Constellation EnergyMEX:CEG -3.13%74 Gross Margin % is 26.88% as of Mar. 2026, which is 67% above its 10-year median of 16.12. GuruFocus rates MEX:CEG with a GF Score™ of 74/100 and a GF Value™ of MXN4,831.05 (Fairly Valued). The stock has 3 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Constellation Energy ranks worse than 63.77% on this metric.
Constellation Energy had a gross margin of 26.88% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Constellation Energy was 7.80% per year.
Constellation Energy (MEX:CEG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Constellation Energy had a gross margin of 26.88% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Constellation Energy Gross Margin % Related Terms
Constellation Energy Gross Margin % Historical Data
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The historical data trend for Constellation Energy's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CEG vs VST, NRG, TLN: Gross Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Constellation Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Constellation Energy Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Constellation Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Energy's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Constellation Energy (MEX:CEG) has a Gross Margin % of 26.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Constellation Energy and its competitors. This is 67% above median its historical median of 16.12. Over the past decade, Constellation Energy's Gross Margin % has ranged from 8.74 to 25.42. According to the industry distribution chart, Constellation Energy ranks #257 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 63.8%.
Is Constellation Energy's Gross Margin % too high?
Constellation Energy's current Gross Margin % of 26.88% is 67% above median its 10-year median of 16.12. Over the past 10 years, this metric has ranged from a low of 8.74 to a high of 25.42. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Constellation Energy's value of 26.88% is 14.3% below this industry median. Based on the distribution chart, Constellation Energy ranks #257 out of 403 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Constellation Energy has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Constellation Energy's Gross Margin % compare to VST and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Constellation Energy ranks #257 out of 403 companies for Gross Margin %. This places Constellation Energy in the lower half of its industry. The industry median Gross Margin % is 31.35. Constellation Energy's value of 26.88% is 14.3% below this benchmark. Historically, Constellation Energy's own Gross Margin % has ranged from 8.74 to 25.42 over the past decade. While the company's 10-year median is 16.12 vs. the industry median of 31.35, Constellation Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Energy's current Gross Margin % of 26.88% is 14.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Constellation Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Energy's current Gross Margin % is 26.88%, which is 67% above median its own 10-year median of 16.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Energy stock overvalued right now?
Based on GuruFocus' analysis, Constellation Energy (MEX:CEG) is currently considered Fairly Valued. The stock's GF Value™ is MXN4,831.05, compared to a current price of MXN4,582.00 — trading 5.2% below its estimated fair value. The current Gross Margin % is 26.88%, which is 67% above median its 10-year median of 16.12 and 14.3% below the Utilities - Independent Power Producers industry median of 31.35. Constellation Energy's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Constellation Energy (MEX:CEG), the current Gross Margin % is 26.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Constellation Energy (MEX:CEG) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Energy stock appears to be undervalued.
The current stock price of MXN4,582.00 is trading 5.2% below its estimated GF Value™ of MXN4,831.05.
GuruFocus considers Constellation Energy to be Fairly Valued.
Key valuation signals for MEX:CEG:
Gross Margin %: 26.88% (67% above median its 10-year median of 16.12)
GF Value™: MXN4,831.05 vs. price of MXN4,582.00 (5.2% below fair value)
Industry Position: 14.3% below the Utilities - Independent Power Producers median (#257 of 403)
No single metric tells the full story. See the MEX:CEG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Constellation Energy Corp producer of carbon-free energy and a supplier of energy products and services. The company offers generating capacity that includes nuclear, wind, solar, natural gas, and hydroelectric assets. It sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. Its operating segments and reporting units are Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions.
74GF Score
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