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 AnalystHold
Overall Rating3/10
Generated at:2026-04-20 17:42:50
Analysis based on real data. A total of 5 financial reports were used for financial analysis, covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Stock price data as of 2026-04-20 close.
Overview

Constellation Energy Corporation (CEG) is a significant player in the U.S. utilities sector as an Independent Power Producer, operating a substantial portfolio of nuclear, wind, solar, and natural gas assets. Its financial health shows mixed results: adequate short-term liquidity but high leverage and a significant year-over-year contraction in profitability. Valuation metrics suggest the stock is trading at a premium relative to its recent earnings trajectory, indicating overvaluation based on traditional metrics.

Valuation
2/10
Profitability
3/10
Financial health
4/10
Operation Advice
  • Maintain a Hold stance.
  • Investors should wait for either a more attractive entry point (closer to $260) or clear evidence of a reversal in the earnings decline before considering a Buy.
  • Current holders should monitor upcoming quarterly results closely for signs of stabilization.
  • A pragmatic 12-month target price range is $260 - $300, with the current price of $287.56 at the upper end, suggesting limited upside.

Valuation

P/E TTM
50.71
P/E LYR
27.78
P/B MRQ
8.10
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is trading at a premium, especially relative to its recent earnings trajectory. The high P/E and extremely high P/B ratios indicate overvaluation based on traditional earnings metrics, though the market may be pricing in future growth potential from its clean energy assets.
  • The stock trades at a forward P/E of 27.78 and a trailing twelve-month (TTM) P/E of 50.71.
  • The high TTM P/E is a direct result of the sharp earnings drop in 2025 compared to the peak in 2024.
  • The Price-to-Book (P/B) ratio of 8.10 is extremely high, indicating the market is pricing in significant future growth or asset value not fully captured on the balance sheet.
  • The Price-to-Sales (P/S) ratio of 4.08 is also elevated.
  • The current price is $287.56 (as of 2026-04-20 close). Over the last 60 days, the stock has traded between $245.02 and $333.80, showing high volatility.
  • Based on a fundamental assessment, a reasonable valuation range would be lower than current levels.
  • A P/E range of 22-25 on the 2025 EPS of $7.40 implies a fundamental price range of $162.80 to $185.00.
  • Given market sentiment and the company's strategic position, a more pragmatic 12-month target price range is $260 - $300.
  • The current price of $287.56 sits at the upper end of this target range, indicating it is overvalued based on traditional earnings metrics.
Valuation trend

Profitability

ROE TTM
16.75%
Net margin
9.10%
Gross margin
42.50%
Total revenue
25.53B
AI Analysis
  • Profitability metrics reveal a significant year-over-year contraction, with declining net income and compressed margins, suggesting operational headwinds. However, Return on Equity remains strong, indicating efficient use of shareholder capital.
  • For the fiscal year ending December 31, 2025, the company reported a 38.14% year-over-year decline in Net Income to $2.32B.
  • This followed an exceptionally strong 2024, where Net Income grew 130.99%.
  • The decline in 2025 is reflected across key metrics: Gross Profit fell 10.68%, and Net Margin compressed from 15.86% to 9.10%.
  • Despite the profit decline, the Return on Equity (ROE) of 16.75% remains strong, indicating efficient use of shareholder capital.
  • The Return on Assets (ROA) of 4.21% is modest, which is typical for asset-heavy utility businesses.
  • The sequential quarterly data for 2025 shows a pattern of declining year-over-year profit growth.
  • This suggests headwinds such as higher input costs, regulatory changes, or unfavorable market pricing for power.
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 notably high leverage, which introduces significant financial risk, especially in a rising interest rate environment.
  • The current ratio of 1.53 and quick ratio of 1.31 indicate adequate short-term liquidity to cover current obligations.
  • This is a positive sign for operational stability.
  • The debt-to-asset ratio of 74.06% is notably high.
  • This elevated leverage is common in capital-intensive utilities but introduces significant financial risk.
  • High leverage places pressure on cash flows to service debt and can amplify negative impacts during economic downturns.
  • It is especially concerning in a rising interest rate environment.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset74.42%74.48%73.98%73.84%74.06%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.571.471.481.561.53