Exelon Corporation is at the forefront of transforming how we experience energy, seamlessly integrating renewable resources into everyday life. With a robust portfolio that includes nuclear, wind, and solar generation, Exelon not only leads the regulated electric industry but also sets the standard for innovation and sustainability. As it navigates the evolving energy landscape, one must consider whether Exelon’s solid fundamentals and market position continue to justify its current valuation and growth trajectory.
Table of contents
Company Description
Exelon Corporation (ticker: EXC), founded in 1999 and headquartered in Chicago, Illinois, is a prominent player in the regulated electric utility sector, operating primarily in the United States and Canada. The company’s diversified portfolio includes nuclear, fossil, wind, hydroelectric, biomass, and solar energy generation facilities. Exelon’s core activities encompass energy generation, delivery, and marketing, as well as the sale of natural gas and renewable energy products. With approximately 20,000 employees, it serves a wide range of customers, including utilities, municipalities, and residential clients. As a leader in the utility space, Exelon is strategically positioned to shape the industry through its commitment to sustainable energy solutions and innovation in energy services.
Fundamental Analysis
In this section, I will analyze Exelon Corporation’s income statement, financial ratios, and dividend payout policy to provide insights into its financial health.
Income Statement
The following table provides a comprehensive overview of Exelon Corporation’s income statement for the past five years, highlighting key financial metrics that can inform investment decisions.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 33B | 18B | 19.1B | 21.7B | 23.0B |
| Cost of Revenue | 23.5B | 10.9B | 11.0B | 12.8B | 13.6B |
| Operating Expenses | 6.7B | 4.3B | 4.7B | 4.9B | 5.1B |
| Gross Profit | 9.5B | 7.0B | 8.0B | 8.9B | 9.4B |
| EBITDA | 10.5B | 9.4B | 7.2B | 7.9B | 8.2B |
| EBIT | 3.9B | 2.9B | 3.8B | 4.4B | 4.6B |
| Interest Expense | 1.6B | 1.3B | 1.4B | 1.7B | 1.9B |
| Net Income | 1.9B | 1.7B | 2.2B | 2.3B | 2.5B |
| EPS | 2.01 | 1.74 | 2.2 | 2.34 | 2.45 |
| Filing Date | 2021-02-24 | 2022-02-25 | 2023-02-14 | 2024-02-21 | 2025-02-12 |
Over the past five years, Exelon Corporation has demonstrated a consistent upward trend in both Revenue and Net Income, with 2024 marking a significant increase in revenue to 23B, up from 21.7B in 2023. This growth reflects a robust demand for energy solutions amidst shifting market dynamics. The Gross Profit margin has remained relatively stable, averaging around 41%, indicating efficient cost management. In 2024, Net Income rose to 2.5B, showing a healthy growth trajectory, although the pace of growth has slightly slowed compared to previous years. This performance suggests a resilient business model that investors may find appealing, but I advise monitoring operational expenses and interest costs closely to mitigate financial risk.
Financial Ratios
The following table summarizes the key financial ratios for Exelon Corporation (EXC) over the last five fiscal years.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 5.94% | 9.51% | 11.37% | 10.71% | 10.68% |
| ROE | N/A | N/A | N/A | N/A | N/A |
| ROIC | N/A | N/A | N/A | N/A | N/A |
| P/E | 14.97 | 23.64 | 19.64 | 15.36 | 15.35 |
| P/B | 0.90 | 1.17 | 1.72 | 1.39 | 1.40 |
| Current Ratio | 0.98 | 0.87 | 0.69 | 0.82 | 0.87 |
| Quick Ratio | 0.85 | 0.83 | 0.62 | 0.74 | 0.78 |
| D/E | 1.21 | 1.00 | 1.62 | 1.71 | 1.73 |
| Debt-to-Assets | 30.42% | 25.97% | 42.00% | 43.21% | 43.28% |
| Interest Coverage | 1.73 | 2.08 | 2.29 | 2.33 | 2.26 |
| Asset Turnover | 0.26 | 0.13 | 0.20 | 0.21 | 0.21 |
| Fixed Asset Turnover | 0.40 | 0.28 | 0.28 | 0.30 | 0.29 |
| Dividend Yield | 5.08% | 3.71% | 3.13% | 4.01% | 4.04% |
Interpretation of Financial Ratios
In the most recent fiscal year (2024), Exelon demonstrates a stable net margin of 10.68%, indicating consistent profitability. However, the current and quick ratios below 1 suggest potential liquidity issues, raising concerns about short-term obligations. The P/E ratio is reasonable, reflecting a fair market valuation, while the debt ratios indicate a high reliance on leverage, which could pose risks in adverse market conditions.
Evolution of Financial Ratios
Over the last five years, Exelon’s financial ratios show a mixed trend. While profitability and P/E ratios have stabilized, liquidity ratios have declined, highlighting a potential risk in managing short-term liabilities. The increasing debt-to-assets ratio could also signal growing financial leverage, which warrants caution for investors.
