Constellation Energy Corp Stock Beneish M Score

CEG Stock  USD 249.89  1.95  0.77%   
This module uses fundamental data of Constellation Energy to approximate the value of its Beneish M Score. Constellation Energy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Constellation Energy Piotroski F Score and Constellation Energy Altman Z Score analysis.
  
At this time, Constellation Energy's Short Term Debt is most likely to decrease significantly in the upcoming years. The Constellation Energy's current Debt To Assets is estimated to increase to 0.20, while Long Term Debt is projected to decrease to roughly 6.1 B. At this time, Constellation Energy's Book Value Per Share is most likely to drop in the upcoming years. The Constellation Energy's current Capex To Depreciation is estimated to increase to 0.97, while Days Sales Outstanding is projected to decrease to 39.06.
At this time, it appears that Constellation Energy Corp is a possible manipulator. The earnings manipulation may begin if Constellation Energy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Constellation Energy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Constellation Energy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.0
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.17

Focus
Asset Quality

1.15

Focus
Expense Coverage

1.32

Focus
Gross Margin Strengs

0.86

Focus
Accruals Factor

1.32

Focus
Depreciation Resistance

0.75

Focus
Net Sales Growth

0.84

Focus
Financial Leverage Condition

1.01

Focus

Constellation Energy Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Constellation Energy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables2.8 B2.9 B
Fairly Down
Slightly volatile
Total Revenue21 B24.9 B
Fairly Down
Slightly volatile
Total Assets51.3 B50.8 B
Slightly Up
Slightly volatile
Total Current AssetsB8.3 B
Sufficiently Down
Slightly volatile
Non Current Assets Total32.5 B42.5 B
Way Down
Slightly volatile
Property Plant Equipment16.6 B17.8 B
Significantly Down
Slightly volatile
Depreciation And Amortization3.3 B2.5 B
Significantly Up
Pretty Stable
Total Current Liabilities6.2 B6.3 B
Fairly Down
Slightly volatile
Non Current Liabilities Total18.3 B33.2 B
Way Down
Slightly volatile
Short Term Debt1.8 B1.8 B
Slightly Up
Slightly volatile
Long Term Debt6.1 B7.5 B
Significantly Down
Slightly volatile
Long Term Investments16.6 B17 B
Fairly Down
Slightly volatile
Gross Profit Margin0.190.2202
Fairly Down
Pretty Stable

Constellation Energy Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Constellation Energy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Constellation Energy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Constellation Energy's degree of accounting gimmicks and manipulations.

About Constellation Energy Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

19.62 Billion

At this time, Constellation Energy's Other Operating Expenses is most likely to increase significantly in the upcoming years.

Constellation Energy Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Constellation Energy. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables3.7B1.8B2.4B3.3B2.9B2.8B
Total Revenue18.9B17.6B19.6B24.4B24.9B21.0B
Total Assets49.0B48.1B48.1B46.9B50.8B51.3B
Total Current Assets7.1B6.9B8.0B9.4B8.3B8.0B
Net Debt8.0B7.0B7.7B5.3B8.8B9.2B
Operating Income2.3B1.2B(177M)(292M)1.6B1.0B
Investments(1.9B)2.0B3.3B4.7B3.0B1.6B

Constellation Energy ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Constellation Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Constellation Energy's managers, analysts, and investors.
Environmental
Governance
Social

About Constellation Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Constellation Energy Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Constellation Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Constellation Energy Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Constellation Energy Corp is a strong investment it is important to analyze Constellation Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Constellation Energy's future performance. For an informed investment choice regarding Constellation Stock, refer to the following important reports:
Check out Constellation Energy Piotroski F Score and Constellation Energy Altman Z Score analysis.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Constellation Energy. If investors know Constellation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Constellation Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.69
Dividend Share
1.34
Earnings Share
9.07
Revenue Per Share
75.832
Quarterly Revenue Growth
0.072
The market value of Constellation Energy Corp is measured differently than its book value, which is the value of Constellation that is recorded on the company's balance sheet. Investors also form their own opinion of Constellation Energy's value that differs from its market value or its book value, called intrinsic value, which is Constellation Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Constellation Energy's market value can be influenced by many factors that don't directly affect Constellation Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Constellation Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Constellation Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Constellation Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.