Constellation Energy Corporation (CEG) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Constellation Energy Corporation

Updated on October 25, 2026 · accounts published on August 6, 2026

A utility with margins well above its history

Constellation Energy trades at a P/E of 25.5 over the last 12 months, 23 % above its sector median, with the stock 31 % below its 52-week high.

• Is Constellation Energy expensive or cheap? Constellation Energy's P/E of 25.5 is 23 % above the 20.7 sector median over the last 12 months.
• How is the business doing? Operating margin is 14.7 % over the last 12 months, more than double the 6.6 % average of fiscal 2014-2025.
• How strong is the balance sheet? Net debt is 1.0× EBITDA in fiscal 2025, far below the 5.5× level considered healthy for utilities.
• Is the dividend sustainable with this debt? The fiscal 2025 payout is 21 % of earnings, far below the 80 % ceiling for utilities, but the yield is only 0.6 %.
• What to expect from the next earnings? On November 9, 2026, analysts expect EPS of $3.72; Constellation Energy beat estimates in 6 of the last 8 quarters.

Is Constellation Energy expensive or cheap?

Over the last 12 months Constellation Energy trades at a P/E of 25.5×. That is 23 % above the 20.7× median of 83 sector peers. Its EV/EBITDA is 14.6×. The premium is hard to square with what the business yields: a free cash flow yield of 1.3 % and an earnings yield of 2.3 % are thin for a utility. The stock has fallen 31 % over the last 12 months and sits 31 % below its 52-week high of $382.48, so some of the enthusiasm has already gone. Even so, the multiple still asks investors to pay for more growth than the sector offers.

How is the business doing?

Constellation Energy's operating margin of 14.7 % over the last 12 months is above the 12.1 % of fiscal 2025 and more than double its 6.6 % average across fiscal 2014-2025. The net margin is 11.1 %. Revenue grew 8.3 % year on year, but EPS fell 37.8 % over the same period, so the wider margin has not yet turned into higher earnings per share. Returns on capital are the weak spot: ROIC is 3.4 %, 0.6 points below the 4.0 % sector median, and it has not cleared 10 % in any of the last ten fiscal years.

How strong is the balance sheet?

Net debt was $18.39 per share in fiscal 2025 ($30.36 of debt less $11.97 of cash), equal to 7.0 % of the current share price. At 1.0× EBITDA it sits far below the 5.5× level the sector treats as healthy. Interest is covered 6.0 times, double the 3× minimum. Over the last 12 months, debt to equity of 0.77 and a current ratio of 1.46 point the same way, and a Piotroski score of 7 out of 9 signals solid financial footing. For a utility, this is a light balance sheet.

Is the dividend sustainable with this debt?

Utilities are usually regulated, slow-growing businesses held for reliable dividends. They behave like bonds on steroids, so debt, interest rates and a steady payout matter more than growth. On debt and payout Constellation Energy passes easily: it paid out 21 % of earnings in fiscal 2025 against an 80 % ceiling, and it has raised the dividend per share for three straight years. On the rest it does not fit the mold. Over 2015-2025 the dividend fell 14.7 % a year, against a healthy minimum of 4 % growth, and the yield over the last 12 months is 0.7 %. Its 14.7 % ROE and 32.7 % annual EPS growth (fiscal 2020-2025) both sit above the regulated ranges.

What to expect from the next earnings?

Constellation Energy reports on November 9, 2026, and analysts expect EPS of $3.72 for the quarter. Its record is favorable: it beat EPS estimates in 6 of the last 8 quarters, and on August 6, 2026 it reported $2.55 against $2.29 expected, an 11 % surprise. Expectations for the full year are steady. The 2026 EPS consensus barely moved in the last 30 days, from $12.06 to $12.05 across 11 analysts, while the revenue consensus rose 1.0 %. Of 22 analysts, 16 rate it a buy, 6 a hold and none a sell.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.