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 Rating2/10
Generated at:2026-06-05 17:40:52
Analysis based on real data. Financial reports from 5 periods were used: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Market price data as of 2026-06-05 close. Data sources include company financial statements and market data.
Overview

Constellation Energy Corporation (CEG) is a significant Independent Power Producer (IPP) in the U.S. utilities sector, established in 2021 and publicly listed in 2022. The company operates a diversified portfolio of nuclear, wind, and solar assets with substantial generating capacity. Fundamental analysis reveals a mixed picture: the company has adequate short-term liquidity but carries high financial leverage. Profitability has declined sharply despite revenue growth, with significant margin contraction. Valuation metrics indicate the stock is significantly overvalued relative to its current earnings and typical utility benchmarks, trading at a substantial premium to its calculated fundamental value.

Valuation
1/10
Profitability
2/10
Financial health
3/10
Operation Advice
  • Based on fundamental analysis, the stock is significantly overvalued.
  • The recommendation is to Sell.
  • The current market price of $254.83 is well above the calculated reasonable price range of $133.20 to $185.00 and the fundamental target price of $159.10.
  • Investors should consider exiting positions or avoiding new purchases unless clear evidence emerges of a dramatic near-term reversal in profitability and margin trends.
  • The stock price appears vulnerable to a correction towards a more rational valuation level.

Valuation

P/E TTM
43.38
P/E LYR
27.78
P/B MRQ
6.93
P/S TTM
--
AI Analysis
  • Valuation analysis indicates the stock is significantly overvalued. Key metrics include a high TTM P/E ratio of 43.38, a very high P/B ratio of 6.93, and a P/S ratio of 3.58. The current market price of $254.83 is substantially above the calculated fundamental price range of $133.20-$185.00 and target price of $159.10, based on a conservative utility valuation framework.
  • Current Market Price: $254.83 (as of 2026-06-05 close).
  • Trailing Twelve Months (TTM) P/E ratio is 43.38, an elevated multiple for a utility company.
  • Forward P/E (dynamic) is 27.78, lower but still not typical for a pure utility.
  • Price-to-Book (P/B) ratio is 6.93, very high indicating market values equity far above book value.
  • Price-to-Sales (P/S) ratio is 3.58, a more moderate multiple.
  • Historical 60-day trading range: high of $328.80 (2026-05-07) to low of $253.68 (2026-06-05), showing significant volatility and a sharp recent decline.
  • Using TTM EPS of $7.40 and a conservative P/E multiple range of 18x to 25x, a reasonable fundamental price range is $133.20 to $185.00.
  • A midpoint target based on a 21.5x P/E multiple results in a fundamental target price of $159.10.
  • The current market price of $254.83 is significantly above the calculated fundamental range and target, indicating the stock is overvalued.
Valuation trend

Profitability

ROE TTM
16.75%
Net margin
9.10%
Gross margin
42.50%
Total revenue
25.53B
AI Analysis
  • Profitability analysis reveals a company in a challenging phase with significant margin pressure. While revenue grew by 8.34% to $25.53B for the year ending 2025-12-31, net income plummeted by -38.14% to $2.32B, and EPS dropped from $11.91 to $7.40. Gross margin contracted from 51.55% to 42.50%, and net margin fell from 15.86% to 9.10%.
  • Most recent annual report (2025-12-31) shows revenue grew by 8.34% to $25.53B.
  • Net income plummeted by -38.14% to $2.32B in the same period.
  • EPS declined from $11.91 to $7.40.
  • Quarterly data for 2025 shows a consistent year-over-year decline in net profit growth.
  • Gross margin contracted from 51.55% to 42.50%.
  • Net margin fell from 15.86% to 9.10%, indicating substantial pressure on profitability.
  • Return on Equity (ROE) of 16.75% remains strong, benefiting from high financial leverage.
  • Return on Assets (ROA) of 4.21% is more modest, reflecting the asset-heavy nature of the business.
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
  • Financial condition assessment shows a mixed picture. The company has adequate short-term liquidity with a current ratio of 1.53 and quick ratio of 1.31. However, solvency is a concern with a notably high debt-to-asset ratio of 74.06%, introducing significant financial risk.
  • Current ratio of 1.53 indicates adequate short-term liquidity.
  • Quick ratio of 1.31 suggests the company can comfortably meet its near-term obligations.
  • Debt-to-asset ratio of 74.06% is notably high, common in capital-intensive utilities but introduces significant financial risk.
  • High leverage necessitates stable and predictable cash flows to service debt, especially in a rising interest rate environment or during operational stress.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset74.42%74.48%73.98%73.84%74.06%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.571.471.481.561.53