Stock analysis/Share presentation ⬇️
Today we are talking about the company Exelon: $EXC (+1 %)
What is and makes the Exelon at all: 🤔
The energy company Exelon is an American Fortune 100 holding company of the two energy companies Commonwealth Edison Company and PECO Energy Company. Exelon is the largest parent electric company in the United States by revenue, the largest regulated electric utility in the United States with approximately 10 million customers, and was formerly the largest operator of nuclear power plants in the United States and the largest non-government operator of nuclear power plants in the world.
Exelon produces, transports, distributes and sells electricity primarily in regional markets in the states of Illinois, Texas, Maryland and Pennsylvania.
What is the breakdown of Exelon's net sales:
Net sales are distributed among the various activities as follows:
- Distribution and transmission of electricity (88.6%)
- Distribution of natural gas (10.6%)
- Other (0.8%)
When was Exelon founded?
Exelon was founded in 2000. A merger of PECO Energy and Unicom created Exelon. Unicom was headquartered in Chicago, so the city became the home of the new company.
The company's current headquarters are located in Chicago, Illinois.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, Exelon has a total of over 19,000 employees.
P/E RATIO:
Expedia has a current P/E ratio of just under 20.8, which in my opinion is currently not really high, but not really low either.
Market capitalization: 🏦
Currently, Exelon has a market capitalization of around 39.15 billion euros.
Dividend yield: 💰
The company pays its shareholders a nice dividend of currently over 3.3% per share. This dividend is paid to shareholders on a quarterly basis. This dividend is paid in March, June, September and December.
Strengths of the share: 📈
- The company is in the mid-range with a P/E ratio of 20.8
- The majority of analysts following the stock recommend its purchase or consider the stock.
- The predictability on the company's business activity is excellent. The analysts following the company are very close in their estimates of future revenue growth. This low dispersion of estimates makes it possible to confirm both the good predictability of sales in the current year and in subsequent years.
- The company pays its shareholders a nice dividend of over 3.3%.
Weaknesses of the share: 📉.
- In the past, the group has often published results that were below analysts' estimates.
- The expected sales development leads to the conclusion of an average growth rate over the coming fiscal years.
Exelon's business model:
Exelon has three main business segments.
The largest business unit is Power Supply. Over 60% of the electricity generated comes from nuclear power and around 20% is derived from gas. Electricity generation, which is the sale of electricity, generates about 65% of revenues.
Exelon is also one of the largest distributors of renewable electricity in the USA. More than 30% of its power generation comes from renewable energy sources.
The second largest business segment is the transmission of electricity, or the operation of electricity grids. Revenue from this segment comes from fees, which are strictly regulated by the state. Transmission charges cover the cost of transporting electric power from generating facilities through high-voltage transmission lines to distribution substation transformers. Distribution charges recover the cost of transporting electric energy from these transformers through local low-voltage lines that carry electricity to customers' meters. Approximately 21% of Exelon's revenues are derived from this business line.
The third business line is gas supply, which accounts for approximately 12% of sales.
Regionally, Exelon operates exclusively in the United States, with a focus on the states of Illinois, Maryland, and Pennsylvania.
A little more about the industry: 🧐
Exelon is classified in the Utilities industry, specifically Electric Utilities. The industry is generally considered to be non-cyclical, with companies usually being heavily regulated by the state.
The American market currently still relies heavily on fossil fuels. 61% of energy is generated from coal and natural gas. The share of coal and gas in the energy mix has been constant for many years, with more and more fossil gas being used to generate electricity instead of coal. The share of nuclear energy is stable at around 20%. Renewable energies such as solar and wind power, on the other hand, only account for 19% of total electricity generation. Overall, the American energy market is growing by around 0.7% per year.
The moat of incumbents in the utility sector is estimated to be very deep. The construction of new power plants is very capital intensive. In addition, the market is strictly regulated and supply contracts usually have terms of several decades. In addition, the company supplies more than 10 million customers in the USA.
How does the share look from a chart perspective? (US dollar converted into euros) 📈📉
Let's take a look at the chart of this company. The share price is currently around €39. Also at just under 39€, there is a strong resistance above us that has now been approached several times but has not been broken. If this is sustainably taken out, the next target is at 39.80 €. Below us is the first support zone at 37.40 €. If this also does not hold, the next important support zone would be at 36.20€ and directly after that 35.30€ would follow. However, this zone would have to hold very urgently, because after that there would be a lot of room to the bottom. After that, the next support would be at 32€ for the time being. Let's see if we now break through the top or fall again a little lower in the share. Will remain exciting in any case.
What is Exelon's target: 🏁
Exelon's credo is "For a cleaner and better future for our customers and communities."
By its own admission, Exelon believes that reliable, clean and affordable energy is essential for a better, more sustainable future. That's why Exelon is committed to innovation, world-class performance and sees itself as a thought leader in driving progress for their customers.
Your opinion: 🤔🧐
Now I'd love to hear your thoughts on this stock in the comments.
What do you think of Exelon and did you already know this company?
Do you guys maybe already have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I would like to share with you.
