Constellation EnergyMEX:CEG +0.28%74 Interest Coverage is 8.96 as of Mar. 2026, which is 197% above its 10-year median of 3.02. 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 321 Utilities - Independent Power Producers companies, Constellation Energy ranks better than 79.75% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Constellation Energy's
Operating Income
for the
three
months ended in Mar. 2026 was MXN40,862 Mil. Constellation Energy's Interest Expense for the
three
months ended in Mar. 2026 was MXN-4,562 Mil.
Constellation Energy's interest coverage for the quarter that ended in Mar. 2026 was 8.96.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Constellation Energy's Interest Coverage or its related term are showing as below:
MEX:CEG'
s Interest Coverage Range Over the Past 10 Years
Min: 1.19 Med: 3.02 Max: 9.58
Current: 8.14
MEX:CEG's Interest Coverage is ranked better than 79.75% of 321
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.92
vs MEX:CEG: 8.14
Constellation Energy (MEX:CEG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Constellation Energy Interest Coverage Related Terms
Constellation Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Constellation Energy's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:CEG vs VST, NRG, TLN: Interest Coverage Comparison
For the Utilities - Independent Power Producers subindustry, Constellation Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Constellation Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Constellation Energy's Interest Coverage falls into.
Constellation Energy Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Constellation Energy (MEX:CEG) has a Interest Coverage of 8.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Energy and its competitors. This is 197% above median its historical median of 3.02. Over the past decade, Constellation Energy's Interest Coverage has ranged from 1.19 to 9.58. According to the industry distribution chart, Constellation Energy ranks #65 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 20.2%.
Is Constellation Energy's Interest Coverage too high?
Constellation Energy's current Interest Coverage of 8.96 is 197% above median its 10-year median of 3.02. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 9.58. The Utilities - Independent Power Producers industry median Interest Coverage is 2.92. Constellation Energy's value of 8.96 is 206.8% above this industry median. Based on the distribution chart, Constellation Energy ranks #65 out of 321 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. 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 Interest Coverage compare to VST and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Constellation Energy ranks #65 out of 321 companies for Interest Coverage. This places Constellation Energy in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 2.92. Constellation Energy's value of 8.96 is 206.8% above this benchmark. Historically, Constellation Energy's own Interest Coverage has ranged from 1.19 to 9.58 over the past decade. While the company's 10-year median is 3.02 vs. the industry median of 2.92, Constellation Energy has consistently been above 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 Interest Coverage for an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.92, based on 321 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Energy's current Interest Coverage of 8.96 is 206.8% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Energy's current Interest Coverage is 8.96, which is 197% above median its own 10-year median of 3.02. 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 MXN4,730.00 — trading 2.1% below its estimated fair value. The current Interest Coverage is 8.96, which is 197% above median its 10-year median of 3.02 and 206.8% above the Utilities - Independent Power Producers industry median of 2.92. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Constellation Energy (MEX:CEG), the current Interest Coverage is 8.96 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 MXN4,730.00 is trading 2.1% below its estimated GF Value™ of MXN4,831.05.
GuruFocus considers Constellation Energy to be Fairly Valued.
Key valuation signals for MEX:CEG:
Interest Coverage: 8.96 (197% above median its 10-year median of 3.02)
GF Value™: MXN4,831.05 vs. price of MXN4,730.00 (2.1% below fair value)
Industry Position: 206.8% above the Utilities - Independent Power Producers median (#65 of 321)
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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