Constellation Energy Corp (CEG) stock analysis

P/E below its 5-year median

Constellation Energy's P/E of 27.3 is below its own 5-year median of 31.3.

P/E above the industry

Constellation Energy's P/E of 27.3 is above the Electric Services median of 21.0.

EV/EBITDA above its 5-year median

Constellation Energy's EV/EBITDA of 15.0 is above its 5-year median of 14.4.

P/B above the industry

Constellation Energy's price-to-book of 3.10 is above the Electric Services median of 2.01.

Trading above fair value

The share price of $280.20 is above our fair value estimate of $252.41.

Margin of safety under 20%

The price is 11.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew 15.2% over the last twelve months, against a 5-year average of 31.5% a year.

Growing faster than the industry

Revenue grew 26.0% over the last twelve months; the Electric Services median is 7.8%.

Guidance issued

The latest outlook (full-year Adjusted (non-GAAP) Operating Earnings, Nov 9, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 15.3% over the last twelve months and averaged 11.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Constellation Energy's return on equity of 15.3% is above the Electric Services median of 8.3%.

Earnings grew over 5 years

Net income grew 31.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.1% over the last twelve months, against a 5-year average of 6.0%.

Net margin above the industry

Constellation Energy's net margin of 11.1% is above the Electric Services median of 8.8%.

High debt

Debt is 77.2% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.0% of total debt; we look for at least 20%.

Interest well covered

Operating income covers interest expense 5.9 times.

Short-term assets cover short-term debts

Current assets are 1.46 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.56; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Constellation Energy paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Constellation Energy yields 0.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 15.9% of net income.

Not covered by free cash flow

Dividends take 178% of free cash flow.