DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUK - US26441C2044 - Common Stock
117.43 USD
-0.28 (-0.24%)
117.29 USD
-0.14 (-0.12%)
DUK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. DUK scores excellent on profitability, but there are concerns on its financial health. DUK is quite expensive at the moment. It does show a decent growth rate. DUK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- DUK had positive earnings in the past year.
- In the past year DUK had a positive cash flow from operations.
- In the past 5 years DUK has always been profitable.
- Each year in the past 5 years DUK had a positive operating cash flow.
1.2 Ratios
- DUK has a Return On Assets of 2.57%. This is comparable to the rest of the industry: DUK outperforms 43.48% of its industry peers.
- DUK's Return On Equity of 9.59% is in line compared to the rest of the industry. DUK outperforms 43.48% of its industry peers.
- DUK has a Return On Invested Capital (4.38%) which is comparable to the rest of the industry.
- DUK had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 4.58%.
- The 3 year average ROIC (3.87%) for DUK is below the current ROIC(4.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 9.59% | ||
| ROIC | 4.38% |
ROA(3y)1.76%
ROA(5y)1.66%
ROE(3y)6.44%
ROE(5y)5.93%
ROIC(3y)3.87%
ROIC(5y)3.68%
1.3 Margins
- DUK's Profit Margin of 15.58% is amongst the best of the industry. DUK outperforms 80.43% of its industry peers.
- In the last couple of years the Profit Margin of DUK has remained more or less at the same level.
- DUK has a better Operating Margin (27.12%) than 91.30% of its industry peers.
- In the last couple of years the Operating Margin of DUK has grown nicely.
- Looking at the Gross Margin, with a value of 71.28%, DUK is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
- DUK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.12% | ||
| PM (TTM) | 15.58% | ||
| GM | 71.28% |
OM growth 3Y3.31%
OM growth 5Y2.83%
PM growth 3Y-2.07%
PM growth 5Y-0.38%
GM growth 3Y-1.86%
GM growth 5Y-0.71%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DUK is destroying value.
- DUK has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for DUK has been increased compared to 5 years ago.
- DUK has a worse debt/assets ratio than last year.
2.2 Solvency
- DUK has an Altman-Z score of 0.69. This is a bad value and indicates that DUK is not financially healthy and even has some risk of bankruptcy.
- DUK has a worse Altman-Z score (0.69) than 65.22% of its industry peers.
- DUK has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- DUK has a Debt to Equity ratio (1.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.69
WACC6.38%
2.3 Liquidity
- DUK has a Current Ratio of 0.63. This is a bad value and indicates that DUK is not financially healthy enough and could expect problems in meeting its short term obligations.
- DUK's Current ratio of 0.63 is on the low side compared to the rest of the industry. DUK is outperformed by 84.78% of its industry peers.
- A Quick Ratio of 0.40 indicates that DUK may have some problems paying its short term obligations.
- DUK has a worse Quick ratio (0.40) than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- DUK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.70%, which is quite good.
- Measured over the past 5 years, DUK shows a small growth in Earnings Per Share. The EPS has been growing by 3.12% on average per year.
- DUK shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
- DUK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.89% yearly.
EPS 1Y (TTM)12.7%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%11.73%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%4.76%
3.2 Future
- Based on estimates for the next years, DUK will show a small growth in Earnings Per Share. The EPS will grow by 6.84% on average per year.
- The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y8.11%
EPS Next 2Y7.26%
EPS Next 3Y7.06%
EPS Next 5Y6.84%
Revenue Next Year4.83%
Revenue Next 2Y4.27%
Revenue Next 3Y4.22%
Revenue Next 5Y4.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.12 indicates a rather expensive valuation of DUK.
- The rest of the industry has a similar Price/Earnings ratio as DUK.
- When comparing the Price/Earnings ratio of DUK to the average of the S&P500 Index (27.21), we can say DUK is valued slightly cheaper.
- DUK is valuated rather expensively with a Price/Forward Earnings ratio of 17.30.
- DUK's Price/Forward Earnings ratio is in line with the industry average.
- DUK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DUK may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)5.81
EPS Next 2Y7.26%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
- DUK has a Yearly Dividend Yield of 3.62%.
- DUK's Dividend Yield is a higher than the industry average which is at 2.93.
- DUK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
- The dividend of DUK has a limited annual growth rate of 2.59%.
- DUK has been paying a dividend for at least 10 years, so it has a reliable track record.
- DUK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- DUK pays out 66.01% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of DUK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.01%
EPS Next 2Y7.26%
EPS Next 3Y7.06%
DUKE ENERGY CORP / DUK FAQ
Can you provide the ChartMill fundamental rating for DUKE ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to DUK.
What is the valuation status of DUKE ENERGY CORP (DUK) stock?
ChartMill assigns a valuation rating of 2 / 10 to DUKE ENERGY CORP (DUK). This can be considered as Overvalued.
Can you provide the profitability details for DUKE ENERGY CORP?
DUKE ENERGY CORP (DUK) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DUKE ENERGY CORP (DUK) stock?
The Price/Earnings (PE) ratio for DUKE ENERGY CORP (DUK) is 18.12 and the Price/Book (PB) ratio is 1.77.
How financially healthy is DUKE ENERGY CORP?
The financial health rating of DUKE ENERGY CORP (DUK) is 0 / 10.