Exelon logged a -0.5% change during today's morning session, and is now trading at a price of $41.85 per share.
As of July 2023, the company's 50-day average price was $40.77. Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. Based in Chicago, IL, the large-cap Utilities company has 19,063 full time employees. Exelon has returned a 3.3% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
The Company's Revenues Are Declining:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $34,438 | $33,039 | $17,938 | $19,078 |
| Gross Margins | 30.0% | 28.8% | 39.1% | 42.1% |
| Operating Margins | 12.6% | 8.5% | 15.0% | 17.4% |
| Net Margins | 8.53% | 5.94% | 9.51% | 11.37% |
| Net Income (MM) | $2,936 | $1,963 | $1,706 | $2,170 |
| Net Interest Expense (MM) | -$1,616 | -$1,635 | -$1,289 | -$1,447 |
| Depreciation & Amort. (MM) | -$5,780 | -$6,527 | -$6,434 | -$3,533 |
| Earnings Per Share | $3.01 | $2.01 | $1.74 | $2.26 |
| EPS Growth | n/a | -33.22% | -13.43% | 29.89% |
| Diluted Shares (MM) | 974 | 977 | 980 | 995 |
| Free Cash Flow (MM) | -$589 | -$3,813 | -$4,969 | -$2,277 |
| Capital Expenditures (MM) | -$7,248 | -$8,048 | -$7,981 | -$7,147 |
| Net Current Assets (MM) | -$78,367 | -$81,887 | -$84,261 | -$63,269 |
| Current Ratio | 0.85 | 0.98 | 0.87 | 0.69 |
| Long Term Debt (MM) | $31,719 | $35,483 | $31,139 | $35,662 |
| Net Debt / EBITDA | 3.35 | 3.68 | 3.58 | 5.29 |
Exelon suffers from declining revenues and a flat capital expenditure trend, slimmer gross margins than its peers, and declining EPS growth. The firm's financial statements also exhibit negative and highly variable cash flows and a highly leveraged balance sheet. On the other hand, the company has average operating margins with a positive growth rate working in its favor.
Exelon's Valuation Is in Line With Its Sector Averages:
Exelon has a trailing twelve month P/E ratio of 18.0, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $2.51, the company has a forward P/E ratio of 16.2. The -3.6% compound average growth rate of Exelon's historical and projected earnings per share yields a PEG ratio of -5.06. This indicates that its shares are overvalued.Furthermore, Exelon is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.66 is higher than the sector average of 1.03. The company's shares are currently trading 17.2% above their Graham number.
Exelon Has an Average Rating of Buy:
The 14 analysts following Exelon have set target prices ranging from $39.0 to $48.0 per share, for an average of $45.39 with a buy rating. As of April 2023, the company is trading -10.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Exelon has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 84.9% of the company's shares, and the insider ownership rate stands at 0.2%, suggesting a small amount of insider investors. The largest shareholder is Wellington Management Group, LLP, whose 9% stake in the company is worth $3,924,728,638.
