Expert Insights – Investing in EXC? Here's What You Need to Know.

Exelon logged a 0.1% change during today's evening session, and is now trading at a price of $41.5 per share.

Over the last year, Exelon logged a -4.0% change, with its stock price reaching a high of $47.23 and a low of $35.19. Over the same period, the stock underperformed the S&P 500 index by -14.0%. As of April 2023, the company's 50-day average price was $40.86. 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 offered a 3.3% dividend yield over the last 12 months.

EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:

2020-02-11 2021-02-24 2022-02-25 2023-02-14
Revenue (MM) $34,438 $16,663 $17,938 $19,078
Gross Margins 55.0% 65.7% 64.4% 66.6%
Operating Margins 12.6% 13.1% 15.0% 17.4%
Net Margins 8.53% 11.78% 9.51% 11.37%
Net Income (MM) $2,936 $1,963 $1,706 $2,170
Net Interest Expense (MM) -$1,616 -$1,307 -$1,289 -$1,447
Depreciation & Amort. (MM) -$5,780 -$6,527 -$7,573 -$3,533
Earnings Per Share $2.15 $1.43 $1.74 $2.26
EPS Growth n/a -33.49% 21.68% 29.89%
Diluted Shares (MM) 1,366 1,370 980 995
Free Cash Flow (MM) $13,854 $8,896 $3,584 $11,513
Capital Expenditures (MM) -$7,195 -$4,661 -$572 -$6,643
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 3.89 3.94 3.22 5.83

Exelon has wider gross margins than its peer group, average operating margins with a positive growth rate, and consistent free cash flow. However, Exelon has declining revenues and a flat capital expenditure trend, EPS growth achieved by reducing the number of outstanding shares, and a highly leveraged balance sheet.

Exelon's Valuation Is in Line With Its Sector Averages:

Exelon has a trailing twelve month P/E ratio of 18.1, 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 16.3. The 3.1% compound average growth rate of Exelon's historical and projected earnings per share yields a PEG ratio of 5.75. This suggests that these shares are overvalued. Furthermore, Exelon is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.65 is higher than the sector average of 1.03. The company's shares are currently trading 26.4% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Exelon:

The 14 analysts following Exelon have set target prices ranging from $39.0 to $48.0 per share, for an average of $45.46 with a buy rating. As of April 2023, the company is trading -10.1% 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 1.2% of the company's shares are sold short. Institutions own 85.2% of the company's shares, and the insider ownership rate stands at 0.21%, suggesting a small amount of insider investors. The largest shareholder is Wellington Management Group, LLP, whose 9% stake in the company is worth $3,891,905,482.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.