37
Constellation Energy Group
The company formerly known as Baltimore Gas & Electric has grown far beyond its Maryland roots. While CEO Mayo Shattuck III would probably hate to hear the name “Enron” associated with Constellation, the company does a lot of what the infamous energy trader once hoped to do. As Enron and others collapsed in 2001, the once-sleepy utility dove in, snapping up power plants and customer contracts. It now owns plants from New York to California, including five nuclear units. It services business and residential gas and electricity customers in competition with local utilities in 31 states and three Canadian provinces. And it explores for oil and gas through its Constellation Energy Group subsidiary. A planned $11 billion deal for Florida utility FPL Group fell apart because of regulatory concerns last year. But as the nation’s need for power grows, and building new plants remains a challenge, Shattuck hopes to boost earnings by more than 22% through 2008.
| Overall Grade | A |
|
| Market Data | CEG | |
| Market Value (2/28/2007) |
$14.2 Billion |
|
| Profitability* | 12.3% | B |
| Sales Growth Rate** | 27.0% | A |
| 12-Month Sales | $19.3 Billion |
|
| 12-Month Net Income | $0.8 Billion |
|
| Total Return | Past 12 Months37.3% | Past 36 Months113.7% |
| Economic Sector | Utilities | |
| Industry | Independent Power Producers & Energy Traders | |
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE
