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Constellation Energy Altman Z-Score

: 1.05 (As of Today)
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Warning Sign:

Altman Z-score of 1.05 is in distress zone. This implies bankruptcy possibility in the next two years.

Constellation Energy has a Altman Z-Score of 1.05, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Constellation Energy's Altman Z-Score or its related term are showing as below:

CEG' s Altman Z-Score Range Over the Past 10 Years
Min: 0.89   Med: 0.9   Max: 1.05
Current: 1.05

During the past 4 years, Constellation Energy's highest Altman Z-Score was 1.05. The lowest was 0.89. And the median was 0.90.


Constellation Energy Altman Z-Score Historical Data

The historical data trend for Constellation Energy's Altman Z-Score 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.

* Premium members only.

Constellation Energy Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Altman Z-Score
- - - -

Constellation Energy Quarterly Data
Dec18 Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 0.89 0.91

Competitive Comparison

For the Utilities - Renewable subindustry, Constellation Energy's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Utilities - Independent Power Producers industry and Utilities sector, Constellation Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Constellation Energy's Altman Z-Score falls into.



Constellation Energy Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Constellation Energy's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0488+1.4*-0.0055+3.3*0.0189+0.6*0.7841+1.0*0.4631
=1.05

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $45,333 Mil.
Total Current Assets was $8,090 Mil.
Total Current Liabilities was $5,878 Mil.
Retained Earnings was $-249 Mil.
Pre-Tax Income was -438 + 61 + 160 + 815 = $598 Mil.
Interest Expense was -56 + -56 + -72 + -77 = $-261 Mil.
Revenue was 5465 + 5591 + 5532 + 4405 = $20,993 Mil.
Market Cap (Today) was $26,615 Mil.
Total Liabilities was $33,944 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(8090 - 5878)/45333
=0.0488

X2=Retained Earnings/Total Assets
=-249/45333
=-0.0055

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(598 - -261)/45333
=0.0189

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=26615.011/33944
=0.7841

X5=Revenue/Total Assets
=20993/45333
=0.4631

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Constellation Energy has a Altman Z-Score of 1.05 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Constellation Energy  (NAS:CEG) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Constellation Energy Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Constellation Energy's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Constellation Energy Business Description

Constellation Energy logo
Traded in Other Exchanges
Address
1310 Point Street, Baltimore, MD, USA, 21231
Constellation Energy Corp offers energy solutions. It provides clean energy and sustainable solutions to homes, businesses, the public sector, community aggregations, and a range of wholesale customers (such as municipalities, cooperatives, and other strategics). The company offers comprehensive energy solutions and a variety of pricing options for electric, natural gas, and renewable energy products for companies of any size.
Executives
Hanson Bryan Craig officer: EVP & Chief Generation Officer 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Koehler Michael officer: EVP & Chief Admin Officer 1310 POINT STREET BALTIMORE MD 21231
Bauer Matthew N officer: SVP & Controller 1310 POINT STREET BALTIMORE MD 21231
Barron Kathleen officer: EVP & Chief Strategy Officer 1310 POINT STREET BALTIMORE MD 21231
Dardis David O. officer: EVP & General Counsel 1310 POINT STREET BALTIMORE MD 21231
Eggers Daniel L. officer: EVP & CFO 1310 POINT STREET BALTIMORE MD 21231
Mchugh James officer: EVP & Chief Commercial Officer 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Ashish Khandpur K director 3M COMPANY LEGAL AFFAIRS 3M CENTER ST PAUL MN 55144-1000
Dominguez Joseph director, officer: President & CEO 10 SOUTH DEARBORN STREET CHICAGO IL 60603
Holzrichter Julie director 20 S. WACKER DRIVE CHICAGO IL 60606
De Balmann Yves C director 360 MADISON AVE 20TH FL C/O BREGAL INVESTMENTS NEW YORK NY 10017
Lawless Robert J director C/O CARPENTER TECHNOLOGY CORP 1047 NORTH PARK ROAD WYOMISSING PA 19610
Halverson Bradley M director 100 N.E. ADAMS STREET PEORIA IL 61629
Richardson John M director 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Ferguson Rhonda S director 1400 DOUGLAS ST OMAHA NE 68179
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