarterly dividend of $0.40 per share for the first quarter of 2025. The announcement reinforces Exelon’s commitment to operational excellence and economic growth, benefitting stakeholders through stable earnings and strategic investments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.