Constellation Energy Corporation (CEG) AI Stock Analysis

• Market Cap: $117.78B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.72
• Revenue Growth: 13.41%
• EPS Growth: 27.49%
• Country: US
• Employees: 14,215
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 1.91
• Shares Outstanding: 312,405,580
• 10 Day Avg. Volume: 2,733,887
• 30 Day Avg. Volume: 2,682,600
• PEG Ratio: 0.14
• Price to Book (P/B): 5.35
• Price to Sales (P/S): 2.99
• P/FCF Ratio: -14.01
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 21.01
• Enterprise Value/Ebitda: 16.90
• 1Y Price Target: $397.36
• Price Target Upside: 5.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $378.00 ▲(0.08% Upside)

Constellation Energy Corporation's overall stock score reflects strong earnings call performance and strategic initiatives in clean energy, which are offset by financial challenges, particularly in cash flow and valuation concerns. The technical indicators suggest mixed momentum, with potential for recovery. The company's strategic focus on nuclear energy and recent legislative support position it well for future growth, despite current financial and regulatory challenges.

Positive Factors

Strategic Clean Energy Agreements

Long-term agreements with major corporations like Meta enhance revenue stability and demonstrate the company's commitment to clean energy, positioning it well in the sustainable energy market.

Political Support for Nuclear Energy

Strong bipartisan support and legislative backing for nuclear energy provide a favorable regulatory environment, supporting Constellation's strategic focus on nuclear power.

Operational Excellence in Nuclear Production

High operational efficiency in nuclear production ensures reliable energy supply and strengthens Constellation's market position in emissions-free power generation.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can hinder the company's ability to invest in growth opportunities and maintain financial flexibility, posing a risk to long-term stability.

Regulatory and Market Uncertainties

Regulatory uncertainties can affect market operations and pricing, potentially impacting Constellation's revenue and strategic planning in the competitive energy market.

Interconnection Challenges

Interconnection delays can slow down the deployment of new energy projects, affecting Constellation's ability to expand its clean energy portfolio and meet growing demand.

Constellation Energy Corporation Business Overview & Revenue Model

Company Description

Constellation Energy Corporation generates and sells electricity in the United States. The company operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. It sells natural gas, renewable energy, and other energy-related products and services. The company has 32,400 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. It serves distribution utilities; municipalities; cooperatives; and commercial, industrial, governmental, and residential customers. The company was incorporated in 2021 and is headquartered in Baltimore, Maryland. Constellation Energy Corporation was formerly a subsidiary of Exelon Corporation.

How the Company Makes Money

Constellation Energy generates revenue through multiple key streams. The primary source is the sale of electricity generated from its power plants, which include nuclear, solar, wind, and natural gas facilities. The company also earns money by providing energy supply services to residential and commercial customers, offering fixed and variable pricing plans. Additionally, Constellation engages in wholesale energy trading, buying and selling power in competitive markets to optimize its energy portfolio. The company's revenue is further supported by long-term contracts with various customers and utilities, as well as partnerships with businesses and governmental entities focused on sustainability initiatives. These diverse revenue streams, combined with strategic investments in renewable energy, enable Constellation Energy to maintain a stable financial foundation.

Constellation Energy Corporation Financial Statement Overview

Summary

Constellation Energy Corporation shows solid revenue growth and profitability with a strong ROE and improved leverage. However, declining margins and cash flow challenges pose risks, necessitating improvements in cash flow generation for sustained growth.

Income Statement

Constellation Energy Corporation has shown consistent revenue growth with a TTM growth rate of 2.59%. The company maintains a healthy gross profit margin of 19.43% and a net profit margin of 11.88% in the TTM period. However, there is a noticeable decline in margins compared to the previous year, indicating potential cost pressures or pricing challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.62 in the TTM, reflecting better leverage management. Return on equity is strong at 23.08%, indicating effective use of equity to generate profits. However, the equity ratio of 25.36% suggests a moderate reliance on debt financing.