Distribution Policy
Exelon Corporation (EXC) maintains an active dividend policy, with a current annual dividend yield of approximately 4.04% and a payout ratio of 62%. Over the past few years, the dividend per share has shown a consistent upward trend, indicating a commitment to returning value to shareholders. However, the company faces potential risks, such as reliance on free cash flow, which has been negative, raising concerns about sustainability. Overall, while Exelon’s distribution supports shareholder value, prudent monitoring of cash flow and debt levels is essential for long-term stability.
Sector Analysis
Exelon Corporation operates in the regulated electric utility sector, focusing on diverse energy generation and delivery through nuclear, renewable, and fossil sources, amidst strong competition.
Strategic Positioning
Exelon Corporation (EXC) holds a significant position in the regulated electric utility sector, boasting a market capitalization of approximately $46.42B. With a diverse portfolio that includes nuclear, fossil, wind, hydroelectric, biomass, and solar energy sources, Exelon is well-positioned against competitive pressures from both traditional utilities and emerging renewable energy firms. The company’s strategic focus on energy generation and delivery allows it to adapt to technological disruptions, particularly in renewable energy and smart grid technologies. As a result, Exelon maintains a robust market share, serving a wide range of customers across the U.S. and Canada.
Revenue by Segment
The chart below illustrates Exelon Corporation’s revenue distribution across various segments for the fiscal year ending December 31, 2024.
In 2024, Exelon displayed robust performance with significant contributions from its segments. The Commonwealth Edison Co led with $8.22B, followed by Baltimore Gas and Electric Company at $4.43B. Notably, Pepco Holdings LLC also represented a substantial portion of the revenue at $6.45B. Overall, the utility segment continues to drive the business, although the growth rate has moderated from previous years, indicating potential margin pressures. The Corporate Segment and Other Operating Segment, while comparatively smaller at $438M, reflects the company’s strategic focus on optimizing its operational efficiency.
Key Products
Exelon Corporation offers a diverse range of products and services within the energy sector. Below is a table summarizing some of their key offerings:
| Product | Description |
|---|---|
| Nuclear Energy | Exelon operates several nuclear power plants, providing a significant portion of its electricity generation. |
| Renewable Energy | The company invests in wind, solar, and biomass energy, contributing to a sustainable energy portfolio. |
| Electricity Retail | Exelon sells electricity to both wholesale and retail customers, catering to a wide range of energy needs. |
| Natural Gas | The company is involved in the purchase and regulated sale of natural gas, enhancing its energy offerings. |
| Support Services | Exelon provides various support services including legal, HR, IT, and financial services to optimize operations for clients. |
This diverse portfolio positions Exelon as a significant player in the regulated electric industry, serving various customer segments across the U.S. and Canada.
Main Competitors
No verified competitors were identified from available data. Exelon Corporation (ticker: EXC) operates within the regulated electric sector, primarily in the United States and Canada. The company has a significant market presence, providing a diverse range of energy services including electricity generation and delivery, with a notable market share in the utility services industry.
Competitive Advantages
Exelon Corporation (EXC) boasts a diverse portfolio of energy generation, including nuclear, wind, and solar, positioning it favorably in the evolving energy landscape. With a market cap of $46.42B and a stable beta of 0.553, the company demonstrates resilience against market volatility. Looking ahead, Exelon is well-poised to capitalize on the transition to renewable energy, expanding its market share through innovative products and services. Opportunities in energy storage and smart grid technology could further enhance its competitive edge, ensuring sustainable growth in the years to come.
SWOT Analysis
This SWOT analysis assesses Exelon Corporation’s internal strengths and weaknesses alongside external opportunities and threats to inform strategic decisions.
Strengths
- Strong market position
- Diverse energy portfolio
- Stable dividend yield
Weaknesses
- High capital expenditure
- Regulatory challenges
- Vulnerability to commodity prices
Opportunities
- Growing demand for renewable energy
- Expansion in energy storage
- Technological advancements
Threats
- Intense competition
- Regulatory changes
- Economic downturn risks
Overall, Exelon Corporation’s strengths and opportunities suggest a solid position for growth, particularly in the renewable sector. However, the company must navigate its weaknesses and external threats carefully to sustain its competitive advantage and financial stability.
Stock Analysis
Over the past year, Exelon Corporation (ticker: EXC) has experienced significant price movements, culminating in a bullish trend characterized by a remarkable increase in stock value.
Trend Analysis
Examining the price change over the past 12 months, EXC has seen a percentage increase of 30.29%. This strong upward trajectory confirms a bullish trend, supported by a notable acceleration in price movement. The stock recorded a highest price of 48.04 and a lowest price of 33.84, indicating a volatility of 3.9. The recent trend from August 31, 2025, to November 16, 2025, shows a price change of 5.17%, further solidifying the bullish outlook with an upward slope of 0.37.
