DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
NYSE:DUK - New York Stock Exchange, Inc. - US26441C2044 - Common Stock - Currency: USD
Taking everything into account, DUK scores 3 out of 10 in our fundamental rating. DUK was compared to 47 industry peers in the Electric Utilities industry. DUK has a medium profitability rating, but doesn't score so well on its financial health evaluation. DUK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DUK was profitable.
DUK had a positive operating cash flow in the past year.
In the past 5 years DUK has always been profitable.
DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DUK (2.49%) is worse than 65.96% of its industry peers.
Looking at the Return On Equity, with a value of 9.21%, DUK is in line with its industry, outperforming 44.68% of the companies in the same industry.
DUK has a Return On Invested Capital of 4.31%. This is comparable to the rest of the industry: DUK outperforms 53.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DUK is significantly below the industry average of 38.54%.
The last Return On Invested Capital (4.31%) for DUK is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.21% | ||
| ROIC | 4.31% |
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 has a Profit Margin of 15.09%. This is in the better half of the industry: DUK outperforms 61.70% of its industry peers.
In the last couple of years the Profit Margin of DUK has remained more or less at the same level.
The Operating Margin of DUK (26.91%) is better than 85.11% of its industry peers.
DUK's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 68.72%, DUK is doing good in the industry, outperforming 61.70% of the companies in the same industry.
In the last couple of years the Gross Margin of DUK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.91% | ||
| PM (TTM) | 15.09% | ||
| GM | 68.72% |
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
DUK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for DUK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that DUK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.72, DUK is doing worse than 63.83% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that DUK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.62, DUK is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.67
WACC6.44%
2.3 Liquidity
A Current Ratio of 0.77 indicates that DUK may have some problems paying its short term obligations.
DUK has a Current ratio of 0.77. This is in the lower half of the industry: DUK underperforms 68.09% of its industry peers.
DUK has a Quick Ratio of 0.77. 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 Quick ratio of 0.50 is on the low side compared to the rest of the industry. DUK is outperformed by 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past year.
The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
DUK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.02%.
Measured over the past years, DUK shows a small growth in Revenue. The Revenue has been growing by 3.89% on average per year.
EPS 1Y (TTM)7.24%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%22.22%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%7.53%
3.2 Future
DUK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y8.17%
EPS Next 2Y7.19%
EPS Next 3Y6.99%
EPS Next 5Y6.89%
Revenue Next Year4.53%
Revenue Next 2Y4.09%
Revenue Next 3Y4.05%
Revenue Next 5Y4.5%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.88, which indicates a rather expensive current valuation of DUK.
DUK's Price/Earnings ratio is in line with the industry average.
DUK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.33 indicates a rather expensive valuation of DUK.
DUK's Price/Forward Earnings is on the same level as the industry average.
DUK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
DUK's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DUK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)6.05
EPS Next 2Y7.19%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
DUK has a Yearly Dividend Yield of 3.56%.
Compared to an average industry Dividend Yield of 3.63, DUK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, DUK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
68.77% of the earnings are spent on dividend by DUK. This is not a sustainable payout ratio.
DUK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.77%
EPS Next 2Y7.19%
EPS Next 3Y6.99%
117.46
-0.71 (-0.6%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners68.73%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change7.92%
Market Cap91.30B
Analysts72.8
Price Target129.48 (10.23%)
Short Float %1.47%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend4.15
Dividend Growth(5Y)2.59%
DP68.77%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.75%
Min EPS beat(2)-1.19%
Max EPS beat(2)8.68%
EPS beat(4)2
Avg EPS beat(4)4.12%
Min EPS beat(4)-5.36%
Max EPS beat(4)14.34%
EPS beat(8)4
Avg EPS beat(8)1.11%
EPS beat(12)6
Avg EPS beat(12)0.61%
EPS beat(16)8
Avg EPS beat(16)0.57%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)2.14%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)7.49%
Revenue beat(8)5
Avg Revenue beat(8)1.5%
Revenue beat(12)9
Avg Revenue beat(12)6.18%
Revenue beat(16)10
Avg Revenue beat(16)3.93%
PT rev (1m)2.41%
PT rev (3m)2%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | 7.59 | ||
| P/B | 1.8 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)6.22
EY5.3%
EPS(NY)6.78
Fwd EY5.77%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)15.48
OCFY13.18%
SpS39.8
BVpS65.19
TBVpS40.36
PEG (NY)2.31
PEG (5Y)6.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.21% | ||
| ROCE | 4.87% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.86% | ||
| OM | 26.91% | ||
| PM (TTM) | 15.09% | ||
| GM | 68.72% | ||
| FCFM | N/A |
ROA(3y)1.76%
ROA(5y)1.66%
ROE(3y)6.44%
ROE(5y)5.93%
ROIC(3y)3.87%
ROIC(5y)3.68%
ROICexc(3y)3.88%
ROICexc(5y)3.68%
ROICexgc(3y)4.39%
ROICexgc(5y)4.19%
ROCE(3y)4.42%
ROCE(5y)4.19%
ROICexcg growth 3Y7.33%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y7.73%
ROICexc growth 5Y3.73%
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%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.52 | ||
| Cap/Depr | 185.83% | ||
| Cap/Sales | 39.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.72 |
F-Score7
WACC6.44%
ROIC/WACC0.67
Cap/Depr(3y)197.67%
Cap/Depr(5y)189.03%
Cap/Sales(3y)41.11%
Cap/Sales(5y)40.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.24%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%22.22%
EPS Next Y8.17%
EPS Next 2Y7.19%
EPS Next 3Y6.99%
EPS Next 5Y6.89%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%7.53%
Revenue Next Year4.53%
Revenue Next 2Y4.09%
Revenue Next 3Y4.05%
Revenue Next 5Y4.5%
EBIT growth 1Y12.56%
EBIT growth 3Y10.78%
EBIT growth 5Y6.83%
EBIT Next Year86.44%
EBIT Next 3Y29.23%
EBIT Next 5Y21.1%
FCF growth 1Y97.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.27%
OCF growth 3Y14.14%
OCF growth 5Y8.47%