Cash Flow

The cash flow situation is concerning, with negative free cash flow and a significant decline in free cash flow growth by 43.80% in the TTM. The operating cash flow to net income ratio is low at 0.07, indicating potential cash generation issues relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.82B	23.57B	24.92B	24.44B	19.65B	17.60B
Gross Profit	5.14B	5.99B	3.30B	2.14B	2.75B	3.27B
EBITDA	6.39B	6.97B	4.22B	2.92B	3.81B	4.31B
Net Income	3.01B	3.75B	1.62B	-160.00M	-205.00M	589.00M
Balance Sheet
Total Assets	53.04B	52.93B	50.76B	46.91B	48.09B	48.09B
Cash, Cash Equivalents and Short-Term Investments	2.06B	3.02B	368.00M	422.00M	504.00M	226.00M
Total Debt	8.31B	8.41B	9.26B	5.77B	8.20B	7.21B
Total Liabilities	39.23B	39.39B	39.47B	35.54B	36.47B	33.42B
Stockholders Equity	13.45B	13.17B	10.93B	11.02B	11.22B	12.40B
Cash Flow
Free Cash Flow	-2.40B	-5.03B	-7.72B	-4.04B	-2.67B	-1.16B
Operating Cash Flow	456.00M	-2.46B	-5.30B	-2.35B	-1.34B	584.00M
Investing Cash Flow	3.02B	7.43B	3.03B	3.10B	3.28B	1.96B
Financing Cash Flow	-1.80B	-2.29B	2.20B	-799.00M	-1.70B	-2.66B

Constellation Energy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 377.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEG, the sentiment is Positive. The current price of 377.71 is below the 20-day moving average (MA) of 379.34, above the 50-day MA of 346.99, and above the 200-day MA of 296.60, indicating a neutral trend. The MACD of 9.38 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CEG.

Constellation Energy Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	75 Outperform	$96.17B	20.22	9.60%	3.40%	4.07%	9.94%
NEE	73 Outperform	$170.32B	25.97	12.48%	2.66%	26.96%	-6.80%
VST	69 Neutral	$65.41B	30.63	45.85%	0.47%	46.90%	388.66%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CEG	66 Neutral	$117.78B	39.34	24.20%	0.40%	13.41%	27.49%
CWEN.A	65 Neutral	$6.51B	47.58	3.80%	5.67%	-0.27%	-16.25%
BEPC	56 Neutral	$7.90B	―	-63.28%	3.35%	12.46%	-388.89%

Constellation Energy Corporation Corporate Events

Constellation Energy Elects Alan Armstrong to Board

Constellation Energy Corporation, a company listed on Nasdaq as CEG, announced the election of Alan S. Armstrong to its board of directors, effective January 1, 2026. Armstrong, who has extensive experience in the energy sector, most notably with Williams, is expected to bring valuable insights as Constellation integrates a large natural gas portfolio into its operations. This strategic move is aimed at enhancing Constellation’s mission to provide reliable, clean energy and strengthen America’s energy security.

The most recent analyst rating on (CEG) stock is a Buy with a $391.00 price target. To see the full list of analyst forecasts on Constellation Energy Corporation stock, see the CEG Stock Forecast page.

Constellation Energy’s Earnings Call Highlights Robust Performance

Constellation Energy Corporation’s recent earnings call highlighted a robust financial and operational performance, marked by significant achievements in regulatory support and new transactions. The sentiment was generally positive, although challenges in capacity auctions and interconnection processes were noted as ongoing hurdles.

Constellation Energy Reports Strong Q2 2025 Results

Constellation Energy Corporation, headquartered in Baltimore, is a leading producer of reliable, emissions-free energy, primarily operating in the nuclear energy sector. The company is recognized for its commitment to sustainable energy solutions and its significant contribution to the nation’s clean energy supply.

Constellation Energy Reports Strong Q2 2025 Earnings

On August 7, 2025, Constellation Energy Corporation reported its second-quarter 2025 financial results, highlighting a GAAP net income of $2.67 per share and adjusted operating earnings of $1.91 per share. The company announced a 20-year agreement with Meta for the Clinton Clean Energy Center, received regulatory approval for its acquisition of Calpine, and plans to restart the Crane Clean Energy Center by 2027. These developments, along with legislative support for nuclear energy, position Constellation to enhance its operations and market presence, benefiting stakeholders through increased grid reliability and cost-effective energy solutions.

The most recent analyst rating on (CEG) stock is a Hold with a $272.00 price target. To see the full list of analyst forecasts on Constellation Energy Corporation stock, see the CEG Stock Forecast page.