MMarketMath

CEG

StalwartQuality: Low (39/100)1 red flag

Constellation Energy · Utilities · Electric Utilities

$273.43

52w 228.63 – 412.70

20y monthly, adjusted

Mkt cap

$96.9B

P/E

40.8

P/FCF

73.4

FCF yield

1.4%

ROE

16.0%

Shldr yield

0.9%

div 0.5% + bb 0.4%

What today's price assumes

At $96.9B, the market is pricing in 25.5% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth).

Simple DCF per-share range: $55 · $74 · $93 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+1.7%

Rev 5y

+5.2%

Rev 10y

+5.2%

EPS 5y

EPS 10y

FCF 5y

FCF 10y

Fundamentals

Fiscal 2020–2025, from SEC filings

Revenue

2020: $17.6B
2021: $17.3B
2022: $21.6B
2023: $20.8B
2024: $19.0B
2025: $22.7B
$0$10.0B$20.0B
20
21
22
23
24
25

Net income

2020: $589.0M
2021: −$205.0M
2022: −$160.0M
2023: $1.6B
2024: $3.7B
2025: $2.3B
$0$1.0B$2.0B$3.0B
20
21
22
23
24
25

Free cash flow

2020: −$1.2B
2021: −$2.7B
2022: −$4.0B
2023: −$7.7B
2024: −$5.0B
2025: $1.3B
−$7.5B−$5.0B−$2.5B$0
20
21
22
23
24
25

Diluted shares (lower is better)

2020: 0
2021: 0
2022: 329.0M
2023: 324.0M
2024: 315.0M
2025: 314.0M
0100.0M200.0M300.0M
20
21
22
23
24
25

Margins

-40%-20%0%20%202122232425
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2020: $0
2021: $0
2022: $185.0M
2023: $1.4B
2024: $1.4B
2025: $886.0M
$0$500.0M$1.0B
20
21
22
23
24
25

Cash vs long-term debt

$0$2.5B$5.0B$7.5B202122232425
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $4.7B
Q3'23: $5.3B
Q4'23: $5.0B
Q1'24: $5.3B
Q2'24: $4.4B
Q3'24: $4.8B
Q4'24: $4.5B
Q1'25: $6.1B
Q2'25: $5.2B
Q3'25: $5.7B
Q4'25: $5.7B
Q1'26: $7.5B
Q2'26: $5.8B
$0$2.0B$4.0B$6.0B
23
24
24
25
26

Net income by quarter

Q2'23: $833.0M
Q3'23: $731.0M
Q4'23: −$37.0M
Q1'24: $883.0M
Q2'24: $814.0M
Q3'24: $1.2B
Q4'24: $852.0M
Q1'25: $118.0M
Q2'25: $839.0M
Q3'25: $930.0M
Q4'25: $432.0M
Q1'26: $1.6B
Q2'26: $513.0M
$0$500.0M$1.0B$1.5B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$5.8B+13.2%$513.0M−38.9%1.42$1.1B
Q1'26$7.5B+23.5%$1.6B+1247.5%4.49$425.0M
Q4'25 *$5.7B+25.8%$432.0M−49.3%1.38$805.0M
Q3'25$5.7B+19.5%$930.0M−22.5%2.97$1.8B
Q2'25$5.2B+17.1%$839.0M+3.1%2.67$1.5B
Q1'25$6.1B+16.1%$118.0M−86.6%0.38$107.0M
Q4'24 *$4.5B−9.4%$852.0M2.71−$1.0B
Q3'24$4.8B−10.2%$1.2B+64.2%3.82−$112.0M
Q2'24$4.4B−6.3%$814.0M−2.3%2.58−$613.0M
Q1'24$5.3B−9.8%$883.0M+819.8%2.78−$723.0M
Q4'23 *$5.0B+11.9%−$37.0M−212.1%-0.10−$3.2B
Q3'23$5.3B−12.2%$731.0M2.26−$993.0M
Q2'23$4.7B−14.0%$833.0M2.56−$192.0M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+1.7%+5.2%
Operating cash flow+48.6%+48.6%
Free cash flow
EPS (diluted)
Equity+9.6%−0.2%
LT debt+17.5%
Diluted shares−1.5%
Stock price+38.8%

$100, 3 years ago

$267vs $176 in SPY

38.8% vs 20.7%/yr

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

19.5%

OCF ÷ (equity + debt)

OCF / EV yield

4.3%

MC vs 10× OCF

2.23

≤1 = priced under 10× OCF

Debt / FCF

5.6y

SBC / FCF

29.9%

Owner earnings

$903.0M

OCF − capex − SBC

OE yield

1.0%

Share count 5y

per year; negative = buybacks

Capital intensity

99.2%

net PP&E ÷ revenue

Sales efficiency

$0.53

new PP&E per $1 new revenue, 5y

Checklist

11 of 22 checks pass · 50%. Checks with structurally missing inputs are excluded.

Growth & Consistency

2/5

  • Revenue growth

    5.2% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    · 5y CAGR ≥ 5%

    na
  • Revenue rises consistently

    2 of 5 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    1 of 6 · positive in ≥ 8 of last 10 years

    fail
  • Profitable every year

    4 of 6 · net income > 0 in ≥ 8 of last 10

    fail
  • Cash flow keeps up with sales

    48.6% vs 5.2% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

6/6

  • Net margin

    10.2% · ≥ 8%

    pass
  • Operating margin

    13.6% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    16.0% · ≥ 12%

    pass
  • Cash ROIC

    19.5% · ≥ 12%

    pass
  • FCF margin

    5.7% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $4.2B vs NI $2.3B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/5

  • Debt payable from cash flow

    5.6y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    50% · cash ≥ 50% of LT debt

    pass
  • Leverage

    0.50 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $14.5B · equity > 0 and grew over ~5y

    fail
  • Interest burden

    17% · interest ≤ 15% of operating income

    fail

Capital Allocation

1/3

  • Share count flat or shrinking

    · ≤ +0.5%/yr over ~5y

    na
  • Stock comp restrained

    30% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    69% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    3 of 6 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

0/3

  • FCF yield

    1.4% · ≥ 3%

    fail
  • Earnings multiple

    40.8 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    · implied FCF growth ≤ historical FCF CAGR

    na
  • Shareholder yield

    0.9% · dividends + buybacks ≥ 2% of market cap

    fail

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202522,6633,0862,3197.404,2372,9491,2884864003853,6417,25014,517314
202418,9644,3523,74911.89-2,4642,565-5,0294449993323,0227,38413,166315
202320,8411,6101,6235.01-5,3012,422-7,7233669921783687,49610,925324
202221,571495-160-0.49-2,3531,689-4,04218501164224,46611,018329
202117,254-346-2050.00-1,3381,329-2,66700475044,57511,2190
202017,6032565890.005841,747-1,16302722614,6760

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.