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.