Volume Analysis
In the last three months, the average trading volume for EXC was approximately 32.60M shares, with an average buy volume of 20.12M and sell volume of 12.48M. This activity appears buyer-driven, as evidenced by the high proportion of buy volume, which stands at 61.72%. The volume trend is also bullish, with an acceleration noted in the trading activity, suggesting strong investor sentiment and increased market participation.
Analyst Opinions
Recent recommendations for Exelon Corporation (EXC) indicate a consensus of “buy” for 2025. Analysts, including those from reputable firms, have given EXC a B+ rating, highlighting strong discounted cash flow and return on assets scores. The positive outlook is supported by a robust operational performance and strategic positioning within the energy sector. However, the debt-to-equity score of 1 suggests some caution regarding financial leverage. Overall, the sentiment leans towards optimism, reflecting confidence in Exelon’s growth potential amid industry challenges.
Stock Grades
The latest stock ratings for Exelon Corporation (EXC) reveal a consistent outlook from notable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-10-22 |
| Keybanc | Maintain | Underweight | 2025-10-15 |
| Jefferies | Maintain | Buy | 2025-10-15 |
| Barclays | Maintain | Overweight | 2025-10-14 |
| UBS | Maintain | Neutral | 2025-10-10 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Keybanc | Maintain | Underweight | 2025-07-16 |
| UBS | Maintain | Neutral | 2025-07-11 |
| UBS | Maintain | Neutral | 2025-06-02 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-22 |
Overall, the trend in grades for EXC indicates a stable sentiment among analysts, with several maintaining their previous ratings. Notably, Jefferies has a “Buy” rating, while others like Keybanc continue to express caution with an “Underweight” grade.
Target Prices
The current consensus target prices for Exelon Corporation (EXC) indicate a balanced outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 57 | 42 | 51.83 |
Overall, analysts expect Exelon’s stock to reach around $51.83, suggesting a moderate growth potential within the specified range.
Consumer Opinions
Consumer sentiment surrounding Exelon Corporation (ticker: EXC) reveals a mix of satisfaction and concerns, reflecting the diverse experiences of its customers.
| Positive Reviews | Negative Reviews |
|---|---|
| “Reliable service with minimal outages.” | “Customer service is often unresponsive.” |
| “Great commitment to sustainability.” | “High bills compared to competitors.” |
| “Innovative energy solutions.” | “Billing errors have occurred frequently.” |
Overall, consumer feedback indicates that while Exelon is praised for its reliability and sustainability efforts, there are notable concerns regarding customer service and billing accuracy.
Risk Analysis
In evaluating Exelon Corporation (EXC), it is crucial to consider various risks that could affect its performance and investment potential. Below is a summary of key risks associated with Exelon.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory Risk | Changes in energy regulations could affect operations. | High | High |
| Market Fluctuations | Volatility in energy prices can impact revenue. | Medium | High |
| Cybersecurity | Threats to digital infrastructure may disrupt services. | High | Medium |
| Environmental | Compliance with environmental laws can incur costs. | Medium | Medium |
| Operational | Aging infrastructure may lead to increased downtime. | Medium | High |
Synthesizing the risks, regulatory changes and cybersecurity threats stand out as the most likely and impactful, particularly given the increasing focus on energy reform and the rise in cyber threats across industries.
Should You Buy Exelon Corporation?
Exelon Corporation (EXC) boasts a solid net profit margin of 10.68% and a favorable return on invested capital (ROIC) of 8.58%, surpassing its weighted average cost of capital (WACC) of 5.02%. The company benefits from stable operations in the utility sector, but faces challenges such as regulatory scrutiny and competitive pressures.
Given the positive net margin, ROIC exceeding WACC, and a bullish long-term trend alongside strong buyer volumes, I consider Exelon a favorable addition for long-term investors. However, caution is warranted due to the risks associated with competition and regulatory changes in the utility industry.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- KBC Group NV Purchases 42,080 Shares of Exelon Corporation $EXC – MarketBeat (Nov 16, 2025)
- Mitsubishi UFJ Trust & Banking Corp Decreases Position in Exelon Corporation $EXC – MarketBeat (Nov 16, 2025)
- Exelon Corporation (EXC) Price Target Raised by $4 at Morgan Stanley – Yahoo Finance (Oct 24, 2025)
- Police & Firemen s Retirement System of New Jersey Purchases 8,011 Shares of Exelon Corporation $EXC – MarketBeat (Nov 16, 2025)
- Commonwealth of Pennsylvania Public School Empls Retrmt SYS Boosts Holdings in Exelon Corporation $EXC – MarketBeat (Nov 16, 2025)
For more information about Exelon Corporation, please visit the official website: exeloncorp.com
