Constellation Energy Corporatio(CEG) - Stock detail

Constellation Energy Corporatio

US
CEG
Constellation Energy Corporation(Listing date: 02/02/2022)

Constellation Energy Corporation was incorporated in Pennsylvania on June 15, 2021. It is the largest producer of carbon-free energy in the United States and a leading supplier of energy products and services to businesses, homes, community aggregations, and public sector customers across the continental United States, including three-quarters of the Fortune 100 companies. The company's generating fleet, consisting of nuclear, hydroelectric, wind, and solar power facilities, has a generating capacity equivalent to 16 million homes and produces approximately 10% of the carbon-free energy in the United States.

AI Value AnalystSell
Overall Rating2.3/10
Generated at:2026-06-11 17:41:25
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Real-time market data as of 2026-06-11 close. TTM (Trailing Twelve Months) data used for valuation analysis. Data appears complete for the periods analyzed.
Overview

Constellation Energy Corporation (CEG) is a major U.S. independent power producer with a stable business model but faces significant challenges. The company shows stable revenue growth but is experiencing severe profitability contraction from peak 2024 levels. Its financial condition is mixed with adequate liquidity but high leverage, and its current stock price appears fundamentally overvalued based on traditional metrics.

Valuation
1/10
Profitability
2/10
Financial health
4/10
Operation Advice
  • Sell the stock at current price of $246.71.
  • The stock is trading approximately 90% above the calculated fundamental price range of $111.00 to $148.00.
  • Investors should wait for either a significant price correction towards the fundamental range ($129.50 target) or clear signs of a robust and sustained earnings recovery before considering an entry.

Valuation

P/E TTM
43.38
P/E LYR
27.78
P/B MRQ
6.93
P/S TTM
--
AI Analysis
  • The stock appears significantly overvalued based on traditional earnings-based metrics. Key valuation multiples (P/E TTM: 43.38x, P/B: 6.93x) are extremely high for a utility company, especially one with declining earnings. The current price of $246.71 is approximately 90% above the calculated fundamental price range of $111.00 to $148.00.
  • Current Market Price: $246.71 (as of 2026-06-11 close)
  • P/E (TTM): 43.38x - an extremely high multiple, especially for a utility stock
  • Forward P/E (Dynamic): 27.78x - elevated but suggests market is pricing in earnings recovery
  • P/B Ratio: 6.93x - very high, indicating stock trades at significant premium to book value
  • P/S Ratio (TTM): 3.47x - more reasonable compared to profit-based metrics
  • The stock appears significantly overvalued based on traditional earnings-based metrics
  • A P/E of 43x for a utility company with declining earnings is difficult to justify fundamentally
  • Fundamental Price Range: $111.00 to $148.00 based on FY2025 Diluted EPS of $7.40 and conservative utility P/E range of 15x-20x
  • Fundamental Target Price (Mid-point): $129.50
  • Current price of $246.71 is approximately 90% above the high end of the calculated fundamental range
Valuation trend

Profitability

ROE TTM
16.75%
Net margin
9.10%
Gross margin
42.50%
Total revenue
25.53B
AI Analysis
  • The company is experiencing a pronounced profitability contraction from exceptionally high levels in the prior year. While revenue shows stable growth, severe margin compression has led to a 37.8% decline in diluted EPS. The company is transitioning from peak 2024 earnings to a more normalized, but significantly lower, level of profitability.
  • Revenue has shown positive year-over-year growth in recent quarters (Q1 2025: +10.18%, Q2: +10.76%, Q3: +7.00%, FY2025: +8.34%)
  • Severe compression in profit margins with gross margin declining from 51.55% in FY2024 to 42.50% in FY2025
  • Net margin collapsed from 15.86% to 9.10%
  • Diluted EPS fell 37.8% year-over-year from $11.89 to $7.40
  • Quarterly data shows decline was most severe in Q1 2025 (-86.64% YoY) but remained deeply negative throughout the year
  • While revenue is growing, rising costs (potentially from fuel, operations, or interest expenses) are eroding profitability
  • The company is transitioning from a peak earnings year (2024) to a more normalized, but significantly lower, level of profitability
  • The company is in the midst of a severe earnings contraction, with net profit down over 38% year-over-year
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--0.90%7.19%13.72%16.75%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue23.57B6.79B12.89B19.46B25.53B

Financial health

Debt/Asset
74.06%
Current ratio
1.53
Quick ratio
1.31
Cash ratio
1.31
AI Analysis
  • The company's financial health shows a mixed picture with adequate short-term liquidity but concerning high leverage. Current ratio of 1.53 and quick ratio of 1.31 indicate sufficient liquidity, while the high debt-to-asset ratio of 74.06% poses significant financial risk. Strong ROE of 16.75% contrasts with low ROA of 4.21%, highlighting the impact of high debt on asset efficiency.
  • Current ratio of 1.53 and quick ratio of 1.31 indicate adequate short-term liquidity to cover immediate obligations
  • High debt-to-asset ratio of 74.06% is a significant concern
  • This level of leverage is common in capital-intensive utilities but increases financial risk
  • High leverage can amplify losses during downturns and constrain financial flexibility
  • Return on Equity (ROE) of 16.75% is strong, indicating effective use of shareholder capital
  • Return on Assets (ROA) of 4.21% is much lower, highlighting the impact of high debt load on overall asset efficiency
  • The 74% debt-to-asset ratio adds substantial risk, making the company more vulnerable to economic or interest rate shocks
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset74.42%74.48%73.98%73.84%74.06%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.571.471.481.561.53