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CEG Stock Analysis - Constellation Energy Corp AI Rating

CEG Nasdaq Electric Services PA CIK: 0001868275
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
78% Confidence

📊 CEG Key Takeaways

Revenue: $25.5B
Net Margin: 9.1%
Free Cash Flow: $1.3B
Current Ratio: 1.53x
Debt/Equity: 0.51x
EPS: $7.40
AI Rating: BUY with 78% confidence

Investment Thesis

Constellation Energy demonstrates solid fundamental strength with robust revenue growth of 12.7% YoY and a healthy operating margin of 12.1%, indicating pricing power and operational efficiency in a regulated utility environment. Strong cash generation (4.2B operating cash flow, 1.3B free cash flow) and conservative leverage (0.51x debt/equity) provide financial flexibility, though the diluted EPS decline of 37.8% YoY raises questions about share dilution and capital allocation decisions.

CEG Strengths

  • + Strong revenue growth of 12.7% YoY demonstrating market demand
  • + Solid profitability with 9.1% net margin and 12.1% operating margin
  • + Robust cash flow generation with 4.2B operating cash flow supporting capital investments
  • + Conservative capital structure with 0.51x debt/equity ratio and 24.3x interest coverage
  • + Healthy liquidity position with 1.53x current ratio and 3.6B in cash equivalents
  • + Excellent asset efficiency with 16.0% ROE relative to moderate ROA of 4.1%

CEG Risks

  • ! Significant diluted EPS decline of 37.8% YoY despite revenue and net income growth suggests substantial share dilution
  • ! Low free cash flow conversion ratio (5.0% FCF margin) constrains distribution capacity and reinvestment flexibility
  • ! High insider trading activity (16 Form 4 filings in 90 days) may indicate uncertain conviction among management
  • ! Capital intensity requires sustained 2.9B annual capex which limits financial flexibility
  • ! Regulated utility sector limits pricing power and growth trajectory despite recent revenue expansion

Key Metrics to Watch

CEG Financial Metrics

Revenue
$25.5B
Net Income
$2.3B
EPS (Diluted)
$7.40
Free Cash Flow
$1.3B
Total Assets
$57.2B
Cash Position
$3.6B

💡 AI Analyst Insight

Constellation Energy Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

CEG Profitability Ratios

Gross Margin N/A
Operating Margin 12.1%
Net Margin 9.1%
ROE 16.0%
ROA 4.1%
FCF Margin 5.0%

CEG vs Default Sector

How Constellation Energy Corp compares to Default sector averages

Net Margin
CEG 9.1%
vs
Sector Avg 12.0%
CEG Sector
ROE
CEG 16.0%
vs
Sector Avg 15.0%
CEG Sector
Current Ratio
CEG 1.5x
vs
Sector Avg 1.8x
CEG Sector
Debt/Equity
CEG 0.5x
vs
Sector Avg 0.7x
CEG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CEG Balance Sheet & Liquidity

Current Ratio
1.53x
Quick Ratio
1.31x
Debt/Equity
0.51x
Debt/Assets
74.1%
Interest Coverage
24.30x
Long-term Debt
$7.4B

CEG 5-Year Financial Trend

CEG 5-year financial data: Year 2023: Revenue $21.6B, Net Income -$205.0M, EPS $0.00. Year 2024: Revenue $21.6B, Net Income -$160.0M, EPS $-0.49. Year 2025: Revenue $22.7B, Net Income $1.6B, EPS $5.01.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Constellation Energy Corp's revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $5.01 reflects profitable operations.

CEG Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.0%
Free cash flow / Revenue

CEG Quarterly Performance

Quarterly financial performance data for Constellation Energy Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $4.8B $930.0M $2.97
Q2 2025 $4.4B $814.0M $2.58
Q1 2025 $5.3B $118.0M $0.38
Q3 2024 $4.8B $731.0M $2.26
Q2 2024 $4.4B $814.0M $2.56
Q1 2024 $5.3B $96.0M $0.29

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CEG Capital Allocation

Operating Cash Flow
$4.2B
Cash generated from operations
Stock Buybacks
$400.0M
Shares repurchased (TTM)
Capital Expenditures
$2.9B
Investment in assets
Dividends Paid
$486.0M
Returned to shareholders

CEG SEC Filings

Access official SEC EDGAR filings for Constellation Energy Corp (CIK: 0001868275)

📋 Recent SEC Filings

Date Form Document Action
Mar 20, 2026 8-K ceg-20260320.htm View →
Mar 19, 2026 DEF 14A e26004_ceg-def14a.htm View →
Mar 2, 2026 4 xslF345X05/form4.xml View →
Feb 24, 2026 10-K ceg-20251231.htm View →
Feb 24, 2026 8-K ceg-20260224.htm View →

Frequently Asked Questions about CEG

What is the AI rating for CEG?

Constellation Energy Corp (CEG) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CEG's key strengths?

Strong revenue growth of 12.7% YoY demonstrating market demand. Solid profitability with 9.1% net margin and 12.1% operating margin.

What are the risks of investing in CEG?

Significant diluted EPS decline of 37.8% YoY despite revenue and net income growth suggests substantial share dilution. Low free cash flow conversion ratio (5.0% FCF margin) constrains distribution capacity and reinvestment flexibility.

What is CEG's revenue and growth?

Constellation Energy Corp reported revenue of $25.5B.

Does CEG pay dividends?

Constellation Energy Corp pays dividends, with $486.0M distributed to shareholders in the trailing twelve months.

Where can I find CEG SEC filings?

Official SEC filings for Constellation Energy Corp (CIK: 0001868275) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CEG's EPS?

Constellation Energy Corp has a diluted EPS of $7.40.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI