Why Exelon (EXC) Is Up Today

Tickers in this article: EXC

NEW YORK (TheStreet) -- Exelon  rose 2.05% to $28.90 on Friday after its subsidiary, Constellation, announced that it had added 38 megawatts of on-site solar generation in 2013 in New York, California, Maryland, Arizona and the District of Columbia.

The increase brings Constellation's total solar generation either in operation or under construction to more than 164 megawatts. The subsidiary now has 58 projects and 177 installations in 10 states and the District of Columbia.

TheStreet Ratings team rates Exelon as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate EXELON CORP (EXC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 149.3% when compared to the same quarter one year prior, rising from $296.00 million to $738.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
  • The gross profit margin for EXELON CORP is currently lower than what is desirable, coming in at 28.22%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.35% trails the industry average.
  • EXC has underperformed the S&P 500 Index, declining 7.62% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • You can view the full analysis from the report here: EXC Ratings Report