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 4 out of 10 in our fundamental rating. DUK was compared to 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of DUK while its profitability can be described as average. DUK has a decent growth rate and is not valued too expensively. 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.
DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.36%, DUK is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
DUK has a Return On Equity (8.78%) which is in line with its industry peers.
The Return On Invested Capital of DUK (4.18%) is better than 67.57% of its industry peers.
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 4.62%.
The last Return On Invested Capital (4.18%) for DUK is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.78% | ||
| ROIC | 4.18% |
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 14.50% is in line compared to the rest of the industry. DUK outperforms 59.46% of its industry peers.
DUK's Profit Margin has been stable in the last couple of years.
DUK has a Operating Margin of 26.15%. This is in the better half of the industry: DUK outperforms 75.68% of its industry peers.
In the last couple of years the Operating Margin of DUK has grown nicely.
With a Gross Margin value of 67.81%, DUK perfoms like the industry average, outperforming 54.05% 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 | 26.15% | ||
| PM (TTM) | 14.5% | ||
| GM | 67.81% |
OM growth 3Y3.3%
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.
Compared to 5 years ago, DUK has more shares outstanding
Compared to 1 year ago, DUK has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that DUK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.67, DUK is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
DUK has a debt to FCF ratio of 6.86. This is a slightly negative value and a sign of low solvency as DUK would need 6.86 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.86, DUK belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
DUK has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.59, DUK is in line with its industry, outperforming 40.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 6.86 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.65
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.67 indicates that DUK may have some problems paying its short term obligations.
DUK has a Current ratio of 0.67. This is in the lower half of the industry: DUK underperforms 78.38% of its industry peers.
A Quick Ratio of 0.44 indicates that DUK may have some problems paying its short term obligations.
DUK's Quick ratio of 0.44 is on the low side compared to the rest of the industry. DUK is outperformed by 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
DUK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.12%.
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 4.46%.
DUK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.89% yearly.
EPS 1Y (TTM)6.12%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%9.93%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%2.05%
3.2 Future
The Earnings Per Share is expected to grow by 6.94% on average over the next years.
Based on estimates for the next years, DUK will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y8.28%
EPS Next 2Y7.4%
EPS Next 3Y7.29%
EPS Next 5Y6.94%
Revenue Next Year3.59%
Revenue Next 2Y3.39%
Revenue Next 3Y3.18%
Revenue Next 5Y2.76%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.58, DUK is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DUK is on the same level as its industry peers.
DUK is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.09, which indicates a rather expensive current valuation of DUK.
The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
When comparing the Price/Forward Earnings ratio of DUK to the average of the S&P500 Index (22.68), we can say DUK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DUK is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | N/A |
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)2.37
PEG (5Y)6.28
EPS Next 2Y7.4%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, DUK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.53, DUK pays a bit more dividend than its industry peers.
DUK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of DUK has a limited annual growth rate of 3.98%.
DUK has been paying a dividend for at least 10 years, so it has a reliable track record.
DUK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.98%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
DUK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0%
EPS Next 2Y7.4%
EPS Next 3Y7.29%
115.55
+2.39 (+2.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.56%
Inst Owner Change-0.82%
Ins Owners0.12%
Ins Owner Change5.44%
Market Cap89.26B
Analysts74.17
Price Target124.86 (8.06%)
Short Float %1.13%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend4.21
Dividend Growth(5Y)3.98%
DP0%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.27%
Min EPS beat(2)-5.36%
Max EPS beat(2)-1.19%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-5.36%
Max EPS beat(4)14.34%
EPS beat(8)3
Avg EPS beat(8)-0.7%
EPS beat(12)5
Avg EPS beat(12)-0.35%
EPS beat(16)8
Avg EPS beat(16)0.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.18%
Revenue beat(4)3
Avg Revenue beat(4)3.03%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)7.49%
Revenue beat(8)5
Avg Revenue beat(8)2.55%
Revenue beat(12)9
Avg Revenue beat(12)6.82%
Revenue beat(16)9
Avg Revenue beat(16)3.74%
PT rev (1m)-2.28%
PT rev (3m)-0.34%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-5.65%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.94 | ||
| P/FCF | 7.27 | ||
| P/OCF | 7.27 | ||
| P/B | 1.78 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.9
EY5.11%
EPS(NY)6.39
Fwd EY5.53%
FCF(TTM)15.9
FCFY13.76%
OCF(TTM)15.9
OCFY13.76%
SpS39.3
BVpS64.89
TBVpS39.9
PEG (NY)2.37
PEG (5Y)6.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.78% | ||
| ROCE | 4.75% | ||
| ROIC | 4.18% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.72% | ||
| OM | 26.15% | ||
| PM (TTM) | 14.5% | ||
| GM | 67.81% | ||
| FCFM | 40.47% |
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 3Y7.32%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y7.73%
ROICexc growth 5Y3.72%
OM growth 3Y3.3%
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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 6.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 279.06% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.67 |
F-Score5
WACC6.47%
ROIC/WACC0.65
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.12%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%9.93%
EPS Next Y8.28%
EPS Next 2Y7.4%
EPS Next 3Y7.29%
EPS Next 5Y6.94%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%2.05%
Revenue Next Year3.59%
Revenue Next 2Y3.39%
Revenue Next 3Y3.18%
Revenue Next 5Y2.76%
EBIT growth 1Y11.5%
EBIT growth 3Y10.77%
EBIT growth 5Y6.83%
EBIT Next Year87.51%
EBIT Next 3Y28.43%
EBIT Next 5Y22.68%
FCF growth 1Y550.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.36%
OCF growth 3Y14.01%
OCF growth 5Y8.4%